FinTechs and the Market for Financial Analysis

Journal of Financial and Quantitative Analysis

54 Pages Posted: 12 Mar 2018 Last revised: 6 Aug 2020

See all articles by Jillian Grennan

Jillian Grennan

Duke University - Fuqua School of Business; Duke Innovation & Entrepreneurship Initiative

Roni Michaely

The University of Hong Kong; ECGI

Date Written: May 7, 2020


Hundreds of equity market intelligence FinTechs have formed in the last decade. We assemble novel data to describe their capabilities, users, and consequences. Our data suggest that these FinTechs: (i) aggregate many data sources, including nontraditional ones (e.g., Twitter, blogs), and synthesize such data using artificial intelligence to make investment recommendations, and (ii) change internet users information discovery by serving as substitutes for traditional information providers. We evaluate some nontraditional data and find evidence suggesting that it contains valuable information or ``crowd wisdom'' that links to informational efficiency. Overall, our findings are consistent with this innovation benefiting investors and markets.

Keywords: Fintech, FinTechs (financial technology firms), Equity market intelligence, Artificial intelligence, Aggregators, Social media, Financial blogs, Information and price efficiency, Big data, Alternative data, Machine learning, Datamining, Data signal providers, Innovation, Startups

JEL Classification: D14, G11, G14, G23, O35

Suggested Citation

Grennan, Jillian and Michaely, Roni, FinTechs and the Market for Financial Analysis (May 7, 2020). Journal of Financial and Quantitative Analysis, Available at SSRN: or

Jillian Grennan (Contact Author)

Duke University - Fuqua School of Business ( email )

Box 90120
Durham, NC 27708-0120
United States

Duke Innovation & Entrepreneurship Initiative ( email )

215 Morris St., Suite 300
Durham, NC 27701
United States

Roni Michaely

The University of Hong Kong ( email )

Pokfulam Road
Hong Kong, Pokfulam HK

ECGI ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels

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