Welcome to Financial Advisor IQ
Follow

New Robo Launch Claims to be First Artificial Intelligence Advisor

By Alex Padalka December 4, 2017

Pefin, a new digital advice platform, claims to be “the world’s first artificial intelligence financial advisor,” according to a company press release.

Pefin, which stands for PErsonal Financial INtelligence, was founded by Ramya Joseph, an alum of Goldman Sachs and Morgan Stanley, according to her LinkedIn profile.

The platform has no minimum investment and charges $15 per month, although the first 100,000 clients can sign up for $10 per month, the company says. The new robo also charges a 0.25% asset-based fee, which is waived for accounts with less than $5,000, according to the press release. But Pefin doesn’t require its clients to invest on its platform, the firm says. Pefin also offers customized investment advice and portfolio management from human advisors through its SEC-registered RIA, Pefin Advisors, according to the press release.

The company claims Pefin’s AI can take into account a client’s life events such as having children, paying for college, buying a new home and switching jobs, as well as the financial markets, government regulations and even regional demographics, to draft financial plans.

The AI is purportedly able to make 80-year financial projections while tracking up to 5 million data points for each user, according to the press release. The AI then spits out advice on saving, repaying debt, and investing, Pefin says. In addition, the engine can learn over time from the user’s spending habits and personal preferences and adapt the financial plan and advice automatically, the company claims. Joseph also says in the press release that Pefin is “fiduciary by design.”

Ramya Joseph

“My Wall Street career helped millionaires and yet I saw my own parents and close friends of modest income being sold investment products or services they didn’t need when seeking advice,” she says in the press release. “Pefin was built to make sure anyone could access true fiduciary advice – from planning and saving to investing, in a way that only acts in their best interest.”