AI and machine learning (ML) are playing an ever-growing role in financial markets around the world – and while these new technologies can reduce costs and increase speed for firms and investors, they also come with an element of risk.
Machine learning (ML) has been touted as set to transform the financial landscape – but is this hype or reality? A recent Bank of England survey indicated that machine learning – including live projects using complex methods such as natural language processing – are increasingly common in the UK. The data shows that a third […]
We’ve heard a lot about the potential of fintech to open up access to credit by using big data and alternative data sources to assess risk – but how do these techniques actually stack up when compared to traditional credit scoring? A recent working paper from the Bank for International Settlements (BIS) looks at transaction […]
A Bank of England (BoE) report has found that the use of machine learning (ML) is on the rise in financial services. The report is based on a joint survey from BoE and the Financial Conduct Authority in 2019 of 106 firms. The UK economy is increasingly powered by big data, with financial services in particular […]
The UK’s Prudential Regulation Authority (PRA) is working on machine learning techniques to predict bank distress. Using novel data sources, mainly confidential regulatory returns, this still experimental early warning system for predicting bank distress significantly outperformed other models. This development follows the Danish Business Authority’s machine learning-based Early Warning Europe, which uses large data sets from five European countries […]
Continuing on the theme from last story, what is the next big disrupter in financial markets? You guessed it. According to a recent Greenwich Associates report, Artificial Intelligence (AI) is set to have a big impact, with 44% of capital market professionals saying that their firms are already using AI in their trading processes. Firms […]
What does the future of regulation look like? Is there a tension between a supervisory regime that seemingly relies on human judgement, but is increasingly investing in automation, machine learning and AI?
One of the core aims of the XBRL standard is communication: opening up access to business information, making reports easily exchangeable and readable and improving transparency. At Data Amplified, José Antonio Moreno from 2H in Mexico will be showing us how the latest developments in AI are set to bring the democratisation of data to new […]
Do read the interview with Scott Bauguess, Deputy Director and Deputy Chief Economist of the SEC’s Division of Economic and Risk Analysis (DERA) this week from Merrill Corp. Spurred on by what he considered to be a persistent lack of interest and understanding among certain market participants about the importance of standardised data collection and dissemination, […]
Machine Learning technology might take the drudge work out of many occupations, and might in turn, reduce the number of jobs that require low level skills. But if that happens, how do junior and new employees gain the skills required for higher level roles that require knowledge and judgement? Skills that today are developed while […]