01.09.2020

DWS Group Buys Stake In AI Fintech

  • DWS Group acquires a 24.9 percent stake in Arabesque AI Ltd, a company that focuses on Artificial Intelligence (AI) in portfolio management and finance
  • The Arabesque AI engine combines big data, machine learning, and high-performance computing
  • Next Step towards the Digitalization of Asset Management: DWS will also strengthen its AI knowledge and capabilities via a strategic partnership with Arabesque AI

DWS Group (DWS) has acquired a minority stake of 24.9 percent in Arabesque AI Ltd. The UK-based company focuses on Artificial Intelligence (AI) to predict stock price developments via its proprietary AI engine, combining big data, machine learning, and high-performance computing. In addition, both companies have agreed on a strategic partnership to enhance the capabilities of the AI engine, and to develop sophisticated AI-based investment solutions.

Both parties have agreed to maintain confidentiality on the price of the transaction and further financial details. Closing of the transaction has already taken place.

Key to the partnership will be the ongoing development of the AI engine, combining DWS’ investment expertise with Arabesque AI’s machine-learning and high-performance computing capabilities. Furthermore, innovative investment products and services that use the AI engine will be jointly developed. For this, both parties have agreed to establish an expert working group for ongoing collaboration. As part of the cooperation, both parties intend to work exclusively on new projects together. With this move, DWS strengthens its AI knowledge and capabilities going forward and – as promised at our Investor Update earlier in December – DWS will accelerate its digital readiness efforts.

“The strategic partnership with Arabesque AI is the next step towards the digitalization of DWS. It will clearly strengthen our digital capabilities and, in particular, our Artificial Intelligence know-how. We will be able to harness disruptive technology within the asset management industry for our advantage”, said Asoka Woehrmann, CEO of DWS. He added, “In the future, the AI engine will deliver innovative signals that will help us identify additional alpha sources, and will enable us to make smarter decisions.”

Dr Yasin Rosowsky, Co-CEO of Arabesque AI, said, “Artificial Intelligence is rapidly shaping global asset management, with investors increasingly exploring how to harness the power of AI technology to gain a competitive edge. We are delighted to welcome DWS Group as a strategic partner of Arabesque AI, combining their vast investment expertise with our AI technology to deliver market-leading AI powered portfolios and services.”

“This partnership will see us collaborate with DWS Group on innovative new AI-based solutions, as well as expanding the current capabilities of the Arabesque AI engine”, added Dr Qasim Nasar-Ullah, Co-CEO of Arabesque AI. “AI will transform portfolio management, and has the potential to further the mainstreaming of ESG across global markets.”

Last year DWS invested in a minority stake in Arabesque S-Ray GmbH, an ESG data provider, and entered into a strategic partnership for the development of new ESG data products and services. With this suite of investments, DWS is following through in strengthening its ESG and digital capabilities, as announced at last year’s Annual General Meeting.

Source: DWS

 

Related articles

  1. Cloud computing

    The bank can access data science, artificial intelligence and machine learning for new products.

  2. AiPEX with Watson simulates a team of analysts and traders to identify potential investments.

  3. Machine learning models systematically scan newly arriving, anonymized data to identify anomalies.

  4. OPINION: Artificial, Yes. Intelligent? Maybe.

    The Cobalt programme launched in 2018 to help fintechs collaborate with the asset manager.

  5. Users with different skill levels will be able to undertake machine learning and advanced analytics.