Brokerage houses accelerate AI transition

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Brokerage firms are expediting their investments in artificial intelligence (AI) to better navigate the digital transition.

According to industry sources, Sunday, Mirae Asset Securities plans to establish a global office for AI strategy in November.

The office will open in New York as a separate corporate entity, operating independently of the securities firm's existing entity in the city, which has been responsible for investment activities.

"The new office serves Mirae Asset Financial Group's vision for AI-based digital transition," the company explained.

Shinhan Securities scouted an AI expert from Samsung SDS in July after launching a division a month earlier to oversee all AI-applied projects.

"We expect to use AI on mobile trading systems and other digital technology-based services that are in high demand among clients," the company said.

Earlier this month, Eugene Investment & Securities signed a memorandum of understanding with Moat AI, a Seoul-based company that develops customized AI programs for financial firms.

The two sides already have a partnership in AI-based private banking services.

NH Investment & Securities spent billions of won to acquire a stake in Quantec, a software developer specializing in AI-based investment, in November 2023.

They focused on developing robotics algorithms and jointly launched pension and savings plans in May.

Industry insiders urged the government to provide more support and revamp regulations that may hinder the development of AI-based services to help securities firms enhance such services.