AI/Fintech and Asset Management Businesses

Yasuyuki Kato

Public Policy Review, 2020, vol. 16, issue 4, 1-28

Abstract: In asset management business, AI and Fintech are now widely used. This article introduces a wide range of examples where AI and Fintech are applied to the development of asset management methods. One of the cores of their applied technology is text mining that converts text information into numerical data, which has evolved through deep learning. Big data has dramatically expanded the amount of input data to asset management models, and advanced prediction models have been developed by analyzing these data using deep learning. On the other hand, AI has brought about the harmful effect of making the model a black box. A lot of attempts are also being made to contribute to the investment theory by estimating risk factors with AI optimization technology and big data. Fintech, on the other hand, provides with automated wealth management, which has contributed to the expansion of asset management business for small-sized and inexperienced investors with robot advisors. In addition, the application of big data is progressing even in ESG investment, which has recently attracted a lot of attention.

Keywords: Fintech; asset management; big data; deep learning; text mining; LSTM; robot advisors; wealth management; ESG (search for similar items in EconPapers)
JEL-codes: C1 C4 C6 C8 G1 (search for similar items in EconPapers)
Date: 2020
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