Financial Services
Case StudyING

ING reduced trading costs by 25% and sped up pricing decisions for 90% of trades in a pilot implementing an AI system to analyse trade data and optimise price suggestions

ING bank is piloting its Katana tool that has thus far resulted in increased speed for pricing for 90% of trades and reduced trading costs by 25%. Katana uses AI to analyse data from trades to quickly suggest new bond prices to its traders.

Context

"In the case of Katana, the bank believes better and faster pricing will help it win more business. ''These are highly competitive markets... Every price that we quote, we are competing with 10 people... We only win if we provide the best price.'' "

The Project

Katana is envisioned as a tool to help traders as its suggested price is something a trader may choose to ignore. "Katana is an evolving platform and may ultimately provide quotes directly to clients instead of advising ING’s traders. The bank also sees broader market potential for the platform created by a 10-strong team of ING developers." "Katana will use data from hundreds of thousands of trades to help the bank’s traders to get better bond prices faster. Katana is now being launched across ING’s fixed income business; its users will sharply increase from a “handful” of emerging markets traders to about 100 fixed income traders across the lender."

AI Usage

In-house

Data

Hundreds of thousands of trade data

Results

In a six-month trial at ING’s emerging markets desk, the AI tool led to faster pricing decisions for 90 per cent of trades, and cut trading costs by 25 per cent.

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