Self and its AI-based asset management technology
Founded in 2017 by consultant Sebastián Chaparro, the fintech Self has undergone a remarkable evolution from being a simple algorithm based on artificial intelligence (AI) to becoming a sophisticated platform for managing various financial assets.
Evolution towards Financial Vanguard
Rodrigo Huerta, with a solid background in the financial sector, played a key role in transforming the initial model, moving from an Excel-based automation to a comprehensive AI engine. The strategic collaboration with Vector Capital, backed by an initial investment of $125,000 from an angel investor, marked the official start of Self in July 2022.
Self's core is an advanced AI engine that analyzes asset trends by monitoring real-time prices from the Santiago Stock Exchange and other markets. This approach allows for dynamic risk calculation and identifying entry and exit points for operations, resulting in significantly low negative transaction profitability rates and above-average sector performance.
With around 50 clients and managing approximately $250 million, Self operates on a business model charging an annual fee of 2.5%, plus VAT, without transaction fees. The company has established key operational partnerships with Vector Capital and Itaú to facilitate its trading activities.
Outlook and Future Expansion
Looking ahead, Self's leadership has outlined ambitious strategies for the next two years. In October 2024, the fintech plans to enter the Colombian market through a partnership with Voultech, a fintech branch of Vector Capital, followed by expansion into Mexico in 2025. Additionally, in the first half of 2024, Self will broaden its offerings to include the first AI-managed investment fund and incorporate major U.S. stock exchanges into its platform.
Self's ambition extends beyond geographical expansion; it aspires to become a wealth management advisor for various financial institutions. The use of its proprietary AI technology to guide investment strategies represents a significant step in the fintech's evolution and its commitment to revolutionize asset management with AI.
Detailed Overview of Self's Artificial Intelligence Engine
Self emphasizes its artificial intelligence engine as the key to its success. This engine enables dynamic management of any financial asset through:
- 100% Mathematical Analysis
Self's technology conducts a fully mathematical analysis, providing a solid foundation for decision-making.
- Instant Market Monitoring
Reviewing the entire market within seconds, the AI engine identifies opportunities and makes decisions without human intervention.
- Active Portfolio Management
Self actively manages portfolios, performing daily rebalances to adapt to changing market conditions.
- Real-time Buying and Selling Decisions
Identifying opportunities, the engine makes buying or selling decisions at the precise moment, maximizing potential profitability.
How Self's Service Works: Simple and Transparent
Self's operations are presented in a straightforward and transparent manner for users:
- Contracts with Brokerage Firms
They manage a contract with Itaú or Vector Capital's brokerage, allowing users to be hands-off in daily operations.
- Day-to-Day Automated Operations
Every day, Self automatically buys and sells stocks, regulated by the Financial Market Commission (CMF).
- Clear and Transparent Costs
Self's service has an annual cost of 2.5%, plus VAT, of the invested capital, providing a win-win model: if the capital increases, the gain is shared; if not, the service cost decreases.
- Simple Transfers and Registration
With a digital contract ready, Self guides users on how to transfer funds to Itaú or Vector Capital, offering flexibility to increase or withdraw capital at any time.
Registration and Participation: A 100% Digital Process
To join the Self experience, interested individuals only need to register and create a 100% digital account, having their ID ready, further simplifying the investment and wealth management process.
Self emerges as an innovative force in the fintech world, combining advanced technology with a strategic vision aimed at revolutionizing financial asset management through artificial intelligence. With its planned expansion and the ambition to influence wealth management, the fintech projects a significant impact on the financial landscape in the coming years.