SGInnovate, who invests in and helps deep tech start-ups scale and commercialise products, has made an undisclosed investment is Singapore-based artificial intelligence start-up, AIDA Technologies.
AIDA’s focus is primarily on the use of predictive analytics and intelligent systems for risk compliance management in the financial services sector.
Led by a high-profile team, AIDA CEO is Dr Tan Geok Leng, who was the previous executive director of Singapore’s largest infocomm research institute, the Institute for Infocomm Research at A*STAR.
Dr Tan was also the chief technology officer of infocomm development authority of Singapore (IMDA).
SGInnovate will assist the company in productisation of its straight-through processing (STP) solution, that was designed to speed up the processing of health insurance claims from days to mere seconds.
"AIDA’s STP health claims processing engine is getting good traction,” said Dr Tan Geok Leng, CEO of AIDA Technologies. "Besides the initial deployment at a major insurance company in Singapore, AIDA’s STP engine has also won a Fintech Innovation Award at the Singapore Fintech Festival 2017."
As a result of the success of the STP engine, tier one insurance companies in Indonesia, Malaysia and Thailand are now in the process of evaluating the technology for their own operations, according to Dr Tan.
Besides its STP solution, the startup has also built an AI engine called Outlier that has been designed to identify inconsistencies in health claims instantaneously and alert claims officers of possible fraudulent claims.
The value proposition of Outlier is a significant milestone for insurance companies looking to control escalating healthcare costs, which ultimately translates into more manageable premiums for policyholders.
In the near term, AIDA will focus its efforts on scaling its STP solution for the insurance industry in Singapore and the region.
"The financial industry is a vital part of the world economy and protecting the industry from criminal behaviour is a never-ending challenge,” said Steve Leonard, founding CEO of SGInnovate.
"We believe AIDA has built a team with the vision and capability to improve the safety and efficiency of the financial industry, and we are thrilled to be an investor.
"We want to use our various capabilities to boost AIDA’s growth, so their expertise in data analytics and machine learning can add real value to the banking and financial services industry."
SGInnovate manages two funds - the first fund focuses on early-stage start-ups and on helping the company overcome challenges new companies face, such as customer identification, talent recruitment, and strategic priorities.
However, the second fund is in place to make an investment in technology or business model gaps within the Singapore deep tech landscape.
Rather than early-stage start-ups, the second fund focuses more on later stage companies with a proven technology and established customer base.