JPMorgan is making good on its promise to deploy nascent technology throughout its investment bank with the promotion of a former credit trader.
The Wall Street giant has named Samik Chandarana, an 18-year veteran at the bank, as head of analytics and data science for the corporate and investment bank, a newly created position according to an internal memo seen by Business Insider. The news was first reported by Bloomberg News’ Hugh Son.
Chandarana will be responsible for heading the bank’s strategy to deploy machine learning and data-based solutions throughout the corporate and investment bank, according to the memo penned by Sanoke Viswanathan, head of the chief administration office for CIB. To that end, Chandarana will collaborate within specific units to “develop cohesive data science strategy, coordinate and help prioritise the portfolio of projects, and develop a framework for the appropriate sourcing and usage of data across businesses.”
Chandarana is set to report to Viswanathan, according to a JPMorgan spokesperson.
JPMorgan, which spent $US9.5 billion on technology in 2016, has taken a number of steps to digitize its investment bank, an area of banking that because of its client-facing nature was long thought to be impervious to the technological transformation sweeping much of Wall Street.
Machine learning and AI technologies, at a very basic level, replicate human intellectual capabilities.
Last year, the bank launched a predictive recommendation engine to identify those clients which should issue or sell equity. And now, given the initial success of the engine, it’s being rolled out to other areas.
Firm-wide, JPMorgan is upping the ante on tech, according to former COO Matt Zames.
“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 optimising our client servicing channels,” Zames said in an April note outlining the bank’s tech strategy. “We are only at the very beginning of tapping the potential capabilities of machine learning and its benefits to our business.”
Zames announced he would be leaving the bank in June.