Banking on analytics and machine learning - Demystifying the terms - Nastel Technologies, Inc.

Machine learning, a subset of Artificial Intelligence (AI) is a method of data analysis that uses algorithms to iteratively learn from data and derive insights without being explicitly programmed. We can find examples of how Machine Learning is already a part of our daily lives – like Google Maps, using location data from smartphones, analyses the speed of movement of traffic at any given time. Or like Amazon makes recommendations for products – "customers who bought this item also bought." Behind all these lie complex algorithms that are continuously learning new data and refining outcomes. In banking for example, using client's financial data, risk preferences and desired target return, 'Robo-Advisors' provide personalized, algorithm driven portfolio management services without human supervision.