OCBC has launched a new tool that uses artificial intelligence (AI) to pick stocks, the lender said on Tuesday (Jun 18).
The tool, which is known as AI OCBC Securities’ Customer Artificial Intelligence Radar (AI Oscar), is able to predict stock price movements and generate personalised stock ideas.
It uses deep learning algorithms to identify and foresee market patterns in order to develop a thorough understanding of an investor’s trading patterns, said the bank.
Factors such as an individual’s risk appetite, past trading activity and demographic information are analysed to curate and produce a list of 15 personalised stocks every week from exchanges in Singapore, Hong Kong and the United States.
“This personalisation allows investors to filter stocks that are highly likely to meet their trading preferences and criteria and to immediately act on the idea by making a trade,” said OCBC.
AI Oscar was trained with data from over 4,000 stocks listed on the Singapore Exchange, Hong Kong Exchange, the tech-rich Nasdaq, New York Stock Exchange, and NYSE American.
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The data set, which is updated daily, includes information on stock fundamentals, macroeconomic conditions, market patterns and technical indicators related to the stocks.
OCBC also said it aims to triple its base of active young investors over the next three years through the use of the tool.
It noted that trading activity among young investors under 35 years old increased 50 per cent during the pilot period of the tool – October 2023 to April 2024.
Young investors also opened more than half of all new trading accounts in 2023, the bank said.
Wilson He, managing director of OCBC Securities, said: “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 distil it into actionable trading data.”
He added: “Being able to do so quickly is especially important in today’s fast-paced world.”
Shares of OCBC were trading up 0.7 per cent or S$0.10 at S$14.24 on Tuesday, before the mid-day trading break.
