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)
Section 1: Quick Review of AI in the Finance Industry
Section 2: Machine Learning Algorithms and Hands-on Examples

Providing a financial performance forecast using macroeconomic scenarios

One of the key jobs of a CFO is to provide a forecast for financial performance. So, how is AI going to change this job? We will build on what we know about finance in terms of helping with financial projections for accounting rules between items and add the predictive capability of our age to improve it.

As the CFO of the listed firm, one of our key aspects is to provide management and analyst guidance for forward-looking financials. Hypothetical data is handcrafted by the author. This seeks to emulate what the accounting system looks like.

In this section, we will look at how to forecast the financial performance of the firm.

Implementation steps

In this section, we will learn how to derive financial performance forecasts using macroeconomic scenarios. The steps are as follows:

  1. Initialize the tickers in each industry by loading them from CSV files and importing...