Table of Contents

1. Introduction
2. Definition
3. Uses of Machine Learning
4. Algorithms
5. Benefits
6. Next steps
7. Bibliography
 1. Introduction

• Smart machines and applications are steadily

becoming a daily phenomenon, helping to make
faster, more accurate decisions.

• Machine learning is the latest approach to digital

transformation, making our computing processes
more efficient, cost-effective, and reliable.
1. Introduction
 2. Definition

• Machine learning (ML) is a type of artificial

intelligence (AI) concerned with the design and
development of algorithms that allow computers to
evolve behaviors based on empirical data.

• The basic premise of machine learning is to

build algorithms that can receive input data and
use statistical analysis to predict an output value
within an acceptable range.
 2. Definition

• Machine learning algorithms:

 involves ingesting raw information in large datasets,
understanding patterns and correlations.
 use computational methods to “learn” information directly
from data without relying on a predetermined equation as a
model.
 adaptively improve their performance as the number of
samples available for learning increases.
3. Uses of Machine Learning

Energy
Production
Financial Automotive
Services Industry
Machine
learning

Industrial
Retail
Automation
Healthcare
 Financial Services
• Applications of ML in the banking industry
 Customer service
 Fraud detection; Real-time transaction analysis
 Personalized recommendations
 Risk assessment; Credit applications
 Trading

• Use cases of ML in the banking industry

 JPMorgan Chase
 Wells Fargo
 Citibank
 Bank of America
 PayPal
 JPMorgan Chase
Contract Intelligence or COiN
• to automate the daily routine.
• to analyze the documentation and extract the important information.
• to cut down the time needed to analyze the business correspondence.
Results: process 12,000 credit agreements in several seconds, instead of
360,000 man-hours.
Emerging Opportunities Engine
• to analyze the transactions and find the customers who are most likely
to engage in follow-up trading.
Chatbots : virtual chat assistant
 Wells Fargo

• The bank have a AI Enterprise Solutions team.

• The team rolled out an AI-powered Chabot for the
company’s Facebook messenger.
• This virtual assistant is used for resetting the
password and providing the account details.
• What previously required the customers to fill in
several pages of forms, became a simple dialogue
that took few minutes.
 Citibank

• Citibank invested heavily in FeedzAI, the global

enterprise that concentrates on using data science to
identify and demolish fraudulent attempts in various
avenues of financial activities, including online and
mobile banking.
uses ML algorithms to analyze huge
volumes of Big Data real-time and alert the financial
institutions of alleged fraud cases at once.
 Bank of America

• In 2017, the bank introduced Erica, the virtual

assistant, positioned as the world’s most prominent
payment and financial service innovation.

• Due to leveraging cognitive messaging and predictive

analytics, Erica acts as an on-point financial advisor
to more than 45 million customers of the Bank of
America
PayPal
 Healthcare

• Detect tumor, discover drug usage.

• Prevent hospital acquired infections (HAIs).
• Reduce hospital Length-of-Stay (LOS).
• Predict chronic disease.
• Reduce 1-year mortality.
• Predict propensity-to-pay.
• Predict no-shows.
 Retail

Companies such as Amazon use this technology to offer a

highly-personalized service:
• Online recommendations: to offer personalized recommendations
based on previous purchases or activity.
• Better customer service and delivery systems: to decipher the
intent and meaning behind emails and delivery notes to prioritize
tasks and ensure sustained satisfaction.
• Tracking price changes: to help ecommerce companies track
patterns in price of retail items fluctuations and set their values
according to demand.
 4. Algorithms

• The success of machine learning system depends on

the algorithms.

• The algorithms control the search to find and build

the knowledge structures.

• The learning algorithms should extract useful

information from training examples.
 4. Algorithms

Machine learning uses two types of techniques:

supervised
learning: trains a
model on known
input and output
data so that it can unsupervised
predict future learning,
outputs. which finds
hidden patterns
or intrinsic
structures in
input data.
 Supervised learning

Supervised learning
• Supervised machine learning builds a model that makes
predictions based on evidence in the presence of
uncertainty.
• A supervised learning algorithm takes a known set of
input data and known responses to the data (output) and
trains a model to generate reasonable predictions for the
response to new data.
• Use supervised learning if you have known data for the
output you are trying to predict.
 Unsupervised learning

Unsupervised learning
• Unsupervised algorithms do not need to be trained
with desired outcome data. Instead, they use an
iterative approach called deep learning to review data
and arrive at conclusions.

• Unsupervised learning algorithms are used for more

complex processing tasks than supervised learning
systems.
 Supervised learning
Supervised learning uses classification and regression techniques to
develop predictive models.
• Classification techniques
 predict discrete responses—for example, whether an email
is genuine or spam, or whether a tumor is cancerous or
benign.
 classify input data into categories.
 typical applications include medical imaging, speech
recognition and credit scoring.
Use classification if the data can be tagged, categorized, or
separated into specific groups or classes.
 Supervised learning
• Regression techniques
 predict continuous responses—for example, changes in
temperature or fluctuations in power demand.
 typical applications include electricity load forecasting and
algorithmic trading.

Use regression techniques if you are working with a data range or

if the nature of your response is a real number, such as
temperature or the time until failure for a piece of equipment.
5. Benefits of Machine Learning

• Lower cost
• Greater revenue
• Higher productivity
 6. Next steps

• Supervised learning: Logistic Regression

• Unsupervised learning: Cluster Analysis
 7. Bibliography
• https://www.finextra.com/blogposting/14564/banking-on-machine-
learning
• Integrating Artificial Intelligence into Data Warehousing and Data Mining,
Nelson Sizwe. Madonsela, Paulin. Mbecke, Charles Mboh
• Introduction to Machine Learning, Alex Smola and S.V.N. Vishwanathan
• https://www.analyticsvidhya.com/blog/2017/09/common-machine-
learning-algorithms/
• https://www.mathworks.com/discovery/machine-learning.html
• https://www.computerworlduk.com/galleries/data/how-uk-banks-are-
looking-embrace-ai-machine-learning-3657529/
• https://techburst.io/5-use-cases-of-machine-learning-in-the-banking-
industry-a4cfbedda722