Artificial Intelligence in Banking and Finance by Storm-7 Consulting

IN BANKING AND FINANCE

03 ARTIFICIAL INTELLIGENCE IN BANKING AND FINANCE

ARTIFICIAL INTELLIGENCE IN BANKING AND FINANCE In todayâ&#x20AC;&#x2122;s world of banking and finance made up of huge regulatory fines, spiralling compliance costs, and ever more complex regulatory frameworks, Artificial Intelligence (AI) is no longer something to be desired, it has now become a mandatory choice. Those firms that do not optimise and streamline their core and non-core banking and finance functions with AI and machine learning frameworks will continue to waste huge amounts of time and costs that could be saved by implementing AI automation for existing legacy functions. AI automation and AI functions have already been implemented across a broad range of use cases and a number of firms around the world are already significantly reaping the benefits of such technologies. With the implementation of highly complex compliance frameworks in recent times, such as the revised Capital Requirements Directive (CRD IV), the revised Markets in Financial Instruments Directive (MiFID II), and the revised Payment Services Directive (PSD2), AI automation presents a de rigueur solution for banks and financial services firms to return to pre-crisis Return On Equity (RoE) levels. Not only this, but they can reduce costs on a massive scale in the short-to-medium term.

THE TRAINING COURSE

ABOUT THE TRAINING COURSE This training course has been specifically designed to provide attendees with highly cutting-edge knowledge across a broad array of AI areas covering banking and finance frameworks today. The training course will provide attendees with knowledge and instruction across a range of AI theoretical constructs, as well as strong coverage of the latest AI trends and developments that exist around the world. Through a specialised mixture of selected AI use cases and case studies, attendees will be able to comprehensively understand how AI represents the future model for banking and finance firms. The training course will cover areas that are ripe for development of AI technologies such as trading, data reporting, personalised banking, credit scoring, fraud detection, prudential regulation, and anti-money laundering and counter-the-financing of terrorism frameworks. The training course draws upon a range of diverse areas in order to distil the latest AI developments in a logical and easy-to-understand framework for the attendees. Firms will be able to truly understand how AI automation will offer, not only streamlined operations and significant cost savings, but also significant competitive advantage.

SESSION 1

SESSION 3

AN INTRODUCTION TO ARTIFICIAL INTELLIGENCE (AI) IN BANKING AND FINANCE • Artificial Intelligence (AI); Machine Learning; Big Data; Big Data Analytics; Cognitive Analytics; Natural Language Processing (NLP); Neural Networks; Bayesian Networks; Internet of Things (IoT).

SELECTED AI CASE STUDIES • AI and Fraud Detection; Fraud Detection Case Study (Visallo); AI and AML; AI and AML Case Study (AYASDI); AI and Risk Management; Risk Management Case Study (Crest Financial);

• Machine Learning Algorithms; Supervised Learning; Unsupervised Learning; Reinforcement Learning; Deep Learning.

• AI and Trading; AI and Trading Case Study (Alpaca AI Prediction Matrix); AI and Chat Bots; Chat Bot Case Study (Bank of America Erica); Chat Bot Case Study (MasterCard Kai).

• Global AI Trends and Developments; AI in Banking and Finance Today; AI and Next Generation Customer Services; AI, Big Data Analytics, and Next Generation Customer Data Analysis; Banking and Finance New Industry Partnerships.

• AI and RPA; AI and RPA Case Study (JPMorgan Chase COiN); AI and Credit Scoring; AI and Credit Scoring Case Study (ZestFinance).

SESSION 4

SESSION 2

SELECTED FUTURE AI APPLICATIONS

SELECTED AI USE CASES • AI and Best Execution of Trades (Transaction Cost Analysis; Best Execution and the Revised Markets in Financial Instruments Directive (MiFID II)); AI and Data Reporting (Automated Reporting; Data Push Approach; Data Pull Approach); AI and Prudential Regulation (Microprudential Supervision; Macroprudential Supervision). • AI and Personalised Banking; AI and Next Generation Robo Advisors; AI and Quantitative Trading; AI and Sentiment Indicators; AI and Trading Signals; Credit Scoring and Credit Decisions; Cyber Security. • AI and Market Abuse and Insider Trading (NASDAQ and Sybenetix Software Solutions); Anti-Money Laundering (AML) and Counter-the-Financing of Terrorism (CFT) and Fraud Detection (The Problems with Legacy Technology Approaches; AML and CFT AI Applications).

• AI and Enhanced Services under the Revised Payment Services Directive (PSD2) (Aggregator Portals; Enhanced Customer Services; AI and Next Generation Intelligent Deposit and Recycling Automated Teller Machines (ATMs); AI and Real Time Customer Services). • AI and Digitalised Stress Testing; Managing and Producing Vigorous Stress Scenarios (Base; Adverse; Severely Adverse); Stress Test Reports; More Precise Sensitivity Analysis; Finding Failure Events with Reinforcement Learning 1 (Lee et al., 2018). • AI and Supervisory Technologies (SupTech) (Market Surveillance; Misconduct Analysis; Microprudential Supervision; Macroprudential Supervisiion); SupTech and AI Case Study (Australian Securities and Investments Commission, Big Data Analysis, Machine Learning Algorithms). 1 Lee,

R., Mengshoel, O. J., Saksena, A., Gardner, R., Genin, D., Silbermann, J., Owen, M., Kochenderfer, M. J. (2018). Adaptive Stress Testing: Finding Failure Events with Reinforcement Learning. Cornell University.

07 KEY BENEFITS

KEY BENEFITS • Highly comprehensive training course manual, training course materials, and four PowerPoint presentations. • Practical real-life case studies will allow attendees to understand AI technologies, costs, and timeframes in greater depth. • Attendees will be able to clearly understand how today’s banking and finance landscape is shifting and how this may affect their firm’s business model and operations. • Attendees will be provided with a holistic blend of theoretical, operational, technological, and strategic insights into AI automation and process optimisation.

STORM-7 CONSULTING

ABOUT STORM-7 CONSULTING Storm-7 Consulting is an international consulting company that provides premier intelligence, insight and support to global financial institutions. We provide cutting-edge conferences, events, public training courses, and in-house training courses to leading firms globally. We provide expert regulatory compliance training covering areas such as GDPR, MiFID II, AEOI (FATCA & CRS), MAD 2 MAR (Market Abuse), CRD IV, PRIIPs, Solvency II, PSD2, CCP Clearing, AML/CFT, Stress Testing, and the Senior Managers and Certification Regime. We provide unique and highly innovative marketing services to firms operating in the banking, (RegTech), and Financial Technology (FinTech) sectors. We have received enquiries and bookings from leading firms around the world, such as the Abu Dhabi Investment Authority, Rothschild Investment Management (UK) Limited, Dubai Financial Market, CAF the Development Bank of Latin America, the Central Bank of Ireland, the Central Bank of Russia, APG Asset Management, Royal London Asset Management, Brandes Investment Partners, Eversheds, Erste Group, Millenium Information Technologies, Deutsche Bank, Bethmann Bank AG, ICBC Standard Bank, Gulf International Bank, Raiffeisen Bank International AG, and BGC Partners. We have collaborated with firms around the world, such as the United Kingdom Financial Conduct Authority, Thomson Reuters, Sopra Steria, SunGard, Capco, OTC Partners New York, IHS Markit, Eze Castle Integration, ICMA Centre, Sybenetix, Heriot Watt University, JP Morgan Asset Management, Custom House Global Fund Services, Cass Business School, Rixtrema, Solum Financial, D2 Legal Technology, Eurekahedge, Financial IT, HedgeConnection, Alpha Journal, ATMonitor, HF Alert, and CrowdReviews.

09 THE EXPERT TRAINER

THE EXPERT TRAINER

THE EXPERT TRAINER Rodrigo Zepeda is Co-Founder and Managing Director of Storm-7 Consulting. He is an expert consultant who specialises in derivatives and banking and financial services law, regulation, and compliance. He is an expert in a very broad range of regulatory compliance frameworks such as FATCA, the OECD CRS, MiFID II, MAD 2 MAR, PSD2, CRD IV, Solvency II, OTC Derivatives, CCP Clearing, PRIIPs, BRRD, AML4, and the GDPR. He holds a LLB degree, a LLM Masters degree in International and Comparative Business Law, and has passed the New York Bar Examination. He was an Associate (ACSI) of the Chartered Institute for Securities & Investment from 2004 to 2014 and is now a Chartered Member (MCSI). He has created and delivered numerous conferences and training courses around the world such as ‘FATCA for Latin American Firms’ (Santo Domingo, Dominican Republic, Panama City, Panama), ‘MiFID II: Regulatory, Risk, and Compliance (London), and ‘Market Abuse: Operational Compliance’ (London), ‘AEOI (FATCA & CRS)’ (Manama, Bahrain). He has also delivered numerous In-House Training Courses around the world to major international financial institutions such as The Abu Dhabi Investment Authority

(MiFID II: Operational Compliance, Abu Dhabi, the United Arab Emirates), the United Nations Principles of Responsible Investment (MiFID II: Final Review, London), CAF, the Development Bank of Latin America (Swaps and Over-thecounter Derivatives, Lima, Peru), Rothschild Investment Management (UK) Limited (AEOI (FATCA & CRS), London) and Bethmann Bank AG (MAD 2 MAR, Frankfurt). He is a Reviewer for the Journal of Financial Regulation and Compliance and has also published widely in leading industry journals such as the Capco Institute’s Journal of Financial Transformation, the Journal of International Banking Law and Regulation, as well as e-books on derivatives law. Noted publications include “Optimizing Risk Allocation for CCPs under the European Market Infrastructure Regulation”; “The ISDA Master Agreement 2012: A Missed Opportunity”; “The ISDA Master Agreement: The Derivatives Risk Management Tool of the 21st Century?”; “To EU, or not to EU: that is the AIFMD question”; and “The Industrialization Blueprint: Re-Engineering the Future of Banking and Financial Services?”.

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