Data Ethics & Governance - Doc

Submitted By: Ruhi Miglani
19828121
ASSIGNMENT-01(PR1)

Table of Contents
1. Background
2. Identified problem
3. Proposal
4. Design, Development and Deployment
5. Adopted Analytical Approaches
6. Data Driven Solutions
7. Business Model
8. Business Opportunities
9. Estimated Budget
10. Data Ethics & Governance

Background
Financial Technology is an economical sector made up of businesses leveraging technologies to
improve the performance of financial services and is often called Fintech. Its meaning is changing
drastically with the time that it is so difficult to classify the concept of fintech. Active sectors of
Fintech are Lending, Wealth-Management, Payments, Data and Information Management, Market
place Style solutions etc. However, among all sectors Payment and lending comes under the major
sector in which fintech is involved but with the time and with changing rules and regulations in
payment and lending sector various new finance firms came up which are offering better credit
services and rates to the customer in compare to banks. Moreover, credit card is considered or being
used as the best solution served by the banks and other credit providing firms (Anon, 2020). There
has been substantial growth in the number of lenders of cards and issuing banks and transactions with
credit card and this leads to serious concerns as upsurge of transactions via credit cards give rise to
more financial pressure on the borrower.
Currently the lending sector is facing too much of issues because of rise in credit card defaults.
Because of COVID 19 most of the peoples are jobless, they even don’t able to fulfill their daily basic
needs in such conditions it is not possible for them to pay credit card monthly instalments and even to
get rid from this situation people are opting various different sources to pay the dues and as a result it
is giving rise to more debt. However, multiple solutions are taken into consideration to predict the
default rate but still the condition is same.
Identified Problems
The major problem identified is credit card defaults and this is because of ease in availability of
credit. Now-a-days it becomes easy to get credit from any financial institution or credit provider firms
and this is creating a massive liability or debt. As credit is easily available around 16 million of
people are having credit cards. The credit cards are nothing but the loan taken by the customer from
financial institutions with implied obligation repayment in the form of monthly instalments borrower
have to pay to the lending institute along with that interest rate and penalties for not paying instalment
on time also contributing to a rise in high debts. Most of the people are using it in case of emergency
or it act a resource of finance in the case of any emergency for them and others are using it as a source
of gaining rewards like in flights booking they offer cashbacks and some discount if payment is done
via credit card but as per the report of ASIC users were overwhelmed with debt obligations on credit
cards, and the financial firms are owing almost $45 billion since June 2017 and Credit card defaults
are currently being pursued by 1.9 million people in Australia. Because of high debts people are
applying for other credit card so that they can be able to make payment for earlier dues and debts also