Northern Trust initiates AI solution to digitize alternative asset servicing
Northern Trust worked with Microsoft Azure Applied AI Services and Neudesic to develop a new artificial intelligence (AI) -based solution as part of its initiative to digitize alternative asset maintenance.
The AI-supported solution extracts unstructured investment data from alternative asset documents and makes them accessible and usable for asset owner customers.
It also converts critical information such as capital call notices, cash and stock distribution notices, and capital account statements from a variety of unstructured formats into digital, actionable insights for investment teams.
According to Northern Trust, the new AI-powered data extraction capabilities will read stored documents and fund manager reports on the holdings and performance of hedge funds, private equity and other alternative assets, and retrieve data points such as asset names, currencies and market value.
In the meantime, the two functions – document capture and data extraction – create an end-to-end, scalable, cloud-based process that can go from being notified of incoming documents to digitized accounting data in just a few minutes.
“The integration of unstructured alternative investment data will fill a critical missing piece for asset owners who have long sought an accurate view of the performance, liquidity and risk analysis of multi-asset portfolios,” said Pete Cherecwich, President of Corporate and Institutional Services at trust of the north.
Cherecwich comments, “Asset data automation is a priority for Northern Trust, particularly in alternative investments due to its complexity and growing investor demand.”
He adds, “Our investments in cloud technology, AI, blockchain and machine learning will help asset owners gain a real understanding of their assets and portfolios as a whole.”
