Digital Finance refers to the application of cutting-edge computer technologies to financial problems and products. These technologies include:
- Blockchain
- Cryptocurrencies, such as Bitcoin
- Artificial Intelligence or Machine Learning
- Agent-based simulation models
- Natural Language Processing
- Big Data
- Post-time-series statistical analysis
Transformative changes in financial technology range from the emergence of alternative virtual money (cryptocurrencies), and the direct, internet-mediated access to investors' capital (crowdfunding), to the explosion of new data types (social media, text, sound, image) and new analytical techniques (Artificial Intelligence, Machine Learning, Natural Language Processing). These changes trigger shifts in industry practice and have the potential to both empower and subjugate consumers.
Bitcoin is one type of cryptocurrency that is built on blockchain technology. Another fast-growing blockchain technology is Decentralised Finance (DeFi). This technology automates financial functions, traditionally managed by banks and other financial institutions, through distributed applications or "dApps".
Digital Finance aims to achieve the same objectives as traditional time-series econometric analysis but employs different empirical tools rooted in computer science. In some settings, Digital Finance complements the econometric approach, providing a new set of post-time-series statistical tools for analysing irregular high-frequency data.
While much of Digital Finance research finds a home in finance and economics journals, a significant portion is also published in Information Systems or Operations Research journals, which are receptive to research on the effects of technology on business and finance.
The Centre for Digital Finance draws together researchers from different academic backgrounds for collaborative research and innovation, with the aim of gaining deeper insights into the dynamics of financial systems. We also work with industry partners to develop solutions for contemporary business problems.
Our mission
Research Leadership: To be a global leader in curating knowledge and creating new knowledge and understanding about the co-evolution of finance and the emergent technologies which are reshaping finance.
Research-led Education and Dissemination: To equip the financier of tomorrow with the skills they will need to navigate and master a more technological world, to inform and guide policymakers, and to contribute to academic debates in order to advance communal understanding of Digital Finance.
Research-led Enterprise: To collaborate with industry to solve real-world business problems via sponsored research and consulting, and to contribute to a better society by participation in the formation of policies, regulations and standards by serving on boards and writing policy or industry reports.
Research Funding: To generate revenue to fund Digital Finance research via academic research grants and commercially sponsored research projects.
Profile Promotion: To generally promote and enhance the profile and reputation of the Centre for Digital Finance by engaging with external parties, serving on external boards and committees, presenting at conferences, both industry and academic, participating in news media, writing industry reports, promoting our research on social media.