Frontiers of AI and FinTech - An illumination by CFA Institute

Amid the mixed bag of turbulence between price actions and lingering prospects among the Blockchain/FinTech space, the keen interest continues to mount everywhere, reputed institutions from Big 4 auditing firms to the central banks of advanced economies have been investing into R&D projects of blockchain and cryptocurrency gamut. 

It is quite known that Fintech has been one of the swiftly growing sectors. Fintech gamut symbolizes the progressive enterprises that leverage cutting edge technology to bring-in friendly financial products and solutions that are quite far more agile and pioneering compared to traditional financial institutions.

While the prestigious universities across the globe have been no exception, designing innovative courses on FinTech including crypto and blockchain areas. Some major universities have already added relevant courses to their curriculum. Ivy leagues like, Stanford University, University of California at Berkeley, Harvard, Massachusetts Institute of Technology (MIT) and Edinburg Napier University etc. Now, CFA institute US, has also been no exception. 

Larry Cao, CFA has shed some light on this budding industry - Fintech has been shifting trends in the investment management and generating exciting opportunities for both businesses and professionals. He reckons that a competitive edge with new technology, while standing out from the competition by harnessing human power in an increasingly automated world.

Despite artificial intelligence (AI)'s significant and rapidly increasing "brain" power, the investment management business is not going away tomorrow.

However, it is changing and the current model will one day be rendered obsolete. So, what does the road map leading to that eventuality look like? And what's our best strategy in the interim?

Contrary to conventional wisdom, the data scientists on the panel at the AI and the Future of Financial Services Forum in Beijing in December collectively reassured the investment managers in attendance that AI will not drive them out of business overnight. Why? Because in the words of Eric Chang of Microsoft Research Asia, "There is not yet enough data."

Shu Ming of Lingfeng Capital cited the statistical concept of V-C dimension, which measures the number of rules within a system, to provide some perspective.

Given the biological limits of the human brain, researchers believe that the threshold for an intelligent system to beat human beings at a goal, say playing the ancient board game of Go, is about 10-million rules. Courtesy: CFA institute 

Currency Strength Index: FxWirePro's hourly BTC spot index has shown -71 (which is bearish), while USD is flashing at -26 (bearish), while articulating at 11:58 GMT. 

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