Mathematics and Fintech: The next revolution in the digital transformation of the finance industry
At a glance
- Project leader : Prof. Dr. Wolfgang Breymann, Dr. Jörg Osterrieder
- Project team : Branka Hadji Misheva, Piotr Kamil Kotlarz
- Project budget : CHF 200'000
- Project status : completed
- Funding partner : EU and other international programmes (COST Action / TD 1409 - Mathematics for industry network (MI-NET))
- Contact person : Jörg Osterrieder
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).
Breymann, Wolfgang; Kucharczyk, Daniel Adam; Gross, Francis,
6th Annual Conference of the Society for Economic Measurement, Frankfurt, 16-18 August 2019.