Operationalizing Bayesian multi-state models and financial institution resources for business firm life cycle modelling

Like most living organisms, the life cycle of a business can be divided into distinct, complex phases. These life stages are determined by various internal and external factors such as financial resource availability, managerial ability, and market conditions. The ability to model firm life stages would help financial institutions (FIs) such as ATB identify and meet the time-specific needs and challenges of their business clients. However, properly analyzing the wealth of data collected by FIs is difficult. As one challenge, FIs currently do not manually classify business into life stages and, as another, the amount and type of data available differs across firms. In this internship, we propose developing a life cycle modelling framework that addresses these and other real-world practicalities of financial data in a way that can be readily operationalized for the benefit of FIs’ business clients.

Faculty Supervisor:

Bei Jiang

Student:

Partner:

ATB Financial

Discipline:

Mathematics

Sector:

Finance and Insurance

University:

University of Alberta

Program: