Financial modeling

- [Narrator] FinTech analysts use financial modeling to forecast a company's performance and evaluate the potential impact of a business decision. Financial modeling involves creating a mathematical representation of a company's financials including its income statement, balance sheet, cash flow, any other type of financial data you can bring in. Now by creating this financial model, you can then project how a company's financials will likely change over time based on various assumptions and scenarios. These are your kind of knobs and dials that you can turn to adjust your predictions going forward. Now, you may use financial modeling to evaluate the potential impact of a business decision, such as a new product launch or partnership with another company. And by creating a financial model you can then forecast how decisions like a partnership or a new product launch or change of pricing, whatever the case may be will affect…