The deal follows months of testing Mosaic’s platform under the bank’s In Residence incubator program. The platform will now be rolled out across JPMorgan’s fixed income operations worldwide.
Mosaic seeks to help incumbents derive deeper insights from their data. A JPMorgan spokesperson said that large banks currently struggle to analyze data and respond to market changes in real time, and that Mosaic’s technology would help on this front. Mosaic’s platform uses AI and predictive data analysis to aggregate and analyze large volumes of fixed income trading data, in order to help banks make more data-driven decisions. For example, traders can use the insights the platform generates to decide which trades to prioritize in a given period, or to discover which traders have been performing above or below expected standards. This will allow the business to respond more accurately to changing market conditions and gain deeper insight into internal inefficiencies that need addressing.
As banks increasingly turn to new tech to boost efficiency in data management, we will see more partnerships between big players and startups. Despite the fact that many banks have come to realize the inefficiencies in their businesses are the result of outdated technology, such issues are unlikely to be resolved internally in the near future. That suggests we will see more big banks leveraging emerging technologies like AI, which can help them better make use of their own data, from external providers. One of the most straightforward ways to do this would be to turn to companies banks are already collaborating with, as JPMorgan was doing with Mosaic. As such, we can expect to see more big banks announcing formal partnerships with startups already participating in their incubator programs going forward.
Maria Terekhova, research analyst for BI Intelligence, Business Insider’s premium research service, has compiled a detailed report on core banking system overhauls that:
- Looks at how legacy systems’ structure, and how it makes effective data handling impossible.
- Explains how new generation core systems are optimized to help banks make the most of their data.
- Gives an overview of how banks should go about moving their organizations to new core systems.
- Discusses the most common risks of overhauls, and how to avoid them to reap the benefits.
Interested in getting the full report? Here are several ways to access it: