TECHNOLOGY
“ It is important that the target investment team be open and willing to share the data reflecting their performance to date , the market opportunity and any other metrics that would help demonstrate why they are a better investment than another in the same space .” However , at the same time , Conn clarifies that the value of data today can sometimes be overemphasized ; for Zilliqa Capital , the quality of a potential investment ’ s team is often more of a determining factor . “ The fact is that most , if not all businesses , will at some point be forced to pivot away from their initial plans – see Amazon . It is just not possible for data analytics , at least as of now , to prove itself superior to gut instinct when evaluating the quality of an investment target ’ s team .”
If not fully utilisable as a resource for decision-making , then , what ’ s needed is a re-evaluation of data sharing , both in terms of its place within modern finance and the methods by which its present shortcomings can be overcome . Open
Finance and API ( application programming interface ) technology could represent such an opportunity .
Open Finance ’ s value proposition “ Open Finance is all about empowering customers ,” explains Jack Wilson , Head of Policy and Regulatory Affairs at TrueLayer . “ It gives customers the ability and the right to re-use their financial data in new and innovative ways . It does this by giving a role to third-party providers , who securely retrieve data and put it to work for the customer .” These actors can do so in a variety of ways , such as :
• Consolidating multiple held accounts into a unified view
• Facilitating electronic data transmission that eliminates the need for physical documents when applying for financial products
• Using account data as a form of identity verification
124 May 2021