Beruflich Dokumente
Kultur Dokumente
Amber Miglani
123006
IMG 12-D
PROBLEM STATEMENT
On a myriad of issues in the wake of economic and business uncertainty, any organization faces following key challenges:
● Optimizing cash by highly effective and efficient business processes Managing risk in a highly complex business environment
· OBJECTIVE
To use AI and machine learning to bring key benefits of financial stability in the form of efficiencies in the provision of financial
services and regulatory and systemic risk surveillance.
● AI (artificial intelligence) is the simulation of human intelligence processes by machines, especially computer
systems. These processes include learning (the acquisition of information and rules for using the information), reasoning
(using rules to reach approximate or definite conclusions) and self-correction.
● Machine Learning may be defined as a method of designing a sequence of actions to solve a problem, known as
algorithms, which optimise automatically through experience and with limited or no human intervention. These techniques
can be used to find patterns in large amounts of data (big data analytics) from increasingly diverse and innovative sources.
Machine learning Algorithms
● Supervised learning the algorithm is fed a set of ‘training’ data
that contains labels on some portion of the observations.
CASE 1
Credit scoring
applications
Customer-focused
uses: credit
Use for pricing, scoring, insurance
marketing and and client-facing
managing chatbots Client-facing
insurance chatbots
policies
CASE 2
Operations-focused uses
AI and machine learning in trading Scope for the use of AI and machine
execution learning in portfolio management
Trading firms are looking to AI and machine In portfolio management, AI and machine
learning to use data to improve their ability to learning tools are being used to identify new
sell to clients signals on price movements and to make more
effective use of the vast amount of available
data
CASE 4
RegTech: applications
by financial
institutions for
regulatory compliance
AI and machine
learning in
regulatory
Uses for compliance and SupTech: uses
macroprudential and potential
supervision
surveillance and uses by central
data quality banks and
assurance prudential
authorities
MICRO-FINANCIAL ANALYSIS