Bond pricing is a real, long-standing challenge for traders. Making profitable trades hinges on being able to accurately calculate bond price movements, which can be achieved by utilizing AI models as part of the decisioning process. However, for traders to adopt AI models, it was imperative that all models were explainable at each moment to traders and business executives.
Royal Bank of Canada implemented a comprehensive ModelOps capability to support its municipal bond trading operations by providing transparent, interpretable, and easily accessible information that allows traders to make confident recommendations.
With this successful pilot, the team embarked on an AI operationalization strategy to provide consistent AI model deployment, scoring, governance, and monitoring across the enterprise.