FIPS: A FInancial Planification System by Case-Based Reasoning

Contents

Financial analysis is based on complex concepts and rules; its goal is to propose problem-adapted solutions. The evaluation of a particular financial situation has to consider human factors like savers risk tolerance and consumers behavior. It also has to consider political factors like interest rates variations and currency policy. The financial planner has to analyze the client’s financial situation to elaborate a financial portfolio adapted to his or her needs. On the grounds of the nature and the diversity of the parameters describing a client’s financial profile, we need tools that will memorize and reuse this information in different situations. In order to provide training and evaluation tools for financial analysts, we propose a system called FIPS (Financial Planification System) using Case- Based Reasoning. In FIPS, case-based reasoning is used in the case retrieval process, and also in a reflexive way during the adaptation stage. FIPS proposes to the learner the client’s data like financial goals, acceptable risk, income, etc., and expects a balanced financial portfolio suggested by the student. It uses old cases, already treated and memorized, to propose an adapted solution that is compared to the learner’s solution. The learner’s evaluation is based on the distance between the solution provided by the system and the solution suggested by the learner.