Financial Mathematics and Fintech – serie

This book introduces the novel artificial intelligence technique of polymodels and applies it to the prediction of stock returns. The idea of polymodels is to describe a system by its sensitivities to an environment, and to monitor it, imitating what a natural brain does spontaneously. In practice this involves running a collection of non-linear univariate models. This very powerful standalone technique has several advantages over traditional multivariate regressions. With its easy to interpret results, this method provides an ideal preliminary step towards the traditional neural network approach. The first two chapters compare the technique with other regression alternatives and introduces an estimation method which regularizes a polynomial regression using cross-validation. The rest of the book applies these ideas to financial markets. Certain equity return components are predicted using polymodels in very different ways, and a genetic algorithm is describedwhich combines these different predictions into a single portfolio, aiming to optimize the portfolio returns net of transaction costs. Addressed to investors at all levels of experience this book will also be of interest to both seasoned and non-seasoned statisticians.

This book introduces the novel artificial intelligence technique of polymodels and applies it to the prediction of stock returns. The idea of polymodels is to describe a system by its sensitivities to an environment, and to monitor it, imitating what a natural brain does spontaneously. In practice this involves running a collection of non-linear univariate models. This very powerful standalone technique has several advantages over traditional multivariate regressions. With its easy to interpret results, this method provides an ideal preliminary step towards the traditional neural network approach. The first two chapters compare the technique with other regression alternatives and introduces an estimation method which regularizes a polynomial regression using cross-validation. The rest of the book applies these ideas to financial markets. Certain equity return components are predicted using polymodels in very different ways, and a genetic algorithm is describedwhich combines these different predictions into a single portfolio, aiming to optimize the portfolio returns net of transaction costs. Addressed to investors at all levels of experience this book will also be of interest to both seasoned and non-seasoned statisticians.

Today, emerging technologies offer a new pathway for advancing the economy in the fields of banking, finance, and capital markets. Blockchain applications play a crucial role in ensuring trust and security within these industries by relying on transparency and visibility through peer-to-peer networks. The banking industry has also witnessed increased operations speed, better transparency, efficiency enhancement, fraud extenuation at less cost while sharing real-time data between various parties. Thus, the adoption of blockchain in the Banking and Insurance industry is developing very fast. It has emerged as the commonly accepted default platform for the banking and insurance industry.This book explores how blockchain technology optimizes and integrates transactions and operations, facilitating easier access to information. This, in turn, has the potential to reduce communication costs and minimize minor data transfer errors. Additionally, the book delves into the current applications of blockchain technology in the financial industry, discusses its limitations, and outlines its future prospects for broader accessibility.This book is aimed at students and researchers in financial engineering and fintech and it can serve as a reference for identifying problem areas and their possible solutions.

Today, emerging technologies offer a new pathway for advancing the economy in the fields of banking, finance, and capital markets. Blockchain applications play a crucial role in ensuring trust and security within these industries by relying on transparency and visibility through peer-to-peer networks. The banking industry has also witnessed increased operations speed, better transparency, efficiency enhancement, fraud extenuation at less cost while sharing real-time data between various parties. Thus, the adoption of blockchain in the Banking and Insurance industry is developing very fast. It has emerged as the commonly accepted default platform for the banking and insurance industry.This book explores how blockchain technology optimizes and integrates transactions and operations, facilitating easier access to information. This, in turn, has the potential to reduce communication costs and minimize minor data transfer errors. Additionally, the book delves into the current applications of blockchain technology in the financial industry, discusses its limitations, and outlines its future prospects for broader accessibility.This book is aimed at students and researchers in financial engineering and fintech and it can serve as a reference for identifying problem areas and their possible solutions.

This book contains high-quality papers presented at the First International Forum on Financial Mathematics and Financial Technology. With the rapid development of FinTech, the in-depth integration between mathematics, finance and advanced technology is the general trend. This book focuses on selected aspects of the current and upcoming trends in FinTech. In detail, the included scientific papers focus on financial mathematics and FinTech, presenting the innovative mathematical models and state-of-the-art technologies such as deep learning, with the aim to improve our financial analysis and decision-making and enhance the quality of financial services and risk control. The variety of the papers delivers added value for both scholars and practitioners where they will find perfect integration of elegant mathematical models and up-to-date data mining technologies in financial market analysis.

This book contains high-quality papers presented at the First International Forum on Financial Mathematics and Financial Technology. With the rapid development of FinTech, the in-depth integration between mathematics, finance and advanced technology is the general trend. This book focuses on selected aspects of the current and upcoming trends in FinTech. In detail, the included scientific papers focus on financial mathematics and FinTech, presenting the innovative mathematical models and state-of-the-art technologies such as deep learning, with the aim to improve our financial analysis and decision-making and enhance the quality of financial services and risk control. The variety of the papers delivers added value for both scholars and practitioners where they will find perfect integration of elegant mathematical models and up-to-date data mining technologies in financial market analysis.

This book starts from the application scenarios of artificial financial intelligence regulation, commercial banking, wealth management and payments, etc., and makes a detailed study of the main scenarios of the application of China's artificial intelligence in the financial field, and also analysis specific application cases of China.With the popularization of smart phones and the rapid development of e-commerce, mobile payment, big data and other technologies are in the ascendant in China in recent years. In particular, artificial intelligence technologies in the form of facial, speech and semantic recognition are showing preliminary advantages in the field of FinTech, and the future era of Intelligent Finance has quietly come. The Chinese government has clearly put forward "China should rely on a robust cycle of domestic demand and innovation as the main driver of the economy while maintaining foreign markets and investors as a second engine of growth", science and technology innovation is the basic motivation of economic and social cycle, to implement the " dual circulation strategy ", it is necessary to understand the key role of scientific and technological innovation in financial innovation services, and improve financial services must be driven by science and technology. There is a natural relationship between artificial intelligence and financial services, because financial services are credit and information intermediaries, and data is the most critical for finance, while artificial intelligence has a super ability in dealing with complex data. At present, many Chinese Banks have applied artificial intelligence to their daily operations and management, such as accurate customer identification, enhanced process tracking, intelligent marketing, and product process transformation, so as to simplify financial service processes and shorten service cycles. In General, this book both pays attention to practical application and theoretical, which is a useful reference book in theoretical research and practical work, and also helps readers to understand the application of intelligent finance in China.

This book starts from the application scenarios of artificial financial intelligence regulation, commercial banking, wealth management and payments, etc., and makes a detailed study of the main scenarios of the application of China's artificial intelligence in the financial field, and also analysis specific application cases of China.With the popularization of smart phones and the rapid development of e-commerce, mobile payment, big data and other technologies are in the ascendant in China in recent years. In particular, artificial intelligence technologies in the form of facial, speech and semantic recognition are showing preliminary advantages in the field of FinTech, and the future era of Intelligent Finance has quietly come. The Chinese government has clearly put forward "China should rely on a robust cycle of domestic demand and innovation as the main driver of the economy while maintaining foreign markets and investors as a second engine of growth", science and technology innovation is the basic motivation of economic and social cycle, to implement the " dual circulation strategy ", it is necessary to understand the key role of scientific and technological innovation in financial innovation services, and improve financial services must be driven by science and technology. There is a natural relationship between artificial intelligence and financial services, because financial services are credit and information intermediaries, and data is the most critical for finance, while artificial intelligence has a super ability in dealing with complex data. At present, many Chinese Banks have applied artificial intelligence to their daily operations and management, such as accurate customer identification, enhanced process tracking, intelligent marketing, and product process transformation, so as to simplify financial service processes and shorten service cycles. In General, this book both pays attention to practical application and theoretical, which is a useful reference book in theoretical research and practical work, and also helps readers to understand the application of intelligent finance in China.

This open access book systematically explores the statistical characteristics of cryptographic systems, the computational complexity theory of cryptographic algorithms and the mathematical principles behind various encryption and decryption algorithms. The theory stems from technology. Based on Shannon's information theory, this book systematically introduces the information theory, statistical characteristics and computational complexity theory of public key cryptography, focusing on the three main algorithms of public key cryptography, RSA, discrete logarithm and elliptic curve cryptosystem. It aims to indicate what it is and why it is. It systematically simplifies and combs the theory and technology of lattice cryptography, which is the greatest feature of this book.It requires a good knowledge in algebra, number theory and probability statistics for readers to read this book. The senior students majoring in mathematics, compulsory for cryptography and science and engineering postgraduates will find this book helpful. It can also be used as the main reference book for researchers in cryptography and cryptographic engineering areas.

This open access book systematically explores the statistical characteristics of cryptographic systems, the computational complexity theory of cryptographic algorithms and the mathematical principles behind various encryption and decryption algorithms. The theory stems from technology. Based on Shannon's information theory, this book systematically introduces the information theory, statistical characteristics and computational complexity theory of public key cryptography, focusing on the three main algorithms of public key cryptography, RSA, discrete logarithm and elliptic curve cryptosystem. It aims to indicate what it is and why it is. It systematically simplifies and combs the theory and technology of lattice cryptography, which is the greatest feature of this book.It requires a good knowledge in algebra, number theory and probability statistics for readers to read this book. The senior students majoring in mathematics, compulsory for cryptography and science and engineering postgraduates will find this book helpful. It can also be used as the main reference book for researchers in cryptography and cryptographic engineering areas.

This open access book deals with a rich variety of taxis-type cross-diffusive equations. Particularly, it intends to show the key role played by quasi-energy inequality in the derivation of some necessary a  priori estimates. This book addresses applied mathematics and all researchers interested in mathematical development of reaction-diffusion theory and its application and can be a basis for a graduate course in applied mathematics.

This open access book deals with a rich variety of taxis-type cross-diffusive equations. Particularly, it intends to show the key role played by quasi-energy inequality in the derivation of some necessary a  priori estimates. This book addresses applied mathematics and all researchers interested in mathematical development of reaction-diffusion theory and its application and can be a basis for a graduate course in applied mathematics.

This open access book covers the most cutting-edge and hot research topics and fields of post-quantum cryptography. The main purpose of this book is to focus on the computational complexity theory of lattice ciphers, especially the reduction principle of Ajtai, in order to fill the gap that post-quantum ciphers focus on the implementation of encryption and decryption algorithms, but the theoretical proof is insufficient. In Chapter 3, Chapter 4 and Chapter 6, author introduces the theory and technology of LWE distribution, LWE cipher and homomorphic encryption in detail. When using random analysis tools, there is a problem of "ambiguity" in both definition and algorithm. The greatest feature of this book is to use probability distribution to carry out rigorous mathematical definition and mathematical demonstration for various unclear or imprecise expressions, so as to make it a rigorous theoretical system for classroom teaching and dissemination. Chapters 5 and 7 further expand and improve the theory of cyclic lattice, ideal lattice and generalized NTRU cryptography.This book is used as a professional book for graduate students majoring in mathematics and cryptography, as well as a reference book for scientific and technological personnel engaged in cryptography research.

This open access book covers the most cutting-edge and hot research topics and fields of post-quantum cryptography. The main purpose of this book is to focus on the computational complexity theory of lattice ciphers, especially the reduction principle of Ajtai, in order to fill the gap that post-quantum ciphers focus on the implementation of encryption and decryption algorithms, but the theoretical proof is insufficient. In Chapter 3, Chapter 4 and Chapter 6, author introduces the theory and technology of LWE distribution, LWE cipher and homomorphic encryption in detail. When using random analysis tools, there is a problem of "ambiguity" in both definition and algorithm. The greatest feature of this book is to use probability distribution to carry out rigorous mathematical definition and mathematical demonstration for various unclear or imprecise expressions, so as to make it a rigorous theoretical system for classroom teaching and dissemination. Chapters 5 and 7 further expand and improve the theory of cyclic lattice, ideal lattice and generalized NTRU cryptography.This book is used as a professional book for graduate students majoring in mathematics and cryptography, as well as a reference book for scientific and technological personnel engaged in cryptography research.

This open access book is the documentary of the Second International Forum on Financial Mathematics and Financial Technology, with focus on selected aspects of the current and upcoming trends in FinTech. In detail, the included scientific papers cover financial mathematics and FinTech, presenting the innovative mathematical models and state-of-the-art technologies such as deep learning, with the aim to improve the financial analysis and decision-making and enhance the quality of financial services and risk control. The variety of the papers delivers added value for both scholars and practitioners where they will find perfect integration of elegant mathematical models and up-to-date data mining technologies in financial market analysis. Due to COVID-19, the conference was held virtually on August 13–15, 2021, jointly held by the School of Mathematics of Renmin University of China, the Engineering Research Center of Financial Computing and Digital Engineering of Ministry of Education, the Statistics and Big Data Research Institute of Renmin University of China, the Blockchain Research Institute of Renmin University of China, the Zhongguancun Internet Finance Research Institute, and the Renmin University Press.