The financial cosmos and the orbital economy: how satellites and space data are used in finance

Over several decades, around 25 000 objects have been launched into space. The increase in the number of launched objects has been especially steep since May 2019, when the first satellites were launched by the US corporation SpaceX (Chart 1). In March 2025, around 15 000 of these objects were active satellites. Space is dominated by commercial satellites. According to the latest report by the Satellite Industry Association, the commercial satellite industry accounted for 71 per cent of the world's space business in 2024. It should be noted that the situation in space is highly dynamic, and the data is therefore subject to change.

Satellites are predominantly used to provide internet access (Chart 2), with SpaceX satellites leading the way. Large satellite systems, or constellations, are typically used for this purpose.

A key purpose of satellite use is Earth observation and the collection of data necessary for scientific research. European satellites are leading in this group of satellites. While large satellite constellations are also used for Earth observation, the number of satellites required for scientific purposes is usually much smaller. Military conflicts we have observed in recent years have proved that military aims remain an important purpose of satellite use. Secure communications, information about opponents' activities, and other forms of support are all essential. Satellites also play a particular role in providing communication services and global positioning solutions, helping both us and "smart devices" avoid getting lost, whether in the urban jungle or on the open ocean. Although, in terms of numbers, the satellites used for weather monitoring and forecasting are in the minority, many of us use this information daily when planning modes of transportation and vacation activities, or when choosing what to wear. 

The most relevant use cases for the financial sector involve the provision of internet and communication services; more details on this are provided in the next section.

Potential of satellite use in the financial sector

There is a huge potential for satellite use in the financial sector, particularly in ensuring offline payments and transactions and the operation of ATMs. Such use of satellites allows increasing financial inclusion or the possibility to use financial products and services also in locations with limited or insufficient internet coverage, as well as to make global transactions without the use of ground infrastructure. Several examples can be cited here:

• At the beginning of March 2026, Mastercard, in partnership with Ukraine's leading digital operator Kyivstar, announced a successful test of 4G-enabled POS terminals using Starlink Direct to Cell satellite technology. Satellite POS terminals are also provided by M2M Connectivity.
• Blockstream Satellite provides free broadcasts of Bitcoin blockchain data, allowing the use of Bitcoin also in places without reliable internet connections (this is a one-way data flow solution).
• In 2021, J.P. Morgan made the first bank-led tokenised value transfer in space, using a blockchain network established between satellites orbiting the Earth.
• Similarly, in 2025, Spacecoin made the first full (end-to-end) blockchain transaction in space, sending a secure blockchain transaction from Chile to Portugal.
• Satellite communications enable Nelco to operate an extensive network of ATMs in India, including in remote, rural, and far-flung areas.
• Canadian M&T Bank uses satellite communications both to ensure the smooth operation of ATMs and to flexibly change the location of branches when necessary.

Back on Earth: how to use satellite data for research 

What is happening in space may seem interesting to many, but what is more important to analysts is the data obtained via satellite and its application in the analysis of current issues. I will begin with those directly stemming from the uses of satellites, focusing on the weather, Earth imaging, and scientific objectives.

Weather forecasts and climate monitoring are among the most visible use cases of satellite data. Weather forecasts are usually included in daily news covering the most significant events in Latvia and around the world. They are useful both in everyday planning and for financial risk analysis in industries dependent on weather conditions. A related field is also the monitoring of natural disasters, the operation of warning systems, and activities during and after natural catastrophes, including support for clean-up efforts. Satellite data are widely used in this field by the Latvian Environment, Geology and Meteorology Centre (LEGMC), for example, in the satellite climate atlas and weather observations.

Earth observation and environmental monitoring represent a highly diverse field of satellite data applications. Forests, agricultural land, water bodies, and glaciers are monitored, and their pollution levels, degree of degradation, land-use types, and other aspects are assessed. Satellites equipped with various sensors can estimate the volume of different types of emissions, including greenhouse gas emissions and leaks, as well as heat losses, thereby enabling conclusions to be drawn about air pollution and energy efficiency. A large proportion of this information can also be useful for the analysis of economic processes. In Latvia, examples of the use of such data include the nature data management system "Ozols". In addition, the State Environmental Service (VVD) uses satellite data to remotely monitor mineral extraction sites.

The use of satellite data is playing an increasingly important role in agriculture and forestry. It enables the optimisation of irrigation systems, yield forecasting, monitoring of crop and forest development, and the identification of forest damage. The Rural Support Service of Latvia (RSS) uses Copernicus (Sentinel‑2) data in the administration of support schemes to automatically verify mowing activities and crop types. RSS provides a public map that also includes Sentinel-2 data layers. Joint Stock Company "Latvijas Valsts meži" (LVM) uses satellite data for various purposes, including monitoring forest development and assessing timber stock and forest damage. LVM has also developed a publicly accessible map. These data can be further integrated into resource and financial planning processes, for example, by estimating projected revenues and expenditures and planning the required investments and workforce.

Satellite data are also valuable for urban planning and infrastructure monitoring. Urbanisation analysis makes it possible to assess urban development and the availability of public services, including playgrounds and green spaces, across cities and their districts, thereby providing evidence to support decisions on necessary investments. Weather data obtained from satellites enable the assessment of climate impacts on business development. Road condition assessment allows the prioritisation of road maintenance works under budget constraints and supports decisions regarding the need for road reconstruction. Satellite data also make it possible to evaluate construction trends in areas exposed to climate risks and to identify cases of illegal construction.

The assessment of seas and oceans is likewise significant, as it enables more efficient planning of logistics operations, monitoring of vessels and cargo flows, port management, and the identification of illegal fishing activities.

Application of satellite data in economics and the financial sector

There are several key reasons for the use of satellite data:

1. Scalability, high resolution, and cost efficiency – traditional data collection methods (such as field surveys and questionnaires) are often time‑consuming and costly, whereas satellite data typically cover large areas and are often available in pre‑processed forms that can be adapted to specific needs.
2. Neutrality, objectivity, and reliability – the acquired data are not dependent on data providers (such as companies or residents), and their quality is largely unaffected by human error, interpretative differences, or deliberate manipulation of information.
3. Timeliness and global coverage – satellite data are often available in near real time, enabling their use for operational purposes, while their global coverage allows data analysis for virtually any region of the world.
4. Reduction of data gaps – this aspect is most frequently highlighted in relation to climate data, but it is relevant in any field where internationally comparable data are unavailable.

In the analysis of the external environment and risks, it is essential to assess gross domestic product (GDP) and economic activity at both broader international and narrower regional levels. Although GDP estimates are available for most countries, they are usually published with varying time lags and not more frequently than on a quarterly basis, while data at more detailed regional levels are not always accessible. For a more timely and granular assessment of economic activity, nighttime lights data can be used, where higher light intensity can be associated with greater economic activity, higher household incomes, GDP growth, and a wide range of other economic indicators.

In many countries, including Latvia, foreign trade plays a significant role. It affects both economic activity and inflation, the control of which is one of the core functions of central banks. Therefore, it is essential to analyse international trade flows and the factors constraining them. Satellite data make it possible, for example, to track shipping routes and assess the extent of congestion and its impact on goods flows. Linking these data with inflation forecasts provides a basis for further planning and decision‑making, including decisions on the need to adjust monetary policy to changing conditions. A particularly important role in this context is played by trade in crude oil and petroleum products, which is especially evident in connection with the war in Iran.

Satellite data can also be useful for retail analysis, which is closely linked to the assessment of private consumption trends and the financial performance of retail companies. By observing the number of vehicles at shopping centres and supermarkets, it is possible to assess shopping activity, retailers' financial indicators, short-term trends in capital markets, and broader consumption patterns.

In the analysis of physical climate risks, flood risk and flood hazard maps are widely used, and satellite data are an important input in their development. Similar maps are available for areas affected by prolonged drought, extreme air temperatures, forest fire risk, and storms. These data are valuable for stress testing (including European and Latvian examples) and for broader analyses of the impacts of physical risks, for example, on employment, access to credit, and housing prices. The following examples illustrate this.

• Vincent (2026) estimates that a one‑degree increase in urban overheating temperatures [1] in a given urban neighbourhood in France is associated with an average decline in housing prices of 2.2%.
• A study conducted at the Bank of Spain finds that, due to increased desertification, corporate lending in affected regions of Spain is projected to decline by 0.25% after 8–20 years. In addition, immediately following forest fires, the turnover‑to‑assets ratio of firms located in close proximity to the fires (within a 10 km radius) decreases on average by 7 percentage points, while corporate lending volumes fall by 6%, compared with firms located farther away (20–40 km from the fire sites).
• Meier et al. (2023), using data from Italy, Greece, Spain, and Portugal, estimate that forest fires reduce regional GDP by 0.11–0.18%, and in more severe cases by as much as 3.3–4.8%. The impact on employment varies across sectors: employment declines of 0.09–0.15% are observed in trade, accommodation, and transport, while increases of 0.13–0.22% are reported in financial services, insurance, and real estate activities.

Satellite data are also relevant for the provision of specific financial services. In agriculture, index‑based insurance products are available whereby insurance payouts are linked to specific environmental parameters determined using satellite data (floods, droughts, crop yields).

For example, Boucher et al. (2024) find that the use of drought‑resistant seeds in combination with drought index insurance enables smallholder farmers in African countries to avoid the economic consequences of drought, while maintaining and even increasing their welfare levels. 

Appropriate data are also essential for the development of green financial products, such as sustainability-linked bonds. The financial instrument developed within the Genesis project is a digital carbon credit futures contract (MOI) that is linked to a green bond. It ensures transparent traceability of emission‑reduction outcomes through the use of blockchain and smart‑contract technologies, thereby reducing the risk of greenwashing.

FinTech companies offering algorithmic trading services – automated equity trading – can incorporate satellite data into trading algorithms by using additional signals on the impact of environmental indicators on commodity markets.

The potential uses of satellite data have also been examined at Latvijas Banka. By comparing the wide range of available satellite data with alternative data sources across different domains, it was concluded that, for Latvia and Europe, sufficiently high‑quality non‑satellite data are available in most cases. The area with the greatest potential for the use of satellite data is climate risk analysis. Extensive information in this field is provided by LEGMC – these data have been used in the assessment of the exposure of Latvian companies to physical climate risks and in flood risk stress testing. The currently identified data gap concerns high‑resolution wind speed data, which would allow for the analysis of storm risks that are particularly relevant for Latvia and their impact on the financial sector. Satellite data collected and processed under the Copernicus programme are among the identified information sources that are expected to be used in the near future to assess banks' vulnerability to storm risk.
 

[1] Urban overheating is characterised by air temperatures that are significantly higher than those in nearby rural areas.