Machine Learning for Finance | Taktile

Introducing Taktile: Simplifying AI for Financial Services

Taktile is a recently launched startup focused on delivering a machine learning platform specifically tailored for companies within the financial sector. While numerous entities are exploring the application of machine learning to financial products, Taktile aims to distinguish itself through enhanced accessibility and streamlined adoption of AI-powered models.

The Rise of Machine Learning in Finance

Several years ago, the terms “machine learning” and “artificial intelligence” became ubiquitous in startup presentations. Consequently, many new companies targeted the financial industry, recognizing the vast data resources and customer insights held by banks and insurance providers.

These data assets present a significant opportunity to train advanced models and implement machine learning applications.

Early Adopters and In-House Development

Emerging fintech companies began assembling internal data science teams to develop machine learning solutions for their own offerings. For example, companies such as Younited Credit and October utilize predictive risk assessment tools to improve lending decisions.

These firms have successfully created and validated their own models using historical data, demonstrating their effectiveness.

Challenges for Established Financial Institutions

However, integrating machine learning into the infrastructure of established financial institutions presents unique challenges. Several startups have attempted to bridge this gap by creating products compatible with existing banking systems.

These solutions leverage artificial intelligence for tasks like identifying fraudulent transactions, evaluating credit risk, and detecting insurance claim fraud.

Proof of Concept vs. Long-Term Adoption

While some companies, like Shift Technology – specializing in insurance – have achieved success, many startups struggle to move beyond the proof-of-concept phase.

A common issue is the inability to secure substantial, ongoing business contracts following initial demonstrations.

Taktile's Approach and Funding

Taktile intends to address this challenge by developing a machine learning product that is exceptionally easy to implement. The company has secured $4.7 million in seed funding, led by Index Ventures, with participation from Y Combinator, firstminute Capital, Plug and Play Ventures, and various angel investors.

Flexible Model Deployment

The platform supports both pre-built, off-the-shelf models and models custom-built by clients. Customers retain the ability to tailor these models to their specific requirements.

Taktile’s engine handles the deployment and ongoing maintenance of these models, offering options for deployment within a customer’s cloud environment or as a Software-as-a-Service (SaaS) application.

API Integration and Transparency

Insights generated by Taktile are accessible through API calls, functioning similarly to integrating any third-party service. The company prioritizes transparency, providing explanations for automated decisions and comprehensive logging.

Regarding data sources, Taktile is compatible with data warehouses, data lakes, and existing ERP and CRM systems.

Looking Ahead

Although still in its early stages, Taktile’s vision is promising. The company has already attracted investment from notable backers, making it a venture worth monitoring.