FINTECH (READING 8)

MARIA ALI-22563
 Fintech Is any type of technology in finance.
 The key development involve big data, artificial intelligence, and machine learning.
 Previously, there used to have be analyst, wealth managers, third party or intermediary are
no longer needed now we have robo advisers and block chain and DLT.
 Data Processing & Automation of Routine Tasks (Early forms of Fintech) >Systems providing
execution of Decisions according to specified rules and instructions > Decision-making
applications based on complex Machine-learning logic, where computers can learn how to
complete tasks over time
 The growth in data is making it difficult to analyze data and so in order to analyze data you
need machines, and at the same time technological advances are enabling you to use
machines.
 Big Data refers to vast amount of data being generated from traditional and alternative
data sources. Key features include volume, velocity, and variety and the three most
important sources of data are individuals, businesses, sensors with the challenges being
on quality, volume and appropriateness, sourced ,cleansed and organized.
 Artificial Intelligence (AI) has enabled computers to exhibit cognitive and decision-making
ability which could be even better than humans. Expert System this is more on instructions
and if than rules and Neural Networks Programming based on how brain learns and
processes information and thus allow AI to understand more about human brain.
 Machine learning requires huge amount of data and that data is coming from big data. The
types of machine learning include supervise learning, unsupervised learning and deep
learning.
 Data Science is basically the extraction of information from big data. The data processing
methods include capture, duration, storage, search, transfer. The data visualisation is done
in three ways, multi dimensional data analysis, the tag cloud and mind map .
 These are selected applications of FINTECH for investing management text Analytics and
Natural Language Processing,Robo-Advisory Services, Risk Analysis and Algorithmic Trading
 DLT: Create, Exchange, and Track ownership of Financial Assets on peer-to-peer basis.
 Benefits of DTL are Accuracy, Transparency, Scrutiny, Faster Ownership Transfer, Peer-to-
Peer Interactions but it comes with challenges also.
 The applications of DLT to investment management include cryptocurrencies, initial going
offering, tokenization, post trade cleaning and settlement and compliance.