CA19130 - Fintech and Artificial Intelligence in Finance - Towards a transparent financial industry (FinAI)

Project duration: September 2020 – September 2024

Call/Program/Scheme: COST action

Client / Financier: European Cooperation in Science and Technology

Participating institutions:

University of Twente, Netherlands
Universities from 43 countries across Europe and worldwide

Principal investigator (PI): Prof Jörg OSTERRIEDER, University of Twente, Netherlands

The role of IEN in the project: IEN is a member of the Management Committee

IEN project team (manager/coordinator, team members):

dr Vladimir Simovic (MC Committee member)
dr Marija Antonijevic
dr Nevena Jolovic

Description:

The financial sector is the largest user of digital technologies and a major driver in the digital transformation of the economy. Financial technology (FinTech) aims to both compete with and support the established financial industry in the delivery of financial services. Globally, more than $100 billion of investments have been made into FinTech companies and Artificial Intelligence (AI) since 2010, and continue growing substantially. In early 2018, the European Commission unveiled (a) their action plan for a more competitive and innovative financial market, and (b) an initiative on AI with the aim to harness the opportunities presented by technology-enabled innovations. Europe should become a global hub for FinTech, with the economy being able to benefit from the European Single Market. The Action investigated AI and Fintech from three different angles: Transparency in FinTech, Transparent versus Black Box Decision-Support Models in the Financial Industry and Transparency into Investment Product Performance for Clients. The Action bridged the gap between academia, industry, the public and governmental organisations by working in an interdisciplinary way across Europe and focusing on innovation.

Keywords: Artificial Intelligence, Fintech, Finance, Transparency, Financial Markets