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From "Financial Information" to "Financial Intelligence"

Banque et Finance: Friday, September 30th 2011

The industry produces so much information that for an average investor it becomes overwhelming. It is then difficult to understand the meaning behind the information unless one could compare or test it easily. The internet is in the process of improving the quality of information beyond our expectations.

What is the future of financial information on the Internet ?

The notion of financial information is being seriously challenged by new technologies and services. So much of the available data lacks structure, organization or transparency, rendering it both subjective and misleading. Since information is free and made readily available by product issuers to optimise their marketing and communications strategy, the investor is left with an information black hole.

The trend today is that product information must provide a perspective or an objective point of view when products are grouped together. There is always an improvement in quality when information can be tested, controlled or compared. For product information to become meaningful it must be challenged – and leaders in the information technology are making this possible.

The problem with information today

Investors face a highly fragmented market place, which makes the quality of information difficult to measure and evaluate. Investors can also be presented with subjective information since revenue models in the industry are usually transaction- or analysis-based and rarely rely on transparency. Yet several IT leaders are helping us move towards the consolidation and harmonisation of financial product information.

Towards full transparency

The financial industry is heading towards full transparency on all financial products, thanks to technology and entrepreneurial leadership from other sectors.

The world is about to see financial product information in a structured, organised and transparent manner in the era of cloud computing and cfinancials.com. The trend is towards total access for all products, with instant display and comparisons from any digital network.

Leaders in their respective industries have helped upgrade the financial services industry to meet the latest information technology. Google Inc., Amazon Inc. and Cfinancials Inc. are converting cloud computing for financial products into a reality today.

The solution

Cloud computing, financial information and entrepreneurial leadership – it is already here.

What is cloud computing ?

Cloud computing can provide free, instant access to all financial products using a huge processing and database capacity: for example, for comparison or data mining purposes. This free tool is accessible to all and will finally present financial products in a common language.

Cloud computing means using multiple server computers over a digital network, effectively as though they were a single computer. In layman's terms it means allowing information to be accessed from any digital network (i.e. smartphones, tablets, laptops or desktops), harnessing exceptional processing power and phenomenal database capacity. The digital network is then used only as an interface. Instant access to the entire universe of financial products becomes possible, with fast, free comparisons. And financial transparency for the average individual then becomes easy.

Why is cloud computing needed for financial transparency ?

Companies around the world issue over a million financial instruments every year in addition to the already existing 9.5 million and all these products are traded every day, creating a massive amount of information. Prices with all their derivatives (ratios, volatility, Greeks and more) must be tracked, compared, graphed, correlated and processed in an instant from a universal database. The resulting information will be structured, organised and transparent, adding to the quality of information.

The technical advantages of cloud computing

To be able to obtain full financial transparency in an instant for an average internet user is effectively unachievable; it would require phenomenal computing power and capacity on the local network. The requirements would considerably limit accessibility to financial information for most if not all Internet users.

However, in cloud computing the processing and database is shared and made available for free by the service provider.

The advantages for users

An average Internet user can now access, process, compare, graph, correlate and perform data mining and much more for all financial products, from any digital network, in an instant.

Entrepreneurial leadership

Google, a global leader in information technology, has set the trend that all information on the net should be free, accessible and fast.

Amazon Web Services provides processing power and database capacity on a cloud with almost unlimited capacity.

Cfinancials.com, with the largest financial product database, allows products to be structured, transparent and organised, making this powerful service accessible to any Internet user.

Financial information continues to flood the Internet. Product issuers are aware of the importance of being visible on the Net, which greatly assists their marketing and communication strategies. As a result, Cfinancials.com  has experienced an explosion in demand for direct feeds by both issuers and exchanges.

Cfinancials reports a general increase in products and issuers, especially from emerging markets such as Brazil, Russia, India and China. The market place is becoming increasingly crowded with issuers, with their high tech trading systems letting the average individual be an active investor in products from around the world. This major increase in the volume of financial products combined with easy access to all these products has rendered the traditional structure of financial information obsolete.

With cloud computing and the leadership of IT companies, the concept financial information will soon be obsolete, to be replaced by financial product intelligence. This new form of financial intelligence gives any internet user the opportunity to assess in an instant from any digital network the quality of a product when comparing it against the market, peers or issuers. A powerful future for investors.