Korean AI startup alliance aims to take on Google, Facebook
[THE INVESTOR] Although artificial intelligence and machine learning are a buzzword in the IT sector thanks to high-profile solutions such as Google’s AlphaGo and IBM’s Watson, it is rare to find a success case where those technologies have actually yielded any practical result in daily businesses.
A group of financial technology startups under Dayli Financial Group, a startup alliance in Seoul, have joined hands to offer AI services that could give “practical help” to financial firms.
Sophie Eom, the artificial intelligence division head at Dayli Intelligence, a financial technology startup group.
“Unlike Google’s AlphaGo, IBM‘s Watson and Facebook’s AI Research lab, which are more like pure research, our AI-based services are focused on addressing issues facing businesses,” said Sophie Eom, who heads machine learning-based analytics solution firm Solidware, at a press conference in Yeouido, Seoul on Feb. 22.
Solidware is one of the seven startups that have joined forces to form the startup group, called Dayli Intelligence.
Each of the seven startups under the group, including Leevi and Heenam, is specialized in different fintech segments, but together they can offer better services, according to Eom, who also serves as a chief of the group’s AI division.
“After a series of meetings with corporate customers, I have found there is demand for a bundle of solutions, not just a single service,” she said.
The group will provide AI-based solutions for data analysis, natural language processing, and data scraping, which can be tailored for banks, insurance firms, and credit rating agencies.
Solidware’s AI solution DAVinCi LABS, a predictive modelling solution for financial and banking services, is a crown jewel service of the group.
Solidware said its software has helped its partners, including AXA Korea, Woori Bank and KB Capital, dramatically save costs by making better predictions for bankruptcy rates of their customers.
Financial firms using the AI software saw the number of those who pass loan eligibility tests increase 20 percent on average and the bankruptcy rate of those firms’ customers drop 3 percent.
Different from traditional predictive analytics solutions for financial institutes, the AI-powered DAVinCi LABS can factor in a numerous number of data sets in forecasting future risks, like loan default, and measuring credit ratings.
Dayli Intelligence said it plans to tap into different global markets, including the US, Japan and Vietnam, where it is currently discussing a partnership with banking and financial companies.
In addition to the financial sector, the fintech startup alliance plans to deploy its AI analytics solutions in the medical field. It has run a project together with Yonsei University Severance Hospital to better predict Down’s syndrome of unborn babies and improved the misdiagnosis rate by 50 percent.
By Kim Young-won (firstname.lastname@example.org)