470 research outputs found
A computational intelligence approach to efficiently predicting review ratings in e-commerce
Sentiment analysis, also called opinion mining, is currently one of the most studied research fields which aims to analyse people's opinions. E-commerce websites allow users to share opinions about a product/service by providing textual reviews along with numerical ratings. These opinions greatly influence future consumer purchasing decisions. This paper introduces an innovative computational intelligence framework for efficiently predicting customer review ratings. The framework has been designed to deal with the dimensionality and noise which is typically apparent in large datasets containing customer reviews. The proposed framework integrates the techniques of Singular Value Decomposition (SVD) and dimensionality reduction, Fuzzy C-Means (FCM) and the Adaptive Neuro-Fuzzy Inference System (ANFIS). The performance of the proposed approach returned high accuracy and the results revealed that when large datasets are concerned, only a fraction of the data is needed for creating a system to predict the review ratings of textual reviews. Results from the experiments suggest that the proposed approach yields better prediction performance than other state-of-the-art rating predictors which are based on the conventional Artificial Neural Network, Fuzzy C-Means, and Support Vector Machine approaches. In addition, the proposed framework can be utilised for other classification and prediction tasks, and its neuro-fuzzy predictor module can be replaced by other classifiers
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A comparison of fuzzy approaches to e-commerce review rating prediction
This paper presents a comparative analysis of the performance of fuzzy approaches on the task of predicting customer review ratings using a computational intelligence framework based on a genetic algorithm for data dimensionality reduction. The performance of the Fuzzy C-Means (FCM), a neurofuzzy approach combining FCM and the Adaptive Neuro Fuzzy Inference System (ANFIS), and the Simplified Fuzzy ARTMAP (SFAM) was compared on six datasets containing customer reviews. The results revealed that all computational intelligence predictors were suitable for the rating prediction problem, and that the genetic algorithm is effective in reducing the number of dimensions without affecting the prediction performance of each computational intelligence predictor
An academic review: applications of data mining techniques in finance industry
With the development of Internet techniques, data volumes are doubling every two years, faster than predicted by Moore’s Law. Big Data Analytics becomes particularly important for enterprise business. Modern computational technologies will provide effective tools to help understand hugely accumulated data and leverage this information to get insights into the finance industry. In order to get actionable insights into the business, data has become most valuable asset of financial organisations, as there are no physical products in finance industry to manufacture. This is where data mining techniques come to their rescue by allowing access to the right information at the right time. These techniques are used by the finance industry in various areas such as fraud detection, intelligent forecasting, credit rating, loan management, customer profiling, money laundering, marketing and prediction of price movements to name a few. This work aims to survey the research on data mining techniques applied to the finance industry from 2010 to 2015.The review finds that Stock prediction and Credit rating have received most attention of researchers, compared to Loan prediction, Money Laundering and Time Series prediction. Due to the dynamics, uncertainty and variety of data, nonlinear mapping techniques have been deeply studied than linear techniques. Also it has been proved that hybrid methods are more accurate in prediction, closely followed by Neural Network technique. This survey could provide a clue of applications of data mining techniques for finance industry, and a summary of methodologies for researchers in this area. Especially, it could provide a good vision of Data Mining Techniques in computational finance for beginners who want to work in the field of computational finance
Artificial Intelligence & Machine Learning in Finance: A literature review
In the 2020s, Artificial Intelligence (AI) has been increasingly becoming a dominant technology, and thanks to new computer technologies, Machine Learning (ML) has also experienced remarkable growth in recent years; however, Artificial Intelligence (AI) needs notable data scientist and engineers’ innovation to evolve. Hence, in this paper, we aim to infer the intellectual development of AI and ML in finance research, adopting a scoping review combined with an embedded review to pursue and scrutinize the services of these concepts. For a technical literature review, we goose-step the five stages of the scoping review methodology along with Donthu et al.’s (2021) bibliometric review method. This article highlights the trends in AI and ML applications (from 1989 to 2022) in the financial field of both developed and emerging countries. The main purpose is to emphasize the minutiae of several types of research that elucidate the employment of AI and ML in finance. The findings of our study are summarized and developed into seven fields: (1) Portfolio Management and Robo-Advisory, (2) Risk Management and Financial Distress (3), Financial Fraud Detection and Anti-money laundering, (4) Sentiment Analysis and Investor Behaviour, (5) Algorithmic Stock Market Prediction and High-frequency Trading, (6) Data Protection and Cybersecurity, (7) Big Data Analytics, Blockchain, FinTech. Further, we demonstrate in each field, how research in AI and ML enhances the current financial sector, as well as their contribution in terms of possibilities and solutions for myriad financial institutions and organizations. We conclude with a global map review of 110 documents per the seven fields of AI and ML application.
Keywords: Artificial Intelligence, Machine Learning, Finance, Scoping review, Casablanca Exchange Market.
JEL Classification: C80
Paper type: Theoretical ResearchIn the 2020s, Artificial Intelligence (AI) has been increasingly becoming a dominant technology, and thanks to new computer technologies, Machine Learning (ML) has also experienced remarkable growth in recent years; however, Artificial Intelligence (AI) needs notable data scientist and engineers’ innovation to evolve. Hence, in this paper, we aim to infer the intellectual development of AI and ML in finance research, adopting a scoping review combined with an embedded review to pursue and scrutinize the services of these concepts. For a technical literature review, we goose-step the five stages of the scoping review methodology along with Donthu et al.’s (2021) bibliometric review method. This article highlights the trends in AI and ML applications (from 1989 to 2022) in the financial field of both developed and emerging countries. The main purpose is to emphasize the minutiae of several types of research that elucidate the employment of AI and ML in finance. The findings of our study are summarized and developed into seven fields: (1) Portfolio Management and Robo-Advisory, (2) Risk Management and Financial Distress (3), Financial Fraud Detection and Anti-money laundering, (4) Sentiment Analysis and Investor Behaviour, (5) Algorithmic Stock Market Prediction and High-frequency Trading, (6) Data Protection and Cybersecurity, (7) Big Data Analytics, Blockchain, FinTech. Further, we demonstrate in each field, how research in AI and ML enhances the current financial sector, as well as their contribution in terms of possibilities and solutions for myriad financial institutions and organizations. We conclude with a global map review of 110 documents per the seven fields of AI and ML application.
Keywords: Artificial Intelligence, Machine Learning, Finance, Scoping review, Casablanca Exchange Market.
JEL Classification: C80
Paper type: Theoretical Researc
What attracts vehicle consumers’ buying:A Saaty scale-based VIKOR (SSC-VIKOR) approach from after-sales textual perspective?
Purpose:
The increasingly booming e-commerce development has stimulated vehicle consumers to express individual reviews through online forum. The purpose of this paper is to probe into the vehicle consumer consumption behavior and make recommendations for potential consumers from textual comments viewpoint.
Design/methodology/approach:
A big data analytic-based approach is designed to discover vehicle consumer consumption behavior from online perspective. To reduce subjectivity of expert-based approaches, a parallel NaĂŻve Bayes approach is designed to analyze the sentiment analysis, and the Saaty scale-based (SSC) scoring rule is employed to obtain specific sentimental value of attribute class, contributing to the multi-grade sentiment classification. To achieve the intelligent recommendation for potential vehicle customers, a novel SSC-VIKOR approach is developed to prioritize vehicle brand candidates from a big data analytical viewpoint.
Findings:
The big data analytics argue that “cost-effectiveness” characteristic is the most important factor that vehicle consumers care, and the data mining results enable automakers to better understand consumer consumption behavior.
Research limitations/implications:
The case study illustrates the effectiveness of the integrated method, contributing to much more precise operations management on marketing strategy, quality improvement and intelligent recommendation.
Originality/value:
Researches of consumer consumption behavior are usually based on survey-based methods, and mostly previous studies about comments analysis focus on binary analysis. The hybrid SSC-VIKOR approach is developed to fill the gap from the big data perspective
Decision Support Systems for Risk Assessment in Credit Operations Against Collateral
With the global economic crisis, which reached its peak in the second half of 2008, and
before a market shaken by economic instability, financial institutions have taken steps to protect
the banks’ default risks, which had an impact directly in the form of analysis in credit institutions
to individuals and to corporate entities. To mitigate the risk of banks in credit operations, most
banks use a graded scale of customer risk, which determines the provision that banks must
do according to the default risk levels in each credit transaction. The credit analysis involves
the ability to make a credit decision inside a scenario of uncertainty and constant changes and
incomplete transformations. This ability depends on the capacity to logically analyze situations,
often complex and reach a clear conclusion, practical and practicable to implement.
Credit Scoring models are used to predict the probability of a customer proposing to
credit to become in default at any given time, based on his personal and financial information
that may influence the ability of the client to pay the debt. This estimated probability, called the
score, is an estimate of the risk of default of a customer in a given period. This increased concern
has been in no small part caused by the weaknesses of existing risk management techniques
that have been revealed by the recent financial crisis and the growing demand for consumer
credit.The constant change affects several banking sections because it prevents the ability to
investigate the data that is produced and stored in computers that are too often dependent on
manual techniques.
Among the many alternatives used in the world to balance this risk, the provision of
guarantees stands out of guarantees in the formalization of credit agreements. In theory, the
collateral does not ensure the credit return, as it is not computed as payment of the obligation
within the project. There is also the fact that it will only be successful if triggered, which involves
the legal area of the banking institution. The truth is, collateral is a mitigating element
of credit risk. Collaterals are divided into two types, an individual guarantee (sponsor) and the
asset guarantee (fiduciary). Both aim to increase security in credit operations, as an payment
alternative to the holder of credit provided to the lender, if possible, unable to meet its obligations
on time. For the creditor, it generates liquidity security from the receiving operation. The
measurement of credit recoverability is a system that evaluates the efficiency of the collateral
invested return mechanism.
In an attempt to identify the sufficiency of collateral in credit operations, this thesis
presents an assessment of smart classifiers that uses contextual information to assess whether
collaterals provide for the recovery of credit granted in the decision-making process before
the credit transaction become insolvent. The results observed when compared with other approaches
in the literature and the comparative analysis of the most relevant artificial intelligence
solutions, considering the classifiers that use guarantees as a parameter to calculate the
risk contribute to the advance of the state of the art advance, increasing the commitment to
the financial institutions.Com a crise econĂ´mica global, que atingiu seu auge no segundo semestre de 2008, e diante
de um mercado abalado pela instabilidade econômica, as instituições financeiras tomaram
medidas para proteger os riscos de inadimplĂŞncia dos bancos, medidas que impactavam diretamente
na forma de análise nas instituições de crĂ©dito para pessoas fĂsicas e jurĂdicas. Para
mitigar o risco dos bancos nas operações de crédito, a maioria destas instituições utiliza uma
escala graduada de risco do cliente, que determina a provisĂŁo que os bancos devem fazer de
acordo com os nĂveis de risco padrĂŁo em cada transação de crĂ©dito. A análise de crĂ©dito envolve
a capacidade de tomar uma decisão de crédito dentro de um cenário de incerteza e mudanças
constantes e transformações incompletas. Essa aptidão depende da capacidade de analisar situações
lógicas, geralmente complexas e de chegar a uma conclusão clara, prática e praticável
de implementar.
Os modelos de Credit Score sĂŁo usados para prever a probabilidade de um cliente
propor crédito e tornar-se inadimplente a qualquer momento, com base em suas informações
pessoais e financeiras que podem influenciar a capacidade do cliente de pagar a dĂvida. Essa
probabilidade estimada, denominada pontuação, é uma estimativa do risco de inadimplência de
um cliente em um determinado perĂodo. A mudança constante afeta várias seções bancárias,
pois impede a capacidade de investigar os dados que sĂŁo produzidos e armazenados em computadores
que frequentemente dependem de técnicas manuais.
Entre as inĂşmeras alternativas utilizadas no mundo para equilibrar esse risco, destacase
o aporte de garantias na formalização dos contratos de crédito. Em tese, a garantia não
“garante” o retorno do crédito, já que não é computada como pagamento da obrigação dentro do
projeto. Tem-se ainda, o fato de que esta só terá algum êxito se acionada, o que envolve a área
jurĂdica da instituição bancária. A verdade Ă© que, a garantia Ă© um elemento mitigador do risco
de crédito. As garantias são divididas em dois tipos, uma garantia individual (patrocinadora) e
a garantia do ativo (fiduciário). Ambos visam aumentar a segurança nas operações de crédito,
como uma alternativa de pagamento ao titular do crĂ©dito fornecido ao credor, se possĂvel, nĂŁo
puder cumprir suas obrigações no prazo. Para o credor, gera segurança de liquidez a partir da
operação de recebimento. A mensuração da recuperabilidade do crédito é uma sistemática que
avalia a eficiĂŞncia do mecanismo de retorno do capital investido em garantias.
Para tentar identificar a suficiência das garantias nas operações de crédito, esta tese
apresenta uma avaliação dos classificadores inteligentes que utiliza informações contextuais
para avaliar se as garantias permitem prever a recuperação de crédito concedido no processo de
tomada de decisão antes que a operação de crédito entre em default. Os resultados observados
quando comparados com outras abordagens existentes na literatura e a análise comparativa das
soluções de inteligência artificial mais relevantes, mostram que os classificadores que usam
garantias como parâmetro para calcular o risco contribuem para o avanço do estado da arte,
aumentando o comprometimento com as instituições financeiras
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