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Santander Case Study

Ïã¸ÛÁùºÏ²ÊÖÐÌØÍø IXN and Santander: determining risk in global banking

Can artificial intelligence be used to predict financial risk? Ïã¸ÛÁùºÏ²ÊÖÐÌØÍø Computer Science students explored this project with Santander on the Ïã¸ÛÁùºÏ²ÊÖÐÌØÍø Industry Exchange Network (Ïã¸ÛÁùºÏ²ÊÖÐÌØÍø IXN) programme.

Santander has worked with Ïã¸ÛÁùºÏ²ÊÖÐÌØÍø master's students for over six years through the Ïã¸ÛÁùºÏ²ÊÖÐÌØÍø Industry Exchange Network (Ïã¸ÛÁùºÏ²ÊÖÐÌØÍø IXN). Ïã¸ÛÁùºÏ²ÊÖÐÌØÍø IXN enables students, as an integrated part of their course, to gain invaluable experience working with industry partners.

Santander takes on around 15 students a year from the Computational Finance and Financial Risk Management MSc courses. From June to August, the master's students work full-time on their dissertation projects, supported by a technical mentor within Santander and a supervisor at Ïã¸ÛÁùºÏ²ÊÖÐÌØÍø. Their projects focus on computational and mathematical techniques applied to risk in banking. Recent subjects include sentiment analysis for credit rating, reverse stress testing using Gaussian processes and artificial data solutions for neural net imbalanced data.

Ïã¸ÛÁùºÏ²ÊÖÐÌØÍø IXN brings clear benefits to the students, but the industry partners gain immensely from the programme too. Together, the students and Santander explore projects of mutual interest. The bank wants to investigate specific problems, and they may ask students to confirm an existing idea or tackle something completely new. Santander is impressed by the technical skills and enthusiasm of the Ïã¸ÛÁùºÏ²ÊÖÐÌØÍø students, and the matching process that ensures they are a good fit for the bank. What's more, they are not only a useful resource at the time, but they are also potential employees.

“We regard the IXN programme as a 'win-win' situation. Ïã¸ÛÁùºÏ²ÊÖÐÌØÍø wins because theÌýstudents gain industrial experience of a 'real problem'. We win because theÌýstudents can explore (and sometimes solve) a problem that is relevant toÌýwhat we do. Both sides can benefit from what we think of as aÌýthree-month longÌýinterview.

Dr  Peter  Mitic - Head of Operational Risk Methodology UK, Santander UKÌý

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To learn more about partnering with Ïã¸ÛÁùºÏ²ÊÖÐÌØÍø IXN, contact Ïã¸ÛÁùºÏ²ÊÖÐÌØÍø Computer Science's Strategic Alliances Team