Here’s How JP Morgan Uses Data Science

JP Morgan Chase & Co. is an American multinational investment banking and financial services company. Like other successful financial services businesses, Data Science is one of the reasons behind the success of JP Morgan Chase. So, if you want to know how JP Morgan Chase uses Data Science, this article is for you. In this article, I will introduce how JP Morgan Chase uses Data Science for its business as an investment banking and financial services company.

Here’s How JP Morgan Uses Data Science

Here are some ways how JP Morgan Chase uses Data Science for their business as an investment banking and financial services company.

Privacy Protection

JP Morgan Chase provides many financial services to businesses where data is shared about the customers to improve customer experience. While providing data, JP Morgan Chase ensures no compromises to an individual’s privacy.

So JP Morgan Chase uses Machine Learning algorithms to detect all the information that can be used to trace an individual’s identity. 

When the data is available in a structured format, solving the problem of privacy protection with Machine Learning becomes easy. But when the data is available in an unstructured format, an NLP technique known as Named Entity Recognition is used to identify all the named entities from any unstructured data source. And then, hashing algorithms are used to encrypt all the identified private data to protect an individual’s privacy.

JPM Bot

JPM Bot is a chatbot made by JP Morgan that answers all the frequently asked questions based on trading and investments.

JP Morgan has created a list of all the frequently asked questions and their answers that are used by the JPM bot to help users in making investment decisions. The role of Machine Learning in this bot is to identify the user’s query and match it with the predefined list of frequently asked questions.

So whenever a user asks a question from the JPM bot, the predefined solution is provided by matching the user’s query with all the frequently asked questions. It helps provide the best solution defined by investment experts for better investment decisions using a chatbot.

Predicting Future Stock Price Movements

Predicting future stock price movements helps JP Morgan in providing its investment services. JP Morgan uses chart patterns as indicators to predict stock market movements.

Chart patterns are patterns formed by the price movements of stock prices that are better understood by investment experts.

So the combination of analyzing chart patterns and investment experts helps JP Morgan train Machine Learning models to predict future stock price movements to help their customers in investment decisions.

Also, Read – Real World Use Cases of Data Science in Companies from Various Domains.

Summary

So below are some ways how JP Morgan Chase uses Data Science for its business as an investment banking and financial services company:

  1. JP Morgan Chase uses Machine Learning algorithms to detect all the information that can be used to trace an individual’s identity to encrypt all the identified private data to protect an individual’s privacy.
  2. JPM Bot is a chatbot made by JP Morgan Chase that answers all the frequently asked questions based on trading and investments. This bot identifies the user’s query and matches it with the predefined list of frequently asked questions.
  3. The combination of analyzing chart patterns and investment experts helps JP Morgan Chase train Machine Learning models to predict future stock price movements to help their customers in investment decisions.

I hope you liked this article on how JP Morgan Chase & Co. uses Data Science for its business as an investment banking and financial services company. Feel free to ask valuable questions in the comments section below.

Aman Kharwal
Aman Kharwal

I'm a writer and data scientist on a mission to educate others about the incredible power of data📈.

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