Shinhan Financial Group Launches Trust and Wrap Products Using AI Algorithms: "First in the Financial Sector"

On the 29th, Bae Jin-su, CEO of Shinhan AI, is subscribing to a newly launched investment product at a Shinhan Financial Investment branch. Photo by Shinhan Financial Group

[Asia Economy Reporter Kim Min-young] Shinhan Financial Group has launched trust and wrap products applying reinforcement learning artificial intelligence (AI) algorithms for the first time in the domestic financial sector.

Shinhan Financial announced on the 29th that it has launched the ‘Shinhan BNPP SHAI NEO Asset Allocation Securities Investment Trust’ and the ‘Shinhan NEO AI Fund Wrap’.

Since actively adopting AI in 2016, Shinhan Financial officially launched Shinhan AI, its 16th subsidiary aimed at providing diverse and innovative AI-based financial services, in September last year.

Shinhan Financial evaluated that ‘NEO,’ the AI investment advisory platform developed by Shinhan AI, quickly analyzes over 30 years of big data to predict financial markets and recommends optimal portfolios and products, possessing global-level competitiveness as an AI solution.

A Shinhan Financial official stated that the newly launched products are the first results that consolidate the AI investment advisory know-how possessed by Shinhan AI.

The trust product is an asset allocation-type public fund that pursues stable returns by adjusting the proportions of global developed country stocks, bonds, and commodities through deep learning and reinforcement based on market analysis data provided by NEO.

The wrap product is an advisory discretionary management product that invests in a domestic equity fund portfolio based on NEO’s global fund evaluation model and reinforcement learning algorithm, pursuing optimal returns reflecting risk.

Starting with the launch of these products, Shinhan Financial plans to expand to provide high-quality AI-based investment advisory services to more customers through various channels.

Additionally, Shinhan AI plans to expand its accumulated core AI technologies into various financial areas such as risk management and compliance, and to leverage Shinhan Financial’s financial know-how and digital new technologies to grow into a financial-specialized AI company with global top-level competitiveness and business viability.

Jinsu Bae, CEO of Shinhan AI, said, “We will lead a paradigm shift in investment through thorough model verification and advancement.”

This content was produced with the assistance of AI translation services.