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
Sensing Market Sentiment for Algorithmic Marketing at Sell Side

In the previous chapter, we learned about investment portfolio management. We also learned some of the portfolio management techniques, such as the Markowitz mean-variance model and the Treynor–Black model for portfolio construction. We also learned about how to predict a trend for a security. So, the previous chapter was based on the buy side of a market. It depicted the behavior of portfolio managers or asset managers.

In this chapter, we will look at the sell side of the market. We will understand the behavior of the counterpart of the portfolio managers. Sell side refers to securities firms/investment banks and their main services, including sales, trading, and research. Sales refers to the marketing of securities to inform investors about the securities available for selling. Trading refers to the services that investors use to buy and sell off...