News and events - Tampere University of Technology

EU-funded Big Data project develops new methods for financial risk management

Tampere University of Technology (TUT) coordinates the newly launched BigDataFinance Project, to which the partners will recruit 13 doctoral students to develop new methods for managing financial risks. The four-year project has received some 3.5 million euros from the European Commission.

The cross-disciplinary BigDataFinance project  titled “Training for Big Data in Financial Research and Risk Management” stands at the interface between financial risk modelling, signal processing, machine learning and Big Data techniques. The project seeks to identify and model hidden financial risks by analysing massive, heterogeneous and structurally complex Big Data. 

“People living in our modern society leave behind huge amounts of complex data that can be analysed, among others, to gauge the mood among investors and manage financial risks,” says Project Director, Professor Juho Kanniainen from the Department of Industrial Management. 

The project involves researchers from the Department of Industrial Management and the Department of Signal Processing at TUT.  

“Signal processing underpins research in many other areas. Our algorithms allow us to uncover and analyse hidden patterns in vast data sets,” Professor Moncef Gabbouj says.

Researchers from the two departments are also collaborating, among others, to shed light on the spread of panic in the stock market and to develop new methods for analysing ultra-high-frequency, millisecond-scale data.   

According to Kanniainen, the financial sector is in dire need of professionals with both IT and mathematical expertise.

“What’s at stake here is the wealth tied up in pension funds and investments in Europe.”  

In addition to researchers, the project brings together a number of experts from the banking sector. Besides conduct academic research, the partners will develop practical applications.

“TUT has made significant investments in Big Data research. As resources for public research funding have decreased in Finland, it’s especially important to secure EU funding for research in this area,” highlights TUT’s President Markku Kivikoski.

The consortium involved in the four-year, EU-funded Marie SkÅ‚odowska-Curie International Training Network (ITN) is made up of seven academic organizations and six companies. In addition to world-class scientists, the partners include well-known companies operating in the banking, investment, media and consulting sectors. The academic partners are Tampere University of Technology, Aarhus University, the University of Manchester, the University of Zürich, Josef Stefan Institute, Aalto University and the University of Amsterdam. The private-sector partners are Alliance-Bernstein UK, ING Group, Numerical Algorithms Group, Olsen Investment, Techila Technologies and Bloomberg. The European Commission has awarded the project some 3.5 million euros of funding.  

BigDataFinance is a continuation of the ongoing Marie-Curie ITN project titled “HPCFinance”, which is also led by Professor Kanniainen, and the Big Data project, to which the TTY Foundation has allocated funding from the profits generated on its invested capital.  

Further information:

www.bigdatafinance.eu

Professor Juho Kanniainen, Coordinator, tel. +358 40 707 4532, juho.kanniainen@tut.fi

Professor Moncef Gabbouj, tel. +358 400 736 613, moncef.gabbouj@tut.fi

 

News submitted by: Tuuli Laukkanen
Keywords: education and studies, science and research, big data, financial risks