OCBC, one of Singapore’s leading banks, has recently unveiled a new tool to boost stock trading using artificial intelligence (AI). The tool, called A.I. Oscar, is powered by an AI engine that has been trained on data from stock exchanges across three global markets: Singapore, Hong Kong, and the US. The AI platform uses data from 4,000 stocks listed on these exchanges, spanning over 10 years' worth of stock fundamentals, macroeconomic factors, market patterns, and technical indicators. This wealth of data allows A.I. Oscar to predict stock price movements and generate personalized stock picks for users based on their risk profile and trading patterns.
The training data for A.I. Oscar is updated daily to ensure the AI platform remains current and accurate. OCBC’s team of data scientists and trading strategists constantly fine-tune the AI model using the latest techniques to improve its prediction accuracy and market understanding. This continuous refinement ensures that A.I. Oscar is able to generate a list of 15 stocks each week that are highly likely to meet the user’s trading preferences and criteria.
Marketed as a tool for self-directed investing, A.I. Oscar is available as a free service for OCBC Securities' customers through the iOCBC mobile app, iOCBC online trading platform, and email. The bank hopes that the launch of A.I. Oscar will help increase the number of active customers under the age of 35 by triple over the next three years. Last year, 97% of all trades made by this customer segment were processed through digital platforms, indicating a clear preference for online trading. Additionally, young investors opened more than half of all new trading accounts in 2023. A.I. Oscar aims to cater to this growing market of digitally savvy investors who prefer a self-service model.
According to OCBC, the use of AI in stock trading provides numerous benefits over traditional rule-based models. A.I. Oscar’s ability to identify patterns in data allows it to create dynamic prediction parameters, adapting to the ever-changing market conditions. The platform is powered by deep learning algorithms that utilize neural network models, enabling it to analyze vast amounts of data and make accurate predictions.
Wilson, the managing director of OCBC Securities, stated, “Investors already have access to a wide range of information, but the challenge lies in being able to find the information relevant to them and to distill it into an actionable trading idea. A.I. Oscar addresses this need, and we expect it to become an indispensable tool, especially for digitally savvy young investors who prefer the self-service model.” The AI tool not only provides investors with stock ideas but also serves as a starting point for discussions between the bank’s trading agents and customers.
The pilot phase of A.I. Oscar, which focused on Singapore stocks, took place from October 2023 to April 2024. After a successful trial, OCBC expanded the tool to include the US and Hong Kong markets. During the pilot phase, trading activities among investors under the age of 35 increased by 50% compared to the months before the trial last year. This demonstrates the effectiveness and appeal of AI-powered tools in the realm of stock trading.
OCBC’s introduction of A.I. Oscar reflects the growing trend of incorporating AI technology into financial services. With its ability to analyze vast amounts of data and make accurate predictions, AI holds tremendous potential in improving investment decision-making and empowering self-directed investors.
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