Artificial investment (AI) KiwiSaver compliance start-up, Sevaka, has landed its first “enterprise client”, according to founder, Clive Fernandes.
Fernandes said the technology firm had started worked on building an AI-based KiwiSaver client-servicing tool for an unnamed provider with a pilot version expected to be ready for take-off in two months.
“We’re solving for a specific need but we think the technology will be useful for all providers and financial advisers, too,” he said.
Sevaka was established last year by Fernandes to design AI systems capable of handling up to 80 per cent of routine KiwiSaver back-office client tasks.
He said the concept has been well-received across the industry but customising the firm’s AI Financial Advisers (AIFA) product for the KiwiSaver provider would mark an important milestone.
AIFA aggregates data from various sources including “best practices, compliance guidelines, process documentation, and customer interaction protocols, into a single, easily accessible platform”, the Sevaka website says.
But while the technological architecture might be in place, or close, Fernandes said to maximise efficiencies, AI tools would need better access to KiwiSaver client data held on registry systems.
Currently, he said providers must follow a mostly manual process to gather information from registry systems to carry out tasks such as sending a letter to a client on first-home withdrawal eligibility.
Despite some privacy and security concerns, Fernandes said the main sticking point was technology, in particular, the lack of API (Application Programming Interface) hook-ups with registry systems.
Registry firms – a market dominated in NZ by Apex – would have to work with industry to develop the APIs, he said.
“Apex will have a big part to play in enabling AI in KiwiSaver.”
Prior to Sevaka, Fernandes launched one of the first robo-advice services in NZ under the National Capital firm, bought by Saturn Advice in 2021.
Since going live in 2018, National Capital has advised on more than $100 million of KiwiSaver investments.