Technology

The data science revolution is sweeping the investment industry. Some firms are looking to create an in-house solution combining artificial intelligence, machine learning and data science. Picking the right data set, and separating the wheat from the chaff, is critical. 

The first day of the 2023 ALFI European Asset Management Conference heard from the head of the European Securities and Markets Authority, Verena Ross, and included panels on the impact of blockchain and digital assets, as well as corporate taxation.

A survey conducted among 300 investment institutions, including asset managers, asset owners and insurance firms, has found a mixed understanding of digital assets among investment professionals. The results point to different levels of readiness to using digital assets and investment technology.

Communication technology continues its rapid development, but it’s inevitably affected by the world that it serves, so it must contend with concerns about sustainability and the impact of the economic situation, as well as the legal context. The emergence of ChatGPT as a new form of artificial intelligence might promise much, but it may misuse others’ content, Deloitte argues in its outlook for Telecoms, Media and Technology, or TMT.

The European Investment Bank has issued its first natively digital bond denominated in British pounds. The EIB raised 50 million with the bond, which has a duration of two years and bears a floating rate of interest.

BNP Paribas, HSBC and RBC Capital Markets are the joint lead managers. The syndicate was advised by Allen & Overy. EIB was advised by Clifford Chance.

High hopes for crypto’s ability to revolutionise the financial world were dealt a harsh reality check with the collapse of the FTX cryptocurrency exchange last year. With Luxembourg having early on placed a bet on crypto, some have suggested it could suffer reputational damage. New regulation including the European Union’s MiCA regulation however may offer a way to do crypto safely, Thursday’s debate at Swissquote’s Luxembourg event heard.

Swissquote Bank Europe has become the first Luxembourg bank to be able to offer depositary services to digital asset investment funds, having obtained CSSF regulatory approval to act as a depositary bank for Luxembourg-domiciled funds along with its status as Vasp, or regulated Virtual ASset Provider.

Tokenisation has served as the “acceptable face” of blockchain, with its association with cryptocurrency, with its slightly tawdry reputation. While critics say that using blockchain over a simpler tech solution involves spending unnecessary money, time and effort, others say it opens up interesting possibilities and can actually bring you benefits. Many innovative companies embed the technology in their business plan. Luxembourg has made a tremendous push in this area, including introducing new supportive legislation.

Fintech firms see a role for themselves in assisting and enabling the Luxembourg financial centre’s strong move towards sustainable investing, but call for collaboration and support from the financial industry and the Luxembourg government to make this work.

A Kenya-based fintech-agritech firm called Hello Tractor has emerged as the winner of the fifth edition of Catapult: Inclusion Africa, a week-long financial inclusion bootcamp that is part of an accelerator programme developed by the Luxembourg House of Financial Technology.