The financial industry leverages machine learning in more ways than just finding the right alpha signal. It grapples with supply chains, business processes, marketing, churn, fraud, and money laundering, all while maintaining compliance with the various regulatory frameworks it is beholden to. Due to the sheer volume of wealth being handled by the financial industry and its critical role in everyday life, it has been a lucrative target for a wide spectrum of ever-evolving bad actors. With each successive iteration of this workshop, we have attempted to capture the breadth of these actors - fraudsters, money launderers, market manipulators, and potentially nation-state-level risks. The emerging advances in Generative AI make this a particularly exciting time to host this workshop. GenAI offers groundbreaking approaches to handling the various data types prevalent in the financial sector. From a security point of view, bad actors are actively using Generative AI creatively to thwart conventional defenses (e.g. voice cloning, better synthetic identities), and this workshop's audience would benefit from commonly applicable defenses & best practices against such threats. Last but not the least, there is now an increasing willingness from the financial industry towards deeper engagement and data sharing with academia.

This workshop aims to explore the intersection of Generative AI with the rich tapestry of financial data types, seeking to uncover new methodologies and techniques that can enhance predictive analytics, fraud detection, and customer insights across the sector. By harnessing these advancements in AI, we can pave the way to not only understand customer behavior but also anticipate their needs more effectively, leading to superior customer outcomes and more personalized services. Our objective is to shed light on the challenges and opportunities presented by the diverse data formats in finance. We aim to bridge the gap between the dominance of traditional models for tabular data analysis and the emerging potential of Generative AI to revolutionize the treatment of time series, click streams, and other unstructured data forms.

Quantile Regression (QR) provides a way to approximate a single conditional quantile. To have a more informative description of the conditional distribution, QR can be merged with deep learning techniques to simultaneously estimate multiple quantiles. However, the minimisation of the QR-loss function does not guarantee non-crossing quantiles, which affects the validity of such predictions and introduces a critical issue in certain scenarios. In this article, we propose a generic deep learning algorithm for predicting an arbitrary number of quantiles that ensures the quantile monotonicity constraint up to the machine precision and maintains its modelling performance with respect to alternative models. The presented method is evaluated over several real-world datasets obtaining state-of-the-art results as well as showing that it scales to large-size data sets.

The finance industry is constantly faced with an ever evolving set of challenges including credit card fraud, identity theft, network intrusion, money laundering, human trafficking, and illegal sales of firearms. There are also newly emerging threats such as fake news in financial media that can lead to distortions in trading strategies and investment decisions. In addition, traditional problems such as customer analytics, forecasting, and recommendations take on a unique flavor when applied to financial data. A number of new ideas are emerging to tackle all these problems including semi-supervised learning methods, deep learning algorithms, network/graph based solutions as well as linguistic approaches. These methods must often be able to work in real-time and be able handle large volumes of data. The purpose of this workshop is to bring together researchers and practitioners to discuss both the problems faced by the financial industry and potential solutions. We have invited regular papers, positional papers and extended abstracts of work in progress. We have also encouraged short papers from financial industry practitioners that introduce domain specific problems and challenges to academic researchers. This event is the fourth in a sequence of finance related workshops we have organized at KDD since 2017.

In regression tasks, aleatoric uncertainty is commonly addressed by considering a parametric distribution of the output variable, which is based on strong assumptions such as symmetry, unimodality or by supposing a restricted shape. These assumptions are too limited in scenarios where complex shapes, strong skews or multiple modes are present. In this paper, we propose a generic deep learning framework that learns an Uncountable Mixture of Asymmetric Laplacians (UMAL), which will allow us to estimate heterogeneous distributions of the output variable and shows its connections to quantile regression. Despite having a fixed number of parameters, the model can be interpreted as an infinite mixture of components, which yields a flexible approximation for heterogeneous distributions. Apart from synthetic cases, we apply this model to room price forecasting and to predict financial operations in personal bank accounts. We demonstrate that UMAL produces proper distributions, which allows us to extract richer insights and to sharpen decision-making.

This article deals with the detection of prominent objects in images. As opposed to the standard approaches based on sliding windows, we study a fundamentally different solution by formulating the supervised prediction of a bounding box as an image retrieval task. Indeed, given a global image descriptor, we find the most similar images in an annotated dataset, and transfer the object bounding boxes. We refer to this approach as data-driven detection (DDD). Our key novelty is to design or learn image similarities that explicitly optimize some aspect of the transfer unlike previous work which uses generic representations and unsupervised similarities. In a first variant, we explicitly learn to transfer, by adapting a metric learning approach to work with image and bounding box pairs. Second, we use a representation of images as object probability maps computed from low-level patch classifiers. Experiments show that these two contributions yield in some cases comparable or better results than standard sliding window detectors - despite its conceptual simplicity and run-time efficiency. Our third contribution is an application of prominent object detection, where we improve fine-grained categorization by pre-cropping images with the proposed approach. Finally, we also extend the proposed approach to detect multiple parts of rigid objects.

We tackle the detection of prominent objects in images as a retrieval task: given a global image descriptor, we find the most similar images in an annotated dataset, and transfer the object bounding boxes. We refer to this approach as data driven detection (DDD), that is an alternative to sliding windows. Previous works have used similar notions but with task-independent similarities and representations, i.e. they were not tailored to the end-goal of localization. This article proposes two contributions: (i) a metric learning algorithm and (ii) a representation of images as object probability maps, that are both optimized for detection. We show experimentally that these two contributions are crucial to DDD, do not require costly additional operations, and in some cases yield comparable or better results than state-of-the-art detectors despite conceptual simplicity and increased speed. As an application of prominent object detection, we improve fine-grained categorization by precropping images with the proposed approach.

In this article, we focus on the problem of large-scale instance-level image retrieval. For efficiency reasons, it is common to represent an image by a fixed-length descriptor which is subsequently encoded into a small number of bits. We note that most encoding techniques include an unsupervised dimensionality reduction step. Our goal in this work is to learn a better subspace in a supervised manner. We especially raise the following question: "can category-level labels be used to learn such a subspace?" To answer this question, we experiment with four learning techniques: the first one is based on a metric learning framework, the second one on attribute representations, the third one on Canonical Correlation Analysis (CCA) and the fourth one on Joint Subspace and Classifier Learning (JSCL). While the first three approaches have been applied in the past to the image retrieval problem, we believe we are the first to show the usefulness of JSCL in this context. In our experiments, we use ImageNet as a source of category-level labels and report retrieval results on two standard dataseis: INRIA Holidays and the University of Kentucky benchmark. Our experimental study shows that metric learning and attributes do not lead to any significant improvement in retrieval accuracy, as opposed to CCA and JSCL. As an example, we report on Holidays an increase in accuracy from 39.3% to 48.6% with 32-dimensional representations. Overall JSCL is shown to yield the best results.

This paper proposes a novel similarity measure between vector sequences. We work in the framework of model-based approaches, where each sequence is first mapped to a Hidden Markov Model (HMM) and then a measure of similarity is computed between the HMMs. We propose to model sequences with semicontinuous HMMs (SC-HMMs). This is a particular type of HMM whose emission probabilities in each state are mixtures of shared Gaussians. This crucial constraint provides two major benefits. First, the a priori information contained in the common set of Gaussians leads to a more accurate estimate of the HMM parameters. Second, the computation of a similarity between two SC-HMMs can be simplified to a Dynamic Time Warping (DTW) between their mixture weight vectors, which significantly reduces the computational cost. Experiments are carried out on a handwritten word retrieval task in three different datasets-an in-house dataset of real handwritten letters, the George Washington dataset, and the IFN/ENIT dataset of Arabic handwritten words. These experiments show that the proposed similarity outperforms the traditional DTW between the original sequences, and the model-based approach which uses ordinary continuous HMMs. We also show that this increase in accuracy can be traded against a significant reduction of the computational cost.

This article proposes a novel similarity measure between vector sequences. Recently, a model-based approach was introduced to address this issue. It consists in modeling each sequence with a continuous Hidden Markov Model (CHMM) and computing a probabilistic measure of similarity between C-HMMs. In this paper we propose to model sequences with semi-continuous HMMs (SC-HMMs): the Gaussians of the SC-HMMs are constrained to belong to a shared pool of Gaussians. This constraint provides two major benefits. First, the a priori information contained in the common set of Gaussians leads to a more accurate estimate of the HMM parameters. Second, the computation of a probabilistic similarity between two SC-HMMs can be simplified to a Dynamic Time Warping (DTW) between their mixture weight vectors, which reduces significantly the computational cost. Experimental results on a handwritten word retrieval task show that the proposed similarity outperforms the traditional DTW between the original sequences, and the model-based approach which uses C-HMMs. We also show that this increase in accuracy can be traded against a significant reduction of the computational cost (up to 100 times).

The Fisher kernel is a generic framework which combines the benefits of generative and discriminative approaches to pattern classification. In this contribution, we propose to apply this framework to handwritten word-spotting. Given a word image and a keyword generative model, the idea is to generate a vector which describes how the parameters of the keyword model should be modified to best fit the word image.This vector can then be used as the input of a discriminative classifier. We compare the performance of the proposed approach with that of a generative baseline on a challenging real-world dataset of customer letters. When the kernel used by the classifier is linear, the performance improvement is marginal but the proposed system is approximately 15 times faster than the baseline. If we use a non-linear kernel devised for this task, we obtain a 15% relative reduction of the error but the detector is approximately 15 times slower.

We propose a new method for handwritten word-spotting which does not require prior training or gathering examples for querying. More precisely, a model is trained “on the fly” with images rendered from the searched words in one or multiple computer fonts. To reduce the mismatch between the typed-text prototypes and the candidate handwritten images, we make use of: (i) local gradient histogram(LGH) features, which were shown to model word shapes robustly, and (ii) semi-continuous hidden Markov models(SC-HMM), in which the typed-text models are constrained to a “vocabulary” of handwritten shapes, thus learning a link between both types of data. Experiments show that the proposed method is effective in retrieving handwritten words, and the comparison to alternative methods reveals that the contribution of both the LGH features and the SCHMM is crucial. To the best of the authors’ knowledge, this is the first work to address this issue in a non-trivial manner.