Question

application of average algorithm in digital banking

Answer 1

Each time a new value is received, apply this algorithm to update the average. This will compute the exact arithmetic average. It has the additional benefit that it is resistant to overflow. If you have a gazillion large numbers to average, summing them all up may overflow before you get to divide by N.

This thinking now encompasses consumers’ use of apps that apply algorithms to many common financial challenges and chores. In the report, which traces the use of algorithms to manage our financial affairs, Wannemacher and other Forrester researchers noted that many such apps manage fairly narrow areas of our financial lives, but that this will evolve.

As a consumer survey by Forrester found, the younger people are, the more likely they approve of and trust a roboadvisor to handle their investments. Taking this as a proxy, Americans will increasingly be willing to have algorithms that have been fed their personal data alert them to financial issues on all fronts, not just in regard to banking. The better the technology “knows” them, the better it can serve them.

Forrester refers to this technology broadly as “autonomous finance,” which the report defines as “algorithm-driven services that make financial decisions or take action on a customer’s behalf.” Much as people will come to trust autonomous cars someday, consumers increasingly will trust the financial equivalent.

This thinking now encompasses consumers’ use of apps that apply algorithms to many common financial challenges and chores. In the report, which traces the use of algorithms to manage our financial affairs, Wannemacher and other Forrester researchers noted that many such apps manage fairly narrow areas of our financial lives, but that this will evolve.

As a consumer survey by Forrester found, the younger people are, the more likely they approve of and trust a roboadvisor to handle their investments. Taking this as a proxy, Americans will increasingly be willing to have algorithms that have been fed their personal data alert them to financial issues on all fronts, not just in regard to banking. The better the technology “knows” them, the better it can serve them.

Forrester refers to this technology broadly as “autonomous finance,” which the report defines as “algorithm-driven services that make financial decisions or take action on a customer’s behalf.” Much as people will come to trust autonomous cars someday, consumers increasingly will trust the financial equivalent.