Traders got screwed by betting on big data, what Trump means for fintech (tl;dr: nobody has any idea) and how to gain digital loyalty through customization.
Trading Stocks during the US Election, the Curious Case of Votecastr (Finance Magnates)
Instead of asking people who they voted for, Votecastr recorded the demographics of those exiting the polls, then reverse engineered the expected results. Many stock traders saw this as the ultimate prediction tool, since it didn’t rely on voter honesty. Unfortunately, the prediction technology turned out to be wrong in 5/7 swing states. Kind of like every other political poll!
Would Trump Policies Help or Hurt Financial Tech? Yes. (American Banker)
The president-elect supports government surveillance, which may clash with data privacy companies. His anti-regulation leanings could put a damper on “RegTech.” His job policies could cost banks by outlawing the outsourcing of jobs. Net neutrality and cybersecurity are still complete wildcards. On the flipside, reducing the corporate tax rate will make it cheaper to repatriate overseas funds. This would help the likes of Apple and Facebook.
How to hold on to customer loyalty in the digital age: get your product integrated in Twitter, Facebook, Snapchat, and personalize the experience as much as possible.