{"id":322949,"date":"2023-11-28T12:59:00","date_gmt":"2023-11-28T04:59:00","guid":{"rendered":"https:\/\/www.um.edu.mo\/news-and-press-releases\/campus-news\/detail\/57244-2\/"},"modified":"2023-12-04T16:25:56","modified_gmt":"2023-12-04T08:25:56","slug":"57244","status":"publish","type":"post","link":"https:\/\/www.um.edu.mo\/pt-pt\/news-and-press-releases\/campus-news\/detail\/57244\/","title":{"rendered":"Extracting financial value from big data"},"content":{"rendered":"\n \n
An immense volume of data flows through the financial sector every second. Henry Lei, associate head of the Department of Finance and Business Economics in the Faculty of Business Administration (FBA) at the University of Macau (UM), emphasises that machine learning models, by harnessing this data, can enhance investment strategies, reduce investment risks, and contribute to the development of new financial products.<\/div>
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Nurturing Modern Financial Professionals <\/div>
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The recent pandemic, wars, and the rise of artificial intelligence have amplified the fluctuations in financial markets. Using traditional econometric models alone may fall short in providing accurate analyses and forecasts for today\u2019s dynamic markets. \u2018By leveraging machine learning models trained on big data, financial institutions can devise superior investment strategies,\u2019 says Prof Lei. \u2018More importantly, they can gain a deep understanding of client needs, allowing them to provide tailored products.\u2019<\/div>
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Experts in economics and finance also increasingly rely on big data for their research. Prof Lei, for example, has explored sentiments on social media regarding financial and asset markets. This approach provides insight into the correlation between poor financial or asset market performance and declining consumption.<\/div>
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Recognising the evolving needs of the financial sector, UM\u2019s Institute of Collaborative Innovation, in collaboration with FBA, has introduced the Financial Technology specialisation under the university\u2019s Master of Science in Data Science programme. Prof Lei, who also serves as the coordinator of the specialisation, says, \u2018Developing the modern financial services industry is crucial for Macao as the city moves towards economic diversification. We foresee a growing demand for specialists in areas like data analytics, business analytics, and financial analytics in the coming years.\u2019<\/div>
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According to Prof Lei, the  specialisation encompasses the application of artificial intelligence, blockchain technology, cloud computing, and big data in the financial domain. \u2018In addition to data collection and cleaning, students learn to use machine learning models ranging from decision trees to neural networks,\u2019 Prof Lei adds. \u2018This year, a graduate developed a system that integrates various machine learning models to predict default risks among peer-to-peer [P2P] lenders. The model also has the advantage of evaluating the default risk of credit card applicants, which underlines its considerable commercial value.\u2019<\/div>
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Big Data at the Forefront of Modern Finance<\/div>
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Just as navigators rely on accurate weather data to determine their course, financial institutions and investors need advanced data technologies to decode market trends and formulate investment strategies. Prof Lei concludes, \u2018Tapping into the vast potential of big data is important for finance professionals to stay competitive. It is also a promising direction for Macao\u2019s modern financial services industry.\u2019<\/div>
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Chinese & English Text \/ Davis Ip<\/div>
Photo \/ Jack Ho<\/div>
Source: UMagazine<\/i> ISSUE 28<\/div>
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