Note from the Publisher: In this fascinating piece, the case is made that banks implementing machine learning technology for statistical modeling can increase cash collections by up to 20%.
“As the famous adage goes, “the future is already here — it’s just not very evenly distributed.” This is especially true for banking and the use of machine learning. Banks are increasingly using machine learning to power part of their operations, but the adoption of these new technologies is not uniform. The road to full implementation is fraught with technological and organizational challenges.
Machine learning is a collection of techniques for understanding data, including methods for visualization, prediction, classification and other tasks relevant to data analysis. Banks are implementing machine learning in three main stages. The first stage is automating manual processes that are currently handled by an army of quants, such as risk modeling, stress testing or Anti-Money Laundering monitoring.”