
Ask HN: Ways to use machine learning in banking risk? - throw51319
Trying to think of ways you could use exisiting machine learning techniques on a system-wide scale or individual bank level for the banking industry. Any ideas?
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psv1
Are you talking about risk of fraud, risk of credit default or anything else?
Either way there are already quite a few companies doing this at very large
scale, which shouldn't discourage you - just means that you can find some good
resources if you dig deep enough.

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throw51319
I meant starting moreso with what they have on their books. Predicting
problematic positions, only a small scale or on large scale. Or some sort of
learning using this clean and well-defined data.

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psv1
> Predicting problematic positions

This is a problem for finance, not banking.

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cjbenedikt
No idea how many data points you'd need in order to get a reasonably good
model but the task at hand would be pretty daunting. After all you need to
consider individual risk posed by employees all the way up to systemic and
political. On the other hand if successful you'd hit a home run.

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throw51319
Yeah I guess I would focus on the base case of using it on the options, fixed
income, etc that the bank has position information on (x100000000 positions).
Just because all that data is clean.

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saamm
Check out this paper for ideas:
[https://arxiv.org/pdf/1712.05840.pdf](https://arxiv.org/pdf/1712.05840.pdf)

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Bostonian
Anomaly detection for credit card fraud is a big problem.

