Author(s)

Shihao Wu

Corresponding Author

Shihao Wu

ABSTRACT

With the rapid development of computer technologies, machine learning methods have been applied in addressing many practical issues in finance and shown big potential in future. In this paper, I mainly introduce from two aspects: (1) The theoretical basis of classical machine learning methodologies; (2) Application and characteristics of machine learning methods in finance. Those demonstrate the great potential of machine learning in finance, which also give us some directions in deep study. And the premise that machine learning methods can bring us considerable benefits is to constantly explore and study the reasonable combination of economic theories and modern computer technology. Hope this paper can give some inspiration to the research on the fintech industry.

KEYWORDS

Machine learning, asset pricing, neural network, deep learning