Want smarter investment management insights? See what machine learning can do

Artificial intelligence (AI) and machine learning were two of the key buzzwords of 2018-19, and interest in these areas is expected to continue into the new decade. They have moved out of the realms of theory and have taken their place in the corporate toolbox of forward-thinking CEOs. No strategy conversation today should be complete without a discussion of how these connected fields can be used to deliver an edge to business leaders, who face ever increasing rates of business change and the emergence of new – and often unexpected – competition.

Surprisingly, the fields of AI and machine learning aren’t new. In fact, the term “machine learning” was coined by an IBM researcher in the 1950s after he had created one of the very first self-learning programs. But recent developments in the availability of compute power to run the algorithms essential for machine learning and the exponential growth of data available for analysis have brought about a tipping point for machine learning to bring a genuine competitive advantage.

Make AI work for you

One company that is keen to bring the benefits of this technology to its customers is IBM Business Partner SimCorp. SimCorp is a well-recognized provider of integrated investment management solutions. And its core product, SimCorp Dimension, is a leading front-to-back investment management solution that gives top-tier investment managers a real-time overview of their entire business in one robust and scalable system.

Each year SimCorp invests around 20 percent of its revenue in research and development (R&D) to enable its SimCorp Dimension and other solutions and services to continue to meet the changing needs of its clients. And currently it is now looking at use cases for machine learning in the areas of reactive automation, pre-emptive automation, augmented decision making and technical operations.

As Anders Kirkeby, Head of Open Innovation at SimCorp explains, “SimCorp wants to offer machine learning-based tools to avoid automation breaks in the first instance (where at all possible) and ease the remediation in the rest. Further, SimCorp aims to deliver a new generation of decision support tools and options based on new insights to bring new levels of productivity in managing investment portfolios.”

Send in the cloud

But what if you don’t have the infrastructure to benefit from machine learning? After all, Gartner predicts that the computational resources used for AI will have grown five-fold in the half-decade. And by 2023, AI will be the top category of workloads that are driving infrastructure decisions. This is where IBM comes into the story.

SimCorp Dimension is currently available through a service-based model, running on the IBM® Cloud™. While the need to alleviate infrastructure costs is a typical driver for moving to the cloud, democratization of business innovation, big data and standardization of the operating model are also key opportunities made possible by cloud adoption. This evolution fosters greater experimentation and speeds up access to the benefits from machine learning developments within SimCorp’s suite of solutions and services.

If you would like to know more about machine learning and SimCorp’s innovative use cases for the investment management industry you can download SimCorp Technology Lab’s white paper.

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