Innovations in Finance and harnessing of Technology have resulted in making the term Fintech a portmanteau word. In the evolution of the BFSI sector Fintech has assumed a pivotal role; but it also had an impact on traditional order. The rise of AI and Machine learning has enhanced many aspects of investment models and technologies, at the same time it has disrupted some other.
Applications of Alternative Data in Fintech are growing at a great pace; the question is how to discover new sources of alpha and create strategies and signals. Here the challenge is to discover hidden coupling of multiple data sources. Text analysis, Natural Language Processing and analysis of News, Micro blogs, investor sentiment are well established. Bringing all these advances together new applications in trading, fund management and risk control have continued to emerge.
Today Fintech has influenced all aspects of the finance industry – banking and capital markets, asset and wealth management, insurance, and funds transfer and payments.