Software company Vopy, which delivers technology in embedded finance, has joined forces with Norwegian tech company Niuton (niuton.io). Together, the companies are now creating a platform for wealth management in emerging markets by offering investments in the European-based AI-driven funds that the companies are now starting. To ensure their long-term interests, Vopy and Niuton have agreed on terms where Vopy will acquire 20% of Niuton for 12.5 million Vopy shares and a cash component of SEK 5 million.
With the acquisition, Vopy is focusing its strategic direction on growth markets in Africa and South Asia (India, Pakistan, Bangladesh, among others) with offerings in “Embedded Wealth Management for Emerging Markets.”
The companies will offer a turnkey service where banks and fintechs in emerging countries can offer their users investments in European AI-driven funds as well as savings in Euros. The product is called CLIP – Closed Loop Investment Platform – and allows residents of many emerging countries to invest abroad for the first time without breaking local currency regulations in their respective countries.
“We have evaluated our previous strategic direction over the past few months in order to strengthen our position. Our team has done a fantastic job resulting in our focus on embedded wealth management with these main areas: “Remit Home“, “Multi-Currency Accounts“, and “AI-driven Funds“. Going forward, we will offer our cutting-edge AI-based embedded wealth management and create compelling offers with significant competitive advantages in enormous growth markets. Collaboration with Niuton is the icing on the cake and creates sweet music for both parties, where we see great synergies in both the short and long term,” says Sven Hattenhauer, CEO of Vopy AB.
To invest in the funds, a digital wallet is needed. More than 1 billion of the world’s 1.6 billion digital wallets are currently located in the emerging markets that Vopy focuses on. Vopy and Niuton reach large parts of these wallets through collaborations with leading issuing banks in their respective countries. This gives millions of individuals access to investment opportunities in credible and secure AI-driven funds, where even novices can benefit from the funds’ superior precision, which in practice means higher returns at the same risk, or the same return at lower risk.
The funds are created and maintained by Vopy based on customers’ (banks and fintechs) specific conditions and desires, such as risk/reward, markets, and sectors. There is a strong focus on offering high usability with different smart functions to create engaged investors and increase their knowledge and insights.
The model used is generic and can be applied in a variety of areas beyond stocks, such as crypto, currencies, commodities, NFTs, and more. The development of AI-driven funds for emerging markets is the first step in the companies’ joint plan to create a whole new generation of investment platforms.
“AI-driven Funds” are expected to be widely launched in Q1 2024 after an initial test period in late 2023. Over time, the companies intend to establish and operate a complete fund business, including management, administration, and regulatory authorization through a jointly owned management company.
“With this strategy, it gives us theoretically, the opportunity to reach over 500 million active bank customers where we can be a crucial part of improving people’s finances. For our customers (primarily banks and fintechs), this brings unparalleled competitiveness where they can reach completely new market segments in many parts,” says Sven Hattenhauer, CEO of Vopy AB.
Vopy and Niuton can, through proprietary techniques such as “socio-dynamic mesh” and “Yieldmaker AI” as well as with genetic algorithms based on Predictive AI, take AI-driven funds to a whole new level, where through 100% automation and without human intervention, you can create funds and balance the holdings in the fund.
AI has for several years been used by fund managers as an aid in investment decisions, while different funds today offer robot-based trading. Vopy and Niuton take AI-driven funds to a whole new level through proprietary technologies such as “socio-dynamic mesh” and “Yieldmaker AI,” as well as genetic algorithms based on Predictive AI, where through 100% automation and without human intervention, you can create funds and balance the holdings in the fund.
Nauton’s AI engine is not an aid for fund managers, rather it will completely replace the need for fund managers.
Niutons has mapped over 20,000 stocks globally and the short-term goal is 100,000 mapped stocks. During 3 years of test operation, it has shown very good results with returns of about 50% above the S&P500 index. The high degree of automation reduces the operating costs of the funds dramatically, and there is an opportunity to operate a profitable business even with very small deposits. This opens up the market for the millions of people who only have small amounts to invest. The total amounts for the investments, therefore, become very large.
“Niuton AI is very pleased to strengthen ties with Vopy. Both companies share a strong view of the opportunities available in fast-growing markets. It is very gratifying to see the enthusiasm that Vopy has for Niuton’s unique IP and verified impact in predictive AI – we at Niuton look with great interest at Vopy’s vast commercial expertise and network of banks and fintechs.” says Runar Cornels-Bogen, CEO Niuton Tech AS.
While waiting for Vopy’s website to be updated, we are happy to send extended information about the business, technology, and market as a pdf upon request.
In order to finance continued rapid growth, the companies are now turning to professional investors together to offer the opportunity to invest in disruptive technology that in one fell swoop will increase the availability of managed assets in a huge growth market.