Discover how high-performance NVIDIA GPUs are helping financial firms uncover new opportunities in trading, forecasting, fraud detection, and more.
Financial services was one of the first industries to make heavy use of AI computing in the 1980s. And by 2025, Deloitte predicts that current transformative trends like self-service and process automation will be considered the norm, opening opportunities for even greater innovation and experimentation.
To enable this, cutting-edge NVIDIA GPUs for high-performance computing are quickly rising to the top of finance firms’ list of digital demands. And while data analytics and AI use cases have typically relied on CPUs for computation, the thousands of processing cores found in today’s GPUs make them a far better fit to run multiple demanding tasks in parallel.
In this blog, we’ll explore three ways high-performance GPUs are helping financial firms innovate and thrive.
A brave new world of digital intelligence
1. Accelerate and enhance trading
Traditionally, financial trading is based on a tried and true combination of economic knowledge and good old human intuition. Given the rudimentary nature of past computing and AI services, many traders were apprehensive about trusting their business to a computer.
But the times are changing. Basic trading bots are now ubiquitous, and the growing accessibility of high-performance GPUs is enabling top traders to produce new investment strategies and insights using data-driven algorithms and machine learning. They can also run complex data science workloads on the same database used to inform trading decisions.
And in 2018, investments in this type of trading – also referred to as algorithmic, quantitative, or high-frequency trading – approached $1 trillion.
2. Create detailed forecasting models
Today, financial forecasting is largely based on what’s expected to happen in the near future – not in the here and now. Also, the accuracy of this foresight is often dictated by a company’s computing limitations.
By 2025, Deloitte predicts that as data analytics capabilities improve, periodic reporting will no longer drive operations and decisions. Why? Because when both actuals and forecasts can be pulled up on demand, a traditional cycle is no longer relevant.
We’re already seeing aspects of this shift in the way firms are using NVIDIA GPUs to perform risk calculations and simulations in near real-time and deliver faster credit scoring through deep learning neural networks.
3. Detecting fraudulent activity faster
Credit card fraud, account fraud, mortgage fraud – the list goes on. Identity fraud, in all its forms, is a persistent problem for the financial industry. In 2018, 14.4 million people were victims of identity theft, down from 16.7 million in 2017.
This is both alarming and encouraging. Fraud is still widespread, but falling numbers indicate that efforts to mitigate fraudulent behavior are working. One way banks and financial firms are fighting against scammers is through GPU-powered AI and machine learning.
By analyzing customer behavior, including their location and spending habits, banks can automate detection and response to suspected fraudulent behavior at scale. The more the AI learns about customers, fraudsters, and new criminal tactics, the more accurate it will be—reducing false positives and freeing more time for agents to remediate verified cases of fraud.
GPU-powered voice recognition helps fight insurance fraud
Across the pond, insurance fraud costs the UK billions of pounds every year. That’s why Intelligent Voice, Strenuus, and the University of East London are using NVIDIA V100 Tensor Core GPUs to create AI-powered voice recognition software that helps identify fraudulent claims.
By training its voice recognition algorithm with hundreds of thousands of insurance calls, service agents benefit from automated detection of potential deception, backing up their natural intuition and helping them stay productive with automatic risk flagging.
Realize the Power of Two
A new era of faster, smarter, more innovative finance is here. But to take your place in that future, you need the Power of Two. That’s the combined power of NVIDIA GPUs and the flexibility of Google Cloud to enable the boldest financial firms to unleash their true digital potential.