LLMs and Financial Services Data

April 15, 2024
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LLMs and Financial Services Data

Historically, the key to building a successful financial services data company has been to extricate and analyze valuable but difficult-to-access resources like public filings, diligence materials, research reports, conference call notes, and news. Now, with the advent of large language models, such previously shackled information might soon be easily and widely available to everyone, ushering in a new LLM-powered era that could shift the financial services landscape

The rise of dominant market leaders Bloomberg, Morningstar, and Verisk has been characterized by a playbook centered around identifying large, fragmented pools of data and leveraging technology to provide valuable insights and solutions.

These companies have built category-defining businesses by capturing historical data, standardizing it, and offering it to customers in a simplified, accessible format that is enhanced by additional services and features that drive home defensibility. The advent of LLMs heralds a new era in data analytics and financial services. With the potential to unlock previously inaccessible data sources, LLMs may create opportunities for new players to emerge and disrupt the status quo by going upstream of these incumbents.

https://a16z.com/putting-data-in-a-corner-llms-and-financial-services-data/

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