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

Basics of investment banking

Investment banking will be the focus of this chapter. Therefore, you will need to understand a few basic concepts surrounding investment banking. We will begin by understanding the challenges of an Initial Public Offer, commonly known as an IPO. When a company decides to go to the stock market in order to acquire money from the public, they release an IPO for the public and institutions to subscribe to. We will also understand the concepts of M&A, as well as how to classify investors and apply AI to mergers and acquisitions.

The job of investment bankers in IPOs

The following are some of the core problems that investment bankers deal with:

  • Pricing:What is the right price for the new issuance (of equity)?
  • Syndication:Who should we distribute the shares to and at what price?
  • Listing:How can we register these shares with the markets (such as stock exchanges) so that they pass all the requirements...