In this recent interview conducted during the Digital Leaders Week 2024, Pietro Scibona, Deputy General Manager of Banca del Sempione SA, shares his perspectives on leveraging artificial intelligence in asset management. He reflects on two years of successful collaboration with MDOTM Ltd and discusses how AI-driven discretionary mandates are reshaping investment strategies.
It has been two years since Banca del Sempione launched an AI-driven discretionary mandate leveraging MDOTM Ltd’s technology. Where do you see AI’s greatest impact in investment decision-making? And in which areas is it leveraged?
The primary impact lies in the efficiency that the AI-managed model introduces, enabling improved asset management performance compared to the established benchmark. At Banca del Sempione and at Sempione SIM we have launched a balanced asset management mandate through a "multi-line" contractual structure where the single portfolio can be a whole or one of the parts of the portfolio based on the customer's choice. This mandate has the following limits: maximum equity exposure 50%, ETFs instead o actively managed funds, limited portfolio rotation.
With AI’s growing influence in investment decision-making, how do you ensure that the use of this technology remains aligned with the personalised service and human touch that your clients expect?
The MDOTM balanced management mandate does not, except in exceptional situations that are not contractually excluded, involve human intervention. Therefore, the discretionary part is left in the definition of the asset allocation, i.e. in the choice of the individual portfolios making up the whole portfolio.
What factors influenced your decision to collaborate with MDOTM as a partner to launch an AI-driven discretionary mandate?
Primarily, there is a strong interest in exploring a new approach to defining decision-making processes— a model that is gaining traction not only in the financial sector but also as a framework designed for significant growth. Additionally, we believe this approach could serve as an effective sales tool by offering a practical application of AI.
How does the cooperation between Banca del Sempione and MDOTM foster an environment where transparency and AI explainability are prioritised?
We believe that making a broad disclosure regarding the fact that the AI balanced portfolio is managed on the basis of an advisory agreement where human intervention is avoided (except for exceptional events) is a way to be transparent with the customer.
Looking ahead, how do you see the role of AI in the investments industry evolving? What trends do you anticipate will shape the future of AI-driven investment strategies, and how is Banca del Sempione preparing for them?
We have yet to fully understand how AI might evolve to support investment decision-making processes. However, we are complementing the portfolio described here with a series of analyses and checks, leveraging theALICE platform (MDOTM) across other portfolios. While we may still be some distance away, incorporating AI-driven support in defining asset allocation—especially under less rigid limits—could represent one of the possible future developments.
As the investment industry evolves, Banca del Sempione remains at the forefront, exploring the transformative potential of AI. With a commitment to transparency, innovation, and client-focused solutions, the partnership with MDOTM Ltd exemplifies how technology can drive growth while respecting the human touch. This journey marks just the beginning of how AI will redefine investment decision-making in the years to come.
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