They help to keep up with the increasing amount of data that fintech applications collect.
by
Content Partner
Updated
Photo by Jason Briscoe / UnsplashThose who have been following the latest tech trends will know that two areas that are seeing the biggest developments are fintech and data management. Both sectors have evolved to keep up with modern technological innovations such as smart devices, the Internet of Things, and the rise of artificial intelligence and machine learning.In the past decade, fintech has seen an explosion in usage as more people use smart technology to manage their finances. A recent fintech report from the World Economic Forum and the Cambridge Centre for Alternative Finance found that customer growth rates averaged above 50%. As more people use fintech, more data is being created that can be used to improve financial services. This has led to more fintech companies using NoSQL databases to keep up with the increasing amount of data that fintech applications collect.What is a NoSQL Database?A NoSQL database is different from a traditional SQL database because it is much more flexible in how it stores data. While SQL databases will store and organize data in tables, a guide to MongoDB’s NoSQL databases details how a NoSQL can store data in four different data models. These are document databases, key-value databases, wide-column stores, and graph databases. Each NoSQL database has its own unique features while also being flexible, scalable, and able to distribute data across multiple databases. NoSQL databases also allow developers to store huge amounts of unstructured data. This data doesn’t have a fixed schema and can include text, images, video, and data from social media posts, emails, and smart devices. This allows the database to create massive datasets consisting of different types of data that can then be collated together to find patterns and recommend services. The fintech industry is effectively using these advantages of NoSQL databases.Data Collection The fintech industry is constantly evolving in terms of how people can pay for products and services. A recent innovation was the Singapore Quick Response Code. This allowed merchants to receive payments from multiple payment networks and apps at the same time, eliminating the need for multiple QR codes. While these apps are revolutionizing how people pay, they are also changing how the fintech industry stores the users’ financial data. Most of the data from these apps is unstructured, whether it be financial transactions from mobile finance apps or search preferences from web-based solutions, and a NoSQL database can store it on one of its data models, depending on the fintech company’s needs. This is especially useful for fintech applications that deal with a
