Data is power in our world today.

Data-driven decision making helps online businesses achieve better results in marketing and operational efficiency.

Financial services has long used data from markets, companies and credit history, fintech innovators today are harnessing ubiquitous but less conventional personal data to shift the power from large institutions into the hands of individuals.

Applying the ‘big model’ approach that considers multiple aspects of each person, a new generation of fintech analytics empower individuals to make better investment and spending decisions, gain access to credit and take control of their personal data.

Invest Smarter with Wealth Analytics

Totum Wealth applies holistic analytics to change how wealth managers assess risk and recommend investments for clients.

 

This recently-launched wealth analytics platform offers advisors institutional-quality analytics to deliver fully-customized portfolios and to differentiate from the automated investment services (or ‘robo advisors’).

Unlike typical financial planning software, Totum goes beyond age and income to measure the impact of human capital factors, including geographical exposure, industry concentration, career growth potential, health, family responsibilities, real estate and balance sheet.

By examining these risk factors, Totum helps advisors accurately target the specific risks in each client’s life and create a portfolio tailored for the client with open architecture.

The multidimensional risk engine can derive intelligent insights by combining data from advisor’s existing CRM and custodian, additional data from the government and companies, as well as those sourced from the investor’s other investment accounts, social media and wearable devices.

As it minimizes time-consuming data entry and spreadsheets, advisors can focus on how to better serve today’s clients, who have cheaper options for investment advice. The platform also involves clients in the investment process with interactive visualization of performance and risk to make informed decisions.

Gain Control on Monetizing Data

Datacoup is another company that sees the value of holistic personal data, enabling consumers to build and sell their own online profiles.

Individuals can bring together transaction, browser history, social media, fitness and mobile location data onto Datacoup, which facilitates transactions between individuals and data buyers for a transaction fee.

Insurance companies, retail merchants and mobile carriers, for instance, can place requests to customers to share particular bits of information about themselves in return for discounts or other special offers at point-of-sale or after sale.

Datacoup gives brands access to a valuable, difficult to obtain combination of personal data attributes with customer consent vs. the current model of third-party collection.

Access Credit without FICO

Expanded data analytics is also shifting how consumers access and maintain credit, as illustrated by the initiatives of Float.

Different from traditional lending methods, Float considers multiple factors beyond a credit check when lending, allowing consumers to access, build and maintain credit from their smartphones.

By looking at a borrower’s income and spending habits, rather than just credit history and FICO score, Float can quickly onboard members with customized terms based on their financial capacity and provide the user with their personalized line of credit in three minutes.

Consumers can access on demand credit that can be spent online, in stores or transferred to a bank account. Float is among the fintech companies that build alternative risk assessment models to provide credit to those who do not have a credit history or cannot get credit otherwise.

Build Better Spending Habits

In the personal financial management space, wallet.ai attempts to helps people make better spending decisions by providing feedback on behaviors that affect their finances.

Its artificial intelligence engine analyzes income and spending data to discover patterns, predict future transactions, and detect anomalies.

Wallet.ai was founded in response to existing financial tools requiring too much work to be useful for most on a daily basis. The founders – inventors and scientists – envision a future where AI can help optimize a person’s cash flow awareness and financial health.

“Big Model” Impact

The initiatives of these fintech companies are indicators of how “big model” analytics are changing the financial services industry.

The prevalence of data and digital technologies has unleashed an array of insights into consumer needs and behaviors, resulting in valuable opportunities for individuals to get access to better financial service.

As consumer expectations evolve with technology, financial institutions and professionals can leverage these intelligent analytics to better understand their clients and enhance their service.

This post was written by Min Zhang, CEO and co-founder of Totum Wealth.