Machine Learning and FinTech
Machine learning has been used for some time to trade based on algorithms that read the market, but the future of fintech and machine learning are inextricably tied together. Machine learning will power much of the security behind the scenes, as well as some of the consumer services people will use every day. In order to understand the impact, it’s important to look at current applications for this technology.
Machine learning can be used to create models for a customer’s purchase behavior. These models look for consistencies, patterns and try to allow for the occasional reward purchase. This is part of the reason why it’s best to contact your bank before you leave the country. The system runs checks against these models looking for inconsistencies that help alert credit card providers to fraud.
Another aspect relevant to fraud protection is predictive finance. If we can understand trends in the market, we can spot abnormalities and allow the market to correct itself. This was the case during the Flash Crash of 2010, when the market saw a significant drop before re-correcting itself.
On the consumer side, predictive finance can help average investors choose plans for long term growth and gain.
Data is a powerful driving force today, but visualization is a requirement at the executive level. Visualization helps put data in perspective and provides executives the opportunity to form an action plan. Automating these low-level tasks also saves significant time.
AI and machine learning will provide a multitude of opportunities at the consumer and provider levels. Predictive finance will be an especially dominant force as we become more efficient at crunching big data.
Bio: Firoz Patel is the mind behind AlertPay Inc., a globally recognized leader in the online payment space. Firoz Patel currently resides in Montreal, Quebec, where he oversees development of the Payza platform.