Artificial Intelligence set to dominate Financial Services

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A recent article by a Foreign-Exchange Journalist suggests the ‘Skynet’ of Finance is not too far away.

The article points  to the huge improvements in Artificial Intelligence and the bullishness of Financial Services firms for takeover by technology in their industry. In particular, Transfer/Payments business expect to lose 28% of their business to FinTech in the next 5 years, and Banks expect to lose 24% of their business.

The silver lining to this takeover could however be, the article points out, the greater emphasis on the ‘human touch’ in key customer interfacing areas. For example, a human hand at the wheel to prevent another ‘flash crash’ or a human interpreter of the decisions of an Artificial Intelligence made lending / investment decision.

Whatever happens, we are likely to see more automation, lower costs for the customer, and smarter decision making – albeit in the near term.

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My phd paper is finally published, and Bayes is still the word!

It took almost half a decade and I must confess I don’t really remember much of what was written, but one of my phd papers is finally in print. The context of derivative pricing is no longer really very relevant to me. But satisfyingly, I found the Bayesian principles and regularisation methods very applicable and powerful in the trading algorithms I previously worked on. And even today at Airbnb, manage to use the ideas in our machine learning models.

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