1. Dataset of the week: Chinese consumer transaction data.

2. Data Insights report of the week: Email receipts data points to strong Q2 for PayPal, in-line quarter for Square.

3. Experts: Interview with Alvaro Kurth, KYC and compliance expert.

4. Events: How to build and integrate teams – NYC 25th July, Legal considerations regarding alt data – London 26th July.

5. Vendor access: Data showcase events in NYC and London regarding geolocation datasets to be held in September.

6. Articles of the week: 1) Under Armour Stock Nosedives Nearly 7%, Search Trend Continues ‘Steep Downtrend’; 2) Machines taking over hedge funds despite lack of evidence they outperform humans; 3) Accenture reveals secret sauce for AI and machine learning.

7. Update on Eagle Alpha’s solution.

 

1. Dataset of the week: Chinese consumer transaction data.

Vendor Overview: This provider is the professional services division of one of the world’s largest payment networks by number of cards issued. Their products and services leverage the intelligence derived from the analysis of over 20 billion transactions per year.

The provider produces indices on credit card data that are updated both monthly and weekly. The are 16 indices to choose from: Real Estate, Restaurant & Catering, Luxury Hotel, Economic Hotel, Luxury Automobile, Economic Automobile, Department Store, Jewellery, Apparel, Luxury, Gas Station, Entertainment, Movie Theatre, Home Appliance, Overseas Spending, E-Commerce.

Dataset Overview:

  • History: Since 2011.
  • Coverage: 800 million card holders.
  • Geography: China.
  • Delivery: CSV.

The rest of this dataset profile is available to clients of our Data Sourcing package.

Our database has 483 providers. Contact us for more information – enquiries@eaglealpha.com


2. Data Insights report of the week: Email receipts data points to strong Q2 for PayPal, in-line quarter for Square.

Eagle Alpha’s PayPal predictive model, based on email receipt data from our data partner, suggests better Q2 revenue than current consensus estimates. Our Square forecast is suggesting an in-line quarter.

Our PayPal and Square models have shown a mean absolute percentage error (MAPE) of 1.6% and 1.4% respectively in backtesting, and the standard deviation of our error is 2.0% and 1.6% respectively. With a low historical mean error, we have confidence in our PayPal predictive estimate for the quarter. Square has consistently exceeded quarterly estimates, so an inline quarter may not be sufficient to sustain momentum for the company.

The full report is available to the clients of our Data Insights package.

Other recent reports:

Electronic Arts: Mass Effect Release Drives Positive Trends in FYQ4.

GoPro: Online Data Points to Weaker Top Line Growth in Q2.

Luxury Goods: Positive Tends For Burberry and Kors, Negative Trends for Coach.


3. Experts: Interview with Alvaro Kurth, KYC and compliance expert.

Alvaro Kurth, a seasoned expert of risk and compliance matters on a global scale, leads the risk team at 4Stop. He is one of the core members at the forefront ensuring the 4S technology provides businesses with world-class KYC, compliance, and anti-fraud solutions. We arranged an interview with Mr. Kurth to better understand the changing regulatory landscape affecting the alternative data industry.

The below is an excerpt from the interview we held with Mr. Kurth. The full interview is available to the clients of our Thought Leadership package.

PSD2 – Revised Payment Services Directive – is to cause a disruption to Europe’s financial system. How does it affect 4Stop and the way it aggregates multiple data sources for KYC purposes?

We have seen a significant drive for competition and innovation in the financial system. PSD2 is leading to an evolution of strong customer authentication and digital identity management and control where classic banks no longer own the end-to-end value chain.

The development of PSD2 is opening the system for non-bank service providers like 4Stop, to provide solutions that optimize the way data is aggregated throughout multiple sources. Providing businesses with the ability to harmonize a myriad of data streams in real-time through one simple API. Allowing them to meet KYC & Compliance requirements that are required currently and to effortlessly activate data sources as requirements change and evolve over time. Enabling businesses to be compliant and stay compliant by future proofing their business models.

Do you think that PSD2 will result in an increase in availability of consumer transaction data?

Yes, PSD2 interrelating with other legislative and industry developments, opens up boarders across the member states to have transparent transaction data, a single set of rules and lead supervisory authority. This will allow consumers to release data to 3rd party providers in a trusted manner to make a quantifiable assessment on potential indicators.

4. Events

  • July 25th, New York – Discussion about building and integrating alternative data teams. Event partners: Citi and Dore Partnership. Contact us for more info.
  • July 26th, London – Discussion of legal and compliance considerations e.g. privacy policy, PII, web crawling, exclusivity etc. Event partner: Simmons & Simmons. Contact us for more info.

5. Vendor access

  • Pilot fishing: we are currently obtaining feedback from clients on a potential ticker level dataset based on credit and debit card data. Only clients are invited to pilot fishing meetings.
  • Roadshows: none this week.
  • Events: in September we will host data showcase events in NYC and London regarding geolocation datasets.


6. Articles of the week

Under Armour Stock Nosedives Nearly 7%, Search Trend Continues ‘Steep Downtrend’.

Machines taking over hedge funds despite lack of evidence they outperform humans.

Accenture reveals secret sauce for AI and machine learning.


7. Update on Eagle Alpha’s offering

There are 6 parts to our solution:

1. Teach-ins: firms use our teach-in to catch up with the early adopters. We now also offer set-up advisory.

2. Bespoke Projects: submit a research question and we will prepare a proposal.

3. Thought Leadership: clients use our lessons learnt to save time.

4. Data Insights: we have relaunched this on our website to focus more on indicators.

5. Analytical Tools: clients use one of our tools to track expert commentary.

6. Data Sourcing: a key pain point is what datasets to prioritize. We advise clients on the most relevant datasets for their needs.

Please forward this newsletter to a colleague.

The Eagle Alpha Team

www.eaglealpha.com