What makes an industry successful? The ability and the willingness to innovate with the times and customer demands to deliver better services and products to the customers. Finance is one of those industries. Highly regulated and complex, finance has leaned into new technologies to deliver a better customer experience and embrace opportunities. Text analytics technologies have been a natural fit for finance as unstructured data became accessible to the industry.
These days, the financial sector can derive high-quality structured data from unstructured text. Unstructured data from sources such as social media, email, instant messaging, and online forums are being used for data-driven insights. Processes like sentiment analysis are being leveraged for financial applications. The predictive power of sentiment scores is a game changer for financial professionals.
What Is Text Analytics
Text analytics is the process of converting large sets of unstructured text into quantitative data. Finance professionals and data scientists can mine unstructured data to uncover insights, trends, and patterns. This enables businesses to compile a story behind the numbers to make more precise decisions.
Unstructured data is the new currency for the digital age. Businesses had leveraged structured data for years. Data that was organized and easy to mine provided limited insight into what made customers tick. The opportunity to mine unstructured data changed all that. In an organization, 80-90% of data is unstructured. Though, free form and difficult to access, unstructured data provides a wealth of data to fuel text analytics tools.
Text Analytics Examples
The financial sector industry is ahead of the trend when it comes to utilizing text analytics to gain insight. Here are some examples:
Good investment practices can be a profitable venture in finance. Investors seeking a more data-driven approach lean on text analytics for insights.
2. Portfolio Managers
Use text analytics to cut through the noise to recognize important highlights in investor notes, blogs, and news.
3. Data Scientists
Fuel trading models and investment strategies with structured data that has been derived from unstructured text content.
4. Compliance And Risk Managers
Leverage text analytics tools to increase compliance rates and get alerted to relevant internal conversations.
Benefits Of Text Analytics For Finance
The financial sector is a $35.5 billion market that invests heavily in the information industry. Finance accounts for 9.8% of the entire information industry. The investment pays off as text analytics tools yield tremendous benefits for financial professionals. Text analytics practices such as sentiment analysis take client’s everyday content such as emails, social media, and personal information convert it into forward-looking insights. For the finance industry, text analytics provides the opportunity to hyper-personalize the customer experience and improve the bottom line.
Unstructured data has redefined the way businesses process information. It has been the catalyst for innovation for many industries including financial services. From investors to compliance and risk managers, text analytics tools such as the Content Analytics Platform (CAP) from Scion Analytics enable a more successful and personal customer experience.