One of the next revolutionary innovations in finance industry is coming from alternative data, said Chen Hui, associate professor of finance at MIT Sloan School of Management.
“We already have quite a big success in building algorithm based on what is considered conventional form of data, which can be easily converted into numbers and crunched by computers. But there is actually increasing volume of alternative forms of data like tax, financial statements, newspaper articles and social media. Increasingly, firms are developing technology and finding people who have proper skills to crunch these sorts of data and get useful information out of them. I think that’s going to keep expanding in terms of their potential applications and we’ll see more value out of that as well.”
Professor Chen also shared his views on some most discussed issues in financial sector, including risk management of new payment methods, defects of inclusive finance and the impact of data-sharing and smart algorithm.
Chen Hui's research focuses on asset pricing and its connections with corporate finance. He is particularly interested in the interactions between the macro economy and term structure, credit risk, and corporate financing or investment decisions.
