代写FIN6035 FINTECH帮做R语言

FIN6035

FINTECH

Individual Coursework (Report, 1500 words)

Scenario

Z opens a savings account in two different banks (Bank A and Bank B) with equal amount, say equally dividing his 50% of monthly salary, as initial deposits.  He uses both the accounts interchangeably for various daily life purposes. Both the accounts, gets regular and equal inflow of the money every month. Over the passage of time, he experiences a better service (like customer services, smooth mobile app usage, easy internet banking, ATM availability, mortgage conditions, discounts and offers etc) from Bank A. This makes him to gradually rely more on Bank A rather than Bank B. So ultimately, he stops using Bank B and continues using Bank A. In this way, his entire 50% saving from his salary gets deposited in Bank A and Bank B losses a customer and a regular inflow of money. This process is called Churning for Bank B.

After a while, the executive management of Bank B observes that the bulk of its customers have left the bank. They hire an AI provider tech company to design a solution to not only retain its existing customers, but also to attract new customers. The AI company gets the customers dataset of Bank B, which contains various features about bank usage by the customers, amount of time spent on using the bank’s mobile app, number of services of the bank being used, regular inflow and outflow of money into accounts, loans applied, satisfaction level obtained using occasional surveys about the services and products of the bank etc. 

The company then applies prediction algorithms of artificial intelligence like logistic regression, naïve bayes, or random forest to segregate the customers as loyal or likely churners. Once these results are presented to the executive management of the Bank, they update their various policies. In this way, gradually the Bank improves its performance.  

As observed, Banks thrive on savings of their customers and require this to give out loans and invest.

Using this scenario, we learn that customers churn is a genuine issue in the domain of financial industry, and severely impacts their businesses. We also learn how using technology, by applying artificial intelligence, a financial sector can understand its weaknesses and improves its execution. Therefore, this example scenario shows that a three-step process i.e. (i) clearly identify the problem to solve, (ii) obtain the relevant dataset, (iii) and apply artificial intelligence algorithms to get the results for solving the identified problem.    

Question

As a fintech consultant in a startup firm, you intend pitching a solution to legacy banking firms, which enables them to analyse and predict how much money individuals in households could have left in their bank accounts, as savings, after paying tax, NI, housing costs, loan repayments and bills etc.

This tool will allow them to understand the saving culture of households in the UK and enable them to design appropriate products and services.

Required

Write an essay as a fintech consultant in a startup firm pitching your solution to these legacy banks who might be interested in deploying an AI solution.

Therefore, the structure of the essay must contain a background of the problem, problem definition, necessity of an AI solution to solve the problem, the details of the solution, discussion on the solution, and the obtained results from the AI algorithm.

Using the above structure of the essay, you are required to provide your analysis and viewpoint on how this fintech is going to impact the traditional way of working of the banking industry. You are also required to discuss how this fintech can be headed towards success or failure.

Details of the Dataset

The dataset is available on this link, having caption 2004 to 2011 NMG Survey Data. The file will be download with the name BoE NMG household survey data - 2004-11. The dataset contains a few features/attributes of various persons. Some of the attributes are age, gender, education level, number of children among many others. The Description tab in the downloaded MS Excel sheet explains each attribute. In this coursework, we are interested in predicting the value of the variable (i.e. attribute) with Serial Number 26 and have a short name of “dfihhyr” which is explained in the file.

Deliverables

a) Given the dataset from Bank of England, design and implement a Fintech solution using any one of the No Code AI tools introduced during the module, to solve the problem statement provided above. Then present your solution in the form. of an essay of 1500 words, +/- 10%, having following sections

a. Introduction (8 Marks) 

b. Problem statement (4 Marks)

c. Methodology (10 Marks)

d. Analysing using experimental evaluation (6 Marks)

e. Conclusion (10 Marks)

a) To get more points, design your Fintech solution using two different AI tools which are introduced during the module. The idea behind doing the same task in two different tools is to compare the functionality of two different products on solving the same problem (8 Marks)

b) Use appropriate academic and professional language, adopt an appropriate layout, add references from peer-reviewed journals to back-up your statements and arguments in the relevant sections of the essay (4 Marks)

(LO 2, LO 3)

      (Total Marks: 50)