Fintech stands for financial technology, and data science is transforming it in radical ways. Financial institutions initially used data science in back rooms to help them make the best investment decisions. In recent years, however, data science is being used to make customers’ lives easier.
Cane Bay Partners VI, LLLP, uses data science to analyze the market and provide financial consulting for companies in the Cane Bay Virgin Islands as well as come up with the best strategy for investing. Data science helps your life as well. Here are some ways data science is affecting fintech.
1. People Can Do Banking Anywhere
Within a few years, you’ll have fewer reasons to drive to the bank. Virtually everything can be done online, including inquiring about your bank balance and making transfers. People like doing everything on their smartphones, including any banking transactions, so expect banks to have fewer local branches in the future.
2. Electronic Payments Allow You To Pay Instantly
Just a few years ago, you had to write a check for each and every one of your bills. You’d put them in an envelope and stick on a stamp, and then you’d have to go to the post office to mail them. Thanks to data science and fintech, you can now easily pay all of your bills online. You can even schedule those payments to be paid on a certain date, such as a payday, so you can be assured of having enough money in your account.
3. Anyone Can Invest
A few decades ago, making a trade on the stock market was so expensive that only the wealthy could invest there. Thanks to data science and fintech, now anyone can buy and sell stocks. Robo-advisors ask a number of questions to determine your financial goals and what risk you’re willing to tolerate. Based on your answers, the program uses complicated algorithms to find the perfect investment for you.
4. People Can Buy and Sell Using Cryptocurrency
Cryptography writes puzzles and then solves them. Because of that, cryptography is very difficult to counterfeit. Cryptocurrency relies on cryptography to keep it secure. No central authority controls cryptocurrency, meaning no government can inflate it by printing and circulating too much of it.
With cryptocurrency, you can buy and sell goods and even send money to someone through your smartphone. Banks charge you a fee when it sends someone money on your behalf. Sending that money using cryptocurrency is much cheaper as the fees are lower.
5. Investors Will Use Data Science for Hedge Funds
Hedge fund investing requires investors to study the current market and determine the best way to invest. Investing relies more and more on data science. Artificial intelligence can be used to create models of data investments. With machine learning, artificial intelligence learns on its own, and that works well for analyzing investments. AI uses complicated algorithms to create mathematical models to produce strategies for successful investing.
Expect to see data science impact the fintech world in powerful ways in the future, radically transforming your life and your finances for the better.