Element AI has launched two new artificial intelligence (AI) collaborations in Asia-Pacific, one with a South Korean investment advisory company, and the other with a consortium based in Singapore.
“Market forecasters are turning to AI-powered solutions to help them quickly identify signals and better manage.”
In South Korea, Element AI will be working with Shinhan AI, an AI-powered investment advisory firm. This partnership will see the Montréal-based startup integrate its AI technology with Shinan AI’s platform, called Neo, in order to simplify and accelerate application and forecasting decisions for its index tracker with a new market prediction model.
Shinhan AI, which is a Shinhan Financial Group subsidiary, will develop Neo 2.0, an upgrade of its existing investment consulting platform.
“Element AI is working with Shinhan AI to offer both its financial professionals and end-users a state-of-the-art forecasting algorithm that will differentiate the Neo 2.0 platform, leveraging AI to learn and adapt, potentially beating other forecasting methods with faster, more accurate price index predictions,” said Ben Eum, director of North Asia at Element AI.
Through this collaboration, Element AI will apply its algorithms to offer a new approach to forecasting equity indexes while providing for future resiliency to additional asset classes. Shinhan Financial Group was one of Element AI’s first partners. The two organizations signed a memorandum of understanding of May 2019.
“As we have witnessed with unpredictable ‘black swan’ events like the COVID-19 pandemic, market forecasters are turning to AI-powered solutions to help them quickly identify signals and better manage their predictions when the market is behaving abnormally,” Eum added.
Element AI plans to continue to work with Shinhan AI on researching, developing and deploying more AI solutions.
The second partnership for Element AI is a collaboration with the Veritas Consortium led by the Monetary Authority of Singapore (MAS). Element AI will assist in developing a framework for driving the responsible adoption of AI in the financial services industry.
Element AI’s involvement will include research and development activities aimed to support the consortium’s mandate to build a “vibrant and responsible environment” for AI adoption.
One of Element AI’s first initiatives will be completed with the United Overseas Bank (UOB). The two organizations will develop metrics for financial institutions to assess how data and the algorithms or models used to evaluate credit scoring for unsecured lending meet the consortium’s principles of fairness.
“As a founding member of the Veritas initiative and through our collaboration with Element AI, we aim to develop a set of metrics which could be used as an industry benchmark that upholds the fairness principle in the area of credit scoring for unsecured lending,” said Johnson Poh, head of group enterprise AI and data science at UOB’s data management office.
The overall goal of the Singapore collaboration is to publish a research report on the project and to open-source the code for the metrics for AI practitioners to review and use within their own organizations. The report is expected to be published in the second half of this year.
These partnerships follow Element AI appointing its first chief financial officer and chief revenue officer, after an internal restructuring that resulted in 15 percent of the company being laid off. Earlier this year, Element AI launched its third standalone product as well as an R&D partnership with LG. Last year, the startup launched its first two products and raised a $200 million CAD Series B in September.
Image source Linebox Studios.