Understanding financial behaviour verticals in personalisation

Financial markets, financial content, users or customers live in a complex ecosystem of instruments and securities. 

They act in asset classes and markets that are constantly buffeted by the winds of economic data. They’re affected by earnings, geo-political events, macro and micro cycles, sentiment, supply and demand, politics, policy and price action. 

To deliver real and valuable personalization in financial experiences you need complete understanding over 3 behavioral verticals. 

  1. Financial Market Behavior
  2. User Behavior 
  3. Financial Content Behavior 

 Each behavior vertical needs to be defined from a high volume, high variety, high velocity big data ecosystem. They need to work together to generate a complete picture of market opportunities and risks. Control of these verticals is the enabler for true personalisation of the financial markets. 

Financial Market Behavior 

The heartbeat of the markets. It’s the regular cadence of economic and financial data. The pricing of financial instruments is how we measure activity, performance, risk and reward as a market participant. 

Financial market behaviors change like ocean currents constantly flowing around the globe refreshing and replenishing the markets with new information. There is so much data that drives behaviors. It could be economic events like interest rates, jobs figures and Consumer Price Index, price and volume change in equities, indices, FX, or commodities. It could be sentiment indices such as the VIX or company performance fundamentals such as earnings and executive holdings. 

The ingestion and enrichment of these global big data sources allows us to monitor them in real time and identify change. Change is the main driver of risk and opportunity for the retail investor. Change across all markets is constant and purely noise for most users. Identifying and matching notable changes to specific users is how you deliver a personalized financial experience. 

We leverage financial market behavior to create and plan events. We can leverage content behavior to show what the market thinks will happen leading up to a given event. We can leverage user behavior to show what your cohort thinks will happen and we can publish the data event in real time. 

Showcasing financial market behavior, targeting those most likely to engage with it and building an audience is only possible by bringing together the 3 behavior verticals in unison. 

For more information on economic events building engagement in your trading community read the article here. 

 

Financial Content Behavior 

More content is generated by financial markets than any other sector. A myriad of sources, content, and data types are continuously discussing every aspect of financial instruments and their performance. Any one of them can have an impact on financial market behavior such as the price of an instrument.

Content behavior is the transcript of the financial markets. It is written evidence of how people are reacting and predicting the change in financial market behavior, their professional and personal opinions writ large and small. 

If financial market behavior is the heartbeat of the markets, then financial content behavior is the thought. In order to read these thoughts you must ingest, process, enrich, and store as much of it as you can. These thoughts are created in the form of regulated content created by the broker or a bank, or unregulated content created by a content house such as FX Street, Benzinga or Bloomberg. Increasingly, social financial commentary also comes from professionals and amateurs alike on Twitter, Reddit, Twitch, Discord or Youtube.  

With this data we can establish a baseline of typical financial content behavior. That’s incredibly important when looking for change in trend or anomalies in relation to a financial instrument. We can draw retail traders and investors attention to risk or opportunity at scale across tens of thousands of instruments. 

We can show simple but powerful examples, replicated millions of times in a trading year, where a trend in behaviors gives early confirmation of financial market trends. We can show how these movements are yet to be reflected in the trading community. We target retail traders with this information, they’re the most likely to be interested in the instrument providing the data and content change. It keeps engagement high and noise across the community low.

 

User Behavior

 We have discussed the importance of understanding Financial Market Behavior and the thoughts of the markets as Financial Content Behavior which are both global behavior verticals. User Behavior is the local view. How the user, the cohort, the segments are interacting with the markets.  

User behaviors are exactly what they sound like. They refer to every interaction on any digital channel. From these interactions we can determine and measure intent towards markets and their potential impacts on engagement or trades.

 Each of these interactions must be captured, mapped to an instrument, and scored for their intent. By that we mean you look at every action, whether it’s a hover, click, filter, or anything else, and map that to the relevant financial instrument, event, topic, person or product, so that we can then define how that relates to their degree of interest in each instrument.

User behaviors define both how we create and personalize the financial experience for a retail trader. It defines the risks and opportunities for them to monitor within the financial markets and financial content as well as identifying any change in the trading community. That change could be in researching and trading behavior towards an instrument or identifying a popular piece of content or economic event from their peers. 

 

Financial Experience AI generation at scale

The AlphaStream Platform brings the 3 main behavior verticals together into a cohesive financial experience. An experience where all the relevant financial data, content, events, risks and opportunities in the markets are analyzed, structured, curated and presented to the retail trader as they happen. This happens across hundreds of thousands of data points and tens of thousands of users with no human involvement. 

A broker can be sure that every economic event, every price change, every news event, every trend change, community traction, social phenomenon, index reversal, earnings miss, executive scandal, or ratings change is seen and heard by the system. More importantly they’ll know that every user who needs to hear about it does. 

Written by
Adam Howard

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