What does financial technology mean? Does this also include other content?

nnnRush time comment: Now, whenever the focus on financial technology innovation to explore the theme, the first thought is the block chain technology. It seems that the block chain has become a synonym for financial technology, given that the World Economic Forum has demonstrated in its report the importance of block chain technology, this tendency is not entirely wrong. However, no matter how important the chain of chains in the financial industry, we still have to seek truth from facts – the block chain is only part of the financial technology, not a synonym for financial technology. In addition, there are many other technologies that may also change the financial services industry.n
nnTranslation: Clovern
nWhenever the theme of financial technology innovation around the discussion, the first thought is the block chain technology. The tendency to use block chains as a synonym for financial technology is not entirely wrong, especially in the World Economic Forum’s 2016 report that block-chain technology will fundamentally transform the world’s financial institutions the way.n
nAlthough the block chain technology is most likely to change the pattern of financial services, but the concept of financial technology specifically for the block chain is also specious. Other technologies (such as artificial intelligence) are also likely to change the financial services we understand. This article explores some other innovative technologies that are subversive or may subvert the pattern of financial services.n
nartificial intelligence n
nIn short, artificial intelligence is related to the development of computer systems that can perform tasks normally performed by humans – in many cases more effective than the latter.n

nFinancial services companies have used artificial intelligence to improve their way of doing business for decades. Although the technology has now become the mainstream, but the first automatic teller machine (ATM) but also until the 20th century, 60 years only appeared. And until then, the withdrawal process is also entirely by artificial. I cite this example is to point out that the field of artificial intelligence technology is not a new concept. It has been around for decades. In addition, I would like to point out that it is the development of artificial intelligence technology in the subversion of the financial sector – as the technology in the past few decades to achieve the same. In other words, this is the current progress of artificial intelligence is to subvert the pattern of financial services.n
nDepth study. Depth learning is a sub-topic of artificial intelligence. The concept of deep learning is quite complex, but we can simply think of it as a computer system to study the data set to gradually learn one of the concepts of the model, and ultimately use it to learn or not take action, or quickly insight Current situation.n
nRecently, in-depth learning is mainly used in the field of portfolio management to achieve real-time transaction analysis to achieve a more powerful portfolio management. Chip maker NVIDIA also said that financial institutions have been investing heavily in time in the depth of learning to manage risk, and by analyzing large and contrasting data to detect fraud. In addition, hedge funds have also invested a lot of time through the depth of learning, teaching the computer how to imitate traders, so that one day can be more effective in the implementation of trading activities. In the field of insurance (from customer experience, underwriting to claims processing), in-depth study also has important prospects.n
nAnd machine learning can be seen as a relatively early learning similar to the earlier technology, this technology is also subversion of financial services. While this technology has been used in insurance and banking, its most consumer-oriented applications are in the area of ​​wealth management, where technology is used to build intelligent investments that help retail investors manage their portfolios (Robo-advisor). Wealth management start-up business Betterment and Wealthfront part of the business is based on intelligent investment.n
nApplication interfacen
nAn application programming interface (API) simply refers to a set of routines and protocols for building software applications, and it also determines how software components interact.n
nThe use of APIs is being discussed in the industry to improve the delivery of financial services. At the 2016 Apigee FinTech API Summit, the experts pointed out the possible ways to use the API to subvert the financial services business.n

nThe adoption of APIs can help to facilitate the design and delivery of financial institution products. Peter Wannemacher, industry analyst for digital strategy and financial services industry at Forrester, says more and more “mobile thinking” will force financial institutions to improve their strategy when identifying “mobile moments”. Mobile time is the time when a mobile phone user takes out his device to get results. And in view of the fact that no financial institution can collect all the information to really identify the mobile moments, Wannemacher predicts that the API will be at the heart of everything.n
nAPIs also provide the organization with the opportunity to share data with other organizations without exposing important business secrets. SoFi, a personal finance company at startup, uses Quovo’s wealth management API to illustrate how APIs bring opportunities for unified data without having to share or consolidate good examples of operating systems. Quovo’s authentication API enables SoFi to extract all of the customer’s information from the account to provide better service.n
nDigital identityn
nOne of the major obstacles to full financial digitization is identity. The mainstream financial system is almost unable to take any action without determining the identity of the client or the user, which is a problem faced by financial technology innovators. Most financial technology innovators are trying to provide complete digital products, but the challenge posed by identity problems has forced innovators to have access to information through physical channels (such as driving license photos), which would interrupt the digital process. In essence, if we want to achieve a purely digital product, we need a simple and reliable way to establish digital identity. And block-chain technology has been identified as the ability to solve the identity problem in the digital world.n

nSo far, social media has been helping to establish digital identity, but many experts believe that social media is not foolproof. There is also video-based identity management technology that will first take a few seconds of video for the user and then use the algorithm to compare the video image to the user-supplied photo. However, according to the 2016 World Economic Forum report, financial technology in order to fully realize its potential, you need more digital identity innovation.n
nSamsung has passed its vein recognition sensor smart watch patent, improved digital identity session. The smart watch will read the user’s vein structure to help verify the payment. At the same time, the sensor can also detect the pulse rate, and the pulse rate is the same as the vein structure, the individual is unique.n
nBasic argumentn
nRegardless of the extent to which the chain-chain technology is important to the financial future, we all need to be realistic – this technology alone can not solve all the challenges that face in the financial services landscape. Different innovations need to be able to work together in other ways to achieve greater results. Block chain is only part of financial technology, not a synonym for financial technology.n

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