Our focus will be on the digitization and transformation of the finance industry. In recent years, Fintech companies, defined as organizations that combine innovative business models and technology to enable, enhance and disrupt financial services, have gained substantial funding and are the main drivers of innovation and digitalisation. Projections show that Fintech companies are expected to take away up to 60% of the revenues of the traditional banking sector within the next ten years.
This topic is particularly relevant for Switzerland as one of the main global financial centers. Worldwide Venture Capital (VC) investment in Fintech ventures tripled in 2014 to more than $12 billion, while the Swiss banking industry is substantially lacking behind compared to other world financial centres. As a reaction, the Swiss government has now set Fintech as a top priority on their agenda. This research project will help in the transformation of the Swiss finance industry by laying the academic and mathematical foundations for the use of Fintech in the area of algorithmic strategies, risk management and investment banking. Its academic concepts and conclusions can also be used in a more general context and applied to a larger range of industries.
In particular, the methods developed can also be applied in the context of Industry 4.0.
This research is directly related to the goals and deliverables of the COST Action TD1409 (Mathematics for Industry Network - MI-NET).