Pefin, which got its name from the contraction of “personal finance intelligence,” is set to launch this fall. While robo advisors are a major trend in the wealth management space, Joseph sees Pefin’s AI solution as very different.
“Robos are trying to execute a transaction, while we are trying to manage your finances. Investing is optional with us, and we’ll help you if we think it’s the right move for you” rather than generating fees for the company, she told CNBC.
At the core of Pefin’s AI is a feed-forward neural network. According to Joseph, the network looks at different answers from consumers and offers various solutions as a response.
“If you look at things like [IBM’s] Watson, they don’t tailor the solution to you. It’s just generic advice,” Joseph said.
In contrast, she said, Pefin receives three months of your spending data, which helps the AI tailor its plan to your particular spending habits. Pefin also plans to send its customers content to educate them about finance.
“The longer you stay in the system, the more we learn and the better we get at predicting and advising you because we can tie it back to your habits and what works for you,” Joseph said.
Curently, the start-up is mostly self-funded by Joseph, in addition to a few private investors, as well as friends and family.
“We might raise [venture capital] later this year, and then decide if we want VC money or not,” she said. “It’s a matter of circumstances.”