The best services have one thing in common: a superb customer experience. Banking services are no exception to this rule, and indeed the quest for an effortless, well informed, and personalized customer experience is one of the main goals of today's innovation in digital banking services. According to what Maslow has described in his "pyramid of needs", customers are seeking a more intimate and meaningful experience where banking services can actively assist the customer in performing and managing their financial life. Predictive APIs have a fundamental role in all this, as they enable a new set of customer journeys such as automatic categorization of transactions, detecting and alerting recurrent payments, pre-approving credit requests or provide better tools to fight fraud without limiting legitimate customer transactions. In this talk, I will focus on how to provide better banking services by using predictive APIs. I will describe the path on how to get there and the challenges of implementing predictive APIs in a strictly audited and regulated domain such as banking. Finally, I will briefly introduce a number of data science techniques to implement those customer journeys and describe how big/fast data engineering can be used to realize predictive data pipelines.

1. Predictive APIs:
What about Banking?
Natalino Busa
Data Platform Architect at Ing

2. @natbusa | linkedin.com: Natalino Busa
Distributed computing Machine Learning
Statistics Big/Fast Data Streaming Computing

3. @natbusa | linkedin.com: Natalino Busa
ING group
http://www.ing.com/About-us/Purpose-Strategy.htm

4. @natbusa | linkedin.com: Natalino Busa
ING group
Empowering people to stay a step ahead
in life and in business.
http://www.ing.com/About-us/Purpose-Strategy.htm

5. @natbusa | linkedin.com: Natalino Busa
Abraham Harold Maslow
(April 1, 1908 – June 8, 1970) was an American
psychologist who was best known for creating
Maslow's hierarchy of needs

6. @natbusa | linkedin.com: Natalino Busa
Human needs
Physiology
Contractual
Love & belonging
Esteem
Self-actualization
breathing, food, water, sleep
security of body, resources,
health, employment, property
friend, family, partner
security of love and belonging
self-esteem, confidence,
achievements, respect
spontaneity, creativity,
acceptance, freedom, ethics

7. @natbusa | linkedin.com: Natalino Busa
technology helps.

8. @natbusa | linkedin.com: Natalino Busa
Connectivity, Electricity, Protocols
REST APIs, Encryption, Authentication
Real-Time, Accurate, Reactive,
Notification, Autofill/correct,
Recommenders, Social
Predicting and Planning
Set goals, Achievements
Trusted Companion
Freedom, Personal advice
innovation
Physiology
Contractual
Love & belonging
Esteem
Self-actualization
APIs evolving to higher goals

9. data is the fabric of our
lives
all our relationships are based on data

10. @natbusa | linkedin.com: Natalino Busa
Data is the new ...

11. @natbusa | linkedin.com: Natalino Busa
Data as a Relationship

12. @natbusa | linkedin.com: Natalino Busa
Data as a Relationship
Trust
Transparency of Use
Customer First
Regulations and Laws
Respect and Protect
Providing a Service

13. @natbusa | linkedin.com: Natalino Busa
Help the customer
Propose, Advise, Select, Filter, Connect, Simplify
Actionable Data, Ethical approach

14. @natbusa | linkedin.com: Natalino Busa
Help the customer
Propose, Advise, Select, Filter, Connect, Simplify
Protect the customer
Detect, Prevent, Alert, Block, Defend, Identify, Authorize
Actionable Data, Ethical approach

15. @natbusa | linkedin.com: Natalino Busa
Strategic data-driven initiatives
● We are looking at fintech innovation to help
strengthen our lending capabilities and better serve
our consumer and SME clients.
● We launched a strategic partnership with Kabbage,
one of the leading US-based technology platforms
providing automated lending to SME.
● A first pilot project, in Spain, is underway.
● In January 2016, we made an investment in fintech
WeLab, which provides consumer loans in China and
Hong Kong in a fully automated process that just
takes minutes, from application to approval.
http://www.slideshare.net/ING/4q15-media

16. @natbusa | linkedin.com: Natalino Busa
Strategic data-driven initiatives
http://www.slideshare.net/ING/4q15-media
● Innovation helps to empower people to make better
financial decisions
● In Poland, we launched Moje ING, a new omnichannel
banking platform, based on a similar platform in Spain.
● The platform gives customers insights
into their personal finances in an easy
and intuitive way.

17. @natbusa | linkedin.com: Natalino Busa
Predictive API’s: How to get there?
Input
Hand Designed
Program
Input Input
Rule-based System
Output
Hand Designed
Features
Mapping from
features
Output
Learned
Features
Mapping from
features
Output
Classic Machine
Learning
Input
Learned
Features
Learned
Complex features
Output
Mapping from
features
Representational
Machine Learning
Deep Learning
Prof. Yoshua Bengio - Deep Learning
https://youtu.be/15h6MeikZNg

18. @natbusa | linkedin.com: Natalino Busa
Predictive APIs in banking:
It’s a long journey.

19. @natbusa | linkedin.com: Natalino Busa
Predictive API’s: How to get there?
Data +
Tools / Applications / API’s
Frameworks & Libraries
Scientists & Engineers
Domain Experts

20. @natbusa | linkedin.com: Natalino Busa
Predictive API’s: How to get there?
Data +
Tools / Applications / API’s
Frameworks & Libraries
Scientists & Engineers
Domain Experts

21. @natbusa | linkedin.com: Natalino Busa
Predictive API’s: Research at ING
Clustering geolocated data
using Spark and DBSCAN
How to group users’ events using machine learning and distributed computing
By Natalino Busa
January 28, 2016

22. @natbusa | linkedin.com: Natalino Busa
Real-time fraud detection using process
mining with Spark Streaming
Bolke de Bruin (ING), Hylke Hendriksen (ING)
Data Science & Advanced Analytics
Predictive API’s: Research at ING

23. @natbusa | linkedin.com: Natalino Busa
Data Science: quality and parsimony

24. @natbusa | linkedin.com: Natalino Busa
Data Science: quality and parsimony
How data scientists feel
about their models

25. @natbusa | linkedin.com: Natalino Busa
Data Science: quality and parsimony
How data scientists feel
about their models
How managers feel about
data scientists’ arguing models

26. @natbusa | linkedin.com: Natalino Busa
Data Science: start lean
● What‘s the improvement?
● Can you quantify your model quality?
● Can you quantify impact impact?
● What is the impact for the customer journey?
● Can it be converted in financial results?

27. @natbusa | linkedin.com: Natalino Busa
Tools and applications:
inspiration from the web

28. @natbusa | linkedin.com: Natalino Busa
Tools and applications:
inspiration from the web
The API for banking data.
Two levels:
- Transactions
- Risk Scoring

29. @natbusa | linkedin.com: Natalino Busa
Predictive APIs: opportunities

30. @natbusa | linkedin.com: Natalino Busa
Predictive APIs: opportunities
Feature Extraction, Anomaly/Novelty Detection:
Identification based on behaviour rather than credentials
Fraud detection and Intrusion detection
Manifold learning algorithms
Non-Linear Dimensionality Reductions
Spark GraphX, Neo4J

31. @natbusa | linkedin.com: Natalino Busa
Predictive APIs: opportunities
Classification, Clustering:
Automatic tagging of transactions
Topological Data Analysis
Analyze high-dimensional data, visually
http://datarefiner.com/
Analysis of NetFlix Prize Dataset.

32. @natbusa | linkedin.com: Natalino Busa
Voice, Speech and Video recognition
Zero UI
Predictive APIs: opportunities

33. @natbusa | linkedin.com: Natalino Busa
Crossing the chasm
Experience
Technology
Data + Science
APIs

34. Muchas gracias
Natalino Busa
Data Platform Architect at Ing
@natbusa