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What is Self-Organizing Maps (SOM)

Fostering Innovation and Competitiveness With FinTech, RegTech, and SupTech
A type of neural network which uses an unsupervised training algorithm and a process known as self-organization.
Published in Chapter:
Non-Technological and Technological (SupTech) Innovations in Strengthening the Financial Supervision
Marcin Flotyński (Adam Mickiewicz University, Poznań, Poland) and Kamilla Marchewka-Bartkowiak (Poznań University of Economics and Business, Poland)
DOI: 10.4018/978-1-7998-4390-0.ch006
Abstract
The application of non-technological and technological innovations provides support to supervisory institutions in the digitization of reporting and regulatory processes. This chapter deals with international applications of innovations in financial supervision (SupTech). The aim of the chapter is to present the most popular technological and non-technological solutions along with an evaluation of their usefulness in exercising supervision over the financial market. The authors discuss the types of innovations and the reasons for implementing them by supervisory institutions. Furthermore, they describe the most important non-technological supervisory solutions and technologies that supervisors can apply in creating SupTech tools. The study utilizes, among other things, data from reports and elaborations by central banks, supervisory institutions, and consulting companies. The authors' main focus is on the analysis of the solutions utilized by European Union member states.
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More Results
Quantum Backpropagation Neural Network Approach for Modeling of Phenol Adsorption from Aqueous Solution by Orange Peel Ash
SOMs or Kohonen networks have a grid topology, with unequal grid weights. The topology of the grid provides a low dimensional visualization of the data distribution.
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Exploratory Cluster Analysis Using Self-Organizing Maps: Algorithms, Methodologies, and Framework
Also known as Kohonen maps, these are a grid of prototype units. Values in these units are adjusted using the SOM learning algorithm over a dataset.
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Artificial Intelligence-Based Solutions for Cyber Security Problems
A self-organizing map (SOM) is a low-dimensional (typically two-dimensional) type of neural network that has been trained using unsupervised learning to represent training instances as a discrete representation of the input field. Self-organizing maps differ from other neural networks in that they implement competitive learning versus error-correction learning (such as backpropagation with reverse descent) and use a neighborhood function to preserve the topological characteristics of the entrance area. SOM can also be used to detect security threats in computer networks. Each network package that creates regular network traffic is analyzed by software and a self-organizing map is created with certain features on the package. This neural network creates a certain pattern and the learning process begins. If a packet examined in network traffic does not match the general pattern, it is detected as a threat and included in the learning process. As long as the situation that was initially defined as a threat is repeated, it may come out of being a threat and be compatible with the pattern.
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