WEALTH MANAGEMENT - S8 (16th Dec 2023).pptx
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WEALTH MANAGEMENT Sheikh Zayed Islamic Center 23rd Dec 2023 Syed Muhammad Yaseen Ali Trainer Profile [BAFL Document] Experience: Bank Alfalah Islamic – Product Development Soneri Bank Mustaqeem Mashreq Bank UAE Sheikh Zayed Islamic Centre / NIBAF / IBA Faysal Bank Barkat...
WEALTH MANAGEMENT Sheikh Zayed Islamic Center 23rd Dec 2023 Syed Muhammad Yaseen Ali Trainer Profile [BAFL Document] Experience: Bank Alfalah Islamic – Product Development Soneri Bank Mustaqeem Mashreq Bank UAE Sheikh Zayed Islamic Centre / NIBAF / IBA Faysal Bank Barkat Meezan Bank Education: ACCA, CSAA, PGD (IBF-CIE), CIFE-UAE) Outline Risk Systematic Risk vs Non Systematic Risk Concept of Risk Aversion What is Fintech? Big Data Classification of Alternate Data Sources Advances Analytical Tools: AI and ML Data Science: Extracting Information from Big Data [BAFL Document] Risk Risk is the exposure to uncertainty. Risk exposure is the extent to which an entity is sensitive to underlying risk. Define level of risk to be taken (Risk Tolerance) [BAFL Document] Measure how much risk is actually being taken (Risk Exposure) Risk Management: It is the process by which an organization or individual defines the level of risk to be taken, measures the level of risk being taken, and adjusts the latter towards the former, with the goal of maximizing the company’s or portfolio’s value or the individual’s overall satisfaction or utility. Systematic Risk and Non-Systematic Risk Basic Principle: For high return you need to take high risk But does all high risk lead to high returns? NO Total Risk = Systematic Risk + Non Systematic Risk No compensation for non systematic risk; that is it can be diversified Investors get a return for systematic risk. For example: [BAFL Document] A six month T-bill An index fund based on KSE 100 index with total risk of 18% Concept of Risk Aversion Risk Aversion refers to the behavior of investor of preferring to less risk to more risk High risk aversion is the same as low risk tolerance. Risk [BAFL Document] Profiles: Risk Seeking Risk Neutral Risk Averse What is Fintech ? Fintech = Combination of Finance and Technology Fintech: Technological innovation in the design and delivery of financial products and services Evolution of Fintech: Data processing and automation Drivers of Fintech: Rapid growth in Data and technological advances [BAFL Document] Big Data Big Data: Vast amount of data generated by industry, governments, individuals, and electronic devices Characteristics of Big Data: Volume (Data at Rest): Terabytes to Exabytes of existing data to process Velocity (Data in Motion): Streaming data, milliseconds to seconds to respond Variety (Data in many forms): Structured and unstructured data (text, multimedia etc.) Traditional data sources versus alternate data Challenges of Big Data [BAFL Document] Classification of alternate data sources Individuals Sensors Social Media News Reviews Web Searches Personal Data [BAFL Document] Satellites Geolocation Internet of Things Other Sensors Advances Analytical Tools: AI and ML Artificial Intelligence (AI): computer systems perform tasks that have traditionally required human intelligence. They exhibit cognitive and decision making ability comparable or superior to that of human beings Machine Learning (ML): Computer programs [BAFL Document] Learn how to complete tasks and predict outcomes Improve performance over time with experience Machine Learning approaches: Identify relationships between variables Detect patterns or trends Create structure from data Two Main Approaches: Supervised learning Unsupervised learning Data Science: Extracting Information from Big Data Data Science: Data Science leverages advances in computer science, statistics and other disciplines for the purpose of extracting information from big data. Data Processing Methods: [BAFL Document] Capture Curation Storage Search Transfer Data Visualisation
