Generative AI for Banks: Benchmarks and Algorithms for Synthetic Financial Transaction Data
Journal
Workshop on Information Technologies and Systems (WITS)
Type
conference paper
Date Issued
2024-12-18
Author(s)
Research Team
IWI6
Abstract
The banking sector faces challenges in using deep learning due to data sensitivity and regulatory constraints, but generative AI may offer a solution. Thus, this study identifies effective algorithms for generating synthetic financial transaction data and evaluates five leading models - Conditional Tabular Generative Adversarial Networks (CTGAN), DoppelGANger (DGAN), Wasserstein GAN, Financial Diffusion (FinDiff), and Tabular Variational AutoEncoders (TVAE) - across five criteria: fidelity, synthesis quality, efficiency, privacy, and graph structure. While none of the algorithms is able to replicate the real data's graph structure, each excels in specific areas: DGAN is ideal for privacy-sensitive tasks, FinDiff and TVAE excel in data replication and augmentation, and CTGAN achieves a balance across all five criteria, making it suitable for general applications with moderate privacy concerns. As a result, our findings offer valuable insights for choosing the most suitable algorithm.
Language
English
Keywords
Synthetic Data
Financial Services
Generative AI
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
INFORMS
Volume
2024
Number
34
Pages
15
Event Title
Workshop on Information Technologies and Systems (WITS)
Event Location
Bangkok, Thailand
Event Date
18.12.1014
Subject(s)
Division(s)
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open.access
Name
JML_1011.pdf
Size
500.5 KB
Format
Adobe PDF
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