Big Data and Artificial Intelligence in Digital Finance

This open access book presents how cutting-edge digital technologies like Big Data, Machine Learning, Artificial Intelligence (AI), and Blockchain are set to disrupt the financial sector. The book illustrates how recent advances in these technologies facilitate banks, FinTech, and financial institutions to collect, process, analyze, and fully leverage the very large amounts of data that are nowadays produced and exchanged in the sector. To this end, the book also describes some more the most popular Big Data, AI and Blockchain applications in the sector, including novel applications in the areas of Know Your Customer (KYC), Personalized Wealth Management and Asset Management, Portfolio Risk Assessment, as well as variety of novel Usage-based Insurance applications based on Internet-of-Things data. Most of the presented applications have been developed, deployed and validated in real-life digital finance settings in the context of the European Commission funded INFINITECH project, which is a flagship innovation initiative for Big Data and AI in digital finance. This book is ideal for researchers and practitioners in Big Data, AI, banking and digital finance

Big Data and Artificial Intelligence in Digital Finance

This open access book presents how cutting-edge digital technologies like Big Data, Machine Learning, Artificial Intelligence (AI), and Blockchain are set to disrupt the financial sector. The book illustrates how recent advances in these technologies facilitate banks, FinTech, and financial institutions to collect, process, analyze, and fully leverage the very large amounts of data that are nowadays produced and exchanged in the sector. To this end, the book also describes some more the most popular Big Data, AI and Blockchain applications in the sector, including novel applications in the areas of Know Your Customer (KYC), Personalized Wealth Management and Asset Management, Portfolio Risk Assessment, as well as variety of novel Usage-based Insurance applications based on Internet-of-Things data. Most of the presented applications have been developed, deployed and validated in real-life digital finance settings in the context of the European Commission funded INFINITECH project, which is a flagship innovation initiative for Big Data and AI in digital finance. This book is ideal for researchers and practitioners in Big Data, AI, banking and digital finance

A Survey on the Evolution of Stream Processing Systems

Stream processing has been an active research field for more than 20 years, but it is now witnessing its prime time due to recent successful efforts by the research community and numerous worldwide open-source communities. This survey provides a comprehensive overview of fundamental aspects of stream processing systems and their evolution in the functional areas of out-of-order data management, state management, fault tolerance, high availability, load management, elasticity, and reconfiguration. We review noteworthy past research findings, outline the similarities and differences between early ('00-'10) and modern ('11-'18) streaming systems, and discuss recent trends and open problems.Comment: 34 pages, 15 figures, 5 table

Enabling Model-Driven Live Analytics For Cyber-Physical Systems: The Case of Smart Grids

Advances in software, embedded computing, sensors, and networking technologies will lead to a new generation of smart cyber-physical systems that will far exceed the capabilities of today’s embedded systems. They will be entrusted with increasingly complex tasks like controlling electric grids or autonomously driving cars. These systems have the potential to lay the foundations for tomorrow’s critical infrastructures, to form the basis of emerging and future smart services, and to improve the quality of our everyday lives in many areas. In order to solve their tasks, they have to continuously monitor and collect data from physical processes, analyse this data, and make decisions based on it. Making smart decisions requires a deep understanding of the environment, internal state, and the impacts of actions. Such deep understanding relies on efficient data models to organise the sensed data and on advanced analytics. Considering that cyber-physical systems are controlling physical processes, decisions need to be taken very fast. This makes it necessary to analyse data in live, as opposed to conventional batch analytics. However, the complex nature combined with the massive amount of data generated by such systems impose fundamental challenges. While data in the context of cyber-physical systems has some similar characteristics as big data, it holds a particular complexity. This complexity results from the complicated physical phenomena described by this data, which makes it difficult to extract a model able to explain such data and its various multi-layered relationships. Existing solutions fail to provide sustainable mechanisms to analyse such data in live. This dissertation presents a novel approach, named model-driven live analytics. The main contribution of this thesis is a multi-dimensional graph data model that brings raw data, domain knowledge, and machine learning together in a single model, which can drive live analytic processes. This model is continuously updated with the sensed data and can be leveraged by live analytic processes to support decision-making of cyber-physical systems. The presented approach has been developed in collaboration with an industrial partner and, in form of a prototype, applied to the domain of smart grids. The addressed challenges are derived from this collaboration as a response to shortcomings in the current state of the art. More specifically, this dissertation provides solutions for the following challenges: First, data handled by cyber-physical systems is usually dynamic—data in motion as opposed to traditional data at rest—and changes frequently and at different paces. Analysing such data is challenging since data models usually can only represent a snapshot of a system at one specific point in time. A common approach consists in a discretisation, which regularly samples and stores such snapshots at specific timestamps to keep track of the history. Continuously changing data is then represented as a finite sequence of such snapshots. Such data representations would be very inefficient to analyse, since it would require to mine the snapshots, extract a relevant dataset, and finally analyse it. For this problem, this thesis presents a temporal graph data model and storage system, which consider time as a first-class property. A time-relative navigation concept enables to analyse frequently changing data very efficiently. Secondly, making sustainable decisions requires to anticipate what impacts certain actions would have. Considering complex cyber-physical systems, it can come to situations where hundreds or thousands of such hypothetical actions must be explored before a solid decision can be made. Every action leads to an independent alternative from where a set of other actions can be applied and so forth. Finding the sequence of actions that leads to the desired alternative, requires to efficiently create, represent, and analyse many different alternatives. Given that every alternative has its own history, this creates a very high combinatorial complexity of alternatives and histories, which is hard to analyse. To tackle this problem, this dissertation introduces a multi-dimensional graph data model (as an extension of the temporal graph data model) that enables to efficiently represent, store, and analyse many different alternatives in live. Thirdly, complex cyber-physical systems are often distributed, but to fulfil their tasks these systems typically need to share context information between computational entities. This requires analytic algorithms to reason over distributed data, which is a complex task since it relies on the aggregation and processing of various distributed and constantly changing data. To address this challenge, this dissertation proposes an approach to transparently distribute the presented multi-dimensional graph data model in a peer-to-peer manner and defines a stream processing concept to efficiently handle frequent changes. Fourthly, to meet future needs, cyber-physical systems need to become increasingly intelligent. To make smart decisions, these systems have to continuously refine behavioural models that are known at design time, with what can only be learned from live data. Machine learning algorithms can help to solve this unknown behaviour by extracting commonalities over massive datasets. Nevertheless, searching a coarse-grained common behaviour model can be very inaccurate for cyber-physical systems, which are composed of completely different entities with very different behaviour. For these systems, fine-grained learning can be significantly more accurate. However, modelling, structuring, and synchronising many fine-grained learning units is challenging. To tackle this, this thesis presents an approach to define reusable, chainable, and independently computable fine-grained learning units, which can be modelled together with and on the same level as domain data. This allows to weave machine learning directly into the presented multi-dimensional graph data model. In summary, this thesis provides an efficient multi-dimensional graph data model to enable live analytics of complex, frequently changing, and distributed data of cyber-physical systems. This model can significantly improve data analytics for such systems and empower cyber-physical systems to make smart decisions in live. The presented solutions combine and extend methods from model-driven engineering, [email protected], data analytics, database systems, and machine learning

Graph Processing in Main-Memory Column Stores

Evermore, novel and traditional business applications leverage the advantages of a graph data model, such as the offered schema flexibility and an explicit representation of relationships between entities. As a consequence, companies are confronted with the challenge of storing, manipulating, and querying terabytes of graph data for enterprise-critical applications. Although these business applications operate on graph-structured data, they still require direct access to the relational data and typically rely on an RDBMS to keep a single source of truth and access. Existing solutions performing graph operations on business-critical data either use a combination of SQL and application logic or employ a graph data management system. For the first approach, relying solely on SQL results in poor execution performance caused by the functional mismatch between typical graph operations and the relational algebra. To the worse, graph algorithms expose a tremendous variety in structure and functionality caused by their often domain-specific implementations and therefore can be hardly integrated into a database management system other than with custom coding. Since the majority of these enterprise-critical applications exclusively run on relational DBMSs, employing a specialized system for storing and processing graph data is typically not sensible. Besides the maintenance overhead for keeping the systems in sync, combining graph and relational operations is hard to realize as it requires data transfer across system boundaries. A basic ingredient of graph queries and algorithms are traversal operations and are a fundamental component of any database management system that aims at storing, manipulating, and querying graph data. Well-established graph traversal algorithms are standalone implementations relying on optimized data structures. The integration of graph traversals as an operator into a database management system requires a tight integration into the existing database environment and a development of new components, such as a graph topology-aware optimizer and accompanying graph statistics, graph-specific secondary index structures to speedup traversals, and an accompanying graph query language. In this thesis, we introduce and describe GRAPHITE, a hybrid graph-relational data management system. GRAPHITE is a performance-oriented graph data management system as part of an RDBMS allowing to seamlessly combine processing of graph data with relational data in the same system. We propose a columnar storage representation for graph data to leverage the already existing and mature data management and query processing infrastructure of relational database management systems. At the core of GRAPHITE we propose an execution engine solely based on set operations and graph traversals. Our design is driven by the observation that different graph topologies expose different algorithmic requirements to the design of a graph traversal operator. We derive two graph traversal implementations targeting the most common graph topologies and demonstrate how graph-specific statistics can be leveraged to select the optimal physical traversal operator. To accelerate graph traversals, we devise a set of graph-specific, updateable secondary index structures to improve the performance of vertex neighborhood expansion. Finally, we introduce a domain-specific language with an intuitive programming model to extend graph traversals with custom application logic at runtime. We use the LLVM compiler framework to generate efficient code that tightly integrates the user-specified application logic with our highly optimized built-in graph traversal operators. Our experimental evaluation shows that GRAPHITE can outperform native graph management systems by several orders of magnitude while providing all the features of an RDBMS, such as transaction support, backup and recovery, security and user management, effectively providing a promising alternative to specialized graph management systems that lack many of these features and require expensive data replication and maintenance processes

Modern data analytics in the cloud era

Cloud Computing ist die dominante Technologie des letzten Jahrzehnts. Die Benutzerfreundlichkeit der verwalteten Umgebung in Kombination mit einer nahezu unbegrenzten Menge an Ressourcen und einem nutzungsabhängigen Preismodell ermöglicht eine schnelle und kosteneffiziente Projektrealisierung für ein breites Nutzerspektrum. Cloud Computing verändert auch die Art und Weise wie Software entwickelt, bereitgestellt und genutzt wird. Diese Arbeit konzentriert sich auf Datenbanksysteme, die in der Cloud-Umgebung eingesetzt werden. Wir identifizieren drei Hauptinteraktionspunkte der Datenbank-Engine mit der Umgebung, die veränderte Anforderungen im Vergleich zu traditionellen On-Premise-Data-Warehouse-Lösungen aufweisen. Der erste Interaktionspunkt ist die Interaktion mit elastischen Ressourcen. Systeme in der Cloud sollten Elastizität unterstützen, um den Lastanforderungen zu entsprechen und dabei kosteneffizient zu sein. Wir stellen einen elastischen Skalierungsmechanismus für verteilte Datenbank-Engines vor, kombiniert mit einem Partitionsmanager, der einen Lastausgleich bietet und gleichzeitig die Neuzuweisung von Partitionen im Falle einer elastischen Skalierung minimiert. Darüber hinaus führen wir eine Strategie zum initialen Befüllen von Puffern ein, die es ermöglicht, skalierte Ressourcen unmittelbar nach der Skalierung auszunutzen. Cloudbasierte Systeme sind von fast überall aus zugänglich und verfügbar. Daten werden häufig von zahlreichen Endpunkten aus eingespeist, was sich von ETL-Pipelines in einer herkömmlichen Data-Warehouse-Lösung unterscheidet. Viele Benutzer verzichten auf die Definition von strikten Schemaanforderungen, um Transaktionsabbrüche aufgrund von Konflikten zu vermeiden oder um den Ladeprozess von Daten zu beschleunigen. Wir führen das Konzept der PatchIndexe ein, die die Definition von unscharfen Constraints ermöglichen. PatchIndexe verwalten Ausnahmen zu diesen Constraints, machen sie für die Optimierung und Ausführung von Anfragen nutzbar und bieten effiziente Unterstützung bei Datenaktualisierungen. Das Konzept kann auf beliebige Constraints angewendet werden und wir geben Beispiele für unscharfe Eindeutigkeits- und Sortierconstraints. Darüber hinaus zeigen wir, wie PatchIndexe genutzt werden können, um fortgeschrittene Constraints wie eine unscharfe Multi-Key-Partitionierung zu definieren, die eine robuste Anfrageperformance bei Workloads mit unterschiedlichen Partitionsanforderungen bietet. Der dritte Interaktionspunkt ist die Nutzerinteraktion. Datengetriebene Anwendungen haben sich in den letzten Jahren verändert. Neben den traditionellen SQL-Anfragen für Business Intelligence sind heute auch datenwissenschaftliche Anwendungen von großer Bedeutung. In diesen Fällen fungiert das Datenbanksystem oft nur als Datenlieferant, während der Rechenaufwand in dedizierten Data-Science- oder Machine-Learning-Umgebungen stattfindet. Wir verfolgen das Ziel, fortgeschrittene Analysen in Richtung der Datenbank-Engine zu verlagern und stellen das Grizzly-Framework als DataFrame-zu-SQL-Transpiler vor. Auf dieser Grundlage identifizieren wir benutzerdefinierte Funktionen (UDFs) und maschinelles Lernen (ML) als wichtige Aufgaben, die von einer tieferen Integration in die Datenbank-Engine profitieren würden. Daher untersuchen und bewerten wir Ansätze für die datenbankinterne Ausführung von Python-UDFs und datenbankinterne ML-Inferenz.Cloud computing has been the groundbreaking technology of the last decade. The ease-of-use of the managed environment in combination with nearly infinite amount of resources and a pay-per-use price model enables fast and cost-efficient project realization for a broad range of users. Cloud computing also changes the way software is designed, deployed and used. This thesis focuses on database systems deployed in the cloud environment. We identify three major interaction points of the database engine with the environment that show changed requirements compared to traditional on-premise data warehouse solutions. First, software is deployed on elastic resources. Consequently, systems should support elasticity in order to match workload requirements and be cost-effective. We present an elastic scaling mechanism for distributed database engines, combined with a partition manager that provides load balancing while minimizing partition reassignments in the case of elastic scaling. Furthermore we introduce a buffer pre-heating strategy that allows to mitigate a cold start after scaling and leads to an immediate performance benefit using scaling. Second, cloud based systems are accessible and available from nearly everywhere. Consequently, data is frequently ingested from numerous endpoints, which differs from bulk loads or ETL pipelines in a traditional data warehouse solution. Many users do not define database constraints in order to avoid transaction aborts due to conflicts or to speed up data ingestion. To mitigate this issue we introduce the concept of PatchIndexes, which allow the definition of approximate constraints. PatchIndexes maintain exceptions to constraints, make them usable in query optimization and execution and offer efficient update support. The concept can be applied to arbitrary constraints and we provide examples of approximate uniqueness and approximate sorting constraints. Moreover, we show how PatchIndexes can be exploited to define advanced constraints like an approximate multi-key partitioning, which offers robust query performance over workloads with different partition key requirements. Third, data-centric workloads changed over the last decade. Besides traditional SQL workloads for business intelligence, data science workloads are of significant importance nowadays. For these cases the database system might only act as data delivery, while the computational effort takes place in data science or machine learning (ML) environments. As this workflow has several drawbacks, we follow the goal of pushing advanced analytics towards the database engine and introduce the Grizzly framework as a DataFrame-to-SQL transpiler. Based on this we identify user-defined functions (UDFs) and machine learning inference as important tasks that would benefit from a deeper engine integration and investigate approaches to push these operations towards the database engine

Sensor web geoprocessing on the grid

Recent standardisation initiatives in the fields of grid computing and geospatial sensor middleware provide an exciting opportunity for the composition of large scale geospatial monitoring and prediction systems from existing components. Sensor middleware standards are paving the way for the emerging sensor web which is envisioned to make millions of geospatial sensors and their data publicly accessible by providing discovery, task and query functionality over the internet. In a similar fashion, concurrent development is taking place in the field of grid computing whereby the virtualisation of computational and data storage resources using middleware abstraction provides a framework to share computing resources. Sensor web and grid computing share a common vision of world-wide connectivity and in their current form they are both realised using web services as the underlying technological framework. The integration of sensor web and grid computing middleware using open standards is expected to facilitate interoperability and scalability in near real-time geoprocessing systems. The aim of this thesis is to develop an appropriate conceptual and practical framework in which open standards in grid computing, sensor web and geospatial web services can be combined as a technological basis for the monitoring and prediction of geospatial phenomena in the earth systems domain, to facilitate real-time decision support. The primary topic of interest is how real-time sensor data can be processed on a grid computing architecture. This is addressed by creating a simple typology of real-time geoprocessing operations with respect to grid computing architectures. A geoprocessing system exemplar of each geoprocessing operation in the typology is implemented using contemporary tools and techniques which provides a basis from which to validate the standards frameworks and highlight issues of scalability and interoperability. It was found that it is possible to combine standardised web services from each of these aforementioned domains despite issues of interoperability resulting from differences in web service style and security between specifications. A novel integration method for the continuous processing of a sensor observation stream is suggested in which a perpetual processing job is submitted as a single continuous compute job. Although this method was found to be successful two key challenges remain; a mechanism for consistently scheduling real-time jobs within an acceptable time-frame must be devised and the tradeoff between efficient grid resource utilisation and processing latency must be balanced. The lack of actual implementations of distributed geoprocessing systems built using sensor web and grid computing has hindered the development of standards, tools and frameworks in this area. This work provides a contribution to the small number of existing implementations in this field by identifying potential workflow bottlenecks in such systems and gaps in the existing specifications. Furthermore it sets out a typology of real-time geoprocessing operations that are anticipated to facilitate the development of real-time geoprocessing software.EThOS - Electronic Theses Online ServiceEngineering and Physical Sciences Research Council (EPSRC) : School of Civil Engineering & Geosciences, Newcastle UniversityGBUnited Kingdo