Data visualization at the service of financial risk management

Giovane donna con in mano un tablet e alle spalle uno schermo con grafici
Giovane donna con in mano un tablet e alle spalle uno schermo con grafici

Financial risk management made easier thanks to Data Visualization techniques.

Ask a child: is it easier to read a book written in tiny print, or one with beautiful and colourful illustrations? We know the answer, and if it is true for the little ones, it is also true for the grown-ups. Thus in Turin, the Artificial Intelligence Laboratory of the Intesa Sanpaolo Innovation Center in collaboration with the ISI Foundation of Turin, scientific partner of the Laboratory, set to work and, after almost a year, it found a solution to support the activities of colleagues engaged in complex operations in the financial field, which are even too complicated to explain, such as the management of derivative contracts (in a large credit institution such as Intesa Sanpaolo), providing “visual metaphors” to make choices easier. The data converted into images allow the information to be quickly received, while the visual interface allows users to explore and understand the data, supporting colleagues in the creation and application of models based on context classification. 

For the structure in charge of derivatives, the challenge was first of all the definition of Data Visualization techniques that could simplify access to complex data and aid the monitoring and management of the financial risk position in the Bank’s portfolios, which is particularly complex to view and explore. The challenge also involved the development of prototypes, with the aim of implementing them in banking systems.

Thanks to Data Visualization, the researchers were able to provide colleagues with the necessary information, thereby avoiding information overloads; furthermore, thanks to the creation of user-friendly interfaces and the right visual metaphors, the operators were able to carefully monitor the vast amount of constantly evolving market information and interpret the results more effectively by exploiting prior knowledge as well. The performance of a very complex activity was therefore simplified, while at the same time enhancing the quality of the analysis, to the benefit of colleagues and end customers alike.

The research laboratories and the method of Intesa Sanpaolo Innovation Center

Applied research laboratories are a lever that our Group makes available to companies in order to accelerate their development, but also to the various Bank structures for internal needs, as in the case in point. The activities are carried out through two applied research and development laboratories on Artificial Intelligence and Neuroscience topics in collaboration with leading scientific partners. The operating model of the Intesa Sanpaolo Innovation Center applied research and development Laboratories is divided into 4 phases, addressing the “challenges” with an average implementation time of approximately 1 year from definition to release of the solutions. The first phase, during which the “challenge” is identified, requires the Intesa Sanpaolo Group business units or external customers to select some activities which they intend to work on together with the laboratories to then define, in collaboration with a scientific partner, the work plan and the findings of the research topic. During the second phase, the scientific partner identifies the researchers to “hire” for the challenge: the necessary skills are defined and the selection of the best national and international talents begins. At this point, everything is ready to tackle the challenge: the research team, together with our Group business experts or with those of the customer companies, develops mathematical models, algorithms and guidelines. The fourth and last phase provides support for the implementation of the identified solution.