How JPMorgan is Transforming Their Investment Banking Business - 'Emerging Opportunities Engine'

In JPMorgan's 2016 annual report, Chief Operating Officer Matt Zames elaborated on the $3 billion spent just on innovation, specifically the areas of robotics and machine learning.

And it was revealed that JPMorgan completed its implementation of the Emerging Opportunities Engine into their Investment Banking Business, specifically the Equity Capital Markets area. Their Machine Learning 'Emerging Opportunities Engine' "helps identify clients best positioned for follow-on equity offerings through automated analysis of current financial positions, market conditions and historical data".

And it's not just JPMorgan that's implementing Machine Learning into Capital Markets, automating standard "investment banking tasks, work that traditionally has been focused on human skills like salesmanship and building relationships". For example, Goldman Sachs "has already mapped 146 distinct steps taken in any initial public offering of stock, and many are 'begging to be automated'".

Machine Learning is automating standard 'investment banking tasks, work that traditionally has been focused on human skills like salesmanship and building relationship.'

Transforming JPMorgan's Investment Banking Business:

"Given the initial success of the Emerging Opportunities Engine in Equity Capital Markets, we are expanding it to other areas, like Debt Capital Markets, similarly basing predictions on client financial data, issuance history and market activity. We are initiating pilots for a broad range of machine learning use cases – from detecting anomalies for fraud and cybersecurity, to generating targeted trading strategies to share with clients, to optimizing our clientservicing channels. We are only at the very beginning of tapping the potential capabilities of machine learning and its benefits to our business." 

You can read more about how Machine Learning is transforming JPMorgan's business on page 49 of JPMorgan's 2016 Annual Shareholder Report.

What Might Also Interest You:

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• As Goldman Embraces Automation, Even the Masters of the Universe Are Threatened
• Martin Chavez- "Data, Computing, and Transformation in the Financial Industry

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