Dutch multinational banking and financial services corporation, ING has introduced an application of artificial intelligence that will assist human traders to efficiently gather better bond prices.
The bank has already received several commendations for early adoption of fintech in the sector of retail banking. Its introduction of “Katana,” new artificial intelligence bond trading tool on Tuesday is significantly gaining traction from numerous vendors.
Katana will leverage data from thousands of trades to assist the bank’s traders to get enhanced bond prices in a less time. In a trial conducted for six months at ING’s emerging markets desk, this tool led to better and quicker pricing decisions for over 90 per cent of trades, and cut trading costs by 25 per cent.
Katana is now being employed across ING’s fixed income business. It is expected that the users will significantly increase from a few emerging markets traders to 100 fixed income traders across the lender.
Global head of credit trading at ING Wholesale Bank, Santiago Braje shared that ING’s approach was unique because, here the AI empowers traders and is not replacing them. He further added that they are using Katana to improve the quality of decisions.