How Natural Language Processing (NLP) empowers for the Financial industry
Today, bank and Fintech partnerships are leading the way to the future of financial services. They mutually benefit from the joint innovations as both look to improve customer experiences and grow revenues. In 2021, Hang Seng Bank (Hang Seng) became a partner of the Banking, Financial Service and Insurance (BFSI) Accelerator (“The Programme”), hosted by the Global Acceleration Academy (GAA) under the Hong Kong Science & Technology Parks Corporation (HKSTP). The Programme matches financial corporates with HKSTP’s 1000-strong network of technology ventures and solutions to innovate new business models and enhance operational efficiency. As a local company, Hang Seng Indexes Company (HSIL) values and supports local FinTech startups intending to help accelerate the development of the Hong Kong FinTech ecosystem through partnerships. Recently, HSIL has joined hands with the AI-powered RegTech company – Wizpresso through the Programme. With its natural language processing (NLP) SaaS solution, Wizpresso can streamline the research processes and identify potential constituents for thematic indexes.
As Hong Kong’s leading index compiler covering Hong Kong and mainland China markets, HSIL has a rigorous requirement for data accuracy that involves massive manpower. The NLP solution, Wizpresso Discovery, targets the pain points of data crunching and transforms the research and index formulation process. NLP is the ability of a computer program to understand human language as it is spoken and written. The adoption of the AI-powered search engine can bring potential benefits, including the ability to :
Accelerate new index creation by identifying relevant constituents with customizable parameters;
Improve the efficiency of periodic index review cycles and reduce manual efforts;
Automate securities review upon index creation with full coverage of the selected index universe.
For its outstanding performance, Wizpresso received the Grand FinTech Award and the Gold Award in Regulatory Technology and Risk Management at the Hong Kong ICT Awards 2021, as well as being the HKSTP’s Elevator Pitch Competition (EPiC) 2021 FinTech Winner (1 out of 600 startups).
Wizpresso's technology can comprehend documents like how professionals would analyze paragraphs, tables, and charts to generate insights. Its AI can screen companies by themes and score them according to the data extracted from company filings, thereby automating and facilitating the periodic review of various indexes. Furthermore, through the use of cutting-edge deep learning technologies, securities reviews can be automated at indexes creation time. For example, using transformer-based machine learning techniques, the AI can instantly identify high-impact events from millions of documents that can be summarized in a dashboard. HSIL has used the solution to identify information hidden in texts that can easily be missed, extract critical information from a wide range of unstructured documents, and improve the efficiency of creating a new index.
HSIL also applies the technology of Wizpresso's in other areas. For example, it can process unstructured textual data, such as extracting financial information from non-editable files, classifying content, tracking changes, etc. At the same time, it automatically maintains the industry classification of 8,000 public companies across Hong Kong and mainland China and supports multilingual search across a wide range of document layouts.
We have seen great potential from the combination of finance and technology. Wizpresso is one of the best cases bringing energy to traditional banking and helping to drive innovation. With the customer-centric concept, Hang Seng has always adhered to adopt new technologies for new business opportunities. The unique situation brought by the blessing of FinTech allows us to hand-in-hand create a better future. If you have any catchy ideas, feel free to share them with us!