It is the big world of data! The concept of data extraction & analysis has grown by leaps and bounds and it is used by every industry to leverage its growth and profits.
The technique of extracting relevant data automatically from websites and transferring these into databases for use is called web scraping or data scraping. It is not manually possible to extract information from websites that run into several thousands of pages. This challenge is overcome by software, extensions, APIs or apps called data scrapers or web scrapers that automatically scrape data or text (numbers, to be precise) and store it in the required database.
Web scraping services can be used by many businesses that thrive on data to keep their businesses up and running. The finance industry is one such that has recently made use of data from websites to build prediction models or actionable insights. There are several examples of companies being able to successfully implement their plan of action through the data collected through web scraping.
Application of data scraping for the finance industry:
There are countless applications of web scraping of financial data. Let us look into a few of them.
- Equity Research-
Enterprises offering equity investment services may use web scraping services to gather abundant critical data that will help equity managers to offer the best services to their clients. Market trends, investor buys, price fluctuations, investor sentiments- all these require continuous monitoring. This is made possible with the web scraping of financial data available extensively on popular investment websites.
- Market Prediction-
Trade & finance pundits can predict the future market sentiments by studying the previous data and collating it together to form a resourceful guide. The data scraping services in finance websites contribute immensely towards a near accurate market prediction and this helps the investment gurus to time their investments right. This also helps them to mitigate risks and carefully place their bets on the assured winners.
- Stock Market & Trading-
The stock market & trading is one of the best examples of applications of data scraping for the finance industry. The timing is all that it takes in stock and trading. The stock market data is something that is in much demand given the high stakes in it. But what helps the stock market investors is the historical data collection that helps them to make informed decisions at the right time. The ups and downs of the equities, the company annual reports, the revenues earned, the stock volumes exchanged in day-to-day trading- all these are obtained through data scraping services in finance and this can be done either through APIs or apps.
- Informed Investment Decisions-
Mutual funds, hedge funds and bonds attract investment when their managers are able to mitigate risks and maximize return on investment. Here, web scraping helps them to study the market forces, consumer behavior, volatility in the stock market, financial structuring of corporate entities, business performance, search trends and many other valuable information help them to draw insights. In the same way, the data scraping services help venture capitalists to decide the feasibility of startups. Similarly, institutional investors and institutions interested in FDIs evaluate the strength of companies by gathering information from finance websites.
- Credit Ratings-
Banks and insurance companies need to assess the financial strength of borrowing entities to see if they will be able to repay the loans in the future. Here, the data scraping is useful to rate agencies based on their previous performances and earnings. The credit ratings are something that has to be evaluated from time to time and this helps not only the banks and insurance companies but also the borrowing entities to get better financial help.
Given all the benefits of web scraping the financial data, the question that arises is from where do the investors or finance managers collect the data? The well-known sources (websites) of data scraping for the financial industry are-
- Nasdaq Stock Market
- Google Finance
- Money Control
- Yahoo Finance
- Motley Fool Stock Advisor
- Wall Street Journal
- Bloomberg Businessweek
- NSE & BSE India
- Economic Times Market
It goes without a doubt that every business would want access to information that would help them leverage their stakes. The only criterion is choosing the right web scraping services so that data collation and analysis becomes structured, easy and fast!
It is a given that the data scraping for the finance industry is beneficial for the country’s economic growth. It helps in getting investments from foreign institutions. It also helps the finance markets to thrive in turn benefitting the common investor. In short, there is no limit to what one can achieve with the web scraping of financial data in a market where changes occur every second!
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