The Primary Components of Fintech

Describe “Fintech”
Analysis of large datasets
- Analyze large amounts of data to help investment managers sift through information.
- Examine social media and sensor network data to provide managers additional insights.
Analytical tools
- Perform tasks that would otherwise require human analysis.

Automated trading
- Generate automated trading systems that are designed to provide more efficient trading,
lower transaction costs, manager anonymity and greater liquidity to portfolios.
Describe “Fintech”
Automated advice (robo-advisers)
- Used for retail wealth management services to provide investors lower cost advice.
Financial record keeping
- Distributed ledger technology ( ) is a new way to track the ownership of financial
assets on a peer-to-peer basis ( ).
- This means investors can make transactions directly between one another without the use
of a third party, thereby reducing costs.
Describe Big Data
Individuals
- Unstructured and is growing rapidly as people increasingly make personal data available
through various electronic trails and online reviews.
Business processes
- Structured and includes sales/credit card data and “corporate exhaust,”

- Leading and real-time business indicators as opposed to corporate filings,

Sensors
- Unstructured and is growing exponentially due to the prevalence of networking technology
in personal and commercial devices.
Describe Artificial Intelligence
- Designed to perform cognitive or decision-making tasks in a comparable or superior
manner to human intelligence.
- Has been around since the early 1980s, but has evolved significantly since then due to
greater computer and network processing speeds.

: :
Detect fraudulent credit card claims and - Helped financial firms in data mining
charges in the form of neural networks and financial analysis.
based on how human brains learn and
process information.
Describe Machine Learning
Supervised learning
- Involves labeling or identifying inputs and outputs to the algorithm so that it can be trained
to identify relationships for labeled data and work with other data sets.

Unsupervised learning
- Requires algorithms to describe the data and its structure on its own.

Deep learning ( )
- Uses neural networks to perform multistage, non-linear processing to identify patterns and
relationships in data through a supervised or unsupervised approach.
- Evolved from improvements in the underlying algorithms used in neural networks to better
learn from data and understand simple concepts: