Artificial intelligence (AI), with its ability to process enormous amounts of data, is a natural fit for the financial services industry. PwC reported that in its 2017 Digital IQ Survey, "about half (52%) of those in the financial services industry said they're currently making 'substantial investments' in AI, and 66% said they expect to be making substantial investments in three years."
PwC also found that about "three out of four (72%) business decision makers believe that AI will be the business advantage of the future."
Analytixinsight Inc. (ALY:TSX.V; ATIXF:OTCQB) is in the vanguard of the AI movement in finance. According to the company, its CapitalCube.com portal, by utilizing artificial intelligence, "provides comprehensive company analysis, including on-demand fundamental research, portfolio evaluation and screening tools, on over 50,000 global equities and North American ETFs."
The portal works on a "freemium" model, providing free basic financial information, while subscribers access in-depth analysis and predictive analytics.
"We invested because AnalytixInsights had a modest market cap and strong management." – Steve Palmer, AlphaNorth Asset Management
AnalytixInsight states CapitalCube is "designed to empower investment ideas by providing in-depth analysis, peer-to-peer performance evaluations, accounting and earnings reports, dividend strength and AI-supported information about likely corporate actions such as dividend changes, share buybacks and acquisitions."
The company notes that CapitalCube publishes more than 3,000 articles daily and tracks about 2 million user sessions per month. Its content partners include Yahoo Finance, the Wall Street Journal, Thomson Reuters and the Euronext stock exchange.
AnalytixInsight also has partnered with Italy's largest retail bank, Intesa Sanpaolo, to create MarketWall, a real-time stock trading and mobile banking app. The app integrates with Intesa Sanpaolo's MarketHub trading platform, and brings together CapitalCube's company analysis with real-time stock trading data.
The company reports that in the first half of this year it expects to roll out MarketWall to Intesa Sanpaolo's 8 million stock-trading clients. Through a partnership with Samsung, the app will be preloaded on some devices.
The company has also indicated that MarketWall may spinout as a publicly traded FinTech company.
Toward the end of 2017, AnalytixInsight announced that it has taken on blockchain initiatives. The company reported that it is evaluating using blockchain "distributed ledger technology to reduce transaction costs and settlement times for its users and partners in CapitalCube and Marketwall."
AnalytixInsight believes blockchain holds the potential to disrupt the current settlement system, speeding it up and lowering costs.
Steve Palmer, founder, president and chief investment officer of Alpha North, is an investor in AnalytixInsights. He told Streetwise Reports that there are very few was to play the artificial intelligence (AI) space in Canada. "We invested because AnalytixInsights had a modest market cap and strong management—Chairman and CEO Hariharan Prakash was previously a successful fund manager for many year and understands junior equity markets.
"The company has contracts with major companies. Revenue is highly scalable. We also liked the fact that the company was at an inflection point of reporting a net profit," Palmer added.
AnalytixInsight has 69 million shares outstanding and a market cap of approximately CA$34 million.
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1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She or members of her household own shares of the following companies mentioned in this article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with AnalytixInsight.
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