Tuesday, August 14

State Street uses machines to buy time on the news cycle for investment pros

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State Street’s created a mobile app that links news coverage and investors’ holdings using big data, machine learning, natural language processing and human intelligence.

Called Verus, the app is designed for the front office to better mitigate risk and generate alpha.

It gathers coverage from thousands of major global, English-language news publications and combines machine learning algorithms with portfolio data from State Street’s risk analytics platform to curate users’ newsfeeds.

“About 150,000 articles are generated on business and finance topics each week, and investment and risk professionals struggle to reliably filter out noise and feel confident that they are not missing anything that could impact their portfolio,” said Stephen Marshall, head of State Street Verus in a statement.

Once direct connections are identified, Verus analyzes third-party relationship data in order to surface relevant indirect relationships within the portfolio.

This shortens the amount of time between when a relevant news story breaks and when a client can comfortably answer the question, ‘What is my exposure?’, Marshall added.

State Street has kept humans in the loop: an editorial team of former financial news editors and journalists give feedback to the algorithms so that the connections made are relevant and underlying algorithms are improving.

State Street services over 10% of the world’s tradable securities, which provides it with a “wealth of information” to identify and analyze risk and opportunity, said Lou Maiuri, global head of State Street Global Exchange in a statement.

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