Description:
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