One of the leading names which comes to mind while talking about the companies fueling the generative AI wave in banking and finance is New York-based fintech giant Broadridge Communications. With three generative AI products already out, the company has a total of 18 such projects going on in this space.
Two weeks ago, the company, along with its subsidiary LTX, introduced a new generative AI product called OpsGPT which leverages transactions, settlements, and positions data to offer real-time visibility, facilitating faster fails resolution, research on next best actions, and prioritisation of key risk items through a user-friendly interface.
The application addresses industry and regulatory changes, including reduced settlement cycles and the need for operational efficiency due to increased trading velocity. “We expect OpsGPT to be a game-changer in the field, especially with the upcoming T+1 settlement cycle in the US, as it will help customers process transactions faster,” said Sheenam Ohrie, MD, Broadridge Financial Solutions, India, in an exclusive interview with AIM.
In India, the current settlement model is T+1, which means that if you purchase a security today, it settles tomorrow. The US, on the other hand, operates on a two-day settlement cycle. Broadridge intends to address this challenge by integrating generative AI into its operations.
OpsGPT aims to simplify and optimise trading operations, providing transparency and risk management, while automation reduces manual intervention. Trained on data from Broadridge’s global post-trade systems handling $10 trillion in daily trades, the model streamlines data access, connectivity, and understanding across asset classes, promoting operational productivity.
BondGPT
In June 2023, the company launched BondGPT, an application built on OpenAI’s GPT-4, to assist in identifying corporate bonds on the LTX platform. It integrates LTX Liquidity Cloud for real-time information, aiding asset managers, hedge funds, and dealers in bond selection and portfolio management.
BondGPT offers a chat feature using a large language model for conversational interaction, allowing users to find corporate bonds based on specific criteria.
It uses LTX’s technology to match bonds with similar characteristics for liquidity purposes. Additionally, BondGPT+ was released, enhancing the service with client and third-party data integration, personalised dashboards, and scheduled queries. It prioritises accuracy and security, featuring an Admin Center for data management and compliance, and includes AI-driven usage analysis for system optimisation.
Having released three AI products in the fintech space unlike any other company, Broadridge considers cutting edge technology to be one of the pillars of its success. “Unlike traditional BPO providers, we not only provide operational support but complement it with an in-depth understanding of how to leverage technology. We are essentially a tech-led operations company,” said Thomas Giacalone, senior vice president and global head of Broadridge Center of Expertise in an interaction with AIM.
The operational team identifies opportunities for clients to enhance efficiency, manage risks, and improve client service through AI.
India Expansion Plans
Broadridge currently offers technology-driven solutions for financial institutions, including banks, broker-dealers, asset managers, and corporations. Some of its prominent clients include TD Bank, Questrade Financial Group, Wells Fargo, Santander, RBC, Webull Financial LLC, Safra National Bank of New York, and Scotiabank.
The fintech giant’s strategy for the next six to ten years will focus not just on generative AI, but its other emerging forms as well since it has garnered immense interest from clients, including major broker-dealers and boutique asset managers to provide the best tech-enabled solutions to them.
The company recently expanded to Bengaluru and Hyderabad in India, where it operates on a ‘follow the sun’ model in business operations, with the country being its centre of expertise for processing.
Ohrie said that the company’s centre of excellence is in India, which focuses on the four pillars of technology — AI & analytics, blockchain, cloud, and digital (ABCD) – with specialised agile squads dedicated to each of these areas, highlighting that the OpsGPT was built entirely by the Indian team.
“The talent and innovative ideas here in India, energise me to work better,” beamed Giacalone and added that India serves as the company’s second-largest hub outside the US.
“In the next few years, we expect India to be the epicentre for next-generation operations role in our growth and client base expansion,” concluded Giacalone.
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