Every company, across sectors, likely finds itself at some stage of an internal digital transformation – whether it be a factory automating their operations, a small business launching an e-commerce offering, or a major investment bank optimizing their daily trading procedures. Digital transformation is particularly prevalent within financial institutions, such as asset managers and investment banks, as executives and boards look to improve their trading operations and portfolio management.
In this blog series, NRI will be exploring the various elements of the digital transformation as it impacts the financial services industry.
The top financial institutions across the world are exploring AI and robotic process automation solutions to propel their operations to optimize their operations.
The development of natural language processing (NLP) is one major AI tool coming soon to the portfolio manager’s toolbox. NLP technology is earning a track record of success taking the large amount of information that portfolio managers observe for trends, including online news outlets and social media and processing it much faster than the manager can. Managers can then take the resulting data and use it to better inform their trades and identify trends thanks to the quantitative scoring that the AI-enabled NLP is able to glean from the information.
Key developments are also being made in post-trade operations, such as derivative contract operations. The process is necessary for regulation and traditional requires a lengthy time commitment per contract from a worker with specialized knowledge. However, with the implementation of an AI solution, such as optical character recognition, allows for the digitization of the contract and almost instantaneous extraction and archiving the information. AI drops the processing time from hours to minutes.
One of the major drags on time in back office operations is document management following trades, but through AI, significant efficiency shifts are being made, saving time in contracts and payment record processing.
There are many opportunities for growth and optimization of practices in financial services through new developments, and NRI is working with the top researchers and developers in the industry to conduct studies and build new tools and services that are driving financial services forward.
We hope you come on this journey with us.