Fintech News: January 6th, 2017

This week: how AI is being used in Wealth Management, customer data brings risks alongside opportunities, and what exactly is causing the up-and-down in Bitcoin price?

Beyond Robo-Advisors: How AI Could Rewire Wealth Management (American Banker)

Banks are moving past the simple robo-advisor in favor of more sophisticated models, which use artificial intelligence to scan market data and world events, identify new trends and use their knowledge to beat the markets when trading.

Customer Data is a Liability (American Banker)

Traditionally considered an asset, customer data is becoming a liability as more data increases the number of hackers looking to steal it.

 

The 2 Factors That Drove Bitcoin’s 20% Overnight Price Plunge (Forbes)

Earlier this week, Bitcoin prices reached all-time highs around $1,100. Since Wednesday, they’ve come crashing back down to the $900 range, representing a 20% loss. What caused the rally and subsequent decline? A large part of Bitcoin’s price is driven by China’s currency controls; when Chinese citizens expect a currency devaluation, they buy Bitcoin, then swap it back into other currencies. This week, the Yuan surprised Chinese citizens by strengthening, which brought Bitcoin’s price down.

While Bitcoin has historically been volatile, its usage as a currency is much higher than it was in 2013, when the price dropped 50% overnight. Because of this, the decline in price was much less dramatic this time around.

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