Of Special Interest
17th January 2012
BBVA and Google try to improve forecasting for clients
BBVA economists are working with Google to try and improve their forecasts for corporate clients. They have taken as a test case better forecasting of hotel and tourist demand within Spain. The two believe they will be able to produce forecasts a month or more ahead of the official government forecasts allowing the BBVA clients more time to adjust their operations for the likely level of demand. The news follows shortly after the announcement that BBVA was to use Google cloud Apps for most of its office product needs and for communications, replacing PC and server based software.
This will be one of the first actioned projects of the kind. There has been growing interest by central banks and governments that the 'macro' trends of searches may provide actionable data. The Bank of England is one currently researching the potential use of search data trends. One example raised was the correlation between job searches and unemployment. Google also believes it may be able to contribute to a better retail price index.
[see Newslink: BBVA goes to the Google cloud ]