The use of machine learning in finance can do wonders, even though there is no magic involved. Successful machine learning projects often depend on choosing the right datasets and applying the right algorithms. Let’s take a closer look at why this technology is a great fit for finance, what implementations it has in that domain, and how financial services companies can utilise it.
Machine learning is a subset of Data Science. While Data Science covers the whole data processing pipeline, Machine Learning is about using specific algorithms and chosen datasets to train mathematical models to find patterns, make predictions, segmentation, and more.
As soon as the model is trained, it can process data and produce results automatically, without interference from data scientists. You can retrain models to keep them up to date and efficient.
In simple words, machine learning solutions can learn from both experience and new data, thus improving results without being explicitly programmed.
This powerful tool has numerous applications in finance, as it fits perfectly with the quantitative nature of the financial services industry.
Four reasons why financial services mustn’t ignore machine learning…