visualizing financial networks @ visualizar '11
DESCRIPTION
New understanding of the financial system and implications for policy makers (with Ines Salpico)TRANSCRIPT
Visualizing Financial
Networksnew understanding of the financial system and implications for policy
makers
Inês SalpicoKimmo Soramäki
VISUALIZAR’1115th June 2011
Context: Aftermath of the financial crisis
Financial System
understood as a network
Systemic risk:“too connected to fail”
Stress and increase of regulation
Extended mandate(s) to collect data
Need to process and analyze this
data
New paradigm of
data collection and analysis
Questions:
• How to make sense of data?
Questions:
• How to make data analysis actually operative in supervision and regulation?
• How to make sense of data?
SUPERVISIONREGULATION
Data
THEORYRESEARCH
Methods
New analytical paradigms
namely: network
Questions:
• How to make data analysis actually operative in policy and supervision?
• How to make sense of data?
• How to use analysis to actually see what’s happening in the system?
x(You wish!)
Intelligence?
• Financial crisis are different and rare
Intelligence?
• Financial crisis are different and rare
• The patterns to be recognized would have to be frequent enough for computers to learn
The wire – video excerpt
Intelligence?
AI - Artificial Intelligence
Intelligence?
AI - Artificial Intelligence
IA - Intelligence Amplification
Tools that make data and analysis actionable for humans
ref: William Ross Ashby (1956) in ‘Introduction to Cybernetics’
Visualization
Tools vs. Customised Visualizations
> Fusion Charts http://www.fusioncharts.com/
> Gephi http://gephi.org/
> Google Chart Tools http://code.google.com/intl/pt-PT/apis/charttools/
> HighCharts http://www.highcharts.com/
> Many Eyes (IBM)
http://www-958.ibm.com/software/data/cognos/manyeyes/
> Protovis http://vis.stanford.edu/protovis/
> Tableau http://www.tableausoftware.com/
Tools vs. Customised Visualizations
Visualization
> Information is Beautiful
http://www.informationisbeautiful.net/
> Infosthetics http://infosthetics.com/
> Flowing Data http://flowingdata.com/
> Marumushi
http://marumushi.com/tags/information+visualization
> Visual Complexity http://www.visualcomplexity.com/vc/
Tools vs. Customised Visualizations
Visualization
Infographics vs. Analytical Visualizations
> Representation: Qualitative vs. Quantitative
Infographics vs. Analytical Visualizations
> Representation: Qualitative vs. Quantitative
> Focus: Message vs. Data
> Representation: Qualitative vs. Quantitative
> Focus: Message vs. Data
> Exploration: Limited vs. Unlimited
Europe's Web of DebtBill Marsh/The New York Times Visual Science Series , May 1, 2010
Analysis + Visualization
Infographical and Analytical
> Qualitative and Quantitative
> Exploration and analysis of the raw data
Paradigm
Data validation
Analysis and modeling Visualization
understanding
Objectives
• Provide a tool for time series analysis of network data in finance
• Provide a platform for building agent based and simulation models
• Make advances in research available to policy
• Based on 7 years of research with Central Banks
• Focus on ease of use, performance and flexibility
FNA demo – video excerpts
FNA
Platform for
– Exploring – Analyzing– Visualizing
financial networks
Versions
– Web – Cloud service– REST API (for accessing FNA engine from web applications)
– Intranet– Operative use– Integration to databases and user management– Browser based GUI
– Desktop – By demand, academic use– Command line version available– Integration with external programs like Matlab, Stata, Excel, etc.
