4 Ways Alternative Data Is Improving Fintech Companies in APAC - Fintech Hong Kong

Various categories of fintech firms – Buy Now, Pay Later (BNPL), digital lending, payments and collections – are increasingly leveraging predictive models built using artificial intelligence and machine learning to support core business functions such as risk decisioning. According to a report by Grand View Research, Inc., the global AI in fintech market size is expected to reach US$41.16 billion by 2030, growing at a compound annual growth rate (CAGR) of 19.7% in Asia-Pacific alone from 2022 to 2030. The success of AI in fintech, or any business for that matter, hinges on an organisation's ability to make accurate predictions based on data. While internal data (first-party data) needs to be factored into AI models, this data often fails to capture critical predictive features, causing these models to underperform. In these situations, alternative data and feature enrichment can establish a powerful advantage.