Machine Learning and AI has revolutionized Finance! In the last five years, innovations in computing, technology and business models have created multiple products and services in Fintech prompting organizations to prioritize their data and AI strategies. What will 2021 bring and how should you prepare for it? Join Sri Krishnamurthy,CFA as we kickoff the QuantUniversity’s Winter school 2021. We will introduce you to the upcoming programs and have a masterclass on 10 innovations in AI and ML you need to know in 2021!
Machine Learning in Finance: 10 Things You Need to Know in 2021
1. QU Winter School 2021 Kickoff
+
10 things about ML you need to know in 2021
2021 Copyright QuantUniversity LLC.
Presented By:
Sri Krishnamurthy, CFA, CAP
sri@quantuniversity.com
www.quantuniversity.com
Jan 27th 2021
2. 2
Speaker bio
• Advisory and Consultancy for Financial
Analytics
• Prior Experience at MathWorks, Citigroup
and Endeca and 25+ financial services and
energy customers.
• Columnist for the Wilmott Magazine
• Author of forthcoming book
“ML in Finance: A pragmatic approach”
• Teaches AI/ML and Fintech Related topics in
the MS and MBA programs at Northeastern
University, Boston
• Reviewer: Journal of Asset Management
Sri Krishnamurthy
Founder and CEO
QuantUniversity
3. 3
QuantUniversity
• Boston-based Data Science, Quant
Finance and Machine Learning
training and consulting advisory
• Trained more than 1000 students in
Quantitative methods, Data Science
and Big Data Technologies using
MATLAB, Python and R
• Building a platform for AI
and Machine Learning Audit and
Experimentation
4. 1. Winter school 2021
2. Key trends in AI, Machine Learning & Fintech
3. 10 things you need to know in 2021
4. Demos
Agenda
14. 14
The 4th Industrial revolution is Here!
Source: Christoph Roser at AllAboutLean.com
As per Wikipedia*, “The 4th Industrial Revolution ….. marked by emerging technology breakthroughs in a
number of fields, including robotics, artificial intelligence, nanotechnology, quantum computing, biotechnology,
the Internet of Things, the Industrial Internet of Things (IIoT), decentralized consensus, fifth-generation wireless
technologies (5G), additive manufacturing/3D printing and fully autonomous vehicles.”
* https://en.wikipedia.org/wiki/Fourth_Industrial_Revolution
15. 15
Scientists are disrupting the way we live!
Source: https://www.ladn.eu/tech-a-suivre/mobilite-2030-vehicules-volants-open-data/
16. 16
Interest in Machine learning continues to grow
https://www.wipo.int/edocs/pubdocs/en/wipo_pub_1055.pdf
18. 18
• Machine learning is the scientific study of algorithms and statistical
models that computer systems use to effectively perform a specific task
without using explicit instructions, relying on patterns and inference
instead1
• Artificial intelligence is intelligence demonstrated by machines, in
contrast to the natural intelligence displayed by humans and animals1
Defining Machine Learning and AI
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1. https://en.wikipedia.org/wiki/Machine_learning
2. Figure Source: http://www.fsb.org/wp-content/uploads/P011117.pdf
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The rise of Big Data and Data Science
23
Image Source: http://www.ibmbigdatahub.com/sites/default/files/infographic_file/4-Vs-of-big-data.jpg
24. 24
Smart Algorithms
24
Distributing Computing Frameworks Deep Learning Frameworks
1. Our labeled datasets were thousands of times too
small.
2. Our computers were millions of times too slow.
3. We initialized the weights in a stupid way.
4. We used the wrong type of non-linearity.
- Geoff Hinton
“Capital One was able to determine fraudulent credit
card applications in 100 milliseconds”*
* http://go.databricks.com/hubfs/pdfs/Databricks-for-FinTech-170306.pdf
26. 26
“Financial Technologies or “Fintech” is used to describe
a variety of
innovative business models
and
emerging technologies
that have the potential to transform the financial
services industry ”
Technology drives finance!
https://www.iosco.org/library/pubdocs/pdf/IOSCOPD554.pdf
58. Thank you!
Sri Krishnamurthy, CFA, CAP
Founder and CEO
QuantUniversity LLC.
srikrishnamurthy
www.QuantUniversity.com
Contact
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