Book Image

Hands-On Artificial Intelligence for Banking

By : Jeffrey Ng, Subhash Shah
Book Image

Hands-On Artificial Intelligence for Banking

By: Jeffrey Ng, Subhash Shah

Overview of this book

Remodeling your outlook on banking begins with keeping up to date with the latest and most effective approaches, such as artificial intelligence (AI). Hands-On Artificial Intelligence for Banking is a practical guide that will help you advance in your career in the banking domain. The book will demonstrate AI implementation to make your banking services smoother, more cost-efficient, and accessible to clients, focusing on both the client- and server-side uses of AI. You’ll begin by understanding the importance of artificial intelligence, while also gaining insights into the recent AI revolution in the banking industry. Next, you’ll get hands-on machine learning experience, exploring how to use time series analysis and reinforcement learning to automate client procurements and banking and finance decisions. After this, you’ll progress to learning about mechanizing capital market decisions, using automated portfolio management systems and predicting the future of investment banking. In addition to this, you’ll explore concepts such as building personal wealth advisors and mass customization of client lifetime wealth. Finally, you’ll get to grips with some real-world AI considerations in the field of banking. By the end of this book, you’ll be equipped with the skills you need to navigate the finance domain by leveraging the power of AI.
Table of Contents (14 chapters)
1
Section 1: Quick Review of AI in the Finance Industry
3
Section 2: Machine Learning Algorithms and Hands-on Examples

Ensemble learning

Ensemble learning is the boosting technique that helps us in improving the accuracy of the prediction. We will also learn how to use the graph database for knowledge storage. Knowledge storage is the current challenge in knowledge representation that can be used to empower AI for professional-grade financial services.

Ensemble learning is an approach that is used to summarize several models in order to give a more stable prediction. It was a very common approach before deep neural networks became popular. For completeness, we do not want to ignore this modeling technique in this very short book. In particular, we have used random forest, which means that we build lots of decision trees as a forest and we apply logic to cut down trees that have lower performance. Another approach would be combining the weaker model to generate a strong result, which is called the boosting method. We won't cover it here, but readers are encouraged to dig deeper in...