Artificial intelligence (AI)-generated marketing campaign company Persado has unveiled a new product, along with a fresh $30 million credit facility to fuel further expansion, reports Julie Muhn at Finovate (Banking Technology's sister company). Persado One, the new offering, provides personalised emotional engagement at scale. The company says the new development represents the "most significant advancement to date" of Persado's AI platform. Available through the company's enterprise level of service, Persado One uses deep learning algorithms to deliver personalised messaging to a customer based on their emotional profile. The company is also launching a professional class of tools to help marketers predict response rates, generate higher performing campaigns, and refine language according to a brand's style.
In all, the IIC awarded $150,000 to each of the four grand-prize winners, and $35,000 each to 12 runners-up competing in four categories: Financial Inclusion; Income Growth and Job Creation; Skills and Matching; and Technology Access. EFL (Financial Inclusion category): Three billion people worldwide lack the credit history lenders require to make a loan. Digital Citizen Fund (Technology Access) helps girls and women in developing countries gain access to technology, virtually connect with others across the world, and obtain necessary skills for success. New Day (Skills and Matching) is a smartphone-centric, low- to mid-income employment platform for developing markets worldwide, enabling scalable and rewarding job matching, skills building, and employer transparency.
Lenders traditionally make decisions based on a loan applicant's credit score, a three-digit number obtained from credit bureaus such as Experian and Equifax. Credit scores are calculated from data such as payment history, credit history length and credit line amounts. Upstart uses machine learning algorithms, a subset of AI, to make underwriting decisions. The platform's algorithms analyze 10,000 data points to evaluate the financial situation of consumers.
By having an immediate oversight, through live reporting of all spending from business cards and invoice payments, as well as balances and credit limits across departments and individuals, businesses can foresee potential problems more quickly and react accordingly. We are already seeing growing instances of AI and automation being used to streamline payment processes in banks. Looking ahead, we see a string of applications for AI in the payments management field around analysing data with the end objective of spotting anomalies in it. While this area remains in its infancy within the banking and financial services sector, with technology advancing, financial services organisations and the enterprise customers they deal with will in the future will be well placed to make active use of AI that will help clients track not just what they have been spending historically but also to predict what they are likely to spend in the future.
Now I would like to extrapolate the credit rating model into an AI safety ratings model to highlight how I believe this can work. That is not to say that these companies and products are NOT making AI safety a priority today. For all I know, Amazon Alexa would perfectly pass the SIX ELEMENTS OF SAFEAI today. AI safety MUST become a priority in the buying decision for consumers and business implementation alike.
For fintechs and FIs, alternative data is typically gathered through machine learning and artificial intelligence. The Boston-based startup applies artificial intelligence and biologically-based machine learning techniques to provide lenders with non-linear, dynamic models of credit risk for their customers (both consumer and small businesses). One example is analyzing numbers as a time series: meaning recognizing there's a difference when, for instance, someone misses 3 payments in 3 months and someone misses 3 payments in 18 months. For those companies that do not want to ignore this market, FICO makes little sense, Underwrite.ai's Mike Armstrong, president of Zest Finance (another platform that uses MI to provide data to consumer lenders), referred to the Consumer Financial Protection Bureau issued "no action letter," last week as a feat for the alternative data model.
This was in contrast to previous stints at Start-Ups funded by NASA / NIST where a broader set of Machine Learning (ML) methods including SVMs, NNs, Random or Gradient Boosting Trees were regularly applied. It's a no-brainer that Deep Learning has been the most visible new age Machine Learning algorithm developed in the last 5 years, with marked success in generating insights from Large Unstructured Datasets of Images, Audio and Text. Modern end-to-end Big Data Platforms available today provide the computational power to train new age ML algorithms and streamline their deployment. Bio: Jayesh Ametha is Retail Banking Professional with 15 years in Business Strategy, Credit Risk and Advanced Analytics.
It was a champion vs. challenger test: Moynes' team took several years of loan data, removed all personally identifiable information from it, and gave it to ZestFinance, a provider of machine-learning-based online lending software, and its own modeling team, which creates logistic regression models to predict potential borrowers' creditworthiness. "For people who may be just establishing their credit history, this additional data might give us an earlier insight into their creditworthiness," says Ford Motor Credit's Jim Moynes in discussing AI's ability to crunch a wider range of information. Some of these new insights already exist in credit bureau data, but Ford Motor Credit's underwriting models do not consider them. Moynes also pointed out Ford Motor Credit does not approve or deny loans based on a score, so the machine learning platform will not make credit decisions on its own.
AI has also been the subject of a recent European Commission (EC) consultation document, to which CFA Institute submitted a response. This'training' involves using a large training data set that the computer algorithm can repeatedly go through (but typically with guidance and supervision) to learn through trial and error how to connect the input data (e.g., credit history, employment history, assets, purchasing history) with the desired output (e.g., the correct identification of a suitable risky portfolio). Although some attempts have been made to check the source code of algorithmic traders, the most effective protection against algorithmic errors are circuit breakers on markets that limit the amount of damage a failing algorithm can cause. Consider attending the CFA Institute European Investment Conference, held in Berlin this November.
Step 2: Assign every entity to its closest medoid (using the distance matrix we have calculated). If so, make this observation the new medoid. Model Validation • "Model risk is the potential for adverse consequences from decisions based on incorrect or misused model outputs and reports. "  • "Model validation is the set of processes and activities intended to verify that models are performing as expected, in line with their design objectives and business uses.