CR8 Seminar:
Thanks for those that attended and management who showed up.
@Inferno31 @Martin Gifford have both provided great summaries which I've used aswell compiling this so thanks to them too.
The seminar was very professionally done the whole management team made an appearance and each one spoke. It was balanced, just providing facts and had a balanced discussion so management weren’t there just for marketing/ramping purposes but to give a proper insight. Also included a lot of industry professionals to provide their outlook on the industry and Flamingo’s product.
Rather than a presentation with one speaker around it was more of a conversational meeting we were all gathered around a large boardroom table with about 20 people in the room so quite intimate.
Essentially I’ve taken notes and will be paying attention to information which is new to us as holders or previous leads which are now confirmed. I’ve also broken it down into dot points as its easier to read, more objective and has less of my commentary around it but more just facts.
Below is the breakdown of the seminar:
- Attendees
- Anthony, CEO of Direct Money (Which is a client of Flamingo)
- Gregg, Director from Macquarie Bank
- Matt, Director of Greater Bank (
https://au.linkedin.com/in/matt-henderson-3062b61a)
- Faldi Ismail made an appearance, Managing Director Otsana Capital
- CEO of CoreLogic
- Brokers/Fund Managers
- Media Outlets
- Shareholders
- Other bankers
- Nationwide
- Commented on Flamingo as “The most innovative product [they’ve] ever released to market”
- Presented to a VP of Nationwide with $8B in assets under management which took 15minutes to convince
- After they saw Flamingo, key stakeholders wanted the implementation to occur ASAP
- Currently also implementing automated employee benefit scheme for Nationwide. So Nationwide can provide this scheme to their business clients via flamingo. So not only are individual consumers using Flamingo but business’s too for buying complex financial products.
- Provided Nationwide already with a significant return on investment
- 90% renewal success for Nationwide
- Australia:
- Facing intense demand since coming here
- They plan on releasing a number of companies partnered with them in Australia these coming months
- As quoted about the demand theyre receiving “its like trying to drink out of a fire hydrant”
- Potential large Healthcare providers to be announced
- Have had around 12 superfund/superannuation’s approach them in Australia this last month
- Risks
- With healthcare people are quite sensitive about certain health issues hence can be uncomfortable speaking to an AI
- Competitor risk, however Catriona mentioned shes friends and has close relations with all competitors including IBM. Joe mentioned the higher the compliance is for Flamingo the more difficult it makes it for competitors as Flamingo Is very easily integrated it can cope with compliance from F100’s easily.
- Trust issues, some people feel they can’t “trust the bots” and others feel like AI simply won’t be able to answer complex conversational topics.
- Partnerships/Discussion:
- Catriona has a meeting with 50 odd bankers to speak and discuss the future of AI
- Looking to move into health insurance with discussions in Australia/U.S on some major health brands
- Discussions with a large Malaysian Bank
- Strong relationship with Nationwide, with a keynote seminar coming up together
- The unannounced F100 coming soon, Flamingo currently implementing a full quotation to payment process solution. They currently have a 95% abandon rate after quotation so there is a strong need from Flamingo’s AI which will take over and guide the customer to payment.
- Working with a large superannuation company
- Clarion group, which is a group formed with Ex IBM CEO’s and other CEO’s from Fortune100 is partnered with Flamingo. I mentioned last month (
https://hotcopper.com.au/threads/octobers-very-own-flamingo-cr8.2922623/) Clarion could be feeding big clients to Flamingo which was confirmed today.
So just a re-cap from that post some of Clarion’s other clients which Flamingo likely has proposals/sales pipelines with include: Liberty Mutual, Massachusetts Insurance, Cisco, IBM, Microsoft, Mastercard, American Express, Visa, Citizens Financial Group, Pfizer.
IBM is looking a likely target as I suspected from today’s meeting looks like they have close links with IBM. This is likely from Clarion’s help aswell.
- Multiple discussions with IBM and strong relations with the IBM Watson AI team. Catriona pointed out its likely they’ll be a takeover target in a couple years.
- IBM CTO’s and Catriona will be speaking on a panel hosted by ANZ to speak about future of bots soon.
- Rosie
- Rosie is not a Chatbot
- Chatbots do not learn
- Rosie picks patterns and learns how to solve problems for customers
- Rosie gives business specific solutions and takes actions to provide an outcome. For example pulling out quotation comparisons, or forwarding customers browser into a payment page.
Chat bots are generic question/answer and do not act upon solutions.
- Rosie learns by observing 1000 (maximum) human to human (H2H) sessions, where she learns from conversations between the business and consumers. She reruns these 1000 sessions automatically then moves into a Human Assistance Virtual Assistance (HAVA) mode and does another 1000 sessions. Once this is done Rosie is ready to go into full automation and requires no human assistance.
- A recent client only needed 100-200 sessions in H2H.
- “Rich data is big data” – meaning Rosie learns more from deep conversations rather than a high quantity of sessions.
- Rosie is scalable, once H2H finishes Rosie learns exponentially, very easily integrated and can be switched between H2H, HAVA, full automation at clients will.
Joe Waller is using the same scalability concept for Rosie as he used for Betfair (now doing more trades than the entire European Stock Exchange put together)
- A 30min phonecall can be compressed into a 7minute conversation with Rosie.
- Once again adding to the ease of integration, Rosie can also learn from previous chatbot conversations the company has had and uses this historical data to get a better overlook on business specific solutions.
- Security
- Rosie is immune to viruses, attacks, DDOS, hacks all which is audited by a third party everytime Rosie is implemented to any Fortune500.
- Data from Rosie is also geographically partitioned on multiple cloud bases across the world.
- Using a security system built by Joe Waller who built BetFairs security which is under constant attack from hackers as it’s the largest online sports system in the world managing a $billions of trades daily. Betfair’s security system is yet to fail even at critical moments like world cup finals.
- Rosie’s security is one of the cutting edges, barriers to entry it has over competitors as F100’s have huge security compliance which Rosie can pass but not other competitors.
- Patents, IP’s, Tokens, Hard-Drives all in lockdown with no access.
- The Industry
- Millennials want things faster, less waiting, less patience hence no call center can keep up with the speedy demands.
- Rosie will not replaces jobs but create more value for the company and re-using wasted resources on more task efficient activities.
- Anthony CEO of Direct Money: Partnered with Macquarie for debt/equity financings. Focused on making a customer’s banking easier. There is a global paradigm shift with banks being under attack from companies like Google, Amazon, Apple etc. who are providing payment services. Bill gates foresaw this years ago making the comment “Banking services are essential but banks are not”. And the world is waking up to this now. So banks require to tighten up and bring a new innovative, efficient way of providing financial services.
- Anthony CEO of Direct Money: “Remember the time iPhones came out and you blinked and then everyone had them? That’s the case here” referring to Flamingo.
- Anthony CEO of Direct Money: The future is only a couple years away where I wake up get a quote for a new kitchen from a Flamingo AI bot knowing my habits and needs then automatically having that bot communicate with a bot at Direct Money to get financing for the Kitchen once again knowing my financial limits/risk and just giving a final end quote in matter of seconds. “I couldn’t be more bullish on this sector”
- Matt from Greater Bank: Call centers open for a limited time and banking in todays society is slowly becoming a 24/7 process. No-one wants the tradition method visiting banks anymore, every purchase of complex products should be online now. Greater bank wants to provide an uninterrupted journey for the customer that doesn’t require intervention such as “call us on Monday morning when we open”.
- Miscellaneous
- Rosie is not focused on vocals because neither consumers or big companies want a vocal bot. Reasons for this is, when dealing in Asia it will mean the bot will require difference accents/languages, can often come off as creepy, customers can also tell it’s a bot whereas when speaking with Rosie will be difficult to pick up if it’s a bot and likely be more conversational.
- Team is very focused where the demand is, what the industry requires and where the money is and is focused on building a solution for those purposes. They do not want to get distracted by shiny gimmicks and additions to Rosie however they do have backup plans ready IF demand switches towards Vocal speech for example.
- Nothing is free all trials are paid trials but 1/5 of the Price of any competitor near this space like IBM Watson.
- My commentary:
I’ve tried keep it as factual and objective as possible so far….
So here’s the part where I ramp. $1 party soon…..@gordongreggy you can take it from here
The things that excite me the most and few key points to take away:
- Yes they will be a hot and likely takeover target in coming years
- Already talking with big Malaysian Bank to kick things off in Asia
- Large IBM connections and integrations
- My hunch on Clarion Group was correct so I’m looking at the potential clients: Liberty Mutual, Massachusetts Insurance, Cisco, IBM, Microsoft, Mastercard, American Express, Visa, Citizens Financial Group, Pfizer.
- There is bigger co’s than Nationwide involved already having Flamingo develop solutions for them
- Aggressive expansion: Health, Asia, Superfunds, Resources
Price target? Given what we have 13cents for now...modest. I bought some more after the presentation, couldnt help myself. Was a great seminar all round and management/industry leaders were great in providing a good insight also wouldve like to have spoken to Faldi but he left a bit early, I'm sure we will cross paths somewhere else.
Cheers
(20min delay)