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LUXHUB partners with SnT to power Open Finance with AI

Thursday 3 February 2022 11:19 CET | News

Open Banking pioneer LUXHUB has partnered with the University of Luxembourg’s Interdisciplinary Centre for Security, Reliability and Trust (SnT) to create added value services based on financial data. 

The partnership will reportedly implement ground-breaking technology in the field of artificial intelligence while respecting the industry’s main concerns - the safety and privacy of sensitive data – through the federated learning model.

Federated learning consists of a machine learning procedure, where the goal is to train a high-quality model with data distributed over several independent providers, such that the data remains locked on each provider, and no centralised data storage is needed.

Federated learning differs from most machine learning models, as the algorithm – and NOT the data – travels. Through this federated learning model, LUXHUB and SnT are making sure data never leaves the premises of the client/participant, and therefore security and confidentiality are ensured. Moreover, leveraging federated learning in the financial sector counts more benefits, from lower latency and less power consumption to a significant decrease in false positives and therefore an important decrease in operating costs,  the press release states. 

LUXHUB aims to enable more interaction and innovation within the financial services industry. More concretely, the participants will power an algorithm, making it more efficient and accurate, allowing the financial institutions to make better-informed decisions. The training of the algorithm will be assumed by the LUXHUB team in collaboration with SnT researchers. 

Phase 1 of the project will consist of the design and management of a secure federated learning platform. In parallel, the teams will be focusing on several key use-cases that will reportedly benefit the entire financial services industry, such as fraud detection, anti-money laundering, loan risk prediction, and transaction categorisation. The model could then be extended to additional use cases, dealing notably with key compliance topics, and more.

LUXHUB has contributed to the Open Banking Report 2021. Click here to download the report.

To find out more about LUXHUB, please take a look at our company database.


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Keywords: LUXHUB, artificial intelligence, partnership, Open Finance
Categories: Banking & Fintech
Companies:
Countries: Luxembourg
This article is part of category

Banking & Fintech