Akros Technologies, an AI-based asset management platform, raises funding from Z Holdings

Artificial intelligence is taking over almost every industry. The investment and financial industry is no exception. In Deloitte’s 2019 report, the company reveals that artificial intelligence is transforming the financial ecosystem to reduce costs and increase business efficiency by providing automated insights and alternative data, analytics and risk management.

Technology like artificial intelligence has digitized the financial sector, from payments and remittances to loans. However, asset management is still in the early stages of digitization, says Jin Chung, chief strategy officer and co-founder of Akros Technologies.

Akros Technologies aims to disrupt the current wealth management industry through its AI-based wealth management software platform that extracts market data for stocks. Akros just raised $2.3 million from Z Venture Capital, a corporate venture capital firm wholly owned by Z Holdings, which also owns Japanese messaging app Line and Internet portal Yahoo Japan.

Akros plans to strengthen strategic ties with Z Holdings through strategic investments, the startup announced. The latest funding, which brings the total amount Akros has raised to $6.1 million since its inception in 2021, will help Akros grow its software platform and wealth management products and increase the number of users, including local and global financial institutions and fintech companies.

The company is already in talks with potential partners to expand its AI-based product called Portfolio Management as a Service, or PMaaS, an all-in-one portfolio management operating system. Chung explained to Root Devices that PMaaS “enables B2B customers such as financial institutions, fintech startups and robo-advisors to launch their own exchange-traded funds (ETFs) without having to set up ETF teams and infrastructure .”

He added that he expects to secure more than five B2B customers in the first quarter of 2023.

The startup claims its AI-powered portfolio management platform can reduce “the entire cost structure [of] traditional fund development,” including management fees and unnecessary fees involved in the investment process, by more than 80%. The equipment aims to increase the performance of data-driven ETF finance management and offer a portfolio management solution through PMaaS for Akros users to help them compete with global ETF institutions such as Vanguard or JPMorgan.

In August, Contents Technologies launched a Korean pop music, also known as K-pop, and Korea Entertainment ETF on the NYSE Arca Exchange under the ticker symbol KPOP using Akros’ PMaaS ETF development solution. In addition, Akros listed an AI-powered target income ETF on the NYSE in May, called the Akros Monthly Payout ETF (ticker: MPAY), with monthly distributions at an annual target rate of 7% based on momentum.

To build a multitude of investment strategies that reduce portfolio modeling costs and generate investment portfolio scores, Akros uses a decision transformer-based generative artificial intelligence model that predicts future actions through a sequence model, Chung said, adding that the company also employs GPT- 3 natural language processing (NLP) for the analysis of unstructured linguistic data.

Akros plans to continuously improve its engineering technology by strengthening its business to disrupt the asset management market and attract new partners around the world, including Japan, Singapore and the US, co-founder and chief executive officer Kyle Moon said in a statement.

Founded by CEO Moon, CSO Jin and CMO Justin Gim, Akros employs seven people.

Akros Technologies co-founders: (left to right) Justin Gim, Kyle Moon and Jin Chung. Image Credits: Akros Technologies

Moon previously worked for Qraft Technologies as Head of AI Research and CSO and had experience listing four ETFs on the NYSE. Before co-founding Akros, Gim had over nine years of experience in the asset management industry; Chung did research work on Bayesian deep learning in autonomous cars at the Oxford Institute of Robotics.

In March, Akros raised $3.75 million in funding from PeopleFund, a South Korean peer-to-peer lending platform. The company declined to comment on its assessment when asked.


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