Over the past few decades, the financial industry has undergone tremendous changes, most of which can be attributed to big data. The advancement of data has heralded the arrival of new Fintech solutions in the market. One of the most important big data trends affecting Fintech is predictive analytics. Established financial companies like PayPal already use this technology in order to improve their business model.
Predictive analytics has a number of applications and one of its biggest uses is fraud prevention. A growing problem, cyber fraud is a threat to organizations all over the world. Owing to the massive volume in funds being transferred every day, Fintech companies are a lucrative target of cyber criminals.
Potential fraudsters can be identified by these firms by utilizing predictive analytics algorithms. These algorithms comprise of a number of variables such as the nature of IP addresses, association with suspicious email addresses, region of the user, and the authenticity of the names on their accounts. Predictive analytics are also used by Fintech companies to conduct risk analysis of potential borrowers, which has proved to be a great way to reduce the risk profile of their networks.
Technology has played a pivotal role in shaping our lives in a way that we no longer remember how our lives used to be before the arrival of technology. In the present scenario, technology also determines the way we manage money and banking apps, contactless cards, accounting software, mobile payments as well as automated business processes have in a fairly short space of time become mainstream.
For several people, the future is blockchain technology that underpins cryptocurrencies (digital only payment methods like bitcoins) and could make transactions quicker, cheaper, and safer. Even though, it is being used in several contexts, the general notion is that the surface has been barely scratched. Although this technology is largely unseen, there might be more obvious ways in which Fintech changes. An argument in support of banks deploying robots to help with customer interactions and solving solutions quicker, has recently surfaced. AI should allow for robots playing a greater role, offering a service beyond an ‘FAQ’ style function. Over time, robots might well help with mortgages and pensions too. On the flip side, there might be a need for a smaller workforce while automation would be a big factor that would hugely impact the society and especially Fintech.
Even though Fintech has come a long way, it still has miles to cover. With blockchain, things that are being done now like transferring money, making micropayments, verifying one’s identity would become easier and quicker and new services can be developed that offer security ad automation at a much greater scale.
See Also: CIOReview Publication in Medium