AFTAs 2021: Most innovative third-party technology vendor (AI, machine learning and analytics)—Moody’s Analytics
OVERVIEW
Accurately measuring credit risk is made more difficult by current events unfolding in real time.
It is critical to get real-time insights, early warning signals, and forward-thinking analysis on emerging trends and patterns to market participants.
Monitoring activities requires hours of manual work daily.
THE SOLUTION
The Moody’s Analytics real-time news solutions are differentiated by a natural-language processing (NLP) engine that identifies people, entities, topics, and sentiments within story text with precision, and leverages machine learning and human review to maintain and validate model output.
Combining NewsEdge technology and Credit Sentiment Score analytics produced a news-based analytical model to provide intelligence on the credit health of a company earlier than models that rely on traditional financial indicators of credit decline.
In 2020, Moody’s bought Acquire Media, a US-based aggregator and distributor of curated real-time news, multimedia, data, and alerts, which allowed Moody’s to enhance its own solution suite with the addition of NewsEdge, which provides early warning signals and real-time insight to users.
“As part of the broader Moody’s ecosystem, we are uniquely positioned to accelerate our data enrichment methodologies. We are able to leverage vast amount of data and learnings that come from decades of data analytics and apply these principles to our news data within our next-generation NewsEdge platform. What would have taken months is now executed in a fraction of that time giving user-specific insights, or signals, to our customers. Whether it be credit risk, tax fraud, corporate intelligence or whatever signals the user needs, our system can adapt its signal-filtering/ML models to provide customers advance indications of likely outcomes. This allows us to present true data insights in a matter of seconds, even sub-seconds for our algorithmic customers.”
Sergio Gago Huerta, managing director of product management, Moody’s Analytics
WHAT’S TO COME
Moody’s Analytics is preparing to launch its next generation signal-based interface of NewsEdge in January 2022.
The next generation NewsEdge platform will provide multi-application signal-based intelligence. Expanded uses will encompass functions-based applications like trading or compliance and industry-based applications such as adverse events impacting business.
Moody’s will pull together entity, reference, and alternative data, and combine them with news content to reveal actionable signals that answer the question, “What does this signal mean?” directly for the user.
The signal-based platform will continue to roll out in phases, utilizing next-generation platform technologies and will expand for high-demand applications such as for supply chain, compliance, and personnel.
WHY THEY WON
As a leader in the credit ratings business, Moody’s has shown a commitment to innovation for its credit technology and data products. Moody’s Analytics combines in-house expertise and assets gained from strategic partnerships and acquisitions to deliver market participants an insightful, personalized news hub.
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