Leveraging Unstructured Data in Navigating the Capital Markets

Amid COVID 19 driven volatility, retail investors have constituted 25% of the activity in the market. This is a big jump from only 10% in 2019. About 44% of the households in the United States participate in the stock market according to SEC. In Europe, and especially in Germany, the growth of retail investors is also significant, reaching around an estimated 25 million Investment accounts. The higher the participation of Retail Investors, the greater the importance of unstructured data. As sources for information and investment research and decision making vary and spread out, the challenge for making a comprehensive analysis and informed investment decisions becomes more challenging.

 

Social Media platforms like Reddit have proven their capacity to push sizable movements in the market with communities like WallStreetBets creating substantial volatility.

News plus expert or analyst commentary have provided a much faster insight into the market environment than the relevant macroeconomic indicators.

Analysts were also less quick to adjust their price targets at the start of the pandemic but did discuss the challenges at length in unstructured form.

Business to Business price hikes precede Business to Customer price hikes and are discussed in Earnings Calls at length.

 

This demonstrates how such valuable information within unstructured data falls sometimes under the radar. Without the necessary tools, this data may go unrecognised.

AI, Natural Language Processing and Text Analytics techniques open a vast array of possibilities in converting the unstructured data into information to generate valuable insights. We use a number of Techniques to support you in navigating the capital markets by leveraging unstructured data:

Key Phrases: Extract key phrases from large text to generate a summary

Sentiment Analysis: Analyze the sentiment of text based on topics, entities or temporal direction of statements

Temporal Analysis: Identify the temporal direction of the statements to evaluate the relevance

Topic Extraction: Extract statements regarding a topic of interest for your analysis

Q&A – Semantic Search: Ask your text questions and get the most relevant statements to your question shown instead of searching for exact keyword matches

So how can FIs leverage AI, NLP and Text Analytics?
 

Leverage Text Data such as news to forecast macroeconomic indicators

Analyze job listings to get alternative insights on general market conditions or individual company strategy

Analyze sentiment of Analyst Reports regarding challenges

Analyze Social Media unstructured data to identify consumer sentiment

Extract key information from disparate sources of data such as contracts, documents, Emails etc.

Streamline due diligence processes by facilitating faster access to information

Want to know more? Ask our experts!

Our Offering

We continuously ideate, prototype and test different Ideas and Use Cases in the field of AI, NLP & Text Analytics. We already have existing prototypes to serve as a discussion basis for projects with our clients.

Consulting

We accelerate AI Use Case Identification of AI, NLP & Text Analytics use cases for your Financial Institution with Design Thinking. We consult on no code or low code platforms.

Implementation

We prototype, iterate and implement identified AI, NLP & Text Analytics use cases for your Financial Institution with state-of-the-art techniques.

Validation

We offer to validate and challenge your existing AI solutions. Like this, we ensure future value-added of your AI business solution.

LPA is a strong and experienced partner for the successful implementation of your AI project:

AI Know-how

We unite state-of-the art AI expertise combined with a deep knowledge and hands-on experience in the areas of financial products, markets and trading processes.

Banking DNA

We combine many years of hands-on experience with deep banking expertise. For more than 20 years, we have been proving this to our clients every day.

Complementary Expertise

Our team consists of experts from various domains with skills that complement each other in an optimal way. Business analysts, quants, AI specialists, developers, project managers and business experts are all part of our team. This enables us to deliver every part of your project.

Market-proven Software

We develop Software. Our in-house developed software products are major drivers of success for our clients, helping them to create additional value every single day.

Tailor-made Solutions

We develop customized solutions to solve your problems. We rely on existing LPA software or use external technologies – whatever fits your needs. This ensures that we find the optimal solution for your use case.

Contact our Experts

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Your contact person for Unstructured Data

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