How Leading Banks Are Joining the AI Revolution: The Case of Banca Patrimoni Sella


AI is taking the world by storm, and investments are no exception.

CFA Institute states that 8 out of 10 investment professionals are already integrating AI in their investment process, and Forrester forecasts that AI spending will nearly double by 2025 — it is clear to see that adopting AI in 2023 is a strategic step forward towards developing customised solutions, gaining market shares, and increasing performance.

The recent partnership with MDOTM Ltd, the global provider of AI-driven investment solutions, and Banca Patrimoni Sella & C., one of the leading Italian banks, is a true example of how AI adoption can empower financial institutions by helping them provide personalised solutions and navigate market complexity.

Specifically, Banca Patrimoni Sella & C. has launched a new discretionary mandate based on Artificial Intelligence, which was developed in partnership with MDOTM Ltd. The new mandate, called "GP AI-Driven", invests in a flexible and broadly diversified portfolio obtained through an innovative investment strategy that combines MDOTM Ltd’s proprietary AI methodology with the know-how and experience of Banca Patrimoni Sella & C.’s investment team.

Banca Patrimoni Sella & C. and its new discretionary mandate based on Artificial Intelligence

The mandate will leverage the analysis of Big Data combined with the power of Artificial Intelligence models and cloud computing to constantly reflect in the portfolio the latest developments in financial market dynamics, resulting in an improved risk-return profile and a constantly updated optimal asset allocation. "GP AI-Driven" will actively invest in funds, ETFs, and individual securities, through a portfolio highly diversified at a geographical and sectoral level that discounts the expected returns and correlations as well as key behavioral finance dynamics.

"Today we strengthen our suite of discretionary mandates by bringing an innovative technology like Artificial Intelligence into our processes.” commented Diego Mihalich, Chief Investment Officer of Banca Patrimoni Sella & C.  “The partnership with MDOTM Ltd marks a significant step forward in our innovation strategy and in improving the quality of the investment solutions available to our clients. It is a further technological add that goes hand in hand with our targeted and bespoke advisory services, which have always been a distinctive trait of our bank".

Technological innovation has brought various benefits along the entire value chain, which today translate into greater attractiveness of investment solutions regarding costs, operational efficiency, and the ability to meet the growing demand for custom solutions. AI is an opportunity for financial institutions to renew products, and processes, and acquire new market shares. There is plenty of evidence that links AI adoption in the investment process and growth in major KPIs at Financial Institutions. Especially for institutional investors, missing AI in 2023 means strategically missing a huge opportunity to improve marginality, revenues, and grow assets.

"Integrating Artificial Intelligence in the investment process and develop new solutions is a strategic factor that will drive banks and asset managers’ growth.” Commented Federico Invernizzi, Chief Operating Officer of MDOTM Ltd. “This technology represents a unique opportunity to provide investment teams with unbiased inputs and improve their decision-making. We are excited for the launch of GP AI-Driven: a cutting-edge investment solution that combines the bank’s expertise with our AI platform’s inputs in a flexible and global portfolio able to adapt to the continuous evolutions of financial markets"

For reference:

Banca Patrimoni Sella & C. is the Sella group company specializing in the administration and management of private and institutional assets. Its Personal relationships and territorial roots represent the DNA of the Bank, performing through a network of qualified professionals at advisory standards of excellence, thanks to a global approach relying on innovative tools, cutting-edge services and a well-structured offer.

MDOTM Ltd. is a global provider of AI-driven investment solutions for Institutional Investors. Founded in London, the company has a team of over 60 physicists, data scientists, engineers, and finance professionals.  MDOTM Ltd. provides Portfolio Advisory and Asset Allocation services to Banks, Insurance Companies, Family Offices, Pension Funds, Wealth and Asset Managers. Numerous financial institutions across the UK, Europe, and the US leverage MDOTM Ltd.’s advisory and its AI platform to support their investment process.

Originally published on Finextra

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