ESP4 August 2023by Wakett

The Benefits of Incorporating Event Stream Processing into Your Financial Strategy

Event Stream Processing (ESP) is the process of using data to take automated actions. As such, in the world of finances, which is run based on data from markets, exchanges, brokers, and so on, ESP can completely revolutionise the way financial companies work. Here’s how.


What is Event Stream Processing Exactly?

ESP is a type of algorithmic software, and the key to understanding how it works is in its title. 

  • Event stands for something that happens and affects data, such as a financial security’s market price changing, a piece of news breaking, data from a client or provider, or a trade taking place.
  • Stream is the constant flow of that data coming in from multiple sources, be they from exchanges, markets, banks, providers, and so on. ‘Constant flow’ here is the operative phrase, as it means you always have the latest information at hand.
  • Processing sees the software checking that data and seeing how it applies to events according to your rules.


The Benefits of Event Stream Processing

Through this process, ESP sees your financial strategy being turned into code, which then allows the software to take concrete actions on your behalf, such as reporting the latest changes, notifying you when appropriate, and buying, selling, and holding on to your securities. This, however, isn’t done randomly but is based on parameters you set.

So, for example, you decide how much you’d like to spend, or are willing to lose, on each type of security. Then, based on the data the ESP has gathered, analyses, combined, and so on, it can decide the way forward – which could be informing you or take actions on your behalf.

As such, the benefits here can be huge.

  • Saves you time: ESP can autonomously collect and transform large amounts of data to fit into your system. That’s hours of work time saved for your employees every day.
  • Reduces errors: ESP can perform calculations by itself. Moreover, because it’s software, it doesn’t really make inputting or calculation errors, which human beings are prone to. This ensures that you always base your decisions on accurate data.
  • Makes data more searchable: ESP can easily add multiple information to your data, making your database more easily searchable. That’s a benefit that will, once again, save you lots of time.
  • Ready-made data analyses: ESP doesn’t just collect and transform data but looks at what this data means when compared to the events that preceded and followed it. So, if a drop in one security resulted in the soaring of another, it will inform you.
  • Faster actions: ESP can quickly make decisions based on the data and rules provided to it. This is because it can read this data much faster than humans can. In turn, this gives you an edge over competitors.


Do You Want to Know More About How Event Stream Processing Could Benefit Your Company?

Wakett software employs ESP in many of its products that can, together, provide all the above and much more at a price tag that’s affordable even to SMEs

But that doesn’t mean we skimp on quality. 

In fact, we are affiliated with one of the world’s leading intelligence software companies, TIBCO, which is used by some of the world’s leading banks and financial institutions, to provide the best possible service to our clients.

So, get in touch with us to discover how your company could benefit from ESP, too.