Financial World Tendency

Financial World Tendency

Introduction.

The 21st century is mainly characterized by being the era of the technological revolution of information. We must highlight the indisputable importance of technological changes in order to explain the peculiarities of today’s society. Given the progress of information technologies have increased their applications in all sectors, and among them, the financial sector. The objective of this text is to inform the new trends of the financial sector and how the world of traditional finances has revolutionized.

First, a new tendency of the sector is the use of scoring systems in risk analysis. Currently, in credit companies that work on the Internet, it is scoring that decides whether a loan is approved or rejected, instead of the employee in the case of traditional banking.

Developing.

To carry out this process, the Scoring calculates the probability that a financial asset (such as a loan or a loan) between default, taking into account its main characteristics such as the term or the purpose. Among the advantages involved in the use of these systems is speed, since it may be able to analyze around 15000 data and assess the risk of credit in seconds, simplicity, objectivity- because the probability of default is determined byTHE BANK- AND RELIABILITY.

On the other hand, another of the changes that has benefited the financial sector is the use of rating metrics. Rating is the evaluation of the capacity of a company to pay its debt, that is, its solvency and the measure of the risk of investing in it.

These metrics are quite used by companies and are based on an alphanumeric system that generally qualifies the entities “A” those of lower credit risk, and the “C” (of lower score) those that its investment entails a high risk of default.

For lenders it is an important fact because they can evaluate the risk of default of the entity that issues the debt. Now, the blockchain system that appeared next to the well -known virtual currency (Bitcoin) and which consists of registering all financial operations carried out in a huge online shared database cannot be forgotten. In it each operation is registered with a code and informs of the date on which it took place and of the participants of this.

This system is shared through the network by multitude of companies and to modify its information, a permit is required, it is also not possiblethis service. Other important advantages of blockchain are the reduction of costs and increased efficiency, since it increases in turn the speed of information registration processes.

On the other hand, artificial intelligence has many uses today. In the finance sector it is responsible for collecting financial information and selecting that most important for reports, market research, article all automated. It is also used in repetitive tasks as in the means of payment to detect fraud. In the field of communication virtual assistants have been created to improve attention and treatment with customers through the use of ‘Big Data’. That is why all the new trends in the financial sector are, in one way or another, related through the Internet and act benefiting from the advantages of others.

However, a change that constituted a revolution of the information was the Big Data. Big Data is the set of a large volume of unstructured data that through the necessary intelligence is able to extract the information and give it value. Among the data that constitute in Big Data there is information (in real time) environmental, photographs, user data, location, financial and consumption data, business accounts, industrial data, traffic.

To extract the valuable information from the Big Data, the usual transactions registration techniques have been studied and the value information has been selected through the artificial intelligence mentioned above, statistics, data prediction processes, etc.

Example: In companies, in the marketing department, user data such as what they visit in their networks are used, what products buy more, the area they move in to adapt their products and services to the needs of customers,Expand your market share and get greater benefits.

Finally, Fintech was a radical transition in the sector encompassing companies that offer financial products and services but in a different way, through the use of new technologies. Thus, cost savings are allowed because they perform absolutely everything digitally and access a greater number of customers;The user also benefits because he pays lower commissions than in the traditional bank.

Among Fintech companies, there are very different products, but that coincide in the financial services they offer, some examples of these are the Apple Pay, Amazon Pay or Google Pay payment platforms.

Among the novelties of Fintech companies:

• Facebook has created a money shipping service through Messenger,
• Samsung has launched its own virtual currency (Samsung Coin),
• Amazon already has a loan service (Amazon Lending) and more and more companies offer financial services that were previously bank.

conclusion.

In short, the financial sector has changed a lot in recent years. Traditional banking in many occasions has used these trends as an opportunity to continue developing and offering the best possible service to its customers. In our hands is knowing how to use the advantages of new information technologies to continue improving.