Machine Learning Will Change the Future of Finance

If one has ever accidentally wasted an hour of their time scrolling through the news feed on Facebook, chances are they have just experienced the power of machine learning. Whether it be facial recognition algorithms used on new smartphones or fraud prevention algorithms used by major credit card companies, machine learning is a technology of the future that has the ability to reshape the financial world forever. Modern machine learning algorithms use a supervised learning model (Figure 1). This model feeds training data, split into its input data and the known outcomes of those data, into the machine learning algorithm, creating a series of triggers and outputs called a neural network. The result is then manually paired with a label.