AI Case Study

Commerzbank attempts to cut research costs by automating analyst reports generation

Commerzbank responds to pressure from Mifid II, which forces banks to cut research costs, by using machine learning and natural language processing tools from Retresco to automatically generate analyst reports on stocks and bonds.

Industry

Financial Services

Investment Banking And Investment Services

Project Overview

According to the FT, "'equity research on companies’ earnings is one of the areas that Retresco and Commerzbank have been focusing on after they analysed the bank’s warehouse of research reports and the data behind them. Michael Spitz, head of Commerzbank’s research and development unit Mainincubator, said the area showed promise because 'equity research reports reviewing quarterly earnings are structured in similar ways' and the source documents are often prepared under common reporting standards.
Thus, that makes it easier for a machine learning programme to extract and contextualise relevant data, which can be then framed in a report using natural language processing tools."

Reported Results

Planned: Results unavailable

Technology

"The planned project involves a machine learning programme to extract and contextualise relevant data, which can be then framed in a report using natural language processing tools. Retresco’s original business uses similar technology to write soccer reports in Germany."

Function

Legal And Compliance

Compliance

Background

The Financial Times report that "banks are under fierce pressure to cut the costs of producing research on stocks and bonds following the implementation in January of European investor protections known as Mifid II. The measures force investors to pay for research explicitly instead of bundling its costs into trading commissions. Some firms say their implied research revenue has fallen by as much as 30 per cent as a result."

Benefits

Data