Statistical models and stochastic optimization in financial technology and investment science

Abstract

In the decade since the global financial crisis and the Great Recession that followed, the financial technology – or FinTech – revolution has transformed financial markets and services through the automation of trading and risk management, among other things. The “ABCD” of cutting-edge FinTech are AI (Artificial intelligence), Blockchains, Cloud computing and big Data. We first review these technologies of modern FinTech and some of the underlying mathematical foundations. We then describe new statistical models and stochastic optimization methods in FinTech and investment science.