Novel Financial Applications of Machine Learning and Deep Learning Algorithms, Product Modeling, and Applications

This book presents the state-of-the-art applications of machine learning in the finance domain with a focus on financial product modeling, which aims to advance the model performance and minimize risk and uncertainty. It provides both practical and managerial implications of financial and managerial decision support systems which capture a broad range of financial data traits. It also serves as a guide for the implementation of risk-adjusted financial product pricing systems, while adding a significant supplement to the financial literacy of the investigated study.

The book covers advanced machine learning techniques, such as Support Vector Machine, Neural Networks, Random Forest, K-Nearest Neighbors, Extreme Learning Machine, Deep Learning Approaches, and their application to finance datasets. It also leverages real-world financial instances to practice business product modeling and data analysis. Software code, such as MATLAB, Python and/or R including datasets within a broad range of financial domain are included for more rigorous practice.

The book primarily aims at providing graduate students and researchers with a roadmap for financial data analysis. It is also intended for a broad audience, including academics, professional financial analysts, and policy-makers who are involved in forecasting, modeling, trading, risk management, economics, credit risk, and portfolio management.

Part 1: Recent Developments in FinTech.- 1. FinTech Risk Management and Monitoring.- 2. Digital Transformation of Supply Chain with Supportive Culture in Blockchain Environment.- 3. Integration of Artificial Intelligence Technology in Management Accounting Information System - An Empirical Study.- 4. The Impact of Big Data on Accounting Practices: Empirical Evidence from Africa.- Part 2: Financial Risk Prediction using Machine Learning.- 5. Using Outlier Modification Rule for Improvement of the Performance of Classification Algorithms in the Case of Financial Data.- 6. Default Risk Prediction Based on Support Vector Machine and Logit Support Vector Machine.- 7. Predicting Corporate Failure using Ensemble Extreme Learning Machine.- 8. Assessing and Predicting Small Enterprises’ Credit Ratings: A Multicriteria Approach.- Part 3: Financial Time-Series Forecasting.- 9. An Ensemble LGBM (Light Gradient Boosting Machine) Approach for Crude Oil Price Prediction.- 10. Model Development for Predicting the Crude Oil Price: Comparative Evaluation of Ensemble and Machine Learning Methods.- part 4: Emerging Technologies in Financial Education and Healthcare.- 11. Discovering the Role of M-learning among Finance Students: The Future of Online Education.- 12. Exploring the Role of Mobile Technologies in Higher Education: The Impact of Online Teaching on Traditional Learning.-13. Knowledge Mining from Health Data: Application of Feature Selection Approaches.

Mohammad Zoynul Abedin is a Senior Lecturer in Fintech and Financial Innovation at Teesside University International Business School, Teesside University, UK. He received his B.B.A. and M.B.A. degrees in finance from the University of Chittagong, Bangladesh, and his D.Phil. degree in investment theory from the Dalian University of Technology, China. Dr. Abedin published more than 70 papers, including peer reviewed full length articles, conference papers, and book chapters. His work appears on the Annals of Operations Research, International Journal of Production Research, IEEE Transactions on Industrial Informatics, to mention a few. His current research interests include business data analytics, fintech, and computational finance. He is a fellow of the Financial Management Association (FMA), and British Accounting and Finance Association (BAFA).

Petr Hajek is a Professor at the Science and Research Centre, University of Pardubice, Czech Republic. He holds a Ph.D. degree in system engineering and informatics. Professor Hajek is the author or coauthor of 5 books and more than 70 articles in leading journals such as Information Sciences, Decision Support Systems, and Knowledge-Based Systems. His current research interests include business decision-making, soft computing, text mining, and knowledge-based systems. He is a fellow of the Association for Computing Machinery (ACM), KES International, and Association for Information Systems (AIS).