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Artificial Intelligence for finscience.com MONITORING QUANTAMENTAL INVESTING through Alternative Data

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Page 1: Artificial Intelligence for MONITORING QUANTAMENTAL ... · MONITORING QUANTAMENTAL INVESTING through Alternative Data. ARTIFICIAL INTELLIGENCE FOR THE DATA-DRIVEN GROWTH OF YOUR BUSINESS

Artificial Intelligence for

finscience.com

MONITORING

QUANTAMENTAL INVESTING

through Alternative Data

Page 2: Artificial Intelligence for MONITORING QUANTAMENTAL ... · MONITORING QUANTAMENTAL INVESTING through Alternative Data. ARTIFICIAL INTELLIGENCE FOR THE DATA-DRIVEN GROWTH OF YOUR BUSINESS

ARTIFICIAL INTELLIGENCE FOR THE DATA-DRIVEN GROWTH OF YOUR

BUSINESS

«The Digital Era may lead to uncertainty for some businesses - whereas it may open new opportunity doors to newborn firms, or to companies able to renew themselves by achieving a childlike state of mind and

challenging their established processes, both internal and external.

This applies to financial institutions and listed companies as well»

The availability of information - before itturns into mainstream news - is what makes

the difference in investments.

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The Alternative Data.

Artificial Intelligence to innovate Investment Models and Strategies.

Alternative Data is non-traditional and truly “big” data, often unstructured.

This data originates in digital environments, such as social platforms, blogs, forums, e-commerce platforms,

maps, etc.

Alternative Data can be used to makeinvestment decisions, in addition to traditional balance sheets, quarterlyreports, stock data and analyses such

as prices and volumes.

These data are hard to gather and analyse without a proper software

applying an algorithmic approach to digital information. This requires

specific skills, unique professionalisms and state-of-the-art

technologies.

Page 4: Artificial Intelligence for MONITORING QUANTAMENTAL ... · MONITORING QUANTAMENTAL INVESTING through Alternative Data. ARTIFICIAL INTELLIGENCE FOR THE DATA-DRIVEN GROWTH OF YOUR BUSINESS

FinScience is a data-driven fintech company founded in 2017.

by former senior managers of Google and Alternative Data experts.

CO-FOUNDER & CEO

FABRIZIO MILANO

D’ARAGONA

CO-FOUNDER & CHIEF SALES

OFFICER

CLAUDIO

ZAMBONI

CO-FOUNDER & CHIEF OPERATIONS

OFFICER

MAURO ARTE

CO-FOUNDER & GENERAL MANAGER

ALESSANDRO ARRIGO

CHIEF MARKETING OFFICER

MARCO

BELMONDO

UGO PASTORI

FinScience starts out as a merger of the worlds of Finance and Data Science. It leverages theexperiences of the founders of 3rdPLACE concerning Data Intelligence , Data Modeling andData Governance solutions. These are further enriched through the involvement in theconsorzio europeo SSIX (Horizon 2020 program) that focuses on the building of a SocialSentiment Index for financial purposes.

FinScience is part of Datrix Group.

HEAD OF INVESTMENT RESEARCH

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Digital and financial expertise…

DataScientists

ESGSpecialists

Big DataArchitects

QuantitativeFinancialAnalysts

Digital & Alternative Data

Experts

…to win in an «information intensive» market.

Page 6: Artificial Intelligence for MONITORING QUANTAMENTAL ... · MONITORING QUANTAMENTAL INVESTING through Alternative Data. ARTIFICIAL INTELLIGENCE FOR THE DATA-DRIVEN GROWTH OF YOUR BUSINESS

What we do.

FinScience is the Investment Artificial Intelligence lab.

1. Information Solutions (Alternative Information Provider)

2. Operational Solutions (Quantamental Investment Strategy & Testing)

> indexes and monitoring systems,> «alternative» signals and scorings on individual enterprises, top

management, specific products and/or topics of general interest (e.g. Brexit, spread, ESG).

> models, strategies, > smart beta indexes and investment portfolios based on the Quantamental

combination of Alternative and traditional data (e.g. Stock Exchange data, financial reports and quarterly balance sheet, open data).

Our technologicalinfrastructure iscloud-based -flexible and

scalable.

FinScience is the only Italian one selected by siliconrepublic.com among the 25 European deep-tech start-ups to watch in 2019.

FinScience is a data-driven fintech company that, through proprietary algorithms of Artificial Intelligence, analyzes, filters, interprets and weights financial alternative data and traditional data for investmentpurposes. In particular, we provide 2 types of software solutions and services:

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ALTERNATIVE INFORMATION

PROVIDER

QUANTAMENTALINVESTMENT STRATEGY &

TESTING

A.I.ECOSYSTEM

Digital Data Sources:(Open Data, Social Network, E-commerce, Blog, News, …)

FinScience AI Filter & Classifier• Topic Model• Entity Recognition• Influencer Classificator• …. ……

FinScience Data Lake

FinScience Indicators & Monitoring• DPV (expert, Investor, etc.)• Sentiment• Volatility• Highlights• ….

FinScience AI Recommendator• Digital Scores

• Alternative Data Portfolios• Alternative Data Buy Lists

• Weak Signals• Alert

• …

OUTPUT

Data, Signals & Insights

Selection

Alternative Data

TraditionalFinancial

DataQUANTAMENTALFRAMEWORK

SpecificAlternative

Data

NewFinancial

Data

• INVESTMENT MODELS OPTIMIZATION,

• ALTERNATIVE PORTFOLIOS,• BUY LISTS,• ……..

OUTPUT

BACKTESTING OPTIMIZER PREDICTION

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ALTERNATIVE INFORMATION PROVIDERMeasuring, monitoring and Alpha identification solutions.

finscience.com

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SOFTWARE

SERVICES

Our software solutions and services.

Page 10: Artificial Intelligence for MONITORING QUANTAMENTAL ... · MONITORING QUANTAMENTAL INVESTING through Alternative Data. ARTIFICIAL INTELLIGENCE FOR THE DATA-DRIVEN GROWTH OF YOUR BUSINESS

A software that monitors alternative digitalsignals – organized in portfolios, andaccessible through simplified dashboardsdisplaying digital and financial indicators.

Landscape

Your most active signals of the day

Our software solutions and services.

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Our software solutions and services.

Rapid access to alternative digital popularityand sentiment metrics, as compared withfinancial ones.

Landscape

Page 12: Artificial Intelligence for MONITORING QUANTAMENTAL ... · MONITORING QUANTAMENTAL INVESTING through Alternative Data. ARTIFICIAL INTELLIGENCE FOR THE DATA-DRIVEN GROWTH OF YOUR BUSINESS

Our software solutions and services.

Rapid access to alternative digital popularityand sentiment metrics, as compared withfinancial ones.

Landscape

Page 13: Artificial Intelligence for MONITORING QUANTAMENTAL ... · MONITORING QUANTAMENTAL INVESTING through Alternative Data. ARTIFICIAL INTELLIGENCE FOR THE DATA-DRIVEN GROWTH OF YOUR BUSINESS

Our software solutions and services.

A value-added solution regarding companies’market insights, and based upon aproprietary scoring system that entails theuse of alternative and financial data.

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Our software solutions and services.

Recommending the most relevant signalsonline that are associated with a companyand/or with a specific topic.

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Our software solutions and services.

A service for the provision of AlternativeData through APIs, intended to be integratedwithin third-party platforms.

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Our software solutions and services.

An in-depth advisory service concerningspecific on-demand signals which deserve amore thorough investigation fromFinScience’s specialists.

They may relate to:

• Stocks and Indexes (e.g. Tesla, S&P, etc.)• Specific topics/issues (e.g. ESG)• Industries/markets (e.g. italian Wine,

Beauty, etc.)

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Our software solutions and services.

A training course, available also remotely,with practical excercises on the technologiesand utilization of Alternative Data, designedto sharpen specific skills and obtain a solidbusiness value.

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QUANTAMENTAL INVESTMENT STRATEGYAlternative approach to investment strategies.

finscience.com

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Our software solutions and services.

SOFTWARE

SERVICES

MODELS, OUTLOOKS AND PORTFOLIOS

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Our software solutions and services.

Landscape

Boston Power

Opportunity assessments of the companiesthrough a «Hot» and «Cold» outlook,provided by a proprietary ArtificialIntelligence model.

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Our software solutions and services.

Advisory services based on Artificial Intelligence:

• Estimating parameters for asset allocation models,

• Risk management models,

• Statistical tests for predictive models and portfoliostrategies’ backtesting,

• Alternative thematic portfolios build uponrationales extrapolated from Alternative Data,

• White label investment solutions resulting from thecombination of Machine Learning models withAlternative and traditional data, from a«quantamental» perspective.

1. DATA

3. AI RECOMMENDATION

4. AI THEMATIC PORTFOLIOS

2. AI MODELS

TEX

TUA

L

FINA

NC

IAL

ALTERNATIVE DATA

THEMATIC(e.g.. Blockchain)

S&P 500

EURO STOXX 50

MODELS, OUTLOOKS AND PORTFOLIOS

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WHAT NEEDS WE ADDRESS?

finscience.com

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FinScience for financial advisory.

With FinScience we expand the information sets available to advisoryteams, financial consultants, and private bankers – in order to supplyvalue added solutions to clients, making sure to stand out from the crowd.

WHAT NEEDS WE ADDRESS

> Obtaining new investments ideas to offer to clients, regarding both individual securities and thematic portfolios (e.g. Blockchain, Industry 4.0),

> Sharing in an organized manner new contents and topics digitally «quarried» with potential financial impact,

> Helping advisory networks to enhance their activities with regard to the client, from a MIFID II perspective.

Technology supports advisory, it doesn’t replace it.

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FinScience for financial advisory.

Business Case. Financial Advisory process improvement.

INDUSTRY: WEALTH MANAGEMENT

Having a modern information set to meet the MIFID 2 demands in terms of the financial advisory quality (Investment Specialists - Private Banking -Financial Advisors)

NEED

> Provide a new platform that combines traditional and alternativedata,

> Create digital alerts that may improve the interaction between clientand bank consultant,

> Offer suggestions in support of the asset allocation or of theinvestment in funds/securities via machine learning models.

SOLUTION

ACTIONSupplying investment topics through FinScience’s dashboard or through API on third-party platforms that support the Wealth structure.

WIN: Active project under assessment.

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FinScience for Asset Management and Family Offices..

WHAT NEEDS WE ADDRESS

> Integrating the traditional set of financial data with new and alternative data/signals with high added value,

> Standing out from the crowd with innovative models to further improve yields,

> Facing up to the competition of passive products by diversifying risk factors.

Together on identifying Alpha.

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FinScience for Asset Management and Family Offices.

Business Case. Risk Management process refinement.

INDUSTRY: BANKING &

CONSUMER CREDIT

Improving the models by means of which risks connected to investmentdecisions are being minimized.

NEED

> Provide data and alternative indexes concerning the assets of interestvia API, and monitor any anomalies also with the use of FinScience’scloud environment,

> Track weak digital signals that may have an economic impact on thecompanies of interest,

> Redefine traditional sectors thanks to the use of alternative data (e.g.Dyson as car manufacturer).

SOLUTION

ACTIONCreating alternative risk scenarios and comparing them with traditionalrisk assessment methods.

WIN: Active project under assessment.

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WHAT NEEDS WE ADDRESS

> Tracking the market sentiment in relation to the listed company’ shares, by discerning its financial evaluation from its commercial assessment

> Managing potential misunderstandings rapidly and efficiently, and avoiding undesirable shocks and fluctuations in the financial market

> Monitoring the market’s digital sentiment with regard to competitors’ shares.

FinScience for Investor Relations.

Monitor and preventing.

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FinScience for Investor Relations.

Business Case. A 360° view of the alternative signals connected to a company. y

INDUSTRY: INVESTOR RELATIONS &

COMMUNICATIONS

NEED

SOLUTION

ACTION

Intercepting information potentially price-sensitive related to a company, its sector and/or its reference market.

> Cloud monitoring environment of informative signals concerning:Company/Brand to which they pertain, Competitors, Products andServices offered, Top Management, etc., and for each of them alsolegal/fiscal aspects indications, online perceptions, etc

> Ad-hoc analyses regarding particularly relevant topics,

> Anomaly detection: daily alerts of high information-volatility signalsand their related reference influencers.

WIN: 5 weak signals intercepted and managed.

Active monitoring system of all signals generated by FinScience’ArtificialIntelligence engine

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WHAT NEEDS WE ADDRESS

> Selecting prospects in response to a growth potential index, which enables the acquisition of contact priorities.

> Anticipating the needs of current clients with cross-an-up-sellingpropositions.

> Extracting ad-hoc contents and topics in order to tailor the offer to specific needs.

FinScience for Marketing & Sales.

Identifying key clients and proposing valuable offerings..

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FinScience for Marketing & Sales.

INDUSTRY: B2B CROSS-SECTOR

NEED

SOLUTION

ACTION

Business Case: B2B sales pipeline optimization.

Identifying a priority when approaching potential clients (new business) and/or existing clients (up/cross-selling)

Allocating a Score of growth potential on the market (Market PotentialIndex) to listen and non-listed companies, with the use of financial anddigital data,

> Exploiting Artificial Intelligence to provide market insights in support ofthe interpretation of the Score,

> Consultation and monitoring of what abovementioned through the useof FinScience’s software.

WIN: +12% Closed Deals in 6 months.

Optimized selling activity thanks to a prioritized list of prospects/clients enriched by alternative insights

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WHAT NEEDS WE ADDRESS

> Evaluating and apply a scoring to companies from an ESG perspective, based on independent and detailed analyses,

> Covering several businesses and topics,

> Providing historical data,

> Allowing comparisons between firmsoperating in different industries.

FinScience for ESG.

Identifying key clients and proposing valuable offerings..

IN COLLABORATION WITH GENOA CENTRE FOR LAW AND FINANCE

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FinScience for ESG.

INDUSTRY: LISTED COMPANIES, ASSET MANAGERS AND

ANALYSIS TEAMS

NEED

SOLUTION

ACTION

Business Case: B2B sales pipeline optimization.

Having an easy-to-read Score which considers also Alternative data whencomparing a certain level of ESG sustainability to that of other players on the market

> Alternative Scoring mechanism of ESG sustainability topics (currentlybased on ISO 26000),

> Monitoring of one’s own sustainability level and that of othercompetitors through FinScience’s software.

ESG-centered analysis of information signals concerning a company.

Awareness of the actual impact of the spendingfor sustainabilityand

increased attractiviness towards investment funds.WIN:

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FinScience for Aletrnative Data Training.

WHAT NEEDS WE ADDRESS

> Getting to know the most advanced methods and technologies of using data for investment purposes.

> Turning theory with into practice with FinScience’s software.

Raising competences concerning data from financial institutions.

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FinScience Value Proposition.

FINANCIAL ADVISORY

ASSET MANAGEMENT &

FAMILY OFFICE

INVESTOR RELATIONS & CORPORATE

COMMUNICATION

MARKETING & SALES

ESG, CSR, SRI MANAGERS

SOLUTIONS/TARGETS

RECOMMENDED ON-DEMAND

MODELS, OUTLOOKS AND PORTFOLIOS