Guggenheim Investments-Led Funding Enables OnCorps to Deliver AI Across Financial Services Operations
Jay Hooley, former CEO and Chairman of State Street Corporation, joins OnCorps Board of Directors
BOSTON–(BUSINESS WIRE)–OnCorps, Inc., a leader in applying artificial intelligence to financial services operations, today announced the close of a Series B investment round led by Guggenheim Investments on behalf of certain of its managed accounts. Guggenheim Investments is the global asset investment and advisory arm of Guggenheim Partners, LLC, with more than $271 billion* in assets under management. OnCorps today also announced that Jay Hooley, who served as chairman and CEO of State Street Corporation from 2010 to 2018, will also be participating in the round and will join the OnCorps board.
Financial services firms struggle to improve profitability by reducing costs while scaling. The bottleneck is often operations workflows, which are burdened with legacy systems, increasing operational complexity, proliferating data, and rigorous regulatory demands. Making matters worse, operations departments are experiencing up to 30% turnover, unable to retain staff asked to perform highly repetitive tasks.
Some financial services firms have turned to Robotic Process Automation (RPA) to address these challenges, but these off-the-shelf automation tools have fallen short in meeting their needs. Without complex artificial intelligence customized for these specific use cases, traditional RPA tools generate large volumes of false positives, creating more work for analysts and perpetuating upstream issues versus resolving them.
“There is a tremendous opportunity to automate very complex business processes in the financial services industry,” said Jay Hooley, former CEO and chairman of State Street Corporation. “Existing solutions have helped but fall far short of true end-to-end process automation. OnCorps has demonstrated the ability to solve these problems with industry-specific algorithms and has the potential to transform the way operations teams function across the industry.”
OnCorps has seen strong adoption of its Fintech AI software, successfully deploying algorithms to lower the risk and cost of financial service operations and growing its customer base to an aggregate of over $11 trillion in assets under management. OnCorps products have reduced labor hours on operational tasks by over 90% and have identified several errors over 100 million dollars across a wide array of critical operations processes. The company currently applies AI to reconcile contracts and reduce settlement times for OTC derivatives, automatically review financial reporting, identify NAV accounting errors in millions of rows of data, and predict late NAV delivery.
“We are excited to support OnCorps’ strategy to partner with financial services firms,” said Evan Cummins of Guggenheim Investments. “Conventional RPA solutions fall short in complex organizations. OnCorps has the AI expertise and software necessary to bring value to its Clients by providing a creative and unique solution.”
OnCorps will use the funding to broaden the use of AI algorithms across the financial services sector and invest in new AI research to continue reducing cost and minimizing risk in financial services operations, while continuing to support the world’s leading asset managers.
“We are delighted to have Guggenheim Investments and Jay Hooley as new investors and partners. They bring significant experience and connections that will help us scale our operational AI solutions across the industry,” said Bob Suh, OnCorps’ CEO and founder.
About OnCorps, Inc.
OnCorps’ mission is to elevate work and performance by applying AI to handle predictable and laborious calculations, decisions, and tasks across the financial services industry. OnCorps clients manage over $11 trillion in assets, and have used advanced AI solutions to reduce labor costs by over 90 percent and identify millions in reporting errors. The firm works closely with scientific advisors from Yale, Harvard, and Oxford to formulate and rigorously test new algorithms; results from research on behavioral AI have been published in the Harvard Business Review and other journals. The firm’s innovative algorithms have earned OnCorps the 2019 NOVA Award by Nicsa and the 2019 Fintech Breakthrough Award for best banking infrastructure software. OnCorps is a 2022 member of the MassChallenge FinTech accelerator.
About Guggenheim Investments
Guggenheim Investments is the global asset management and investment advisory division of Guggenheim Partners, LLC with more than $271 billion* in total assets across fixed income, equity, and alternative strategies. We focus on the return and risk needs of insurance companies, corporate and public pension funds, sovereign wealth funds, endowments and foundations, wealth managers, and high-net-worth investors.
*Assets under management is as of 12.31.2021 and includes leverage of $20.7bn. Guggenheim Investments represents the following affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Funds Distributors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Corporate Funding, LLC, Guggenheim Partners Europe Limited, Guggenheim Partners Fund Management (Europe) Limited, Guggenheim Partners Japan Limited, GS GAMMA Advisors, LLC, and Guggenheim Partners India Management.
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