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Applying Machine Learning in Fintech Domain: The Most Popular Techniques

Applying Machine Learning in Fintech Domain: The Most Popular Techniques

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4 years ago

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Machine Learning in Fintech

Concepts of machine learning and artificial intelligence have become more present and available in most of the industrial processes. As more and more businesses are turning towards the implementation of machine learning and AI, the benefits reaped from these technologies are unparalleled. And the fintech industry is no longer an exception. The implementation of smarter machines and prediction concepts has provided the benefit of generating the best outputs with the least investments done.

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Machine Learning in the Fintech Industry: How It Benefits Investors?

The global fintech market value is expected to hit the mark of $309.98 billion by the end of 2022. This tremendously growing market has seen quite ups and downs- but it has continued on its path to achieving growth. The businesses associated with the fintech industry highly prefer the implementation of the latest technology trends to provide efficient services.

And as machine learning and artificial intelligence are also part of this list of the latest tech trends, the practical use of these concepts hasn't surprised many of the investors. As machine learning and AI can be extensively used to derive accurate predictions from the available data, many investors and businesses use it to empower their investment decisions and earn more returns.

But apart from this, AI and machine learning can offer many more benefits to fintech businesses that can help drive exponential business growth.

5 Most Popular Machine Learning Trends Driving Growth of Fintech Industry: Techniques that Promise Accurate Results

One of the most popular benefits of using the latest technology trends is that they tend to save time and energy. The resources required might sound expensive at first, but the outputs received are worth the investment.

1. Chatbots for Customer Support

What every fintech investor craves for? A personalized assistant that can guide them through the entire investment procedure and answer their queries anytime. Well, machine learning can give you that. Businesses from fintech industries are increasingly relying on chatbots to deliver an excellent customer experience.

Chatbots are used to guide the investors from the entire process: starting from registration and primary queries to final investment amount and estimated return on the amount. Moreover, the use of transactional chatbots has made it easier for customers to transact their investments or add more within a few taps. These transactional bots not only assure the security of their investments but also implement a high-scale security system to protect the user data.

Moreover, it eliminates the requirement for 24x7 expert human assistance. Rather, businesses can invest in the chatbots that can provide continuous services and deliver excellent experience by serving customers. Businesses can focus on delivering the best services while chatbots can handle all the customer support tasks without needing any human intervention.

2. Fraud Detection and Prevention

Based on their investment and transaction behavior, each investor (a person or a company) is assigned a risk score. If the risk score of an investor is higher, the chances of performing frauds increases and hence, the business should deal with them carefully. But the calculation of the risk score involves many parameters than the ones that are mentioned above.

However, machine learning algorithms can take up this work by automating the tasks at hand and delivering the right risk scores by efficient calculations. And this helps prevent frauds and detect them on a very early basis. Fraudulent transactions can be identified from the available data sets by the assessment of all risk factors and the risk score. It ultimately ends up providing a major benefit to businesses who often suffer from fraudulent transactions.

However, the ML (Machine Learning) model to be used during these operations must be evolving continuously. As the fraudsters always seem to find new ways of performing fraud, the ML model should consider the updated techniques and evolve to provide efficient fraud predictability.

3. Big Data for Stock Predictions

Today's investors believe in making smart investments and achieving better returns. And machine learning has paved its way to meet the user demands and the smart and accurate predictions are more popular among the customers of fintech businesses. They extensively rely on the predictions that machine learning algorithms do- based on the past data, current value, and changing market behavior.

Also known as smart trading, these algorithms are set to predict market behavior and change in the values of stocks. And customers are liking it! As it secures their investment and delivers a great experience. Whether it's a online ordering system or a fintech startup, machine learning has surely found its way to evolve in most areas of the fintech industry.

4. Automated Claim Processing

As the transactional bots are highly encouraging the use of automated transaction processing, the same gets passed on to claims. Customers can now rely on these bots to process their claims highly efficiently and deliver the best services.

And of course, to train these bots machine learning is a highly recommended aspect. Therefore, it not only encourages automated and efficient processes, but it also promises a robot behavior that can streamline major financial operations. It not only helps customers get their claims processed but also reduces burdens from the fintech companies' shoulders by delivering the best services and impressing customers.

5. Personalized Investment Advisors

Generally, investors always seek expert guidance to assure the safety of their investments. But with machine learning and automation, it becomes easier to seek expert guidance from personalized robot advisors who can assess the market risks and deliver excellent services.

The accuracy of their advice and investment planning is much higher than others and because of it, many investors are turning towards these robotic personalized advisors rather than considering the human advisors. The total assets under the management of robo advisors amount to $1,442,028 million. And the implementation of machine learning constraints drives the usability of these advisors to reach new heights.

Summing Up

Further implementation of machine learning concepts needs expert human assistance to guide the execution. The introduction of machine learning concepts to the fintech promises to offer better user experience and deliver exceptional performance and extended usability.

Not only machine learning but the concepts of big data analytics and artificial intelligence are playing major roles in advancing the operations of fintech. The increased use of these constraints aims to craft a better experience that can turn out to be extraordinary for most of the investors and the companies too.

The post Applying Machine Learning in Fintech Domain: The Most Popular Techniques appeared first on ValueWalk.

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Low Iron Levels In Blood Could Trigger Long COVID: Study

Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate…

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4 hours ago

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March 9, 2024

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Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate iron levels in their blood due to a COVID-19 infection could be at greater risk of long COVID.

(Shutterstock)

A new study indicates that problems with iron levels in the bloodstream likely trigger chronic inflammation and other conditions associated with the post-COVID phenomenon. The findings, published on March 1 in Nature Immunology, could offer new ways to treat or prevent the condition.

Long COVID Patients Have Low Iron Levels

Researchers at the University of Cambridge pinpointed low iron as a potential link to long-COVID symptoms thanks to a study they initiated shortly after the start of the pandemic. They recruited people who tested positive for the virus to provide blood samples for analysis over a year, which allowed the researchers to look for post-infection changes in the blood. The researchers looked at 214 samples and found that 45 percent of patients reported symptoms of long COVID that lasted between three and 10 months.

In analyzing the blood samples, the research team noticed that people experiencing long COVID had low iron levels, contributing to anemia and low red blood cell production, just two weeks after they were diagnosed with COVID-19. This was true for patients regardless of age, sex, or the initial severity of their infection.

According to one of the study co-authors, the removal of iron from the bloodstream is a natural process and defense mechanism of the body.

But it can jeopardize a person’s recovery.

“When the body has an infection, it responds by removing iron from the bloodstream. This protects us from potentially lethal bacteria that capture the iron in the bloodstream and grow rapidly. It’s an evolutionary response that redistributes iron in the body, and the blood plasma becomes an iron desert,” University of Oxford professor Hal Drakesmith said in a press release. “However, if this goes on for a long time, there is less iron for red blood cells, so oxygen is transported less efficiently affecting metabolism and energy production, and for white blood cells, which need iron to work properly. The protective mechanism ends up becoming a problem.”

The research team believes that consistently low iron levels could explain why individuals with long COVID continue to experience fatigue and difficulty exercising. As such, the researchers suggested iron supplementation to help regulate and prevent the often debilitating symptoms associated with long COVID.

“It isn’t necessarily the case that individuals don’t have enough iron in their body, it’s just that it’s trapped in the wrong place,” Aimee Hanson, a postdoctoral researcher at the University of Cambridge who worked on the study, said in the press release. “What we need is a way to remobilize the iron and pull it back into the bloodstream, where it becomes more useful to the red blood cells.”

The research team pointed out that iron supplementation isn’t always straightforward. Achieving the right level of iron varies from person to person. Too much iron can cause stomach issues, ranging from constipation, nausea, and abdominal pain to gastritis and gastric lesions.

1 in 5 Still Affected by Long COVID

COVID-19 has affected nearly 40 percent of Americans, with one in five of those still suffering from symptoms of long COVID, according to the U.S. Centers for Disease Control and Prevention (CDC). Long COVID is marked by health issues that continue at least four weeks after an individual was initially diagnosed with COVID-19. Symptoms can last for days, weeks, months, or years and may include fatigue, cough or chest pain, headache, brain fog, depression or anxiety, digestive issues, and joint or muscle pain.

Tyler Durden Sat, 03/09/2024 - 12:50

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February Employment Situation

By Paul Gomme and Peter Rupert The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000…

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5 hours ago

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March 9, 2024

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By Paul Gomme and Peter Rupert

The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000 average over the previous 12 months. The payroll data for January and December were revised down by a total of 167,000. The private sector added 223,000 new jobs, the largest gain since May of last year.

Temporary help services employment continues a steep decline after a sharp post-pandemic rise.

Average hours of work increased from 34.2 to 34.3. The increase, along with the 223,000 private employment increase led to a hefty increase in total hours of 5.6% at an annualized rate, also the largest increase since May of last year.

The establishment report, once again, beat “expectations;” the WSJ survey of economists was 198,000. Other than the downward revisions, mentioned above, another bit of negative news was a smallish increase in wage growth, from $34.52 to $34.57.

The household survey shows that the labor force increased 150,000, a drop in employment of 184,000 and an increase in the number of unemployed persons of 334,000. The labor force participation rate held steady at 62.5, the employment to population ratio decreased from 60.2 to 60.1 and the unemployment rate increased from 3.66 to 3.86. Remember that the unemployment rate is the number of unemployed relative to the labor force (the number employed plus the number unemployed). Consequently, the unemployment rate can go up if the number of unemployed rises holding fixed the labor force, or if the labor force shrinks holding the number unemployed unchanged. An increase in the unemployment rate is not necessarily a bad thing: it may reflect a strong labor market drawing “marginally attached” individuals from outside the labor force. Indeed, there was a 96,000 decline in those workers.

Earlier in the week, the BLS announced JOLTS (Job Openings and Labor Turnover Survey) data for January. There isn’t much to report here as the job openings changed little at 8.9 million, the number of hires and total separations were little changed at 5.7 million and 5.3 million, respectively.

As has been the case for the last couple of years, the number of job openings remains higher than the number of unemployed persons.

Also earlier in the week the BLS announced that productivity increased 3.2% in the 4th quarter with output rising 3.5% and hours of work rising 0.3%.

The bottom line is that the labor market continues its surprisingly (to some) strong performance, once again proving stronger than many had expected. This strength makes it difficult to justify any interest rate cuts soon, particularly given the recent inflation spike.

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Spread & Containment

Another beloved brewery files Chapter 11 bankruptcy

The beer industry has been devastated by covid, changing tastes, and maybe fallout from the Bud Light scandal.

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6 hours ago

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March 9, 2024

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Before the covid pandemic, craft beer was having a moment. Most cities had multiple breweries and taprooms with some having so many that people put together the brewery version of a pub crawl.

It was a period where beer snobbery ruled the day and it was not uncommon to hear bar patrons discuss the makeup of the beer the beer they were drinking. This boom period always seemed destined for failure, or at least a retraction as many markets seemed to have more craft breweries than they could support.

Related: Fast-food chain closes more stores after Chapter 11 bankruptcy

The pandemic, however, hastened that downfall. Many of these local and regional craft breweries counted on in-person sales to drive their business. 

And while many had local and regional distribution, selling through a third party comes with much lower margins. Direct sales drove their business and the pandemic forced many breweries to shut down their taprooms during the period where social distancing rules were in effect.

During those months the breweries still had rent and employees to pay while little money was coming in. That led to a number of popular beermakers including San Francisco's nationally-known Anchor Brewing as well as many regional favorites including Chicago’s Metropolitan Brewing, New Jersey’s Flying Fish, Denver’s Joyride Brewing, Tampa’s Zydeco Brew Werks, and Cleveland’s Terrestrial Brewing filing bankruptcy.

Some of these brands hope to survive, but others, including Anchor Brewing, fell into Chapter 7 liquidation. Now, another domino has fallen as a popular regional brewery has filed for Chapter 11 bankruptcy protection.

Overall beer sales have fallen.

Image source: Shutterstock

Covid is not the only reason for brewery bankruptcies

While covid deserves some of the blame for brewery failures, it's not the only reason why so many have filed for bankruptcy protection. Overall beer sales have fallen driven by younger people embracing non-alcoholic cocktails, and the rise in popularity of non-beer alcoholic offerings,

Beer sales have fallen to their lowest levels since 1999 and some industry analysts

"Sales declined by more than 5% in the first nine months of the year, dragged down not only by the backlash and boycotts against Anheuser-Busch-owned Bud Light but the changing habits of younger drinkers," according to data from Beer Marketer’s Insights published by the New York Post.

Bud Light parent Anheuser Busch InBev (BUD) faced massive boycotts after it partnered with transgender social media influencer Dylan Mulvaney. It was a very small partnership but it led to a right-wing backlash spurred on by Kid Rock, who posted a video on social media where he chastised the company before shooting up cases of Bud Light with an automatic weapon.

Another brewery files Chapter 11 bankruptcy

Gizmo Brew Works, which does business under the name Roth Brewing Company LLC, filed for Chapter 11 bankruptcy protection on March 8. In its filing, the company checked the box that indicates that its debts are less than $7.5 million and it chooses to proceed under Subchapter V of Chapter 11. 

"Both small business and subchapter V cases are treated differently than a traditional chapter 11 case primarily due to accelerated deadlines and the speed with which the plan is confirmed," USCourts.gov explained. 

Roth Brewing/Gizmo Brew Works shared that it has 50-99 creditors and assets $100,000 and $500,000. The filing noted that the company does expect to have funds available for unsecured creditors. 

The popular brewery operates three taprooms and sells its beer to go at those locations.

"Join us at Gizmo Brew Works Craft Brewery and Taprooms located in Raleigh, Durham, and Chapel Hill, North Carolina. Find us for entertainment, live music, food trucks, beer specials, and most importantly, great-tasting craft beer by Gizmo Brew Works," the company shared on its website.

The company estimates that it has between $1 and $10 million in liabilities (a broad range as the bankruptcy form does not provide a space to be more specific).

Gizmo Brew Works/Roth Brewing did not share a reorganization or funding plan in its bankruptcy filing. An email request for comment sent through the company's contact page was not immediately returned.

 

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