Katana uses computational power and a machine-learning algorithm to scan the entire bond market systematically to detect anomalies, helping investors surface investment ideas and find opportunities faster. ING Ventures will invest a further £1.5m alongside other investors, as part of a £3 million funding round.
The advanced analytics platform that supports portfolio managers in making faster and sharper investment decisions will use the funding for its spin-out. Katana is one of the currently 25 different innovation initiatives nurtured in one of the ING Labs in Amsterdam, London and Singapore. It is the latest start-up originated by ING that enters the scale-up phase, following other projects such as Yolt and Cobase.
PGGM, one of the largest pension fund managers in the Netherlands, and other asset managers have been using the tool and providing ING with feedback and market validation since the design of the first prototype in January 2018.
Santiago Braje, former Head of Credit Trading at ING and CEO of Katana, commented: “A growing number of clients discover the advantages of using advanced analytics in decision-making. It enables them to work faster and more efficiently. Supported by ING, we managed to develop, test and validate 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 further and expanding our client base.”
Annerie Vreugdenhil, Chief Innovation Officer at ING Wholesale Banking, said: “At ING, when it comes to innovation, we step out of our comfort zone. We think big, start small and scale fast. In the past few years, Katana managed to grow from an internal innovation project to a serious value proposition for bond investors. We attracted major clients who see the added value of this super smart AI-tool. I’m proud that with our support Katana grew out to a fully-grown fintech that is ready for an independent future. A future that I’m sure will be very successful.”
ING Ventures is a EUR 300 million fund aimed at investing in fintech companies. Founded in 2017, the venture arm of ING Bank has reviewed 1007 business plans, backed 21 entrepreneurs who created 1690 jobs and reached 35 million clients (B2B) and 76.8k (B2B) clients.
