Wednesday, May 29, 2024

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HomeProfileGaby Diamant, Founder & CEO of Bridgewise

Gaby Diamant, Founder & CEO of Bridgewise

Today we’re meeting Gaby Diamant, the Founder & CEO of Financial Services research company, Bridgewise.

Over to you Gaby…

Who are you and what’s your background?

I am Gaby Diamant, Co-Founder and CEO at Bridgewise. I am a fintech entrepreneur, with over 15 years of experience in product development, financial management, and senior management positions. I have a passion for developing innovative solutions aimed at democratising access to financial information and education, which is what drove me to found Bridgewise.

I am also a licensed financial advisor with a B.A. in Economics and Management from The Technion and an MBA with a Finance and Accounting major from Tel Aviv University.

What is your job title and what are your general responsibilities?

I’m the CEO of Bridgewise, and responsible for the overall management of the company. Being a CEO is obviously a demanding role, but we have an incredible team who make all of the effort worthwhile.

Can you give us an overview of your business?

Bridgewise’s mission is to bridge the knowledge gap in the investment world. We plug our generative AI technology into brokerage and other financial institutions, giving them the ability to offer their customers instant fundamental analysis of global stocks and a buy/sell recommendation.

Our platform is built on a machine learning algorithm trained on more than 20 years of historical data on fundamental metrics and price movement correlation that analyses more than 280 fundamental parameters of 50,000 listed securities providing each one with a performance score. Its proprietary Micro Language Model (MLM) creates easy-to-understand reports for each security in the reader’s preferred language.

Bridgewise’s technology puts unbiased global fundamental coverage at the fingertips of investors, helping to reveal hidden opportunities and break down language barriers in the market. We are proud to be at the forefront of the intersection of AI and finance, and to contribute to the advancement of the global financial ecosystem.

Tell us how you are funded?

Our investors range from VCs to key strategic partners around the world. In January 2023, we raised $13 million in pre-seed funding. This was led by specialist fintech VC firm Group 11, with participation from B3, the leading Latin American exchange.

This April, we were very excited to announce a new funding round, totalling $21. The leading investors were SIX Group, the key market infrastructure for the financial centres in Switzerland and Spain, and Group11. L4 Venture Builder, the VC arm of B3, also participated in the funding round.

What’s the origin story? Why did you start the company? To solve what problems?

Bridgewise was founded to solve a fundamental problem in the global securities market. Only 20% of global securities are covered by financial institutions, leaving investors without the information, insights and support needed to make informed investment decisions, especially when it comes to smaller-cap or foreign stocks. The problem is long-standing, with a report from CNBC finding that 35 public companies with market capitalizations above $500 million go completely ignored by market analysts.

This visibility challenge is compounded in cases where key financial information is in local languages, presenting a barrier to many investors. For example, in Japan, it’s estimated that almost 80% of TOPIX-listed stocks are covered by fewer than 20 analysts, compared to over 40% for the FTSE All-Share.

There is a plethora of hidden opportunities outside the big names that could potentially offer lucrative returns for investors, but it’s so hard for investors to come across them because of this information gap.

Bridgewise exists to make this critical information on stocks accessible to everyone, no matter the size or location of the company.

Who are your target customers? What’s your revenue model?

The platform has a whole range of use cases, ranging from exchanges and brokerages to retail trading apps and educational platforms – lots of companies can make use of having information on all stocks in the world. In terms of our revenue model, we offer these institutions access to our platform for a subscription-based fee.

If you had a magic wand, what one thing would you change in the banking and/or FinTech sector?

Fintech success and customer-centricity go hand-in-hand. If I had a magic wand, I would put customer-centricity at the heart of the fintech sector. Rather than building a product and then testing it in the market, a customer-centric approach is about speaking regularly to customers to understand their needs. This is the best way to build a tailored product that will genuinely make a difference to your respective industry.

What is your message for the larger players in the Financial Services marketplace?

Prioritise customer satisfaction. When you consistently exceed customer expectations, loyalty grows, referrals increase, and revenue follows suit. In essence, when you focus on customer satisfaction, the bottom line takes care of itself!

Can you list 3 people you rate from the FinTech and/or Financial Services sector that we should be following on LinkedIn, and why?

I know it’s a cliche, but Warren Buffet is the number one. For anyone interested in AI, I would also recommend following Sam Altman, the CEO at OpenAI. Another great person to follow is Dovi Frances, Founding Partner of Group11, a fintech focused VC. Over the course of his career, Dovi has invested in some of Silicon Valley’s most innovative and disruptive fintech firms and is a real champion of the fintech sector. He’s a good friend and we’re delighted that he has also invested in Bridgewise.

What FinTech services (and/or apps) do you personally use?

One of my favourite apps is eToro. Its easy-to-use platform makes it convenient for both novice and experienced investors, while it also offers a wide range of assets for trading, including stocks, ETFs, commodities and currencies. It’s a great platform that has been a real driving force in breaking down barriers to investing.

Finally, let’s talk predictions. What trends do you think are going to define the next few years in the FinTech sector?

I think regulation is going to be a major trend that will dominate the fintech sector in the years to come, particularly when it comes to artificial intelligence (AI). The cat is well and truly out of the bag when it comes to AI, and as the presence of this evolving technology advances across all sectors, it is vital that regulators keep up with the speed of innovation. Close collaboration between industry players and regulators will be key in defining responsible AI and making sure all sectors can safely reap the benefits of this technology.

I expect VC investment in fintech to gradually increase, but this won’t happen in one big bang moment. Funding for fintech has dried up significantly since the highs of 2021, and in a more challenging macroeconomic environment, it will likely take a good couple of years for fintech investment to return to those same levels. Fintechs that address a genuine market need and tackle a specific problem – and are able to communicate their offering to their target audience – will be the most likely to attract funding.

Gaby, thank you very much for taking the time to participate!

If you’d like to connect with Gaby, find him here on LinkedIn: Gaby Diamant and find out more about the Bridgewise offering here:

Ewan is Founder and Editor of FinTech Profile and Mobile Industry Review. He writes about a wide variety of mobile and FinTech industry issues and is usually active on Twitter most days. You can read more about him or reach him with these details.


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