Stories related to "Finance". http://www.chicagobooth.edu/magazine/spring-2016/rss


Fintech at the Crossroads

When it comes to innovation, the finance industry usually moves along like the proverbial tortoise: slow and steady. But sophisticated computer algorithms have come along and strapped booster rockets to that plodding reptile, rocketing the industry into the twenty-first century at blinding speed. Recent studies of alternative finance around the world underscore the rapid growth. The Asia-Pacific online alternative finance market, including peer-to-peer lending and crowdfunding, grew 323 percent in 2015 to $102.8 billion, led by a fourfold increase in China to $101.7 billion, according to the study, “Harnessing Potential: The 2015 Asia-Pacific Alternative Finance Benchmarking Report.” Another study, “Moving Mainstream: The European Alternative Finance Benchmarking Report,” noted that the European alternative finance market grew 144 percent in 2014 to €2,957 million.<br/>


Building Trust with Blockchain

For the fintech industry—for all financial institutions—trust in transactions is essential. To increase trust in online transactions, software technology known as blockchain creates a higher level of accounting transparency than in standard transactions, where all parties aren’t privy to the accounting ledger. There are many forms of blockchain, but they generally operate the same way, by creating digital signatures of each transaction and sharing them among a network of computers. Each computer can use the signatures to continuously verify who owes what to whom. <br/>