The market may have peaked according to this Warren Buffett indicator

| January 7, 2020

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The Warren Buffett indicator may be flashing red and be showing warning signals for stocks. Salt Financial President SLT ETF Co-Founder Alfred Eskandar and Payne Capital Management President Ryan Payne join Seana Smith on The Ticker to discuss the 'Buffett Indicator,' along with the ISM non-manufacturing index, and the U.S. trade deficit.

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BGL Plc

BGL Plc is one of the foremost Investment Banking Companies in Africa with Head Office in Nigeria, offering first class Financial Advisory, Corporate Finance and Private Banking/Asset Management services to an expanding clientele comprised of institutional, corporate, government and ultra high net-worth clients.

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How Data Aggregators Are Using Blockchain To Empower Fintech Players

Article | March 1, 2020

People know their banks and their favorite fintech applications. However, consumers are generally not aware of data aggregators like Plaid and Finicity, which collect consumer data from banks, crunch it and feed it to fintech applications. Blockchain technology can play a key role in helping data aggregators manage consumer financial data while complying with regulations and empowering consumers.

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3 Signs Fintech Is Entering the Mainstream

Article | February 26, 2020

Over the past several years, financial technology -- or fintech, for short -- started a revolution of sorts in what some consider a stodgy industry. Online-only banks with no branches, digital payment systems, and person-to-person (P2P) payment apps are just a few of the ways that technology is changing the way consumers handled their money. That hasn't gone unnoticed by some of the biggest names in the financial services industry, and rather than reinvent the wheel, some are spending hefty sums to acquire the talent and technology that sought to disrupt them in the first place.

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Optimizing Risk Management With Machine Learning In Banking

Article | May 26, 2021

The enormous amounts of data accessible to banks and their high demand for forecasting make the financial industry a perfect area for machine learning (ML) to shine. In this article, we explore the current applications of machine learning in banking when it comes to risk management, define its challenges and provide a future outlook. Credit Risk Management For the past few decades, banks have mostly used logistic and probit regression models for credit risk assessments and internal risk management. However, all conventional models inherit the same flaw — they predict outputs based only on linear relationships between input variables. This limitation was exposed in the catastrophic 2008 housing market crash. Although the crisis’s negative consequences have been multiplied by uncontrolled sales of credit default swaps and other complex financial instruments, the fundamental reason for failure was in the inaccurate credit risk model. In the aftermath, with the intent to force financial institutions to provide more detailed reports, The Federal Reserve’s CCAR now requires banks to account for more than 2,000 economic attributes. Consequentially, this also led to other regulating authorities introducing new standards that improve supervisory data quality and reporting. At the same time, with the proliferation of banking apps, social media, and digital communication overall, financial institutions now collect lavish amounts of unstructured data. If gathered and processed correctly, these new datasets can help gauge critical insights for a wide range of banking operations. This is where machine learning comes into play. More advanced non-linear approaches to credit risk modeling including neural networks enable banks to make predictions with a previously unseen level of accuracy and granularity. Challenges The utter superiority of machine learning over traditional credit risk modeling approaches comes at the cost of the prevailing ‘black box’ problem. While we can decide to trust ML algorithms based on statistical evidence of their feasibility, current regulatory constraints won’t allow it to happen. However, machine learning can still be used to a great extent while being regulation-compliant. Even simple linear machine learning approaches still yield more accurate results than conventional ones. Many banks also use unsupervised machine learning methods to explore data, while using traditional classification and regression models to make predictions. Fraud Management and Surveillance Nowadays, the majority of banks’ fraud detection systems use rule-based approaches. This causes banks to deal with a significant number of false positives, forcing them to spend inordinate amounts of resources to distinguish meaningless behavioral deviations from real threats. The ability of machine learning to capture subtle trends and uncover non-linear relationships allows banks to get a complete picture of a client’s activity and significantly lower the probability of false positives. For example, by integrating ML into its fraud detection model, Danske Banks managed to reduce false positives by 60%. Challenges Similar to many other AI-based solutions in the financial space, the biggest adoption hurdles concern regulations and the unexplainability of AI systems. For example, depending on the jurisdiction, banks are often unable to provide developers with sensitive information related to past breaches. Next, the outputs of unsupervised monitoring systems sometimes can’t be explained, which makes them non-compliant. However, financial institutions have found a way to at least partly leverage the power of ML for fraud management. A fraud prevention system’s alerts will still be triggered by rule-based models, but the integration of an ML algorithm on top of them can allow adjusting surveillance methods to a person’s behavior fluctuations. Such ML models are typically less complex and explainable, which makes them applicable in a regulatory context.

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4 Things that Automatically Disqualify You for a PPP Loan

Article | April 9, 2020

As millions of small business owners are applying for low-interest loans associated with the Paycheck Protection Plan, I can’t help but think of all the small business owners I personally spoke with over Facebook last weekend as the PPP got off to a rather bumpy start as lenders tried to absorb the new regulations associated with the SBA’s disaster relief loans. With that in mind, it seemed like a good time to share 4 things that automatically disqualify you for a PPP loan and talk about an option or two for next steps.

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Spotlight

BGL Plc

BGL Plc is one of the foremost Investment Banking Companies in Africa with Head Office in Nigeria, offering first class Financial Advisory, Corporate Finance and Private Banking/Asset Management services to an expanding clientele comprised of institutional, corporate, government and ultra high net-worth clients.

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