Big Data: Asset Management Revolution
In the analysis, three points are crucial. Information about the investments, the definition of the market and the macro themes. By using Big Data, the specialist can process a large amount of data within a very short time and use it to his advantage. There is a safer decision-making process that minimizes the risks. You also get a time advantage. Thus, the professional investor can decide before the competitors, for example, for a single title and bring this on excellent terms in his possession. If the market participants' interest in this stock increases, then the price increases. Now the expert is faced with deciding whether to sell or continue to own it.
The practical application is easily explained. The fund managers create a new product that uses new data sources. The expert has enormous computing power and intelligent software at his disposal. This is easy to use, also provides additional time savings and also increases the efficiency. The manager can then evaluate the results and decide whether to use them for his own purposes. He also sees more trends, which is why he is a pioneer and has fewer competitors.
There are further advantages
By taking advantage of these new digital offerings, there are significant savings for the investment companies. You now need less manpower to do the work, as a computer and its algorithms provide reliable results. Consequently, the profit margin increases and the company can offer its services on better terms. This increases customer interest, which is why the company's earnings are improving. The acquisition and maintenance costs are also low. In addition, there are specialists who take over the maintenance, which is why the companies can concentrate on their core business. Since computers do not need breaks, they work around the clock. At any time they can react to changes in the markets or exchanges. Intelligent programs even take over the trade and are much more responsive than humans. In many cases eyelashes decide whether there are gains or losses.
The user gets an overview in the simplest way and does not have to be proficient in every area. The bandwidth of existing applications is large. There are special programs that analyze buying behavior and show which values are in demand, for example from the retail sector in the future. Other software solutions evaluate weather data and can therefore accurately predict how harvests will turn out. This is important when it comes to the world market price for food.