Review on Financial Innovations in Big Data Era

The rise of Big Data brings the financial innovation opportunities as well as challenges. This paper reviews different fields of big-data-based financial innovations as well as the scientific discoveries and theoretical breakthroughs of risk analysis with respect to these financial innovations. Based on the current research status, several key problems are put forward and their relative solutions are discussed. The three mean aspects are listed as the pricing and risk measuring for data-driven financial innovation products or services; the changes that data-driven financial innovation would bring to finance industry, which involve operation, resources allocation and ecosystem; and questions and solutions of systemic risk management based on Big Data analytics. Finally, predictions towards the hotspots frontier and developing trends for further data-driven financial innovation are proposed.