Data-driven approaches in FinTech: a survey

Abstract

Purpose This paper aims to explore the latest study of the emerging data-driven approach in the area of FinTech. This paper attempts to provide comprehensive comparisons, including the advantages and disadvantages of different data-driven algorithms applied to FinTech. This paper also attempts to point out the future directions of data-driven approaches in the FinTech domain. Design/methodology/approach This paper explores and summarizes the latest data-driven approaches and algorithms applied in FinTech to the following categories: risk management, data privacy protection, portfolio management, and sentiment analysis. Findings This paper details out comparison between different existed works in FinTech with traditional data analytics techniques and the latest development. The framework for the analysis process is developed, and insights regarding the implementation, regulation and workforce development are provided in this area. Originality/value To the best of the authors’ knowledge, this paper is first to consider broad aspects of data-driven approaches in the application of FinTech industry to explore the potential, challenges and limitations of this area. This study provides a valuable reference for both the current and future participants.