IBM Buys Promontory Financial, Blends Watson's AI with Regulatory Expertise
Promontory will serve as the foundation of the newly formed Watson Financial Services unit of IBM.
The interesting thing about this deal is how the tie-up will look to pair Promontory's human expertise with IBM's artificial intelligence unit, Watson.
"Upon close, Promontory's professionals will train Watson, which will learn by continuously ingesting regulatory information as it is created and through interaction in real-world applications," noted IBM, in a statement.
Promontory will operate as a wholly-owned subsidiary of IBM, and will form the foundation for Watson Financial Services, which will offer cloud-based solutions to solve regulatory hurdles.
Promontory will work with Watson to help firms to "absorb regulatory changes, understand their obligations, and close gaps in systems and practices to address compliance requirements more quickly and efficiently." Some of these challenges include financial risk modeling, surveillance, and anti-money laundering (AML) and Know Your Customer (KYC) requirements.
"What Watson is doing to transform oncology by working with the world's leading oncologists, we will now do for regulation, risk and compliance," said Bridget van Kralingen, senior vice president of IBM Industry Platforms, in a statement. "Promontory's experts are unsurpassed in this field. They will teach Watson and Watson, in turn, will extend and enhance their expertise. This initial offering of Watson Financial Services is emblematic of the transformative cloud-based solutions that IBM Industry Platforms will bring to clients."
Promontory was founded by Eugene Ludwig, who serves as the firm's CEO. The firm has offices North America, Europe, Asia and the Middle East. Ludwig said that the pairing will help Promontory to better address clients' risk management and regulatory compliance needs.
"We believe the future of business and regulation will be driven by the need for advanced technology alongside deep subject-matter expertise," Ludwig said.
While terms of this deal were not disclosed, IBM has spent more than $5 billion on M&A this year as its seen revenues fall over the last few years.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Regulation
Lightning strikes: Options boom threatens data overload
Concerns over creaking infrastructure in US options markets are fueling talk of measures to limit the exponential amount of data being generated.
All eyes turn to North America as T+1 arrives
As T+1 settlement becomes a reality in North America, long-lingering questions will get their answers.
Firms worry that lack of ‘explainability’ will be regulatory roadblock for AI
Industry experts share their concerns about advanced AI’s ‘black-box’ nature and how that may attract fragmented regulatory scrutiny.
Caveat creator: GenAI giants’ pledges won’t pre-empt copyright suits
Tech vendors offer indemnities on generative output, but end-users need to check the fine print, warn IP lawyers
Bank-led consortium takes aim at position reporting
Five banks, including Barclays, BNP Paribas, Goldman Sachs and HSBC, have joined forces to mitigate interpretation and implementation errors in position reporting disclosures.
Verafin launches genAI copilot for fincrime investigators
Features include document summarization and improved research tools.
Waters Wrap: Open source and storm clouds on the horizon
Regulators and politicians in America and Europe are increasingly concerned about AI—and, by extension, open-source development. Anthony says there are real reasons for concern.
DSB says industry is ready to meet UPI mandate ahead of deadline
The Unique Product Identifier will be required for certain OTC derivatives in the EU at the end of April, following US adoption in January.
Most read
- IMD & IRD Awards 2024: All the winners
- Best evaluated pricing service provider/vendor—CanDeal Data & Analytics
- Managed services under the spotlight