Startup Battlefield: Session 3 – Vise AI

I don't see you [Music] [Applause] There are over 400 000 investment Advisors in the United States managing Over 70 trillion dollars in assets But little has changed in the space over The past few decades Clients expect personalized portfolios Tailored to their needs but instead are Getting dumped into generic buckets of Mutual funds and ETFs Clients pay for individualized advice And education But advisors don't have the time tools Or technology to deliver Expectations have however changed over The past 20 years and the technology Hasn't been able to keep up However Advisors have been doing one thing right Though they've built lasting and trusted Relationships with their clients these Are attributes The tools or technology will never be Able to replace So we're introducing Vise AI Visai is an artificial intelligence Platform Tailored to investment advisors so they Can automate portfolio construction and Management If I say I empowers advisors to be able To build personalized portfolios around

Their clients values goals and dreams Here's a little bit more about how it Works Visai analyzes a client's investment Needs and builds them a personalized Portfolio of stocks bonds and other Assets we then provide the portfolio Intelligence for them to be able to Explain those investment decisions and The why behind their portfolio to the Clients all clients want to hear a good Story and to show you a little bit more Let's move to the demo Here's the dashboard where the advisors Can see key action items and data about Their clients but the core of the Platform is in the portfolio creator Here the advisors can seamlessly Transition existing portfolios from Their custodians into Vise AI we do all Of the work saving them the time and the Hassle Next we take a goal-based approach to Investing looking at the client's goals Risk criteria behavioral details and Others and building a customized Portfolio around those constraints Foreign We look at the portfolio structure Whether if it's asset class stock or Sector for example if the client works At Facebook they probably don't want Facebook options in their portfolio they Want a reduced exposure to textuality

And definitely don't want Facebook Next we look at the investment strategy Whether it's a value strategy or growth Strategy or any number of strategies we Can customize a strategy on a firm wide Basis or on a client-wide basis whether They want small crap growth or large cap Value we can build that in and embed it Perfectly into the portfolio Next the advisor can review the Portfolio here unlike a mutual fund or Equity manager we lift the hood off the Portfolio showing the advisor exactly What they're investing in and why They're investing in it we then show how The portfolio has performed through Different times like crash or The 2008 recession we'll then show them How the portfolio is expected to perform Over the next 20 years or the life cycle Of the portfolio and lastly and most Importantly we provide the portfolio Intelligence this is the story The Advisor needs to tell to their client The unique talking points and Justifications the advisor can give About the portfolio making them look Smarter and providing a better result If I say I automates all of the Management rebalancing and everything so The advisors can focus their time on What they do best building great client Relationships moving back to the Presentation

Unlike traditional models we don't just Look at historical data we couple Advanced quad models with machine Learning models to build a perfect Personalized portfolio to each client We then have a proprietary natural Language generation model where we can Look at how a previous model did to Explain and justify those investment Decisions using our portfolio Intelligence feature Our competition is mostly mutual funds And Equity managers mutual funds and Equity managers provide low differential To the advisor with highly generic and High fee portfolios Robo advisors at Service advisors Provide a digital advantage to those Mutual funds and Equity managers but They still don't provide the Customization and the True Value the Advisors really need and they're also High cost Just a Dream this is a reality We have partnered with Fortune 100 Financial institutions and a successful Trailblazer in space risk allies to give Us a distribution advantage to over 25 000 advisors We have a team Of We charge a low AUM fee of 20 basis Points selling direct to Investment Advisors

We have a team of top PhD researchers And quants from companies like Google Morgan Stanley E-Trade and others our Business team has a background with Companies like Wells Fargo and E-Trade And has run successful Financial Advisory firms in the past Our advisors have founded companies like Future advisor one of the first Robo Advisors in the space as well as adipar And other companies Feel free to visit us at and Refer us to your financial advisor we'd Really love it and we think you could Benefit as the client Okay judges [Applause] Can you talk a little bit about Um what testing you've done on your Models in terms of past portfolio Performance and with your guidance how The outcomes in terms of desired returns Might look different yeah it's a good Question so the one unique thing about Our company is that you know because We're building a personalized portfolio For each company for each client Everything is different right so it's Not like we're just testing one macro Strategy and how it's done over the past 20 years but we have seen that we have Really good risk adjusted returns so our Benchmark isn't necessarily Alpha it's The best risk adjusted returns of return

To lowest amount of risk and we've Tested that rather than just using kind Of overfitted back testing we're looking At like feeding the data in from a time Frame like 1990 and running the model Forward with new data so it's all fresh To the model and then training backwards So in most Industries customers need to Hear about something twice on average to Buy in fintech the trust is so low that Customers need to hear about it four or Five times so how are you thinking about Building trust building a true brand for The financial advisors that's a really Good question so part of it is we're Also partnered with the big custodians They work with so Charles Schwab E-Trade Fidelity all of those guys and they do a Lot of the work in terms of distribution Actually helping us sell this product And it provides us a significant degree Of credibility especially because we're Partnered with them and other firms How do you suggest changes you're not Going to like flash trade my account Right It's a good question so is the client Changes the advisor will enter that into Our system and we'll reallocate the Portfolio according to Kyle lost a job Their income change whatever maybe their Goals change they inherited some money Any number of different things or if the Market changes and we need to make a

Change we'll update the advisor as to Hey we're making a change and here's why But the one thing we don't do is Time-based rebalances because those have Been proven not to work Oftentimes with with the financial Advisors there's sort of a misalignment Between the economic incentives for the Advisors themselves and the best Interests of the clients how do you see This either helping realign everyone or Do you think it can't really impact it Yeah so That's a good question it's because a Lot of mutual funds provided loads which Are basically like referral fees for Those those funds being selected but That's a dying practice and advisors are Starting to realize that they've been Doing that for the last X number of Years and with new regulations like the DOL fiduciary World which actually got Shut down advisors are starting to have To become more and more of fiduciaries For their clients so right now most Tools aren't empowering them to be those Fiduciaries but we are because we're Providing that personalization and that Level of touch and also the ability for Them to better explain it so it builds More trust within the portfolio anytime Something new happens we're going to Alert them and clients love to get that Phone call from their advisor saying hey

You know this just happened with your Portfolio and your goal's been hit or You know here's how your you know stock Positions at Apple or Amazon or whatever Is doing and that the third piece is the Transparency Factor you know what most Advisors have been doing providing these You know Equity managed portfolios or You know mutual fund portfolios is if Clients don't understand what they're Investing in and why they're investing In it but with us we're creating a Transparent portfolio of individual Stocks and other assets where the Advisor can tell the client exactly what They're investing in and there's a very Transparent setting from in terms of the Fees where they know here's a set fee And it's getting billed directly to you And it's far cheaper than you know what Those mutual funds would be charging Which is in excess of a percent And is the dashboard only available to The advisor or is it also available to The portfolio owner it's only available To the advisor because all the other Technology in the space exists so we're Integrated with the companies that will You know provide it to the client but You know where the Innovations in the Space need to occur where they haven't Before is within Asset Management so This is an advice you're facing you know Interface and you know maybe eventually

We can you know go direct to client Books so tell us more about that why not Go direct a client do you feel like the Advisors you'd be recruiting first are Providing that much service on top of it And they really need to hand hold the Customer or more and more customers just Want to do more on their own so the Average account size of wealth front and Betterment is around thirty thousand Dollars what you notice is even with Millennials is as they start to accrue Assets They want to talk to a human about their Money and that relationship element is Incredibly important and it's not going Away you're actually seeing the Ria Space and Silicon Valley doesn't really Know this because there's two Focus Going direct to Consumer is that it's Growing at a rapid rate so the Ria space The independent advisors grew 17 last Year and they controlled an enormous Amount of the market so there are clear Assets and they aggregate a lot of Assets together so one advisor could be Managing 100 200 million dollars in Assets versus going direct to Consumer And acquiring 200 million dollars in Assets a lot harder as you've seen with The robo advisors Yeah the focus of our product is to Really just simplify the business for The advisor so they can focus on what

They love the most they're clients and Clients love that too yeah they're great At building relationships and that's Their strongest suit and we think that If we Empower that relationship and give Them the ability to act smarter and get More excited with their clients it's a Much better value proposition for both The client and for the advisor what's The purchase decision process when You're pitching a financial institution That has a bunch of investment advisors How do they make the decision on whether To buy and like what what are the kpis That's a really good question so we're Not necessarily just going to those Financial institutions just yet so if You're thinking the Merrell's Merrell Wedges or Goldman Sachs private wealth Management we're more thinking like you Know if you were to start a financial Advisory firm and get all your rich Friends together you'd be a client of Ours and there's like a ton of those Guys in the country so the way they like To evaluate processes is Let's test this Product out and see how well it works With one or two or three of my clients And then we're able to grow share of Wallet over a period of time so the Reason why we typically get a no is Because oh I'm just too busy working With my clients I don't have time to get On the phone with you but then once

We're able to get on the phone with them And really demonstrate our value Proposition it's like let's try this out And then let's try and grow into the Firm over time All right one more round of applause for Buys a i


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