ING Spins Out Fixed Income Portfolio Analytics Service
ING’s advanced analytics tool for Fixed Income is to become London-based Katana Labs. ING Ventures will provide a £1.5 million scale-up loan as part of a £3 million funding round, and sell its majority stake in Katana to third-party investors.
“A growing number of clients are discovering the advantages of using advanced analytics in decision-making. It enables them to work faster and more efficiently,” said Santiago Braje, CEO of Katana and former head of Credit Trading at ING. “Supported by ING Labs, we developed, tested and validated the technology. Now it’s time to move to the next phase as an independent fintech. We are very excited about the opportunities we see in developing our platform and expanding our client base.”
Katana uses predictive analytics to help traders decide what price to quote when buying and selling bonds for their clients. This is based on historic and real-time data.
Katana was developed by ING’s Financial Markets Global Credit Trading team in London and the bank’s Wholesale Banking Advanced Analytics team. The teams tested and validated the technology within ING Labs. In 2018, ING launched Katana Lens, a buy-side tool, which uses an algorithm that learns from the history of hundreds of thousands of trades and identifies the most promising ones. By going through all the pairs of bonds and taking each ‘buy’ and ‘sell’ combination as a possible investment, it simplifies the selection process for investors, who are presented with a prediction or suggested decision.