As the relevance of artificial intelligence in different fields continues to become more apparent with each day, the banking industry appears more persistent than ever to take advantage of this revolutionary technology.
As such, more leading banking institutions across the globe are in a rush to incorporate or use artificial intelligence to their advantage.
This motive may be motivated by the need to create an additional gap between them and their competitors while offering better services and unforgettable customer experience.
Commerzbank is one of the notable banks to join this technology wave recently.
The second largest banking institution in Germany is looking forward to utilizing artificial intelligence in writing all its analyst reports.
READ MORE: 10 Applications of Machine Learning in Finance
READ MORE: City Analysts: This Harvard Phd’s AI Startup is Coming For Your Lunch
This marks yet another sign of a shift in how large financial institutions undertake their research.
The Financial Times was the first to report the partnership between Commerzbank and Restreco, which is a content-automation.
The collaboration between both companies is geared towards coming up with research reports through artificial intelligence (AI).
Similar technology has also been utilized in journalism, particularly in writing concise earnings reports once the company’s results have been released.
Although the revolutionary technology is not believed to be anywhere close to generating reports that are sent to customers, Commerzbank is looking forward to utilizing it specifically for earnings reports.
In a statement to the Financial Times, Michael Spitz, Commerzbank’s head of research and development unit Main incubator, said that the earnings reports area was promising, mainly because equity research reports assessing quarterly earnings are mostly structured in such ways.
READ MORE: Top 25 AI Software for the Banking Industry
According to Spitz, the Financial Times said the technology is already adequately advanced to offer around 75% of what human equity analysts would, especially when writing a report regarding quarterly earnings.
He went on to say that Commerzbank feels that it is not yet there as far as dealing with more abstract cases is concerned.
The dive into artificial intelligence-powered analyst reports by Commerzbank comes at a time when top lenders are struggling to set themselves apart from their competitors in response to the launching of MiFID II at the beginning of 2018.
Swiss-based giant UBS is currently focusing on alternative data sources in its research, including pulling to pieces a whole electric car in a bid to figure out how much it was worth.
Additionally, Barclays appears to be taking up a similar technique by recently recruiting a data scientist from Buzzfeed to include in its research unit.
Even so, other banking institutions seem to be adopting different methods; for example, Dutch lender ING has been placing a considerable portion of its research on a free site dubbed THINK, which can be accessed by the general public.
Commerzbank is a German financial and banking services institution that is located in Frankfurt, Germany.
Aside from that, the bank is present in over 50 nations across the globe. However, it mainly offers its services in Poland and Germany.
In addition, Commerzbank delivers a vast portfolio of financial services for corporate customers as well as small and private business clients.