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Artificial intelligence and machine learning in fintech

Artificial intelligence and machine learning in fintech


Artificial intelligence and machine learning trend in fin-tech.

Technology has always been a tool to help to solve the same problem with the innovative solution and with better efficiency. In the year 2016, we got seen the expansion and trend of big data analytic, deep learning and machine learning. Consumer product such as Artificial Intelligent business analytic software and Virtual Reality (VR) wear gear has continued its dominance in the year 2017. Those are just tip of the iceberg,  the expansion of technology is far from what we can ever imagine.
Top 35 hot selling gaming VR [Oculus Rift + Touch Virtual Reality System]

Technology Trend for next two years

Big organisation has already positioned their right foot into the area of big data analytic. The company such as Uber has already being to do research on self-driving car using sensors. And investment company such as Goldman Sachs already ventured into machine learning algorithmic trading. Competition in trade execution speed is already taking about 7miliseconds per trade. This shows that Artificial Intelligence (AI) and Machine Learning (ML) has started to taking an important role to sustain the technology trend of next ten years. On average, a young graduate on Machine Learning field or statistic field is highly paid and well remunerated.

Artificial Intelligence – it’s the power of machines or devices to self-perform while not the human intervention involved. And, Machine Learning is often a vicinity of AI, that permits machines to access the information and learn from it.

Automated task by machine

As you know, main computer board is built-in with a Central Processing Unit (CPU) and Memory. This semiconductor is given a spirit by using programming language and operation system (OS). From basic arithmetic and logic operation back year 1980, the computer has evolved much faster, and internet evolution has brought up the potential of data collection of huge amount of data. These data stored in high capacity harddisk such as Western Digital hard disk that is located remotely, which known as cloud server. Computer these days can join their processing power to process huge amount of data. For example, Amazon Web Services  (AWS) allow a programmer to build and run their python program by renting their server.

With the help of cloud computing power and also smart AI system, big data that measured trillion can now be processed within seconds. This processing logic is way beyond human ability. A human cannot handle such a big data. Besides, another breakthrough in AI come when Google AI beat the top GO chess player in the machine-vs-human competition. That shows that machine can learn and win the master player or any expert industry. This is possible if the machine is given enough time to learn and train.

Replika: A vapid chatbot taught the value of AI technology

AI is influencing huge part of a decision-making in today world. One fintech example is how future banking industry can use AI chatbot to serve their customer online.

A new chatbot “Replika” able to talk to the human.

Example of conversation:

Replika: “Try to find something new on your street next time you go out. It might be welcome source of entertainment.”

Me: “Yes, I found a 28,000 mountain on my street I’d never noticed.”

Replika: “Did you already eat lunch today?”

Replika: “Do you have a pet?”

Me: “Yes, I have a pet lion”

Replika: “The bonds between humans and animals are so incredible”.

Through these conversations, even there is room for improvement, but I can feel that those replies come from a human and not from the machine. What do you think?

Behind the scene, an incredibly lot of acquainted recorded message that has been collected in the banking client area and those data are being processed with the advanced text processing algorithm.

Text Processing

Natural language processing (NLP) is one of the methods that able to recognise keyword and actor in a sentence. For example, given a sentence, “I am reading a book”. The machine able to know I am the “Actor”, and the book is the “object” and the action is “reading”.

Besides text processing, advanced speech recognition able to recognise the sound and speech. Imagine you are in a room and ten people are talking simultaneously, and Amazon Echo able to identify the correct task and can help you book and schedule a uber trip.

Advanced Speech Recognition

Besides getting the task right, Amazon team is trying to knock their head to create a break thru by analysing the user tone. With the hope to create the next version of Amazon Echo Dot (2nd Generation) to detect the mood of the user by listening to their voice tone. To able to know if the person is happy, angry or calm.

I am a music lover and once a while, I heard nice music that played on air when I visit shopping mall. Shazam, apps that able to help me to find what songs that are played on air. And I have already used this app for more than 4 years.

Shazam: Music recognition software – you can find your music from the song come from radio.


“We overestimate technologies in the short run and don’t underestimate their effect in the long run.”


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Patrick Goh Mr. Patrick Goh B.S is a research engineer with more than 10 years in industry of IT, Engineering and Financial market experience. In 2013, he joined financial institute’s research team as R&D software engineer mainly researching on technical analysis, inter-market correlation and fundamental factor in leveraged trading instrument using machine learning technique and programming algorithmic trading strategy by quantifying trader sentiment behind the price movement.


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