Connecting to LinkedIn...

W1siziisijiwmtuvmdqvmtuvmdgvntqvmzgvnzi1l01ptlrbu0hfqkxpr19vtljftkrfukvex0lnqudfx3jlc2l6zwrfyw5kx3jlbmrlcmvklmpwzyjdlfsiccisinrodw1iiiwimtkymhgxmjuwiyjdxq

Blog

Goldman Sachs leads $15m financing of data service for investors

24/11/2014 by Sharon Shahzad

W1siziisijiwmtqvmtevmjqvmtyvmtkvmzmvmji5l2d0ev9nb2xkbwfux3nhy2hzx2xsxzeymdmxnf93ymxvzy5qcgcixsxbinailcj0ahvtyiisijywmhg0mdbcdtawm2uixv0

Goldman Sachs has emerged as the largest investor in a financial analytics start-up that enables institutions to mine a wealth of big data, underscoring Wall Street’s drive to tap new technology. Goldman led a $15m round of financing in Kensho, an analytics platform that can instantly answer millions of complex financial questions by automating previously human-intensive research. The bank will roll out the platform across its business as well as to some of its big clients.

Kensho, which has been likened to a Siri-style service for investors, analysts and traders, enables them to ask questions such as, “What happens to US homebuilder stocks if a category three hurricane makes landfall?”

Analysts said Goldman was probably seeking to save on costs while also tapping into a wealth of so-called “unstructured” data. Such information involves text as opposed to the numeric “structured” data that have traditionally been easier for computers to digest.

Research scientists estimate that 80 per cent of all data come in unstructured form; being able to quickly analyse this wealth of information is the holy grail for banks seeking to use big data to augment their business.

“Wall Street historically was constrained to playing in the 20 per cent of data that move markets,” said Daniel Nadler, chief executive of Kensho. “Every Wall Street bank could only look at – with any real speed or automation – financial statistics: P/E ratios, and book value and market cap and similar things.”

He said not being able to quickly analyse hard-to-structure events – central bank announcements, geopolitical events, weather phenomena, technology product releases – was “trying to see the world with not only one eye covered, but one eye covered and the other eye half-closed.”

Initially called “Warren” in a nod to both the billionaire octogenarian investor Warren Buffett and the IBM supercomputer known as “Watson”, the platform has been rebranded to match the company’s name Kensho, partly on Goldman’s advice.

While the exact size of Goldman’s Kensho investment is unknown, it is big enough to make the bank the single largest strategic investor in the company, which has previously secured money from groups including Google Ventures, Accel Partners and CNBC, which last week announced its own investment and partnership with the platform.

Goldman has historically kept its strategic investments under wraps and largely focused on developing its own in-house technology, but has recently been making more public announcements when it comes to its tech-related developments.

Mr Nadler said one problem for banks such as Goldman has been the limited number of data scientists available to analyse financial information. “These graphical- and natural language-based computer systems open up data science to the entire firm for the first time,” he said.

This article has been extracted from http://www.ft.com, please click on this link to read the article in full http://www.ft.com/cms/s/0/db9e08b2-71d7-11e4-9048-00144feabdc0.html#axzz3K0F9oWjr

Montash is a multi-award winning, global IT recruitment business specialising in permanent and contract positions across mid-senior appointments, which cover a wide range of industry sectors and IT functions, including:

ERP, BI & Data, Information Security and Assurance, Architecture & Strategy, Scientific Technologies, Demand IT and Business Engagement, Digital and E-commerce, Infrastructure and Service Delivery, Project and Programme Delivery.

With offices based in London, Montash has completed assignments in over 30 countries and has appointed technical professionals from board level to senior and mid-management in permanent and contract roles.

comments powered by Disqus

Social Stream

Latest News

W1siziisijiwmtcvmdyvmtkvmtavndkvmtavntuvc2h1dhrlcnn0b2nrxzqymzk2mjg2ni5qcgcixsxbinailcj0ahvtyiisijm4mhgxmdajil1d

Long Term Transition, Not Long Term Tradition...

2017-06-20 09:00:00 +0100

It seems odd that while 88% of businesses are undergoing some kind of digital transformation[1], only 25%[2] of them have a clear understanding of their digital transformation journey. So what's driving so many businesses to pursue digital with such recklessness? Broadly speaking, the reason is simply the unprecedented rate of change in digital solutions and services. As we ride the digital tidal wave, consumers and employees change their expectations, ...

W1siziisijiwmtcvmdyvmtmvmtavmjqvmjuvodcxl3nodxr0zxjzdg9ja181njewnja3mzmuanbnil0swyjwiiwidgh1bwiilcizodb4mtawiyjdxq

How Great Leaders Cultivate Great Teams

2017-06-13 12:00:00 +0100

There's a difference between being a boss and being a leader. Leaders know how to inspire the best from their teams to achieve industry-leading results. For our latest blog, we spoke to our Managing Director, Roy Dungworth, to discover how businesses can create a culture that inspires great people to do great things together. Success in business doesn't begin and end with great leadership. Great leaders inspire their teams to want to do more and be bett...