FINANCIAL INNOVATION

The act of creating and then popularising new financial instruments as well as new financial technologies, institutions and markets which includes,

• Product innovations relate to new products such as derivatives, securitised assets, foreign currency mortgages and so on.

• Process innovations relate to new ways of doing financial business including online banking, phone banking and new ways of implementing information technology and so on.

• Institutional innovations relate to the creation of new types of financial firms (such as specialist credit card firms like MBNA, discount broking firms such as Charles Schwab, internet banks and so on).

DECISION ANALYTICS

The next phase of Artificial Intelligence – using machines to make decisions, in real world, dynamic environments under different sources of uncertainty.  Decisions are the foundation of business, science, engineering, health, transportation, and economics.  Decision Analytics blends the fields of optimization and machine learning into a new framework that is specifically designed for dynamic problems.  It takes advantage of the growing access to accurate real-time data through smartphones and Internet of Things technologies but uses machine learning in a variety of ways.  This is the field that will blend the new world of instant communication and sensing with old world information processes where knowledge is imperfect and people make their own decisions.