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At a Glance
An NEC company, Avaloq delivers world class wealth management technology to leading financial institutions worldwide, offering innovative digital banking solutions uniquely developed and operated in house. These solutions are available through flexible cloud-based SaaS or secure on-premises models.
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Expert GenAI
At a Glance
An NEC company, Avaloq delivers world class wealth management technology to leading financial institutions worldwide, offering innovative digital banking solutions uniquely developed and operated in house. These solutions are available through flexible cloud-based SaaS or secure on-premises models.
Research area
Expert GenAIAvaloq is a leading provider of wealth management software and back-office services for global financial services and banking customers.
The lifeblood of finance, corporate actions are significant events initiated by a public company that materially affect its shareholders and securities. Yet communication regarding these actions can be fragmented, complex and often characterized by a large proportion of manual processing.
To address this, Avaloq worked closely with NEC Laboratories Europe to develop Avaloq GenAI Corporate Actions for Banking Operations, a NEC generative AI solution that automates the processing of corporate actions by harnessing the capabilities of large language models for complex tasks. Using LLM Explainer technology, the solution increased the efficiency of corporate action processing – reducing human error and accelerating how quickly corporate actions are communicated to Avaloq customers.
For the seven major types of corporate actions:*
- BIDS
- Corporate takeover bid
- DRIP
- Distribution of a dividend to shareholders
- DVCA
- Cash dividend
- DVOP
- Dividend option
- EXOF
- Exchange of holdings for other securities and/or cash
- TEND
- Tender, acquisition, takeover or purchase offer
- CONV
- Conversion of Securities
*Representing approximately 70% of corporate action traffic.
Reducing the amount of manual processing of corporate actions using AI is a game changer for the banking industry. Using agentic AI, we have demonstrated that automating complex banking processes is possible, improving service lifecycles for wealth management.
In the traditional approach for processing corporate actions, SWIFT messages, generated by custodians, were received by Avaloq corporate actions specialists who, after assessing their meaning and correctness, would manually extract information and enter it into Avaloq’s corporate actions platform for processing. SWIFT messages contain unstructured free text compiled from multiple input messages, and content varies depending on the category, type of corporate action and information in each message.
With Avaloq GenAI Corporate Actions for Banking Operations, NEC’s agentic AI automatically assesses the meaning and context of a message, analyzing it for errors. The SWIFT information is then extracted and populated into the appropriate fields on Avaloq’s corporate actions platform, where it is processed. Using metadata associated with each corporate action type and unique request, the platform automatically generates and sends notification messages to Avaloq customers.
LLM Explainer technology by NEC Laboratories Europe plays a crucial role in this process, providing references between the AI-generated information populating Avaloq’s corporate actions platform and the original SWIFT messages received from custodians. This enables Avaloq specialists to more easily validate corporate actions processing and execution, greatly reducing their workload and freeing them for more customer-centric activities.
Transforming a business-critical function of an enterprise organization with AI is a complex undertaking. We were able to accomplish this for Avaloq generating a tangible return in just 18 months – from the first feasibility study to final deployment – setting a new benchmark for this type of deployment.
Avaloq’s automation of corporate actions processing represents a pioneering approach to improving wealth management using AI, reaffirming Avaloq’s position as a leading innovator and trusted technology partner within the global banking industry.