A Robo-Advisor Design using Multiobjective RankNets with Gated Neural Network Structure

Abstract

With rapid developments in deep learning and financial technology, a customized robo-advisory service based on novel artificial intelligence techniques has been widely adopted to realize financial inclusion. This study proposes a novel robo-advisor system that integrates trend prediction, portfolio management, and a recommendation mechanism. A gated neural network structure combining three multiobjective RankNet kernels could rank target financial products and recommend the top-n securities to investors. The gated neural network learns to choose or weigh each RankNet for incorporating the most important partial network inputs, such as earnings per share, market index, and hidden information from the time series. Experimental results indicate that the recommendation results of our proposed robo-advisor based on a gated neural network and multiobjective RankNets can outperform existing models.