SFI Master Class «Machine Learning and AI: Applications in Banking and Finance»

Machine learning and artificial intelligence (ML/AI) are disrupting the financial sector in an unprecedented manner. The Master Class explores how ML/AI will reshape the financial sector. The class starts with a review of the ML/AI workflow. Easy-to-grasp explanations of available ML/AI algorithms and trends will demystify the ML/AI language. A deep dive into use cases and applications in banking and finance and collaborative group work to identify future applications will illustrate how ML/AI can benefit the participant in her/his organization.

The discussion will be conducted by Prof. Dr. Norman Schürhoff, SFI Senior Chair, University of Lausanne.

Following the Master Class, participants are invited to a networking aperitif.

Context

Machine learning and artificial intelligence (ML/AI) are omnipresent in today’s life and will become even more so in the future. The financial sector is being disrupted in an unprecedented manner. The WEF calls ML/AI the new physics of financial services. And still, 50% of Swiss banks have not launched any initiative towards the use of data analytics (“Digital Pulse Check 3.0” by SFI and Zeb).
 
In the Master Class on “Machine Learning and Artificial Intelligence: Applications in Banking and Finance” we will explore how ML/AI will reshape the financial sector. A deep dive into existing use cases and applications of ML/AI in banking and finance and a collaborative group work to identify future applications will illustrate how ML/AI can benefit the participant in her/his organization.
 
We start with a review of the machine learning and artificial intelligence workflow and highlight the pillars of the new paradigm. Easy-to-grasp explanations of ML/AI algorithms available today and trends in ML/AI technologies will demystify the language of ML/AI.
 
We will explore several case studies and develop future use cases. Current and future applications for ML/AI in banking and finance illustrate the potential to do the same task better, but also something new and radically different. Applications can be found in risk management, investment management, early warning systems for fraud and money laundering, underwriting and trade settlement, algorithmic trading, customer service and digital assistants, voice and text analytics, etc.
 
Discussions will help distil opportunities and challenges for ML/AI in banking and finance. Practical case studies will illustrate the benefits of ML/AI. Limitations and perils of ML/AI will be discussed integrally along the way.
 
Together we will collaboratively explore future use cases in order to address how ML/AI can help the participant in her/his organization. With an option to showcase and gain hands-on experience in ML/AI, the participant will open the blackbox of ML/AI.

Content of the Master Class

• What is ML/AI?
  - Machine learning (ML) and artificial intelligence (AI) workflow
  - ML/AI algorithms available today: Supervised regression/classification, semi-supervised, unsupervised learning
  - Trends in ML/AI technologies: Auto-ML, De-Blackboxing, Open-source AI
• What are applications, opportunities, and challenges for ML/AI in banking & finance?
  - Applications in risk management, Investment management, Early warning systems, Fraud and money-laundering prevention, Customer service/Digital assistants, Underwriting and trade settlement, Algorithmic trading, etc.
• How can ML/AI help me and my organization?
  - Case studies & development of future use cases
  - Showcasing & hands-on experience in ML/AI
• Current issues: Organization issues, Competition aspects, Data portability and open Banking

Swiss Finance Institute