Fintechs using Artificial intelligence in wealth management to discover FIRST investment opportunities, categorized by their focus (excerpt from the article “AI in Wealth Management” on Daily Fintech):
The financial answering machine, Kensho, which we profiled a year ago in Kensho: Warren is like Watson and Siri, for analysts, investors and traders, is using a natural language based algorithmic technology. It is clearly a threat to financial analysts and to asset managers, whose ability to process and interpret financial information maybe replaced by a machine. Kensho and Aylien based in Dublin, are both faster and can extract value from text by using deep learning techniques. They process news and media info, research and business documents. Palo Alto-based Sensai, also uses natural language processing to help companies analyze unstructured data, such as corporate documents, transcripts and social media.
Focused on sentiment analysis that generally uses NLP and statistics and machine leanring, Sentifi, is a Swiss based company that uses crowd sourcing algorithms to provide actionable investment advice to large financial institutions and to financial media companies. They currently offer 4 products: myMarkets; myPublishing, myCompany, myScore.
Amareos from Hong Kong, also contributes to financial decision making based on sentiment analysis (heatmaps and data visualization) with a tilt towards analytics and indicators used in trading systems and risk monitoring.
Combining sentiment analysis from crowd sourced data & quantum encryption, Running Alpha is offering a smarter way for seeing investment opportunities before they get noticed; helping investors be first at exploiting high-impact performance trends with confidence. They offer two sophisticated heat map products classified as Sentiment-Aware Portfolio Solutions: the Grid 100 and Focus 15. A subscription based serviced for retail and asset managers to generate alpha by shedding light into dark information (dark through a human eye lenses).
EidoSearch, a Canadian company using advanced pattern recognition by processing large data sets (crowd sourced info) and producing probabilistic predictive analytics. They recently announced a partnership with Stocktwits, to enhance their idea generation and risk management abilities; bringing to the masses more power to uncover investment opportunities before they are all priced in.
I know First, provides daily investment forecasts based on an advanced, self-learning algorithm. These powerful predictive analytics are based on Artificial Intelligence and Machine Learning with elements of Artificial Neural Networks and Genetic Algorithms; results are delivered on your mobile; another enhancement for DIY traders.
Clusters in real-time
For professional traders, to protect themselves from dark or speedy events like those hidden in HFT trading, flash cards, and other algorithmic activities; AbleMarkets research that can be used by fund managers, family offices, brokers and exchanges.
Another U.K. startup, AlgoDynamix claims it can warn you before the market undergoes a nasty selloff. It uses real-time data from exchanges, looks for patterns and searches for clusters of traders who are bailing out of an investment. AlgoDynamix provides clear and visual signals when sellers are gaining strength before a broad slide kicks in.
This is a taste of the powerful, even though incremental, changes in discovering investment opportunities. They are sourced from algorithmic enabling technologies applied in areas as natural language processing, behavioral finance, sentiment analysis, predictive analytics, pattern recognition. Business models of these fintechs are mostly subscription based and democratize the space of such technologies that were strictly available to large institutions.
Celebrating AI in digital asset &wealth management, continues. We started with ten picks for the discovery phase: Kensho, Aylien, Sensai, Running Alpha, Sentifi, Amareos, EidoSearch, I know First, Ablemarkets, AlgoDynamix.