HSBC is investing in Visible Alpha, an investment research technology firm founded by major investment banks. This adds to a $38 million funding round in January, but updated financial details are not disclosed.
In addition to investing, HSBC will be adding its research analyst models to Visible Alpha’s platforms, one of which aggregates equity analyst views using machine learning.
That means it can give consensus estimates on basically every financial or business metric on a company, a spokesman explained.
So, instead of having an estimate on just Boeing’s earnings, for example, Visible Alpha gets specific: “how many 737s with Boeing sell in Europe”, for example.
HSBC joins a real who’s who of major banks involved: Goldman Sachs, Banco Santander, Exane BNP Paribas, Macquarie Group, Royal Bank of Canada and Wells Fargo, as well as founding investors, Bank of America, Citi, Jefferies, Morgan Stanley and UBS.
European regulation MiFID II has shaken up the way research works for investment banks with “unbundling” requirements and scrutiny of fees.
As such, the firm also helps buyside firms monitor and value the research they consume from the sellside including research reports, analysts meetings and phone calls and corporate access events.
More than 450 research providers are now actively participating on the platform, along with over 100 buy-side firms with a combined AUM of $16 trillion.
A new advisory board was also announced.