Question

Discuss the uses of data mining in finance with examples in detail?

Answer 1

Data mining is the process of uncovering patterns and finding anomalies and relationships in large datasets that can be used to make predictions about future trends.

In simple language data mining is nothing but the extraction of knowledge/ data/ pattern which we require from a big data .

Data mining have several applications in financing system .

Ex 1)

The establishment of proper data mining processes can help a company to decrease its costs, increase revenues, or derive insights from the behavior and practices of its customers.

It plays a vital role in the business decision-making process nowadays.

2) For instance, relevant techniques allow users to determine and assess the factors that influence the price fluctuations of financial securities.

The field is rapidly evolving. New data emerges at enormously fast speeds while technological advancements allow for more efficient ways to solve existing problems.

In addition, developments in the areas of artificial intelligence and machine learning provide new paths to the precision and efficiency in the field.