The world is becoming more technologically advanced with each passing day. One of the latest advancements is in the area of machine learning. If you are not familiar with machine learning, it is a computer science field where computers can learn new information without being programmed to. Sound pretty sci-fi? Believe it or not, this is real. And it is really helpful in many fields. For example, machine learning has helped to solve highly complex problems in speech recognition and language processing. Not only has it become helpful for educational purposes, but it has even been found very useful in the financial sector.
Machine learning has the capability to speed up the process of granting credit by leaps and bounds. According to Freedom Debt Relief, by using algorithms, machine learning can determine credit-worthiness much faster and without all of the time-consuming due diligence it normally takes to do so.
Identifying someone’s credit score involves the use of regression algorithms that use a statistical process to estimate variable relationships. The algorithms are used frequently to predict and forecast credit, and when combined with machine learning, answers happen even faster.
Another area where machine learning has impacted the finance world is in the stock market. Machine learning uses algorithms on historical company data such as balance sheets or profit and loss statements to predict what lies ahead for a company. There are also algorithms machine learning accesses that share information about how the world and markets view the company. This could be news, social media, or even video libraries.
However, as Freedom Debt Relief explains, this use of machine learning is still being fine-tuned. Sometimes algorithms do not behave normally. And there have been times when false data floods the market. So, this process still requires some work, but machine learning is expected to have increased control over the financial markets in the future.
As people and machines become more technically savvy, so do criminals. Gone are the days of stealing cash. According to Freedom Debt Relief, fraud detection is another area of finance where machine learning plays a role. Machine learning is much more efficient at picking up on fraud than humans are. It can capture thousands of datasets and patterns at one time instead of following a few basic spending rules. Using algorithms, machine learning can catch savvy crooks much faster and on a much larger scale.
First, data is extracted and divided into three subsets of information. Next, machine learning uses training sets to make predictions. The records used for the training sets typically come from historical data. Models are then built to make predictions on whether or not a transaction is fraudulent.
Manage Personal Finances
While machine learning is often used on a larger, corporate scale, Freedom Debt Relief believes it is a great tool for individuals looking to manage their finances. Finance and banking bots can translate complicated information into layman’s terms. Machine learning could track expenses, find ways to save you money, and even offer daily financial tips to help keep you on track.
In the future, you could have your own artificial intelligence bot that utilizes machine learning to help you make routine and even difficult financial decisions. Perhaps these bots could warn you about overspending on a credit card or advise you against an impulse buy. But for now, we still must rely on our own judgment to make these decisions. Sometimes we do well, and sometimes we make mistakes.
Regardless of the mistake you’ve made in the past with your finances, there are resources available to help you. Freedom Debt Relief could help you eliminate your credit card debt and get back on track financially. Want to learn more? Contact us online.