In this chapter, we looked at financial banking and a few basic concepts of the finance domain. We learned about two important machine learning modeling techniques known as optimization and the linear regression model. We also looked at two examples that help automate capital market decisions—Finding optimal capital structure and Providing a financial performance forecast using macroeconomic scenarios. We also looked at the future and the implications of investment banking and financial reporting.
Then, we explored the internals of financial projection and financial modeling, which we were able to do due to financial positions being rapidly updated with real-time financial IT systems. By leveraging the richness of financial positions on a daily basis, we have lots of data points to perform a reliable projection of the complete financial positions of a firm. Being the strategic thinkers of the firm, we also looked at how to rely on external...
