The future of Machine Learning in Finance
Lets go over some of the major applications of Machine Learning
Stock market trading
The present financial market already consists of humans as well as machines. There are machines out there doing trades of billions of dollars every day with the help of high-frequency trading.
When selecting stocks, the two primary factors that an investor looks at are:
- Current price
- Likelihood of the Performance in future.
Machine learning algorithms with the help of regression analysis are proving successful in predicting the future performance of securities.
The machines are changing the way we trade in stock market such as:
Smart Chatbot assistant
Predicting Loan Misdemeanours
Loan misdemeanors have increased with time. The ability of Machine learning models to predict loan performance makes them particularly interesting to lenders and fixed-income investors.
Machine learning with the help of decision tree algorithms has been successfully able to predict the wrong-doings in the insurance sector. While it considers certain criteria such as:
- Income etc..