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How Does Data Science Work In Finance?

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The business world is reaping the rewards of machine learning, big data, and artificial intelligence. Although the finance industry has always had an aversion towards advanced technology due to security concerns, cutting-edge data science can empower companies and steer them away from risk. Stronger fraud detection, predictive risk monitoring, anomaly detection, better sales and forecasts, and data-backed insights are only a few of the opportunities stemming from data science. 

Data Scientist was dubbed the sexiest job of the 21st century by Harvard Business Review almost a decade ago. The comedic title highlights the importance of data science for entrepreneurs and companies in finance, payments, and banking. When incorporated correctly, AI, machine, and deep learning can unlock far-reaching opportunities in almost all business aspects. 

SDK.finance, a white-label digital payment platform for financial companies, is actively developing next-generation data science solutions for payments companies so that they can leverage the substantial benefits of modern technology. 

What is data science in finance?

Data science in payments, banking, and finance is about extracting the most knowledge from vast amounts of collected data using maths and statistics. Data science can be highly relevant for risk management, risk analysis, fraud prevention, real-time anomaly detection and sales generation. With many different techniques and approaches to choose from, data science can extract valuable information from structured and unstructured sources and identify irregularities to forecast future behavior and patterns. 

Falling costs for data storage and processing, better and faster connectivity, and rapid advancement in data science in finance enable companies to improve upon human decision-making in accuracy, speed, and reliability. According to McKinsey, data science-related technologies can potentially unlock $1 trillion of incremental value for banks annually.  

Source: McKinsey

Data science in finance can boost revenues by better personalizing services for consumers, lowering costs through higher automation, and improving efficiency with better resource utilization. Financial companies that fail to rely on the improved ability to process more data faster will risk being overtaken by competition and deserted by their customers. 

According to a BCG survey, almost 90% of executives see AI as an opportunity, but only 18% have tried to apply data science to generate revenue. Even though incorporating and deploying machine learning, deep learning, and artificial intelligence into a business strategy can be a challenging process, the upside for financial companies makes it worth the effort. 

Benefits of data science in finance

Better sales and revenue

With many customers isolated and negatively affected by the pandemic, payments, banking, and financial companies need to increase interactions with their customers through high-quality, personal connections. Data science allows companies to examine their customer-facing digital experience and continuously improve it to reflect their clients’ desires. Improvements in the way data science perceives language and emotions unlock an entirely new level of customer experience personalization. 

Data science engineers can analyze consumer actions, compile models from the results, and generate behavioral insights that enable companies to offer the right services to their clients at the right time. By breaking down consumers into distinct classes and audiences based on socio-economic attributes and characteristics (age category, preferences, location), financial firms can make assumptions about how each customer is likely to behave and how much value they will generate in the future. 

This data can be used for A/B experiments learning to determine the optimal prices or fees for consumers. Adjusting the price to reflect consumer preferences maximizes income from existing and new clients alike. Similarly, ads targeted using data science are more likely to deliver better results for digital campaigns and generate better insights for marketing and sales teams. 

Source: BCG

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Fraud is a significant and costly problem for financial institutions. As the number and volume of transactions continue to grow, fraud and cybercrimes will become more prevalent. On the other side, data science leverages big data and analytical software to limit finance companies’ exposure to fraud through proactive and predictive analytics. By spotting irregularities and suspicious behaviors, data-driven financial platforms can warn businesses and individuals and limit or even prevent damages outright. 

Insights generated from data-driven fraud research can be used to separate clients into even smaller cohorts. For example, trustworthy clients with a verified purchasing history and future potential can benefit from better rates or larger credit allowances as they carry less risk for the bank. For riskier clients, dynamic data pipelines can access financial data with minimal latency, allowing companies to monitor transactions and financial parameters in real-time. 

Optimize routines with Robotic Process Automation

Reconciliation and other routine operations take up hundreds of working hours for accountants and other employees. By matching transactions across multiple data sources, data science in finance can save up time and free up resources for more critical tasks. Robotic Process Automation can significantly reduce the burden of risk assessment and creditworthiness by checking all available consumer data and presenting the results in a clear manner. 

Every payment, banking, or financial institution can choose to leverage data science benefits to improve and step up its operations and routines. Extracting the full potential from available data in the form of analytics, personalization, and decision-making can meaningfully transform any financial business. 

Contact the SDK.finance team directly to talk about how data science can be useful for your payment business. We are open to discussions.

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Source: https://sdk.finance/how-does-data-science-work-in-finance/

Fintech

Australian FinTech company profile #121 – FiFit

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1. Company Name:

FiFit

2. Website:

www.fifit.com.au

3. Location(s):

Australia

4. In one sentence, what does your fintech do?:

FiFit gives you the ability to unleash your assets cash liquidity without selling your Bitcoin.

5. How / why did you start your fintech company?:

Recognising that cryptocurrency holders don’t want to sell their position through any market upswing. They want to hold their asset long term and allow it to work for them. However, the early landscape at this point in time doesn’t offer the options other than platforms to sell cryptocurrencies.

FiFit gives the user the ability to unleash the assets cash liquidity without selling with a crypto collateralised loan option. All of which can be done online with automated approval processes and same day funding.

6. What is the best thing your company has achieved or learnt along the way (this can include awards, capital raising etc)?:

We have created a complete end to end, automated platform accessible for business owners. All supported by a 24/7 support system and centre. We are true to our word of optimal, seamless, professional service.

7. What’s next for your company? And are you looking to expand overseas or stay focused on Australia?:

We are passionate about our product and have full intent to roll out our service globally.

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Source: https://australianfintech.com.au/australian-fintech-company-profile-121-fifit/

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x15ventures invests $1 million in Identitii subsidiary, Payble

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ASX-listed Australian fintech Identitii Limited announce that the Commonwealth Bank’s venture scaling entity, x15ventures, is investing $1.0 million in Identitii subsidiary, Payble to acquire a minority ownership stake.

In Australia each year, more than 75 million recurring or scheduled bill payments fail or are paid late. Businesses pay a high price to collect missing funds, using expensive call centres to update billing details, request late payments or activate instalment plans.

Payble helps fix failed or late bill payments before they happen, leveraging Identitii’s participation in the Australian Competition and Consumer Commission (ACCC) CDR testing. Payble intends to utilise the new Open Banking regime to help businesses ensure more payments are made on time, and to provide customers with more control over their finances.

Payble represents x15ventures’ first minority equity investment.

Commenting on the announcement, Toby Norton-Smith, Managing Director, x15ventures said, “We’re thrilled to welcome Payble into the x15ventures family. Working closely with the startup community is key to our strategy to build, invest and acquire digital businesses that are reshaping banking and benefiting Australian businesses and consumers.”

Commenting on the announcement, Elliott Donazzan, CEO, Payble, said, “Over 500 million bills are sent to Australian consumers every year and over 75 million of those aren’t paid on time. This is a huge problem for Aussie businesses who spend time and money following up on late payments, fielding calls from customers about their billing details or retrying payments when they fail. Payble set out to fix failed or late payments before they happen and we are thrilled to have x15ventures join us on this journey. I’d like to thank the x15ventures team for their support to date and look forward to working together as we accelerate our go-tomarket strategy.”

Commenting on the announcement, John Rayment, CEO, Identitii, said, “It’s a really exciting time for the Payble team and Identitii is thrilled to be working alongside x15ventures to support their aspirations. We’re very excited x15ventures decided to continue to invest in Payble and congratulate Elliott Donazzan, CEO of Payble, on the progress the company has made in such a short space of time under his leadership.”

x15ventures will be a significant minority shareholder in Payble and has appointed Chris Austin as Director to Payble’s Board, joining Founding Directors John Rayment and Elliott Donazzan. Mr Austin leads CBA’s Business Development Partnerships team, which includes investments by x15ventures. He brings over 15 years of M&A and strategy experience from his time with CBA and UBS. The additional links forged at the Board level will be instrumental in helping bring Payble to market.

Payble was founded by Identitii and Elliott Donazzan. After the x15ventures investment, Identitii will hold 51.3% of the issued capital of Payble Pty Ltd, x15ventures will hold 26.7% and Elliott Donazzan will hold 7.3%. The remaining 14.7% will be issued and allocated as part of employee incentive arrangements.

x15ventures retains a right to invest further at the same valuation to move to a majority ownership position.

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Source: https://australianfintech.com.au/x15ventures-invests-1-million-in-identitii-subsidiary-payble/

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Nium and Travelex partnership boosts digital remittance offering for Asia Pacific

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Travelex, the world’s leading foreign exchange brand, has partnered with advanced global payments platform Nium to extend digital remittance services to their users. Now live in Australia and Singapore, the digital remittance offering (“Travelex International Money Transfer”) will be serviced by Nium’s global payment rails and real-time payment capabilities, enabling Travelex users to remit money to more than 50 markets across the world almost instantly[1].  The service will be further expanded to the rest of Asia soon.

“Extending the Travelex digital suite to offer remittance services is a logical next-step and continues our focus on digital innovation which includes our market-leading online currency exchange platform, the multi-award-winning Travelex Money Card and a global network of FX ATM’s,” explained Cameron Hume, Managing Director, Travelex Asia Pacific.

Travelex will be leveraging Nium’s Remittance-as-a-Service (RaaS) solution for the launch of this service. Introduced just last year, Nium’s RaaS solution makes it easier for companies to become providers of payment services and offer remittance services on their own digital platforms. RaaS provides not just the full stack technology solution, but also incorporates the expansive regulatory portfolio and a team of experts from Nium, paving the way further for businesses to tap into the huge potential of the online payments business and explore new revenue streams.

“Travelex is the leading brand in foreign exchange globally and across the APAC region. They are recognised and trusted as experts in their field.  At Nium, we understand how difficult it is for a company to introduce remittance or money transfer services at scale, and we are excited that Travelex has selected Nium to be their trusted partner for this journey,” says Michael Minassian, Regional Head of Nium’s Consumer and SME Business.

“Nium’s mission is to create a global fintech infrastructure that can enable banks, financial institutions and other fintech companies to launch and scale innovative digital financial services without the complexity, time and cost previously required to do so. We look forward to working closely with Travelex to offer a robust digital remittance offering to their customers,” Michael continued.

Consumers can access Travelex International Money Transfer, via their local country Travelex website, with an App to be launched shortly.

“Travelex is delighted to team up with Nium to offer remittance services. Following a rigorous selection process we were impressed with their holistic solution which encompassed the technology framework and the expertise of the team. In today’s competitive payments environment, new technology makes a huge difference in delivering the best customer experience,” states Darren Brown, Managing Director, Travelex Australian and New Zealand.

Travelex will be expanding its digital remittance offering to major markets in Asia Pacific in the coming months.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://australianfintech.com.au/nium-and-travelex-partnership-boosts-digital-remittance-offering-for-asia-pacific/

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Australia’s Peppermint Innovation signs agreement with the Philippine’s leading micro-financial services provider

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Australian Stock Exchange-listed fintech Peppermint Innovation Ltd has signed a strategic Merchant Biller Agreement with the Philippines’ largest and leading micro-financial services provider, Cebuana Lhuillier.

The agreement, which allows bizmoto agents to “cash-in” money at any one of Cebuana’s 2,500 shop fronts and accredited stories nationwide, will enable agents to ‘top-up’ their mobile wallets instantly, allowing them the ability to transact with more customers.

Essentially, a bizmoto agent will be able to enter any Cebuana branch, choose the bizmoto platform to top-up their mobile wallet and their ‘cash-in’ funds will instantly be credited to their bizmoto wallet.

The significant increase in the number of physical “cash-in” locations for bizmoto agents comes just weeks after Peppermint signed an online”cash-in” agreement with the Bank of the Philippines (BPI).

Under the BPI agreement, bizmoto agents who are BPI account holders will be able to instantly ‘top-up’ their mobile wallet, allowing them to service more customers because they can transact online in real time without the need to visit a BPI branch or automatic teller machine.

The Cebuana Merchant Biller agreement does not earn direct revenue for the Company however Peppermint does earn a fee every time a bizmoto agent performs a transaction utilising the bizmoto platform, which requires a positive balance on the bizmoto agents’ mobile wallet.

Cebuana will earn a fee when bizmoto agents “cash-in” money to ‘top-up’ their mobile wallets at any one of Cebuana’s 2,500 shop fronts and accredited stories nationwide. The agreement is for an initial one-year term which renews automatically unless either party give the other 30days’ notice not to renew.

Peppermint Innovation’s Managing Director and CEO Chris Kain said, “This agreement with Cebuana significantly increases our geographic spread for ‘cash-in’ points for our bizmoto agents, making it convenient and more accessible for our bizmoto agents to ‘cash-in’ to their mobile wallets.

“It is yet another ‘brick in the road’ as we build out our bizmoto ecosystem, further integrating our bizmoto platform into the established Philippines’ payments industry as we seek interoperability across the digital payments landscape throughout the Philippines.

“The Cebuana agreement also extends Peppermint’s business alignment and partnership with the Philippine’s largest and leading micro-financial services provider and follows our bizmoProtect distribution and micro-insurance product offering announced in early March2021.

“Peppermint aims to continue to align itself with strategic and established partners across the Philippines’ payments landscape to ensure the bizmoto platform and ecosystem of services is convenient and accessible to as many Filipino people as possible.”

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://australianfintech.com.au/australias-peppermint-innovation-signs-agreement-with-the-philippines-leading-micro-financial-services-provider/

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