Bank of America announced this week that it will partner with the MIT Sloan School of Management’s Laboratory for Financial Engineering (LFE) to use cutting-edge financial analysis to drive innovation in financial services.
Funding from Bank of America will support multiple quantitative research efforts at the LFE involving computational finance, quantitative analytics and risk-reward tradeoffs. The collaboration promises Bank of America an early look at game-changing research important to both banking activities and customer experience.
“Bank of America is investing in the future of banking,” Susan Faulkner, Deposits & Student Lending executive at Bank of America, said in a statement announcing the collaboration. “We believe that the results of our collaboration with MIT Sloan will have long-range significance for changing the face of banking as our customers know it.”
MIT Sloan Professor Andrew Lo, a leading figure in financial theory and practice, will direct the new research agenda. With information provided by the Bank, the LFE will be able to develop and analyze theoretical models of the current market environment, including the recent turmoil in credit markets and the hedge-fund industry, Lo said.
“We seek to engage in research that is both rigorous and relevant,” Lo continued. “The best way to do that is by working directly with industry to take on research challenges that have significant implications for both theory and practice.”
The new collaboration between Bank of America and MIT Sloan’s LFE is part of the Center for Future Banking, which was established at the MIT Media Lab in March.
To learn more about the Laboratory for Financial Engineering at MIT Sloan, click here.
