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L1 - SS13.R43 Fintech in Investment Management Lesson 1

Fintech utilizes large datasets, analytical tools, and automated trading to provide services like robo-advising. It also uses distributed ledger technology to allow direct transactions between investors without third parties. Artificial intelligence and machine learning techniques are applied, including neural networks, supervised and unsupervised learning, and deep learning to analyze data, detect fraud, and aid financial analysis.

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113 views6 pages

L1 - SS13.R43 Fintech in Investment Management Lesson 1

Fintech utilizes large datasets, analytical tools, and automated trading to provide services like robo-advising. It also uses distributed ledger technology to allow direct transactions between investors without third parties. Artificial intelligence and machine learning techniques are applied, including neural networks, supervised and unsupervised learning, and deep learning to analyze data, detect fraud, and aid financial analysis.

Uploaded by

mmqasmi
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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The Primary Components of Fintech

Describe “Fintech”
Analysis of large datasets
- Analyze large amounts of data to help investment managers sift through information.
- Examine social media and sensor network data to provide managers additional insights.
Analytical tools
- Perform tasks that would otherwise require human analysis.

Automated trading
- Generate automated trading systems that are designed to provide more efficient trading,
lower transaction costs, manager anonymity and greater liquidity to portfolios.
Describe “Fintech”
Automated advice (robo-advisers)
- Used for retail wealth management services to provide investors lower cost advice.
Financial record keeping
- Distributed ledger technology ( ) is a new way to track the ownership of financial
assets on a peer-to-peer basis ( ).
- This means investors can make transactions directly between one another without the use
of a third party, thereby reducing costs.
Describe Big Data
Individuals
- Unstructured and is growing rapidly as people increasingly make personal data available
through various electronic trails and online reviews.
Business processes
- Structured and includes sales/credit card data and “corporate exhaust,”

- Leading and real-time business indicators as opposed to corporate filings,


Sensors
- Unstructured and is growing exponentially due to the prevalence of networking technology
in personal and commercial devices.
Describe Artificial Intelligence
- Designed to perform cognitive or decision-making tasks in a comparable or superior
manner to human intelligence.
- Has been around since the early 1980s, but has evolved significantly since then due to
greater computer and network processing speeds.

: :
Detect fraudulent credit card claims and - Helped financial firms in data mining
charges in the form of neural networks and financial analysis.
based on how human brains learn and
process information.
Describe Machine Learning
Supervised learning
- Involves labeling or identifying inputs and outputs to the algorithm so that it can be trained
to identify relationships for labeled data and work with other data sets.

Unsupervised learning
- Requires algorithms to describe the data and its structure on its own.

Deep learning ( )
- Uses neural networks to perform multistage, non-linear processing to identify patterns and
relationships in data through a supervised or unsupervised approach.
- Evolved from improvements in the underlying algorithms used in neural networks to better
learn from data and understand simple concepts:

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