FinTechs and the Market for Financial Analysis

Jillian Grennan and Roni Michaely

No 19-10, Swiss Finance Institute Research Paper Series from Swiss Finance Institute

Abstract: Market intelligence FinTechs aggregate many data sources, including nontraditional ones, and synthesize such data using artificial intelligence to make investment recommendations. Using data from a market intelligence FinTech, we evaluate the relationship between the FinTech data coverage and market efficiency. We find an increase in price informativeness for stocks with higher FinTech coverage and that traditional sources of information have less impact on prices for those stocks. Consistent with FinTechs changing investors' behavior, we show a substitution between traditional information sources and FinTechs using internet click data. Overall, our results suggest the rise in FinTechs for investment recommendations benefits investors.

Keywords: Fintech; FinTechs (financial technology firms); Market intelligence; Artificial intelligence; Aggregators; Social media; Financial blogs; Information and market efficiency; Big data; Machine learning; Datamining; Data signal providers (search for similar items in EconPapers)
JEL-codes: D14 G11 G14 G23 O35 (search for similar items in EconPapers)
Pages: 65 pages
Date: 2019-03, Revised 2019-04
New Economics Papers: this item is included in nep-big, nep-cmp, nep-ict and nep-pay
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: FinTechs and the Market for Financial Analysis (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:chf:rpseri:rp1910

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