Businesses need data to make informed decisions, and alternative data sources are becoming increasingly popular. These sources, like social media and satellite imagery, provide unique insights that traditional data sources can’t. For example, hedge funds are interested in alternative data because it can give them an edge over their competitors. However, many of these data sets are not ready to be used by financial firms because they need to be mapped to publicly traded stocks and structured in a certain way. This requires a lot of time and effort, and many firms end up doing the same work over and over again.
That’s where AltHub and Revelate come in. They’ve teamed up to create a solution that makes it easier for alternative data providers to sell their data to the financial services industry.
AltHub works with data providers to make their data enterprise-ready, transform it for machine learning models, and develop investment use cases. This helps everyone in the value chain and makes the process more efficient. AltHub’s platform, called Invisage, helps alternative data providers create data products that are packaged and priced to be sold to the financial services sector. The platform makes it easier for data providers to integrate data from multiple sources and ensure data quality.
For data to benefit institutional investors, it needs to be packaged in a way that’s easy to use. This means the data should be “tickerized” or mapped to publicly traded stocks, and the insights should be fully packaged so that it’s not necessary to merge it with another dataset to use it. For example, geolocation data by itself is not useful, but when combined with a point of interest dataset, it can give insights into how many people visit McDonald’s stores daily. So, data providers need to ensure their data is packaged in a way that makes sense and is ready to be used by financial firms.
Once the data is ready, Revelate’s data marketplace platform provides a suite of data sharing and commercialization capabilities. During a recent webinar, Nicolas Doyen, CPO at Revelate, highlights three main things to remember when making your data products valuable to potential customers. The first is to align your data products to specific use cases and ensure they’re in a state that will be useful to the consumers. The second is to create more minor, more affordable entry points into your data products rather than selling large amounts of data at a high cost, which can be overwhelming for the consumer. And finally, it’s essential to make your data products available and accessible to potential customers in whatever ecosystem they may be using, even if it requires extra effort. Doing these things can better scale your data monetization practice and attract more customers.
During the webinar, Nicolas also emphasized that finding and getting access to valuable data can take a long time and cost a lot of money for companies. And suppose alternative data providers need to make it easier for the procurement teams for hedge funds (as an example) to find and evaluate their data products. In that case, it will take even longer and cost even more. So data providers must give clear and helpful information to make the process faster and more efficient for everyone involved.
Revelate has a framework called the “data acquisition journey,” which describes companies’ processes when looking for data products. In the first two stages of this process, companies need to identify their use case and find data products that are relevant to that use case. Vendors with standardized contracts and pricing are more likely to succeed in this space. By doing so, companies purchasing data can streamline their procurement processes and get access to the data they need more quickly.
Alternative data providers may want to sell their data but need to know where to start. Many of these data providers may already have data products, and they should get creative in distributing and selling them. They could create granular data products focusing on tickers or asset classes to reach new organizations. This requires a different commercial strategy but can lead to success.
Connor Aylwin, Director of Partnerships at Revelate, says the partnership empowers businesses to make better decisions. “By removing the barriers to creating data products and then easily monetizing those, we’re determined to empower businesses to make better decisions and achieve their maximum potential,” says Aylwin. “With Revelate’s white-labeled data marketplace platform, and AltHub’s experience in supporting alternative data providers to create monetizable data products, we’re opening up another channel for our customers to derive the most value from their data.”
The partnership between AltHub and Revelate is unique because it offers end-to-end services that streamline the data productization process. By providing a white-labeled data marketplace platform and AltHub’s experience in supporting alternative data providers, they’re making it easier for businesses to make better decisions and achieve their maximum potential.
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