"Predicting Exchange Rates with AI"… Shinhan Bank Develops First AI Model in Banking Sector

Service for Corporate Clients to be Launched in November

[Asia Economy Reporter Minwoo Lee] Shinhan Bank has developed a model that actively utilizes artificial intelligence (AI) to strengthen foreign exchange market analysis and foreign exchange risk management services.

On the 27th, Shinhan Bank announced that it has developed an 'AI Exchange Rate Prediction Model' that predicts movements in the foreign exchange market and exchange rates through AI analysis.

This model was created through collaboration between Shinhan Bank’s in-house foreign exchange trading specialized departments, the 'S&T Center' and the 'Data Science Unit.' It systematically collects and analyzes various indicators such as ▲foreign currency prices ▲global bond yields ▲global stock market indices ▲commodity prices, automatically generating around 10,000 derivative variables that influence future exchange rates. The AI then learns the trends of exchange rates and these indicators to calculate future exchange rates over different periods.

In particular, the bank explained that it introduced deep learning technology for market forecasting to improve prediction accuracy and enhance the stability of AI results.

The AI Exchange Rate Prediction Model will first be used for Shinhan Bank’s corporate clients in proposals and marketing materials as a foreign exchange risk management solution. Starting next month, the AI foreign exchange market outlook service will be available through Shinhan Corporate Banking.

A Shinhan Bank official said, "We will continue to advance AI to develop foreign exchange trading and customer-facing services, and do our best to manage customers’ foreign exchange risks by utilizing digital new technologies."

This content was produced with the assistance of AI translation services.