China’s Bank of Communications partners with Hong Kong fintech start-up to use AI in finance

The two will co-develop intelligent investment research services, transaction and asset management systems based on AI tech and big data

PUBLISHED : Thursday, 30 November, 2017, 6:03pm
UPDATED : Thursday, 30 November, 2017, 11:23pm

Bocom International, the investment banking arm of the Bank of Communications, has tied up with Hong Kong fintech firm FDT-AI to better understand investors’ behaviour and capture market opportunities based on artificial intelligence technology and big data statistical analysis.

FDT-AI is an AI-focused subsidiary of Hong Kong-based FDT, which is chaired by Ma Weihua, former president and CEO of China Merchants Bank, and set up in 2016 in the Science Park.

“The company [Bocom International] and FDT-AI will initiate strategic cooperation primarily in the fields of artificial intelligence and big data through in-depth cooperation, joint exploration and sharing of resources, ” Bocom International said in a statement.

It saw the move as mutually beneficial – capitalising on FDT-AI’s technological advantages and talent resources in AI and big data, and Bocom’s competitive strengths and position in the financial industry.

Both sides will jointly develop “intelligent personalised investment research services” through analysing the investment bank clients’ behaviour based on past transaction records. Better understanding of clients’ needs and risk appetites would allow the bank to provide more tailor-made investment advice, Bocom said.

Other areas of cooperation include the development of transaction systems to capture market opportunities “in a more intelligent, prompt and accurate manner”, intelligent asset management systems to offer optimised financial products matching investors’ needs, and AI customer service systems.

Upon the expiry of the initial two-year term, the agreement will automatically be renewed for another two years, the statement added.

Hong Kong-listed Bocom International moved up 2.3 per cent to close at HK$2.57 on Thursday, outperforming the Hang Seng Index, which dropped 1.5 per cent.

Ma left China Merchants Bank in 2013 after 14 years serving as its president. CMB is the country’s sixth largest commercial lender by total assets, while the Bank of Communications is the fifth-largest lender.