The Use of Predictive Analytics in Finance

36 Pages Posted: 9 Mar 2022 Publication Status: Accepted


Statistical and computational methods are being increasingly integrated into Decision Support Systems to aid management and help with strategic decisions. Researchers need to fully understand the use of such techniques in order to make predictions when using financial data. This paper therefore presents a method based literature review focused on the predictive analytics domain. The study comprehensively covers classification, regression, clustering, association and time series models. It expands existing explanatory statistical modelling into the realm of computational modelling. The methods explored enable the prediction of the future through the analysis of financial time series and cross-sectional data that is collected, stored and processed in Information Systems.  The output of such models allow financial managers and risk oversight professionals to achieve better outcomes.   This review brings the various predictive analytic methods in finance together under one domain.

Keywords: Predictive Analytics, Finance, Fintech, Regtech, Risk, Statistics, Machine Learning, Decision Support Systems, Information Systems

Suggested Citation

Broby, Daniel, The Use of Predictive Analytics in Finance. Available at SSRN: https://ssrn.com/abstract=4053319 or http://dx.doi.org/10.2139/ssrn.4053319

Daniel Broby (Contact Author)

Ulster University ( email )

Accounting, Finance and Economics
Cathedral Quarter
Belfast, Northern Ireland BT15 1ED
United Kingdom

HOME PAGE: http://https://pure.ulster.ac.uk/en/persons/daniel-broby

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