Highlights –

  • Both the companies – Nvidia Corp. and Deutsche Bank AG are planning to accelerate the adoption of ML and AI in different financial areas, still the most promising one seems to be the risk model development.
  • This innovative partnership between the two organizations has been developing for past 18 months, aiming to advance across cloud technology and more such fields.

On December 7, 2022, Nvidia Corp. announced a multiyear innovation partnership with the German Deutsche Bank AG. Both the organizations intend to accelerate the use of artificial intelligence and machine learning technologies in the financial services industry.

The partnership announced is all about fulfilling the potential of AI and machine learning in the banking industry. The two companies have started working on the partnership for the last 18 months, they plan to develop a wide range of regulatory complaint AI-powered services. Their efforts together will implement AI-driven digital transformation and also bring in the faster decision-making around cloud migrations.

Though these organizations are planning to collaborate in many different areas, but the maximum potential is seen in the risk model development. There are many important tasks in the banking sector such as model backtesting, price discovery, risk valuation and all such calculations are performed using the central processing unit-driven server grid farms.

But now Deutsche Bank plans to replace this with Nvidia’s tech expertise spanning accelerated computing, powered by graphics processing units and coupled with AI. This will empower traders to manage risks better by running far more scenarios more quickly and efficiently. Many functions that are processed overnight like risk valuation, will now be executed real-time owing to Nvidia’s accelerated compute intelligence.

More about the collaboration mentions, that Deutsche Bank says it will leverage the Nvidia AI Enterprise Platform that helps in streamlining the development of AI models on-premises or in the cloud. Also attached will be the flexibility required to run AI workloads wherever they’re required – the bank explained.

The Germany-based bank is also looking out for the ways which use AI to deliver new and interactive experiences for potential recruits, employees, and customers using 3D online avatars. Deutsche Bank is also using Nvidia’s Omniverse Enterprise platform to create a 3D virtual avatar to help new employees navigate internal banking systems and respond to queries from the HR department. In the future, this collaboration will also work to create additional immersive metaverse experiences for the banking clients, with digital avatars and virtual assistants driven by AI.

One important aspect that the Bank is looking into is the extraction of useful insights from the masses – of the unstructured data it collects. It is well-proven that AI performs well in the case of data analytics, but the problem of banks is that the existing models don’t perform well in case of unstructured and financial texts. To improve this, the bank is looking forward to use new neural networks known as “transformers”. A single pretrained transformer model is capable of performing amazing tasks already, including text generation, software programming, and also translation.

As of now, Deutsche Bank in collaboration with Nvidia has performed testing of collection of AI models called, “Finformers”, or financial transformers. It can tap unstructured data to identify signs of counterparty risks, fraud, problems with data quality and more.

Deutsche bank wants to develop, foster, and promote explainable and responsible AI models that can expand understanding of AI predictions in financial services. The company also mentions about the plan to work with Nvidia to expand its existing internal AI center of excellence for executing the experimentation and development of AI services plus the professional skills development.

Experts’ say

“Accelerated computing and AI are at a tipping point, and we’re bringing them to the world’s enterprises through the cloud,” said Nvidia founder and Chief Executive Jensen Huang. “Every aspect of future business will be supercharged with insight and intelligence running at the speed of light. Together with Deutsche Bank, we are modernizing and reimagining the way financial services are operated and delivered.”

“This partnership is a significant step forward in our AI and ML ambitions,” said Bernd Leukert, a Deutsche Bank board member responsible for technology, data and innovation.