Predictive Analytics for Proactive Risk Management in FinTech Lending and Investment

Abstract

In the dynamic FinTech industry, proactively managing risks has become vital in securing long-term viability and resilience for lending and investment activities. Nevertheless, the industry looks promising, concurrently embracing sophisticated technologies with all accompanying financial innovations. However, the high risks due to introducing innovation make the process even more problematic [1]. The emergence of predictive analytics, an outstanding data-driven technique, as a vital tool in detecting, analyzing, and organizing plans to avoid danger rather than to deal with the aftermath has had an immense impact. This article seeks to illustrate the relevance and utility of predictive analytics within the FinTech banking and investment sectors to the extent of transforming institutional approaches to risk management.