Generative AI - Use Cases in Investment Banking

 

10.7.2023

GenAI: Top 5 Use Cases in Investment Banking

Compliance Assistant for Operations Team

Credit Assistant for Credit Officer

Trader Assistant

Collateral Analyst Assistant

Middle Office/CCRO Assistant

https://www.finextra.com/blogposting/24511/genai-top-5-use-cases-in-investment-banking

31 May 2023

https://www.linkedin.com/pulse/transformational-power-generative-ai-banking-financial-deepak-seth

https://pe.linkedin.com/posts/gary-hwa_how-generative-ai-will-shake-up-banking-activity-7044111190305738752-WDPY

https://www.jpmorgan.com/insights/research/generative-ai

Global Securities Services Technology - Goldman Sachs

Global Securities Services Technology
Global Securities Services provides clearance, financing, custody, short coverage and reporting services to hedge funds and institutional clients.

In addition to these core services, the group offers the following value-added solutions: capital introduction, startup and consulting services, system integration and fund administration. Global Securities Services fulfills its mission by:

Providing hedge funds with all the tools and services to run their business
Meeting the demands high trading volumes create for new technology products
Developing and supporting applications used for trade processing, custody services, reporting, portfolio accounting, performance tracking, trading and credit risk analysis
Providing direct external client support
Global Securities Services Technology is comprised of five departments:

Prime Brokerage captures and process all client trades, payments and journals. The team designs and develops several core Web-based and Excel-based tools that are used by clients’ portfolio/risk/operations manager. It is also responsible for the automated delivery of custody, portfolio accounting, and performance and risk reporting to our clients in multiple time zones.

Securities Lending automates securities lending trading and middle-office decision and workflow processes, development of risk management tools, system scalability to support high transaction volumes, and expansion of the platform to include new products and markets. The group also develops and maintains e-commerce applications on both supply and demand sides of the business.

Futures develops trading, trade processing and clearing systems used internally as well as by external clients. Functional areas covered by these systems include trading and order management, trade booking and allocation services, trade matching and clearing, and trade processing.

Goldman Sachs Execution and Clearance supports a full brokerage platform for broker-dealers with proprietary businesses and hedge funds, including applications for trade processing, position and balance, margin, asset servicing, fund transfer, and financial and regulatory reporting.

Global Securities Services Risk IT is responsible for risk and margin financing technology used by the Global Securities Services business. The group provides risk management tools and reports to internal Global Securities Services management and external Hedge Fund clients. It also implements and supports various risk methodologies across broad asset classes, providing insights to risk managers and the appropriate leverage to our external clients.

http://www2.goldmansachs.com/careers/our-firm/divisions/technology/how-were-organized/global-securities-services-technology.html

Asset Management Technology - Goldman Sachs

Asset Management Technology

The Goldman Sachs Asset Management (GSAM) business supports a set of global institutional and high net worth investors who wish to follow investment strategies that carefully balance risk and return.

GSAM Technology is directly aligned to the business, working on a variety of software engineering problems that range in duration from hours to years. It is a fast-paced environment, adapting to market and customer needs to create software that is robust enough to cater to an ever-changing business environment. GSAM Technology utilizes an array of different technologies with increasing development focus on open source and Linux-based technologies.

Trading and Portfolio Management is responsible for building trading tools and developing automation that allow the business to construct portfolios and manage risk. Technologists are aligned to provide the support needed to service our clients. GSAM trading desks are broken into the following groups: Quantitative Equities, Quantitative Strategies, Active Equity, Fixed Income and Money Markets, and Goldman Sachs Investment Strategies (Liberty Harbor and Investment Partners).

Alternative Investments Technology works closely with the businesses in GSAM dedicated to the third-party alternative investments offering. The technologists work on software tools supporting such functions as portfolio construction, risk monitoring and reporting, as well as the automation of a variety of business processes. Alternative Investments Technology is comprised of the following groups: Private Equity Group (PEG), Hedge Fund Strategies (HFS), Global Manager Strategies (GMS) and Alternative Investment Client Experience (AICE).

Funds Distribution is responsible for the support and development of the Global Cash Services internet platform. This is a suite of systems that allows our clients to execute trades electronically in GSAM and other providers’ funds. This electronic trading system provides clients with a streamlined cash management solution and can serve as a single online centre for trading, reporting and research needs.

Client Reporting, Marketing and E-Commerce supports Operations, Client Service, Marketing, BDS, Product teams and E-Commerce applications in GSAM. The applications in this space are used to produce various client materials for institutional clients and marketing materials to facilitate the sales and marketing efforts across institutional and third party/mutual fund products. The team also supports both client and public web sites for GSAM.

Sales supports the Sales, Client Services, Operations, Sales Attribution, Marketing and Product Management teams by facilitating the sales effort across the institutional and third party distribution channels. We help manage client relationships and track GSAM product sales, enabling such functions as wholesaler compensation, sales reporting and management reporting.

Operations and Core Data supports the operations workflow, including trades management, portfolio accounting, product pricing, billing, and reconciliation for hedge/mutual funds and separate accounts managed by GSAM portfolio managers.

Compliance develops and supports systems that enable compliance officers to monitor GSAM's interaction with client specified guidelines and regulatory requirements for both clients and GSAM employee holdings and transactions.

Performance supports flexible performance and risk calculations for all GSAM-managed investments. It also maintains fund treasury processes that provide service and control related to the development, launch and financial oversight of the division’s pooled investment products, such as hedge/mutual funds, consistent with Goldman’s business principles.

http://www2.goldmansachs.com/careers/our-firm/divisions/technology/how-were-organized/asset-management-technology.html

Private Wealth Management Technology - Goldman Sachs

Private Wealth Management Technology

Private Wealth Management Technology partners with the Private Wealth Management business to create technical solutions that provide clients with a level of investment research, trading execution and personalized wealth services that most firms afford only to their institutional investors.

Private Wealth Management Technology is comprised of the following application development teams:

Sales Technology builds and supports applications that help the Private Wealth Advisors effectively manage the clients before, during and after the sale. It covers investment management tools, client web and investment research portal.

Trading Technology provides a wide array of tools to manage, execute and book orders for various financial products such as equities, options, fixed income, structured notes, foreign exchange, mutual funds, IPOs, hedge funds, private equity, derivatives and cash equivalents.

Core Custody builds and maintains applications that provide the core custody functions, including bookkeeping, asset servicing, margin calculations, asset transfer and cash management.

Middle Office Tools builds applications that facilitate the front office and operations staff to perform various account maintenance functions, such as initiating wire transfers, approval of payments and managing of business exceptions using workflow tools.

Core Accounting builds and maintains systems that provide portfolio valuation functions including tax-lot generation, using various depletion algorithms, gain/loss calculations, accretion amortization and yield calculations, calculations of investment returns on various asset classes and comparison to benchmarks.

Reporting designs and maintains report-friendly databases containing all client investment data, and generates client reports including e-confirms and monthly statements.

Private Banking develops and supports online banking functions, such as bank depository accounts, automatic bill pay, ACH transfers, direct deposits, checking, debit and charge cards, loans and mortgages.

Compliance supplies the necessary tools to monitor all Private Wealth Management business activity, addressing both regulatory and internal requirements.

Financial Systems provides timely and accurate financial information used to manage the Private Wealth Management business, bill clients, post revenues and compensate sales teams.

Referential Data builds systems that maintain various reference data elements, accounts and client information, product information, prices and exchange rates as well as financial and holiday calendars.

Core and Infrastructure designs, develops and implements infrastructure for complex database systems, middle tier and front-end apps. It is responsible for system stability, scalability, performance and architecture enhancements and caters for build, deploy and release management for the entire department.

http://www2.goldmansachs.com/careers/our-firm/divisions/technology/how-were-organized/private-wealth-management-technology.html

Fixed Income, Currencies and Commodities Technlogy - Goldman Sachs

Fixed Income, Currencies and Commodities & Global Derivatives Technology
Fixed Income, Currency and Commodities and Global Derivatives Technology support the technology needs of the firm as it builds an integrated sales and trading desktop and service-side architecture to be used across product lines and divisions.

The primary responsibilities of each group involve:

Providing trade entry and position management functionality to mainly traders and operations
Processing trades and providing real-time trade reporting and batch feeds for the settlement and clearance of trades
Creating integrated solutions for trade positions, profit and loss statements and risk management
These two groups are comprised of the following departments:

Global Trading System globally supports interest rate products and credit desks by developing applications that support fixed income products such as US Treasuries, US and International Government Bonds, and Emerging Market Bonds and Futures.

Global Repo Systems supports firm financing, sales and trading and collateral management of fixed income, equities and loan instruments.

Mortgage Trading Systems supports Agency and Non Agency Mortgages and loan businesses by managing critical pool allocation flows.

Money Markets Trading Technology builds and maintains money market trading and sales technology that supports sales and trade entry, position management and electronic trading for all money market products.

Electronic Trading and Core Services provides technology to manage the electronic trading needs of various business-facing application groups. The team also supports various offering and execution models to communicate with external vendors across product lines.

Interest Rate Products supports highly complex trades that can take anywhere from a day to two months to complete.

Credit Products provides a highly robust and scalable system to support thousands of credit-linked derivatives trades a day, swiftly and without error.

Currencies Technology provides high pricing availability and integrity to allow for our strategies to be confidently placed into the market.

Commodities supports the firm’s trading of a wide range of commodities, including electricity, natural gas, oil, metals, freight, plastics, pulp and paper, in both physical and derivative form.

http://www2.goldmansachs.com/careers/our-firm/divisions/technology/how-were-organized/FICC-global-derivatives-technology.html

Equity Trading Technology - Goldman Sachs

Equity Trading Technology builds software to support the firm’s trading businesses and constructs a vision for how technology should be used to solve trading problems.

Equities Trading Technology is comprised of the following departments:

Shares Technology develops and supports trading systems for the Listed and OTC single shares trading desks, which are comprised of agency and market-making activity.

Equity Derivatives Trading assists in facilitating clients, making markets and taking views on volatility that underlie equity cash securities. This department also provides access to various options markets, facilitating orders and creating customized hedging and risk-taking solutions.

Algorithmic Trading designs and administers automated execution strategies used by internal equity businesses, as well as external clients such as fund managers and hedge funds.

Equity Capital Markets develops the technology for equity financing activities, including the handling of IPOs, secondary offerings and block trades that use common stock, preferred stock, convertible and derivative products.

Principal Strategies functions as the main proprietary trading desk within the Equities business, taking on risk on behalf of the firm by investing in publicly and privately traded equities and equity-related securities across the globe.

Electronic Transaction Services serves as the premier electronic trading platform, offering destination-neutral access to all major pools of liquidity for equities, options and electronic futures.

http://www2.goldmansachs.com/careers/our-firm/divisions/technology/how-were-organized/equity-trading-technology.html

Investment Research Technology - Goldman Sachs

Investment Research Technology builds the software that enables the Global Investment Research team to perform fundamental analysis of individual companies, sectors and entire economies.

The group also supports the production of macroeconomic forecasts, reports on companies and industries, investment opinions on individual securities, strategic portfolio management recommendations and a wide range of data products for the firm's investing clients and the firm's own traders and salespeople. Projects include:

Developing analytical tools for financial modeling and sophisticated stock screening
Generating custom document management solutions to create, publish and archive the firm's research content
Building a Web site for our clients, featuring a library of our publications and tools for working with the data produced by Global Investment Research analysts
Developing and maintaining distribution systems for transmitting our research to clients inside and outside the firm
Creating reporting systems for monitoring and improving client service and ensuring regulatory compliance.
Investment Research Technology is comprised of the following groups:

Publishing designs and develops analyst-facing authoring tools and workflow. This includes Word and PowerPoint templates for the creation of written content and generation of renditions from said content.

Numbers delivers the centralized global strategy for the capture and processing of Investment Research financial data. This includes financial analysis tools integrated into the analyst desktop via .NET, integration with our core J2EE workflow systems and leverage of the strategic GS SecDB platform both for the benefit of Global Investment Research (GIR) and the distribution of our numbers firmwide.

Content Management Group Applications provides software solutions to centralize, streamline and expedite content management tasks. The group develops and maintains applications and tools for document and referential data workflow management and compendium authoring and generation.

Distribution is responsible for re-engineering the distribution platform in GIR. This includes all the data and document feeds that are sent out to various aggregators such as Bloomberg and Reuters. The team leverages new technologies on the internet to increase the marketability, presence and visibility of GIR, such as podcasts and RSS channels.

Legal provides software tools for generating disclosures and disclaimers to meet regulatory requirements for investment research publications.

Management Information Systems provisions analytical tools and operational reports for GIR management and its business unit leaders.

Core oversees data architecture, software development and deployment procedures, quality assurance, project management and division-wide technical concerns, such as security, performance and scalability. The group is also responsible for the software that manages, analyzes and retrieves the financial data produced by GIR analysts.

http://www2.goldmansachs.com/careers/our-firm/divisions/technology/how-were-organized/investment-research-technology.html