NZ robo-advice pioneer, Clive Fernandes, has launched a new artificial intelligence (AI) venture aiming to automate 80 per cent of KiwiSaver client-servicing tasks.
Dubbed Sevaka – from the Sanskrit word ‘सेवक’ translated as ‘one who serves’ – the new business is creating what “will be the first AI tool developed specifically for the KiwiSaver industry”, Fernandes said.
The Sevaka-built Artificial Intelligence Financial Advisers (AIFA) product would “integrate within financial service providers existing processes and workflows to automate 80 per cent of routine tasks that customer service agents and advisers are currently being forced to perform”, he said.
“The intention is that this will allow staff members to focus their efforts on higher-value tasks and consequently make advice more accessible.”
Fernandes founded KiwiSaver advisory firm, National Capital, in 2018, adding a robo-advice system the following year under the-then licensing exemption.
Advisory firm, Saturn Portfolio, bought National Capital in 2021.
While he remains on the board of National Capital, Fernandes started work on Sevaka this June, targeting the launch of pilot products early next year.
He said feedback from KiwiSaver providers suggested there would be significant demand for an AI-based customer service tool if it met compliance and security standards.
The Sevaka system was designed to “handle large volumes of routine tasks while ensuring 100% compliance with industry standards”, Fernandes said. “It’s designed specifically for the superannuation industry, so there is a big focus on security and compliance.”
While AI is renown for ‘hallucinations’ – or confident fabrications – he said Sevaka has developed methods in-house to guarantee fully compliant outcomes.
The AIFA tool also taps into several external technology providers to “bring the pieces of the AI puzzle together”.
But while it’s early days – and the business would need to raise more capital – Fernandes said Sevaka had to potential to be a global fintech firm with a “total addressable market” of about US$25 billion.
“KiwiSaver providers are our primary focus but we’re also targeting wealth management firms, and financial advisory companies—any financial service providers that face similar challenges with customer service and compliance,” he said. “Ultimately, we aim to expand to Australia and the U.S. 401(k) market.”
Fernandes said a few KiwiSaver providers and financial advisory firms were in line to test and fine-tune the Sevaka tool next year.