Fintech, AI and Workforce Optimization: AnalytixInsight & GCFF 2022

Scott: Thank you for hosting this conference and the opportunity to present our company AnalytixInsight.  

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AnalytixInsight is a fintech AI company, we’re publicly traded as ALY on the venture exchange and we've already built a number of platforms that we're actually implementing now. We're rolling out the platforms that we've already built and we have key strategic partners that we're doing that with. 

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I’m going to take you through our story. We have our disclaimers slide which will guide the presentation here. 

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We have three key strategic initiatives. The first being CapitalCube, second being MarketWall. I’m going to spend most of our time on these two strategic initiatives because they're the ones that are driving most of our focus these days. Our third is Euclides. If we had a bit more time, I would take you through that but we'll spend the time on the first two. 

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The strategic shifts that we're actually addressing, our strategic initiatives or shifts and needs that your audience would know and experience today. First off, is the need for analytics and research for companies that are publicly traded. If investors want to have additional information on those companies and we have a solution there for those. We create research reports and I’ll take you through that.

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The second is the fact that the industry now has the trading costs that have dropped dramatically and we have a number of zero trading fee programs. The whole idea of being able to trade from a mobile phone and a mobile device is something that users are doing. We have a platform that we're rolling out in Europe for that and we're pretty excited about these two key strategic initiatives.

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First is CapitalCube, which is our platform where we're performing financial analytics. We do that on worldwide stocks, so we cover virtually all publicly traded companies on our platform. We apply our AI machine learning techniques. We allow users to be able to research their companies based on the financial fundamentals. What we do is we compare how a company is performing against its peer group and we generate a research report on that company. So we can actually publish a research report and we do so.

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This platform has been up and running now for a few years and it's capable of around 100 billion daily computations. We have a full screening and capability set where we perform lots of different calculations. We're also developing scores. We have proprietary scoring techniques and algorithms which we have developed. So if you think about your investor audience for example, one of the things that they may want to know is how good the quality of the dividend is on the company that they're investing in and so we perform that analysis. We perform the analytics to determine the dividend quality of a company, we determine the earnings momentum, the fundamental analysis score and we also have recently added ESG scoring as well to our platform. We cover, again, virtually all publicly traded companies, including the smaller pre-revenue companies that really don't have financial revenues but we analyze them to determine what their cash burn is in the company, how much cash they have and how much working capital they have and need for their business going forward. A powerful reporting tool. Our partner in this initiative is Refinitiv and Refinitiv is one of the world's largest providers of financial data, it was previously known when it was a part of Thomson Reuters, and it was a part of that division which was spun out. Refinitiv was purchased last year by the London Stock Exchange for around 27 billion and so, we're actually partners with them and we perform analysis for their customers. 

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They have around 40,000 customers worldwide and we have published, for them, over 26,000 CapitalCube research reports so these are machine created reports that we're creating for Refinitiv. In fact, we just reported our financial results this morning and that number has increased to over 37,000 research reports now published as of the end of 2021. If you think about that, it's a powerful tool to be able to publish 37,000 research reports.

We have built a Robo Advisor and we're getting it ready to deploy commercially, we have not yet deployed it, but it's preparing to do so. There are around, well, forecasts to be around two and a half trillion dollars to be managed by Robo going forward, so that's an important growth segment opportunity for our company.

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We'll talk now about MarketWall, which is our joint venture fintech company. It's based in Europe in Italy. We have partnered with the largest bank in Italy and I’ll talk about that in a moment as to who they are. We're building key fintech tools there and platforms that we have launched and are rolling out and are adding customers to. 

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First is the platform we built there is our GEMINA platform. This is a trading and research platform and it's already been implemented now at two European banks. What this is, is a platform that allows banks and brokers or other institutions to be able to use this technology to connect to their existing stock trading platform and to be able to offer retail-based stock trading opportunities. For the investor, they can use this platform to receive a lot of information and a lot of research. We are different from other stock trading platforms, in that we have a very strong content and educational component to the platform. 

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GEMINA is a platform that is powering two of our key initiatives that I'll talk about now. One is Morningstar. We've partnered with Morningstar on developing a brand called Morningstar Global Market, that has now been launched. We signed a reseller agreement with Morningstar earlier this year and Morningstar will be rolling this out to their enterprise customers. This is their institutional offering that’s based on the GEMINA platform. We are happy to have worked with them over the last two years on this development. They will lead the sales and marketing initiatives for this platform and our company has been the technology provider for the platform. This is a key development opportunity in our company. 

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GEMINA also powers InvestoPro. InvestoPro is one of the key growth opportunities for our company here going forward. A year ago, we established a brokerage firm and applied and received a brokerage license. This is now a licensed brokerage firm in Europe. It's fully functional, and we're now starting to onboard the clients on this platform. It allows users to trade stocks, options and derivatives and it’s very rich in the news and content that's being delivered. We also bring in our CapitalCube research reports on to this platform and we're delivering that on there as well. We bring in the consensus analysts ratings, full financial analysis and it allows a user who is trading with a low cost, of around say 10 euros per trade, to be able to get high quality research information on the companies that they're investing in.

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InvestoPro has been launched and we did that in partnership with Intesa Sanpaolo and so it becomes the online trading platform for the bank, Intesa Sanpaolo, and again very rich in news. The fact that it's AI assisted trading in terms of doing financial research, these are powerful attributes for this trading platform. 

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A bit of who Intesa Sanpaolo is. They're Italy’s digital bank, they're Italy’s largest bank and they invested a few years ago close to three billion euros to increase their digital business. That made them very well equipped when the pandemic hit Italy, that they were ready to be able to move their customers to the online channels, and that allowed them to become very profitable. They're the fourth largest bank in Europe and we have partnered with them to roll out InvestoPro as their digital online trading platform. 

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For Canadian residents, this is an initiative with this bank that's similar to what iTRADE would be with Scotiabank for example, allowing users to trade stocks, low cost, in partnership with the bank and to be able to log on to the trading platform using their same login credentials that they would have, to log on to their banking application. 

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Intesa Sanpaolo has around eight million clients that are using the digital apps, so they're at least checking their bank balances online using the online channels and mobile app. It’s a big market opportunity for us to encourage them to use the low-cost stock trading platform division, so we expect to see a lot of growth on the InvestoPro initiative going forward.

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For InvestoPro, we’ve also partnered with Samsung in this endeavor. The InvestoPro app is preloaded on Samsung devices. Samsung is an important partner for us in Europe because they're actually the largest market share of smartphone providers in Europe. They're larger than Apple, and they're a key partner. We're proud to be working with Samsung on this initiative and being their financial partner. 

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The app is set up in such a way that it's not just for phones it can also be for TV and multi-device applications, again it's already up and running. We're now considering a North American research stock trading research platform and we're putting work into how we might craft that. The North American market is slightly different than the European market and we're taking our approach in this carefully, but we're evaluating these opportunities to build and roll out a trading platform in Europe.

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In the interest of time, I’m just going to quickly touch on the workforce optimization piece. This is another division of our company which is focused not on the financial, but in a separate division and one where we're applying our analytics capabilities in a different industry set. If we had more time I would take you through that. We just announced our financials this morning, and we’re somewhere approximately three million a year in revenue in AnalytixInsight. In our joint venture company MarketWall, we're approximately six million in revenue and our valuation is somewhere around 55 million in terms of actual valuation. We raised close to 10 million dollars last June at around 70 cents a share and today our stock is trading at around 50 cents a share.

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This is the management team leading our company. Myself, Scott Urquhart, I’m VP of Corporate Development, our CEO is Prakash Hariharan who is the chairman and CEO and formerly a portfolio manager here in Toronto. Our contact information is here. We keep our website very up to date in terms of our investor relations materials, so feel free to certainly reach out at any point with additional questions or find more information on our website at analytixinsight.com.

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I’m happy to answer any questions, Thank you.

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Gilbert: Thank you Scott. The first question coming from Evie here. She's asking, do you have a lot of competition on the services that you can provide? 

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Scott: There are a number of different machine-created elements on our CapitalCube piece and our research. There are different companies that do different things. Typically what they do though is they just report the actual data. What we do is we analyze the data. So we perform additional characteristics on the data to draw additional insights. And so the reports that we produce are therefore insightful, they're not just a regurgitation of the raw data that exists. We're drawing out insights as to the quality of a dividend of a company, for example. So we're unique in that. The stock trading application that we're rolling out in Europe, we're the only one that's licensed in joint with the largest bank there and we've already received regulatory approval. So there are certainly other stock trading applications in other countries, but we have a licensed stock trading application that's partnered with the largest bank in Italy and therefore that makes us unique. Likewise, our relationship with Samsung, we're one of the only financial apps to be partnered with Samsung in the European marketplace. 

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Gilbert: This question coming from DPan, he says, what's your growth strategy for your company? 

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Scott: The growth strategy is primarily loading clients on our stock trading application in Europe and we're beginning to do that now. So this is where all of the things that we have built tie together. And the bank already has some, it's over 700,000 users that are trading stocks now using their mobile application. We are working with the bank to transition at least some, if not all of those accounts to our stock trading platform. That will be our growth. And our growth will be in differentiating between other stock trading applications that don't provide research. We will be able to offer a discount stock trading application that provides research coverage on all publicly traded companies. And that will be our growth is to load clients onto that platform. 

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Gilbert: Great, Scott. So the final question here, do you have the needs of raising capital in the near term and who are your current major shareholders in the company?

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Scott: We just raised 10 million last June. So we're fine on cash. We don't have any need to raise cash right now. In terms of our major shareholders, we have one institution that owns approximately 10% of our company. The rest is owned mostly by retail shareholders, high net worth family office style investors. And so we're fine on that front. Our strategy is to build the platform values which we're doing, to the point where we can bring in a strategic financing partner into our company to finance additional future growth somewhere down the line. But right now, we don't need to raise capital. 

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GIlbert: Great. Thank you, Scott, for your time here with us today. 

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Scott: Thank you. It's a pleasure. Thank you.