Work Package 5
Sustainability of Digital Finance
Leading institution
Overview
Climate change and environmental degradation are becoming an existential threat to Europe and the world, though inevitably, transitioning to a sustainable future with inclusive, green economies and resilient ecosystems is associated with many challenges. Within DIGITAL, we will make financial strategies for sustainable investing more objective, optimised, integrated, and operational, measure the social and environmental effects of sustainable finance, define the primary characteristics of sustainable financial assets and instruments and overcome the most significant obstacles to implementing sustainable finance strategies.
Within this research topic, a novel study will be conducted to simulate and evaluate markets in order to replicate the relationship between banks, financial institutions, and their retail and business clients in a sustainable environment that takes into account various factors (e.g., Green AI and green credit score). To evaluate markets, numerous indicators and metrics, including loan interest rate, customer attrition, CO2 emissions, customers' access to credit, and firms' profits, will be compared. We will use agent-based modelling for the first time to simulate different market scenarios in which agents involved in the industry take sustainable actions. Long-term financial growth will be analysed, and the findings will inform the development and modification of industry policies and strategies. This will ensure that sustainability considerations are integral to the Digital Finance industry, contributing to the European Green Deal in the process.
Research topics
Under this research stream, FOUR doctoral candidates will tackle the following research projects:
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Towards a European Financial Data Space (WP1)IRP6 - Collaborative learning across data silos IRP8 - Detecting anomalies and dependence structures in high dimensional, high frequency financial data IRP13 - Predicting financial trends using text mining and NLP IRP15 - Deep Generation of Financial Time Series Work Package 1 Page
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Artificial Intelligence for Financial Markets (WP2)IRP12 - Developing industry-ready automated trading systems to conduct EcoFin analysis using deep learning algorithms IRP14 - Challenges and opportunities for the uptaking of technological development by industry Work Package 2 Page
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Towards explainable and fair AI-generated decisions (WP3)IRP1 - Strengthening European financial service providers through applicable reinforcement learning IRP9 - Audience-dependent explanations IRP16 - Investigating the utility of classical XAI methods in financial time series IRP17 - Fair Algorithmic Design and Portfolio Optimization under Sustainability Concerns Work Package 3 Page
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Driving digital innovations with Blockchain applications (WP4)IRP3 - Machine learning for digital finance IRP5 - Fraud detection in financial networks IRP7 - Risk index for cryptos Work Package 4 Page
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Sustainability of Digital Finance (WP5)IRP2 - Modelling green credit scores for a network of retail and business clients IRP4 - A recommender system to re-orient investments towards more sustainable technologies and businesses IRP10 - Experimenting with Green AI to reduce processing time and contributes to creating a low-carbon economy IRP11 - Applications of Agent-based Models (ABM) to analyse finance growth in a sustainable manner over a long-term period Work Package 5 Page
News
To get an overview of all our research topics, click here.