PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • COVID-19
  • News
  • Events
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • COVID-19
  • News
  • Events
No Result
View All Result
PaymentsJournal
No Result
View All Result

Why Risk Management In Finance Is A Tech Matter

Paul Matthews by Paul Matthews
November 27, 2019
in Artificial Intelligence, Credit, Featured Content
0
Why Risk Management In Finance Is A Tech Matter

Why Risk Management In Finance Is A Tech Matter

15
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Finance as a whole has definitely changed in the past couple of years. The usage of different, much faster applications and processes have sped up, digitalised and, sometimes even reshaped a bulky sector which needed a fresh change. Risk management for financial applications and loans, in particular, have been the micro category which has gone through the biggest of these changes. Let’s analyse which pieces of tech are being used and how this can (and will) become an industry-standard in the nearest future.

Automation In Processing Data

As many of you may know, data has become an incredibly valuable asset. In 2018, it has been stated how big data and data points became more valuable than oil, effectively becoming the most powerful resource on the planet. Automation in processing data refers to the process many fintech companies use to instantly assess whether if a user is eligible for finance, without going through bulky, long procedures like background checks, credit score evaluations and more. Normally, processing data happens with a combination of Python-based tools (therefore, machine learning-related technologies) included within a Java container, but this, of course, depends on how the company decided to set up its architecture.

In Simpler Terms

Although this may seem frighteningly complicated, the process is relatively simple to explain: since machine learning operates around variables, the tool (hypothetical) will elaborate the risk of approving any form of loan to a user by dividing the process into micro variables. These could be doing a credit check, cross-referencing proof of addresses, a tax code eventually. By dividing a bulky process into small tasks, then, the tool is able to (almost) instantly process them and therefore assess whether if the loan could be approved or rejected. By dealing with the enquiry almost instantly, the risk level of such a financial process is definitely lowered down.

The Market Value

When it comes to machine learning being applied to finance or any form of technology being applied to finance, really, it’s mandatory to analyse the market value in order to assess the power of that software/idea in such a busy and noisy market, in 2019. The fintech sector as a whole (and not just machine learning applied to risk management) has grown by over 25% in the past couple of years, according to Forbes. Within the property sector, in particular, it has been seen how automated pieces of software have been used to quickly resolve compulsory purchase order processes.

Currently, the usage of sole machine learning within fintech has amounted for over $1 billion in investments from 2015.

To Conclude

The power of fintech is no secret, but its applications within risk management for financial processes have been underestimated massively in the past couple of years. With this data in mind, it’s safe to say that machine learning and automated features will become an industry standard for risk management in finance before 2030.

Tags: AIAutomationFinanceMachine LearningRisk Management
15
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily
    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    eBay’s Upgraded Approach to Payment Processing Meets the Demands of Modern Consumers

    eBay’s Upgraded Approach to Payment Processing Meets the Demands of Modern Consumers

    January 22, 2021
    It’s Time for Retailers to Offer the Best Gift of All In-Store: Digital Gift Cards

    It’s Time for Retailers to Offer the Best Gift of All In-Store: Digital Gift Cards

    January 21, 2021
    Building C-Store Customer Loyalty Programs With Relevant Rewards

    Building C-Store Customer Loyalty Programs With Relevant Rewards

    January 20, 2021
    How PayPal Achieves High Authorization Rates

    How PayPal Achieves High Authorization Rates

    January 19, 2021
    Explaining the Bill Payment Ecosystem

    Explaining the Bill Payment Ecosystem

    January 15, 2021
    QSRs Can Address Loyalty Program Shortcomings by Serving Up Better Offers

    QSRs Can Address Loyalty Program Shortcomings by Serving Up Better Offers

    January 14, 2021
    How Merchants Can Prevent Account Takeovers—and Why Failing to Do So Amplifies Operational Expenses

    How Merchants Can Prevent Account Takeovers—and Why Failing to Do So Amplifies Operational Expenses

    January 13, 2021
    How Banks Can Leverage Tech Partnerships to Enable Innovation for Commercial Clients

    How Banks Can Leverage Tech Partnerships to Enable Innovation for Commercial Clients

    January 11, 2021

    Connect With Us

    • Advertise With Us
    • About Us
    • Terms of Use
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • COVID-19
    • News
    • Events

    © 2021 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result
    ×

    Login

    Forgotten Password?

    Lost your password?
    | Back to Login

      Subscribe!

      Thank you for visiting PaymentsJournal! Please subscribe to our newsletter to receive consumer data insights and daily analysis from Mercator analysts and industry experts.

      ×

      WEBINAR:
      How Digital Acceleration Will Affect Payment Industry

      Please join us for this panel discussion on addressing the challenges to pave the way to payments innovation and profitability and gain insights on the key trends and challenges impacting the payments landscape in North America.

      REGISTER