Broadridge launches two AI analytics tools for asset managers

In a dynamic financial landscape, Broadridge harnesses AI analytics to provide asset managers with DistributionAI and Global Demand Model—tools designed to drive distribution efficiencies and bolster performance amidst growing competition.

DistributionAI, part of Broadridge’s Distribution Insight platform, stands out as a digital analyst enabling asset managers to access specialized, proprietary research. This tool simplifies the analysis of global asset management market intelligence, facilitating strategic decisions in distribution, product development, and sales.

The Global Demand Model tracks over $100 trillion in global assets, providing a comprehensive market perspective on current and predicted product demand. By integrating AI-driven models with expert analysis, this tool offers a robust forecast of asset flows, leveraging capital market data and macroeconomic indicators.

“DistributionAI and Global Demand Model are the latest examples of Broadridge’s ability to harness AI-enabled analytics to create innovative solutions for clients,” said Nigel Birch, Global Head of Product, Data and Analytics, Broadridge. “These powerful new technologies are super-charging data analysis and making it much quicker and easier for asset managers to interpret and apply data-driven insights across critical decision-making functions.”

Last month, LTX— a subsidiary of global fintech leader Broadridge Financial Solutions— unveiled BondGPT+, an enterprise-grade application designed to help users navigate the complexities of the corporate bond market. The launch came just months after the successful debut of BondGPT, and this next iteration aims to set a new industry standard in the realm of generative AI solutions.

FinanceFeeds interview with Roger Burkhardt, Head of AI at Broadridge

FinanceFeeds has recently spoken with Roger Burkhardt, Head of AI at Broadridge, at FIA EXPO 2023 in an exciting interview that can be watched on Youtube.

Roger Burkhardt confirmed the huge impact AI is having on the finance sector. He shared his two-decade experience in AI and finance and noted a remarkable acceleration in the value delivery of new technologies. He reminisced about the traditional machine learning models and their lengthy development phases, contrasting them with the current rapid development process. As an example, he mentioned the BondGPT, which transitioned from ideation to production, serving 200 corporate bond traders, all within six weeks.

Burkhardt also discussed another essential aspect of modern AI: its democratization. Previously, specialized teams were required to build AI models for specific purposes. However, with tools like GPT, which is pre-trained and general-purpose, the need for specialized data science teams is reducing. This democratization means AI can be more widely adopted and adapted without the necessity of bespoke development. This shift in AI’s pace and its increasing accessibility and scalability is unprecedented in Burkhardt’s 20 years of experience in AI within the financial services sector.

During the interview, Burkhardt noted a clear and growing demand from Broadridge’s clients. These clients, in their quest to remain innovative, are looking to intelligently enhance their product offerings. Such demand is further driven by the end-users and customers of these products, who are increasingly seeking AI-integrated solutions. This demand is not just theoretical but is very much tangible and immediate. Feedback from traders, who are among the early users of these products, has been instrumental. They have shown a particular inclination towards interfaces enabled by Natural Language Models (NLM). This means they favor systems where interactions can happen through simple, everyday language, without needing specialized commands.

Burkhardt went on to give an example of how this is being appreciated in the real world. Corporate bond traders using BondGPT have shared their experiences where they’ve been able to obtain answers to complex research-related questions in mere seconds. When compared to traditional market data providers, which often come with expensive terminals and take considerably longer (from 10 to 30 minutes) to provide similar results, the advantage of Broadridge’s system becomes evident. Not only is it faster and more user-friendly, but it’s also designed to be intuitive. Furthermore, while the system is indeed revolutionary, Broadridge ensures it doesn’t compromise on data accuracy or security. Burkhardt emphasizes that data protection and the precision of information are crucial priorities for the company, regardless of how advanced the AI solutions become.

Broadridge’s Head of AI also highlighted the centrality of data to all AI ventures. Drawing parallels to popular opinions that label data as the ‘new oil,’ he underscored the importance of harmonized, accurate, and consistent data. The objective is to ensure uniform definitions and meanings across different contexts; for instance, ensuring that the term ‘order’ holds a consistent definition across asset classes and that terms like ‘sale’ or ‘exception issue’ retain standardized interpretations.

The BRx investment is indicative of Broadridge’s dedication to data standardization across varied asset classes and even beyond specific product systems. The team behind BRx, having a rich background of collaborating with multiple vendors, prioritizes the harmonization of data, leading to a standardized data set.

Burkhardt explained that this data serves manifold purposes. In the trading context, it aids traders in assessing the progression of their orders, particularly useful for agency traders overseeing their order sets. In the operational realm, professionals can swiftly identify discrepancies that require rectification. Furthermore, it streamlines the process of trade and transaction reporting to regulatory authorities. An exemplar utility he provided was the system’s capability to furnish exact responses to regulators, such as elucidating transactions on specific days, with the Chinese New Year being a case in point from a recent demonstration.

In a broader perspective, Broadridge’s focal areas with respect to AI are middle to back-end product applications. Within the company’s operations, generative AI plays a pivotal role in responding to client queries, expediting product customization processes, and determining the activation of specific features tailored to different clients like prime brokers.

You can read the full interview here.