5 Applications of Federated Learning

Federated Learning Application
Published By - Kelsey Taylor

Federated Learning allows many devices to learn collaboratively while using a shared model. FL works because it uses the data on your device. Once collected, this data updates the model. It will only send the information collected from that model update to the cloud. In short, it protects the data on an individual device by keeping it local. Information about an update to the model is sent to the cloud. It is all in encrypted communication to improve that model’s services.

For example, mobile phones collectively study a shared prediction model, while keeping the device’s training data local Instead of uploading and storing it.

Federated learning is a decentralized machine learning technique, also called collaborative learning. Its applications pave the way for ML algorithms to gain more experience from a wide range of data sets. These data sets are at different locations, reducing the number of hardware infrastructures.

Federated Learning and Its Applications Across A Variety of Sectors:


Federated Learning Techniques And Its Application In The Healthcare Industry:

In the past year, we experienced a vast number of changes due to the pandemic situation. The lack of resources in the healthcare industry was quite evident during this time.

Hence, healthcare professionals need reliable technology to help them treat patients better. Yet, training an algorithm for clinical purposes would need vast and varied data sets.

Sharing critical information becomes more challenging with strict regulations like HIPPA in place.

This is where FL came into place. Participating institutions train the same algorithm on their in-house data pool.

These institutions could enjoy these trained algorithms. It would allow them to access and also workaround various regulations. This also opens up a pool of data from which they could learn.

FL is a new concept and approach to machine learning. It has immense potential to transform the healthcare industry. It can reap more benefits for healthcare professionals too. FL does not intend to replace healthcare professionals. It wants to allow them to divert their energies for better patient care.

Federated Learning And Its Applications for FinTech:

FinTech indicates ventures that use technology to carry out their financial operations. It caters to both consumers and businesses. It is a common abbreviation of the words “Finance” and “Technology.”

There is a constant growth in the data protection laws. This allows consumers and businesses to trust each other to keep the data safe and secure.

With traditional ML, businesses dependent on FinTech face several issues. These include getting clearance and lawful consent as well as the preservation of the data and the time and cost in collecting and transferring data across networks.
Here, FL provides a simple solution. That is, by keeping the data local, we can use edge devices and edge computing power.

FL is an encrypted and distributed machine learning approach. It allows joint training machine learning on decentralized data where participants need not require data transmission.

FL has its benefits. It can resolve and provide solutions for FinTech. This is done by searching for data breaches and ATO (Account Take Over) Fraud.

Also, it analyzes credit scores and learns a user’s footprint to prevent fraudulent activities KYC without transferring data to the cloud.

FL paves the way for Fintech to prevent risks. It creates new and innovative approaches for its consumers and businesses. It makes sense of trust between the two parties. It also allows them to build a more advanced relationship.

Federated Learning And Its Applications in Insurance Sector:

The insurance industry had been a vital part since its conception decades ago. It has also been on the rise, aiding all kinds of mishaps due to a boom in technology.

Insurance is an investment made to support an insured if they face any issues due to an unforeseen event. Yet, there are limitations and boundaries for the insurance company to assist the insured.

Fraudulent activities often occur. When an insured violates the insurance company’s trust by making false claims. The individual or business can be accountable for fraud and illicit activity.

Insurance companies have a considerable amount of data from health insurance to car to mobile to business assets etc.

Their insured may associate with various other companies.

So the question arises, how do we train Machine Learning algorithms with different data sets when you cannot share them between organizations or even between locations?

Federated Learning aims to resolve this very issue.

Here without violating the data clause, a company could identify its users’ patterns. It prevents fraudulent or wrongful activity by introducing Federal Learning. The algorithms could train and govern according to the data. And not violate the insured’s confidentiality.

Federated Learning Applications in IoT:

With a rise in technology, there is a significant rise in the information. With this, more privacy regulations are now in effect to protect such information.

Many organizations have begun utilizing federated learning. They train their algorithms on various datasets without exchanging data.

Federated learning aims to secure the data collected through different mediums. It also keeps vital information local.

FL is a solution that allows on-device machine learning without transferring the user’s private data to a central cloud.

Hence, federated learning can help achieve personalization. As well as enhance the performance of devices in IoT applications.

Federated Learning And Its Application in other Industries and Technologies:

The first application of Federated Learning uses improved predictive texts. For example, Google’s Android Keyboard.

This is done without uploading the user’s vital data.

Whereas Apple utilizes federated learning to improve Siri’s voice recognition.

FL also works for blockchain technology. Where it updates the model and keeps the organization’s privacy and data preserved.

FL also plays a vital role in Cyber-Security. It preserves the data on the device. It only shares the updates of that model across connected networks.


Machine learning is evolving and changing the face of technology. Like any other ML technique, federated learning application has its challenges. It could overcome the drawbacks and be a game-changing aspect for various industries.

Soon, federated learning and its various applications would make significant progress. Enterprises would welcome a distributed learning model. Which will provide quick responses to fast-changing consumer behavior at a reduced cost.

FL is a booming technique. Its application can help various industries evolve as well as benefit the users when put to practical use.

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