Data is driving the Fintech sector

Financial and insurance organizations are required to introduce technologies necessary to automate as much as possible a series of processes that are still very manual and to adopt Data Analytics and Artificial Intelligence to support financial advisors and therefore extend the services offered.

It is no longer possible to use services based only on mathematical functions that consider just mandatory information and regulations to give advice on complicated choices such as those related to investments. We must respond to a much more complex reality, where the choices are influenced by multiple factors, which cannot be separated from a deep knowledge of the customer that can be had thanks to Data Analytics.

The data to be analyzed is really a lot: it ranges from the client's mandate to the strategy that the bank intends to adopt, to the limits imposed by the legislation, to the information on the client which, for example, represent his inclination or not to risk. Then there are the historical data held by the banks which, crossed with the market data, reveal a lot about a person. To these data those of investments in other banks can be added in addition to those related to the direct knowledge that the financial advisor has of his client.

All this contributes to building an investment proposal tailored to the person. This model, currently used for investments, could be applied to many other needs and services, such as mortgages, or personal, car, life insurance policies.

Engineering is technical partner of the research and innovation INFINITECH Project within the EU programme Horizon 2020. The aim of this project is to develop a scalable and high performance Big Data infrastructure that will enable the provision of various innovative solutions that will support all stakeholders of the FinTech, financial and insurance sector in their innovation process driven by Big Data, AI and IoT.

The INFINITECH project is a BDV PPP flagship project focused on Big Data and AI applied to the Financial Sector and strongly supported by many members of the Big Data Value Association (BDVA). Engineering, as member of BDVA and partner of INFINITECH project, takes part of the new BDVA task force named “AI and Big Data for the Financial Sector” and will contribute to the objective of producing the reference Whitepaper for the Big Data and AI applied to the Financial Sector.