We, as individuals, provide alternative data across various platforms. The global market size of alternative data is expected to be $17.35 billion by 2027, with a compound annual growth rate (CAGR) of 40.1 per cent during that period, compared to last year’s $1.64 billion, according to Grand View Research. Alt-data can provide up-to-date information, filling the gap where traditional data is lacking it is essentially data derived from external sources. One of the most prevalent sources of alt-data is information on individuals and their behavioural patterns. It is also likely that its use will increase in the coming years, especially as interest in retail investors and stay-at-home traders’ investment decisions are growing and becoming increasingly difficult to ignore. The demand and adoption of alternative data has been growing in the past few years and more so in 2020. In this endless race to outperform others, the importance of alternative data has increased tremendously.Īlternative data refers to non-traditional insights that investors obtain from numerous data sources, be it user behaviour to feedback from internet of things (IoT) sensors, to make an investment decision regarding a company's future performance. are no longer sufficient enough to gain a competitive edge. With the advent of the latest technologies, traditional data sources like financial statements, management presentations, SEC filings, analysts' forecasts, press releases, etc. These days however, you don’t need to be a fortune teller or a psychic to make accurate predictions the key to making good investments and profitable financial decisions lies in making sound predictions through the use of data. To some, it may seem like you need psychic powers to predict whether an investment will be profitable or not.

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