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International Journal of Financial Data Science (IJFDS)
Volume 2, Issue 1, January-June 2024, pp. 1-10, Article ID: IJFDS_02_01_001
Available online at https://iaeme.com/Home/issue/IJFDS?Volume=2&Issue=1
Journal ID: 1233-1259
© IAEME Publication
A REVIEW OF DEEP GENERATIVE MODELS
FOR SYNTHETIC FINANCIAL DATA
GENERATION
Dr. N.Kannan
Professor, School of Management Studies,
Sathyabama Institute of Science and Technology,
Rajiv Gandhi Road, Chennai-600119
ABSTRACT
In today's financial landscape, the availability of high-quality data is essential for
decision-making, risk management, and innovation. However, accessing real-world
financial data can be challenging due to privacy concerns, data access restrictions, and
cost barriers. Synthetic financial data generation has emerged as a promising solution
to address these challenges, with deep generative models offering a powerful framework
for creating realistic and privacy-preserving synthetic data. This paper provides an
overview of deep generative models for synthetic financial data generation, comparing
them to traditional methods and examining their applications, challenges, and future
directions in finance. We conducted a comprehensive review of the literature on deep
generative models in finance, exploring their underlying principles, applications, and
empirical results. Our review highlights the advantages of deep generative models in
capturing complex data distributions, temporal dynamics, and inter-variable
dependencies present in financial datasets. We identified challenges such as model
interpretability, scalability, and robustness, while also recognizing opportunities for
future research and development in this rapidly evolving field. Ultimately, deep
generative models hold tremendous potential for reshaping synthetic financial data
generation, offering stakeholders more accurate, reliable, and privacy-preserving data
for decision-making, risk management, and innovation in financial markets. However,
addressing challenges such as model interpretability, scalability, and ethical
considerations will be crucial for realizing the full benefits of these models in finance.
Keywords: Synthetic Data, Financial Data, Deep Generative Models, Finance, Machine
Learning, Deep Learning, Artificial Intelligence, Data Generation, Privacy-Preserving,
Decision-Making, Risk Management