Paper Key : IRJ************080
Author: Pratyay Chattopadhyay
Date Published: 27 Oct 2023
Abstract
Fintech is changing. FinTech replaces FT. 2018 fintech deals totaled $120 billion. 11,000 fintech companies have received $380 billion since 2014. Global tech companies are entering finance. Fintech and "big tech" lent $500 billion in 2017, tenfold more than in 2014. Fintech automates cryptocurrency introduction. Finance technology has improved visibility and analysis. Automation improves team attention and efficiency. It also helped finance. Today, the internet and technology are essential. Finance. Fintech alters how people get financial products. Most tech-driven changes in finance. Booming fintech. Fintech improves financial services. Fintech is a risky yet crucial financial innovation. Global economic growth depends on IT. Market evolution. Management research and methods are insufficient in changing situations. Technology controls modern life. This research addresses financial technology's past and future. The banking industry could not provide as much service without technology. FinTech globalized finance in the late 1990s. FINTECH makes financial transactions cheaper and more accessible. Fintech helps AI companies safeguard online transactions. India adopts 87% of consumer fintech. The CAPM has been established for four decades, but technology can improve its accuracy. Arbitrage theory (APT). This strategy emphasizes economic issues over financial ones because it links expected rewards and risk linearly. It focuses on systematic risk indicators to find incorrectly priced assets and is suitable for value investors or investors in below-market equities. Here's APT. E(Ri) estimated capital asset return Rz risk-free rate of return (n) Premium Ei APT is more adaptable than CAPM and incorporates macroeconomic theory to provide trustworthy results. GNP, GDP, and yield curve variations are APT factors. Arbitrage pricing theory implies market imperfections, notably mispricing, which leads to intrinsic value correction. AI is being used to improve the CAPM's expected returns. AI was taught to interpret and compute stock values using 2013-2019 tech firm closing prices. According to the 2020 study, AI improved cost estimations by 60% and returns by 18%. Simple and accurate, the CAPM is effective. APT predicts returns more accurately when combined with AI. Finance and technology can improve investment decisions by improving financial calculations.
DOI LINK : 10.56726/IRJMETS45437 https://www.doi.org/10.56726/IRJMETS45437