1.
How can
FinT2:h industry
leverage
Cognitive Computing?

2.
llugnitivefiumputing
Swiss Finlech event #20-Ian IZIII, 2015
Sasha lazarevic - Pierre Kaumnann

3.
How can
FinTech industry
leverage
Cognitive Computing?

4.
Definitions
in a nutshell
Advanced iinaigties Machine Learning
. Dwelnprnenl or mmpulev programs that (an loam (mm
mm and mum their hehuwar
- Predictive analytics
- Prescriptive unulvtics
- Machine learning
- Data mining / Data dismvery
- Based Du (Knniques up pmem remgnman
- Supervised vs unsupervised learning
- Dozens of different. algorithms
Implemented in pragrummlng languages
mu». sulrwuve puxkages, as zluud servizes
what is Cogritive
Comrufina?
Natural Language Processing
- Understand meaning af structured and unstructured
(annual data
- Nat based anly on semanfir: rules, but uses machine
learning and smnsncul models In renieve in
answers
- eased on knowledge base tcurpus) ad question
unmering system
« Enyition: reasoning, an domlvvwvnnnmvs
- 3rd era Of colnwiing
- Coyitiv: manning isu mrniinalinrl of
mdrrutiges used rn tniasmnd human
ianyuuyemd mznfian and pravldeuuizmprfl:
UHIIEIS

5.
Advanced Analytics
- Predictive onolytics
- Prescriptive onolytics
- Machine learning
- Data mining/ Doto discovery

6.
Machine Learning
- Development of computer programs that can learn from
data and adapt their behavior
- Based on techniques of pattern recognition
- Supervised vs unsupervised learning
- Dozens of different algorithms
- Implemented in programming languages,
with software packages, as cloud services
~ Spa
- Image recognition
- Rob
- Dev
Example
m filtering
otics, autonomous c
elopment of trading
Hedge funds like Re
Renaissance Techno
Associates. Propriet
developped in-housi
- Companies providing
and cognitive S0lUti(
Lucena Research, Pl

7.
Examples:
«» Spam filtering
« Image recognition
~ Robotics, autonomous driving vehicles
e Development of trading strategies
- Hedge funds like Rebellion Research,
Renaissance Technologies, Bridgewater
Associates. Proprietary algorithms
developped in—house
~ Companies providing machine learning
and cognitive solutions to hedge funds:
Lucena Research, Prismatic

8.
r‘
I
what is Cognitive /
Computing?
- Cognition: reasoning. But done by computers
- 3rd era of computing
- Cognitive computing is a combination of
technologies used to understand human
language and intention, and provide appropriate
answers
Based on:
- Machine learning and advanced analytics
- Natural Language Processing
- Image, video, voice and sensor data analytics
- Big data and distributed computing
- Cloud computing
- Visualisation tools

9.
Based on:
«i Machine learning and advanced analytics
~ Natural Language Processing
~ Image, video, voice and sensor data analytics
~ Big data and distributed computing
~ Cloud computing
~ Visualisation tools

10.
Natural Language Processing
- Understand meaning of structured and unstructured f
textual data f
- Not based only on semantic rules, but uses machine
learning and statistical models to retrieve the ff
answers .74
- Based on knowledge base (corpus) and question
answering system a”

11.
Question
and Topic
Analysis
Candidate
Answer
Generation
lIi: ui'i-in
Ii-. ici-liii, -zosfiflolc
Hypothesis
Generation
: L19loiiiiu. <lIv
ltaiuizinm-in
Sources
Evidence
Retrieval
Hypothesis and
Evidence Scoring
: y_o: oli‘ul: .<l1~r. i-in
3'IlIl= lIl1‘-D~7(IlflILg
Deep
Evidence
Scoring
Synthesis
Learned Models
help combine and
weigh the Evidence
Models Models
Models Models
Models Models
Final Confidence
Merging and
Ranking
Answer and
Confidence

12.
what is Watson?
IBM as Cognitive Solutions Company:
~ Watson Advisors 3
~ Watson Analytics
~ Watson APls ,
Video 18M Watson: The Science Behind an Answer‘
www. youtube. com/ watch? v=DywOlozksfXw

13.
Video "IBM Watson: The Science Behind an Answer”
www. youtube. com/ watch? v=DywO£izksfXw
J

14.
How can
FinTech industry
leverage
Cognitive Computing?

15.
Imagine an Expert that
never forgets and never sleeps.
What if I can have a sustanaible dialog with my client?
What if I can advice my client knowing him/ her?
What if I can propose relevant fact-based products /
solutions?

16.
Demo
htt : //investment—advisor. m b| uemix. net
I7 7 i""7_7V
, , , r ,
The Watson Developer Cloud
http: //www. ibm. cQm/ smarterplanet/ us/ em

17.
The things we learned from Watson
(to differentiate goarself)
Interaction in natural language
Context and Intent
Curating content and
Creating Ground Thruth
More is more
Statistical models, Search, Deep Learning
Ecosystem
‘ , Open by design
(UIMA)
~; /V_ S, 3”. »

18.
Watson — US
Jeopardy
«A _ Oncology
¢ , Finance. ..
APIS
Bank — CH

19.
Video ”lBM Watson robot, Newton, live on stage at IBM
Businessconnect. Amazing! ”
www. youtube. com/ watch? v=L13QZFoGBes

20.
Recap / Take llwag
- Cognitive Computing as a Unique
differentiator
- Start already today: PI + Dialog + R&R + T
- Get support (even financial)
Video “What Will gou do with Waston? "
www. youtube. com/ watch? v=Y_cqBP08yuA

21.
Video "What Will gou do with Waston? "
www. youtube. com/ watch? v=Y_cqBPO8yuA

22.
How can
FinTech industry
leverage
Cognitive Computing?