Banca Profilo powers discretionary mandates with MDOTM’s AI

By Robin Amlot

Milan-based Banca Profilo is adding three further discretionary mandates advised by London-based FinTech MDOTM. The three new discretionary mandates, differentiated by risk profile, reinforce the Italian private bank’s partnership with the advisory firm that started almost three years ago. The investment models developed by MDOTM leverage the power of artificial intelligence (AI) to study the relative performances and correlations of different asset classes and build better diversified and more adaptive portfolios.

The bank said the distinctive feature of the new discretionary mandates is the synergy between Banca Profilo’s own expertise in asset management and MDOTM’s assisted decision-making. MDOTM is a major European player in the development of AI-driven investment strategies for institutional investors. In 2017, it was selected by Google for its acceleration program in Silicon Valley.

Fabio Candeli, CEO of Banca Profilo said: “We chose to grow our offering of discretionary mandates that use artificial intelligence because we believe in the importance of combining human expertise with technological innovation.”

“We are extremely proud to strengthen our collaboration with Banca Profilo,” said Tommaso Migliore, CEO & Co-Founder of MDOTM – After working together for three years, we have developed the new mandates to efficiently blend with the bank’s current offering. As financial markets are becoming increasingly more complex, AI represents the best tool to harness the huge amount of data available and dynamically adapt to the constant uncertainty and volatility of today’s markets.”

MDOTM develops AI-driven investment strategies. Its clients, which are exclusively financial institutions, use MDOTM’s models in their investment decision process. MDOTM closed its first funding round in 2018, raising €2 million from a combination of institutional investors and finance professionals to fund its international scale-up. MDOTM Ltd is an appointed representative of Thornbridge Investment Management LLP which is authorised and regulated by the UK’s Financial Conduct Authority.