The Benefits of Interactive Data Visualization In Ag Finance
Recent years have presented new factors that necessitate that due diligence to extend beyond traditional metrics. Extreme weather events like Derechos, wildfires, and droughts are now frequent local phenomena that must be incorporated into lending risk management.
Similarly, advancements in technology and regulatory measures are changing the way lending in agriculture works.
Recipients who use interactive data visualization can engage and parcel information easier, making them better equipped to gain meaningful insights.
Consider a scenario of an informative presentation. The slide deck is comprised of dense text and is unengaging and crowded with information that the speaker reads verbatim.
While some of what’s being shared is relevant, the presentation is overloaded with unnecessary knowledge. In the worst-case scenario, major findings lose their impact and the audience may leave the presentation with unanswered questions, and feel even more confused.
Finding the right data can be like searching for a needle in a haystack— only the haystack continues to grow exponentially by the day.
Statista reported that since the beginning of this year, 60% of the world’s population is now online. With more and more people joining the internet, it’s baffling to even think about how much data is produced.
Reading data can be challenging to understand, and from that, a bigger picture can be even harder to conjure. Enter interactive data visualization, a tool that best exemplifies the power of seeing data rather than simply reading it off a report, or listening to someone drone on about statistics.
When interactive data visualization is used, otherwise-static information is transformed.
Defining Interactive Data Visualization
When collecting data, it’s usually to explore preexisting questions that need answering. Visual depictions of data can help lead financial professionals to unlock questions and patterns within their portfolios. With these measures, assessing risk becomes more definitive as it showcases the direct impact of granular statistics.
Data visualization is the rendering of information into visual representations.
Employing interactive data visualization highlights the conjunctions between two variables in a way that is easy for the eye. Even the Harvard Business School agrees, “This process helps the presenter communicate data in a way that’s easy for the viewer to interpret and draw conclusions.”
Maps are one of the most prevalent kinds of visualizations.
Now, fintech is using interactive data visualizations to create maps for risk professionals such as Farm Credits and commercial lenders. With location-based data that also makes use of granularity, managing a diverse portfolio can be made at the click of a button.
Variables that are out of control mean the risk is unavoidable, but Farm Credits and ag lenders can combat these threats to mitigate these risks by using advanced tools backed with data acclimation and interactive data visualization.
Effectively de-risking assets should be done in a way that causes minimal disruption to the business. Keeping a sense of overall familiarity within practices will protect existing workflow but also authorize finance professionals to commit their time elsewhere.
First-party data that financial institutions already have can be acclimated with third-party data sets and ultimately translated geospatially onto an interactive map. Using this map data decreases time being spent in the wrong places and more time sitting behind the wheel; discovering relevant figures and making the right decisions for the financial future of the business
Bill Saporito from Inc. Magazine writes a piece featuring Bowery Farming, a “high-rise urban farming” company. Founded by Irving Fain, Bowery is nothing at all like flatland farms. Vertical farms like the name suggests, grow their crops vertically.
When comparing vertical farms to their traditional counterparts, Saporito explains that they: “grow crops faster with higher yield, while using far less water, and no pesticides—all combining to make vertical farms 100 times more productive per square foot of farmland.”
It should be noted that Browery’s revenue was up 600% from last year and has an existing partnership with the retailer, Kroger.
Still, Fain realized there was potential for increasing operational performance. They started collecting first-party data and built a visualization platform that was not only actionable but made them consider things that they couldn’t see before.
“Sztul’s team designed a system in which sensors linked to a machine-learning application constantly make adjustments to maintain optimal growing conditions. They added data-tracking systems and new types of automation around seeding and harvesting…The system also allows Bowery to explore what-if questions around the variables and change some things immediately to see what happens.”
The Bottom Line – Interactive Data Visualization
As the agriculture industry rapidly evolves, so too must the tools used by financial institutions that fund the sector.
To find new opportunities, data must be harnessed in a meaningful way. Keeping it simple is succinct with timely optimization when the alternative is spending valuable time sifting through pages of complex data.
Financial institutions with expansive portfolios can use data visualization to elevate their process of risk analysis. GIS Connect uses an interactive map to display everything from an entire portfolio to a single parcel. Respecting granularity develops a precise depiction of factors that can impact the land. View supplier, investment, loan, and appraisal data in one single geospatial interface.
Reveal trends that can be actionable decision-making discoveries.
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