%0 Journal Article %A Paul Schulte %A Gavin Liu %T FinTech Is Merging with IoT and AI to Challenge Banks: How Entrenched Interests Can Prepare %D 2017 %R 10.3905/jai.2018.20.3.041 %J The Journal of Alternative Investments %P 41-57 %V 20 %N 3 %X Collapsing prices of sensors, bandwidth, processing, and storage allow upstarts to abandon the internal world of static data, which has driven finance for centuries. They can create new sciences of risk, data management, credit analysis, insurance pooling, and trading that are based on ubiquitous and dynamic external sensor and smart phone data, which are measured in the billions. This is a world of data creating business—not the other way around. This is the world of the Internet of Things, and computers will increasingly make human-like decisions on all forms of risks. The authors suggest that many financial institutions are not prepared for this change.TOPICS: Big data/machine learning, risk management %U https://jai.pm-research.com/content/iijaltinv/20/3/41.full.pdf