Archive for the ‘Technology’ Category

Blockchain Missing Some Pieces Before it Hits Mainstream

Monday, July 4th, 2016

Fintech story gauge MAYBE compressed

Q: Will the blockchain revolutionize the world of financial contracts?

ANSWER: MAYBE

If you’re not familiar with the blockchain, you will be soon. It has potential to fundamentally change the way transactions of value are carried out. The implications for traditional banking are enormous. The World Economic Forum forecasts that 10 per cent of global gross domestic product might be stored on the blockchain by 2027.

The blockchain differs from the traditional banking records in that all financial transaction data is contained in a distributed ledger. Here is how the chain works:

User makes a request from their device to the blockchain.

The blockchain decides in unison to grant the request.

The request is added as a fresh link in the blockchain.

All members are up-to-date and the request is on record.

Each record depends on the one before and is fixed.

The blockchain “makes it possible for the front office to interact directly with the ledger, simplifying reconciliations and the trade process more generally,” according to Accenture’s 2016 report Top 10 Challenges for Investment Banks 2016.

There are many early forays. Digital Asset Holdings is working to develop secure blockchain infrastructure for clearing funds and securities, while Nasdaq at the end of last year completed its first share trade with its own Linq ledger.

One of the most compelling use cases for blockchain is smart contracts, which are written in and enforced by code. Apple Music could be described as a smart contract. Singer-songwriter Imogen Heap has even released a single that can be purchased through the blockchain. Ether is a blockchain technology used in this way.

Non-financial use of blockchains

  • Insurance
  • Car rental
  • Voting
  • Identity documents
  • Record keeping

PwC gives a theoretical example of how smart contracts could be integrated with the blockchain: “Imagine a car insurance that is embedded in the car itself and changes the premium paid based on the driving habits of the owner… The car contract could also contact the nearest garages that have a contract with the insurance company in the event of an accident or a request for towing.”

This technology could seem superfluous as there are already existing systems in place. But as Vox.com points out, smart contracts may be invaluable in places that do not have robust legal frameworks.

Of course, everything seems secure until it gets hacked. According to CoinDesk, in June 2016 $1.16 million (U.S.) of value was drained from the Ether blockchain into a new account. An unpatched security hole in a smart contract was to blame.

Several patches are being proposed, such as offering the attacker a bounty for the Ether’s return. But other fixes mess with the irrevocable nature of blockchain–the most extreme suggested is unravelling every single chain link one by one.

“While the agile approach of ‘ready, fire, aim’ generally works best with new software, it can be dangerous when $150 million gets loaded into the chamber,” explains blockchain expert David Seigel.

What impact this breach will have on the confidence around blockchain remains unclear. The response to the attack, and how to prevent one in the future, is still being analyzed. It does suggest that blockchain technology still has a few hurdles to overcome before becoming a regular and reliable piece of the financial system.

Developer Hotfix

See also

Will Fintech Force The Banks To Change?
Will Fintech Overturn Financial Institutions and Regulations?

Fintech a Massive Market Opportunity For Startups

Friday, July 1st, 2016

When it comes to funding startups, fintech reigns supreme.

In 2015, according to Accenture, global fintech investment reached $22.3 billion (U.S.) — up 75 per cent from $12.7 billion the year before. The rush to develop the alternative, online platforms offering financial services is moving more quickly than many other areas of tech innovation.

Banks and brokerages occupy a central position in every economy. In Europe in 2014, the total assets of the banking sector were €26.8 trillion. In the U.S. in 2015: $15.75 trillion.

Who wouldn’t want a piece of that?

Tech startups have started quietly joining the financial sector with the aim of providing a new world of solutions, including payment and loan services, currency and investment platforms, and wealth management tools. These have been the domain of banks and governments for centuries.

One factor increasing pressure on financial services — and creating big opportunities for startups — is a large wealth transfer happening between the generations.

“There is a $40 trillion intergenerational wealth transfer that is in progress, from a generation that has traditionally relied on an in-person advisor relationship to a generation that expects much more of a technology-augmented experience,” top Vanare executives Richard Cancro and Alexey Sokolin said in a recent Financial Technology Partners report.

This transfer combined with the millennial generation’s expectation of a more technology-augmented experience — which traditional banking providers have been slow to provide — is creating a moneyed user base keen to embrace new approaches to banking.  

While regulations remain a hurdle, particularly in the wake of the 2008-09 global recession, fintech startups are expected to jump through every hurdle required to cater to the coveted millennial demographic, which is expected to make up two-thirds of the global workforce by 2030.

For July, we are exploring the vast market opportunity that is fintech.

Our stories will feature insights from key sector figures such as BMO InvestorLine President Julie Barker-Merz, and Adam Nanjee, head of the fintech division at MaRS.

Watch for our interviews as well as explainers and exclusive entrepreneur profiles, as we explore one of the hottest topics in tech today.

Wimbledon and Data Analytics a Perfect Match

Tuesday, June 28th, 2016

The 2015 Wimbledon Championships were a battle for hearts and minds. While players were on the courts, the team behind one of world’s highest-profile sporting events fought to “host the best tennis championships in the world – in every way, and by every metric.”

To provide players, journalists and spectators with the best experience possible, Wimbledon partnered with IBM Bluemix to turn insights into powerful narratives.

During the two week period, 48 courtside experts captured approximately 3.4 million real-time data-points on every move and outcome. When Sam Groth hit the second-fastest serve in Wimbledon history, the information was shared with a digital audience instantly. IBM’s Sam Seddon told the BBC that “during last year’s final we were analyzing about 400 tweets a second.”

The data-driven approach served up big results: the partnership achieved 71 million visits and 542 million page views from 21.1 million unique devices.

As the 2016 Championships get underway, Wimbledon and IBM will aim to up their game and deliver an even better experience.

For a free trial of IBM Bluemix click here.

For a free trial of IBM Watson Analytics click here.

Tech Startup Ecosystems Missing Out On Diversity

Monday, June 27th, 2016

The lack of women in a progressive and disruptive sector like the startup tech world is, unfortunately, still a topic for discussion in 2016. 

Women are making a lot of headlines lately. There’s one running for U.S. President. Their numbers in political positions are on the rise. More women are also graduating from college and university than men.

But a huge gender diversity gap persists, especially in tech startup ecosystems. While articles — see here and here — boast that female-founded startups in the U.S. have increased to 18% in 2014 from 9% in 2009, that number is still objectively deplorable.

This should be a huge disappointment for the startup tech industry given the growing body of research showing that gender diversity isn’t just the right thing to do — it can boost profits for companies and investors alike. In fact, Bloomberg recently ran a backtest and discovered a gender-focused investment strategy would beat the S&P 500 by 141% over the past 10 years.

So why would an industry known for game-changing innovation still lag when it comes to gender diversity.  

To explore this, we sorted through some of the numbers and found that women in the tech workforce still account for a meagre 30%. When looking at CEO positions in the top 100 tech firms, the numbers are worse. And for the funding sector, the low percentage of female VCs and disparities in funding is, frankly, embarrassing.

Our coverage also includes profiles of a few women who are breaking through barriers, including Sonia Strimban of MaRS and Shopify’s Julie Hache.

Lastly, we’re conducted our own survey for women in tech — on the site but also across our social media channels — to get a better sense of how they’re faring when it comes to treatment in the workplace and opportunities for advancement.

Here’s what our respondents said:

Ideal Has a Solution for Hours Wasted on Sales Recruitment

Thursday, June 16th, 2016

That friendly email in your inbox inviting you to interview for the highly-contested sales position you applied for may not have been written by a recruiter. Same for the text message to follow up if you forgot to respond.

It’s all part of a recruitment platform from Toronto startup Ideal.com, which uses algorithms, artificial intelligence, and IBM Watson in an attempt to relieve the recruiters’ burden from matching and contacting candidates.

Ideal is co-founders’ Shaun Ricci and Somen Mondal’s second startup. The first was Field ID, a safety compliance management firm. As the sales team grew, explains Ricci, they noticed inefficiencies with the way they were hiring.

“We looked at all the pieces of our business–the sales, the development, everything was very data-driven, very metrics-heavy, except when it came to recruiting,” says Ricci.

techPortfolio_Quote_June 16

They often found themselves hiring people who would not last more than six months. “We ended up with a lot of people that we liked, personally, but who weren’t necessarily a fit for the role.”

Ideal was later born out of a need to solve the problem of wasted time while recruiting for sales staff – both by automating the mechanics of the recruitment process and by using surveys and cognitive technology to assist matching.

When Ideal sets up an automated sales recruitment system for a company, they build a benchmark of what works – the values that team holds, such as integrity or leadership – as well as detail the company’s perks, such as flexible working.

idealcom-image

On the other side, sales professionals signing up for the platform are asked their priorities. “Some people want to work from home,” says Ricci. “Some people want free espresso. There are pretty different attitudes towards culture.”

The data is then processed and matched in an algorithm, and recruiters are given a list of top candidates on the Ideal platform to choose from. The software e-mails and texts the chosen candidates; if there is no response, the recruiter is notified.

Job descriptions and resumes are all broadly similar in structure, which means the content can be brought out, organized, and interpreted.

“A boring job description is pretty data rich,” says Ricci.

Watson can compare how close the resume is to the job description, more quickly and with far more granularity than a human.

Better Decisions

“We can process a lot more efficiently. Our goal at the end of the day is to make better decisions when screening acquisitions, so the people who do talent acquisition can spend more time on high-value tasks, such as interviewing,” Ricci adds.

Ideal.com has raised $2.5 million in funding, from a combination of angel investors and self-funding from the sale of the founders’ first startup to Master Lock in 2012. Customers include Context Media and Top Hat.

As for the future, Ideal is looking at increasing their scope beyond sales to other professions, and opening direct use of their platform to their customers. As for more potential use of the Watson technology Ideal is considering is considering using the voice services on phone screening.

“What if we can have those phone reviews recorded, and you can send those voice recordings to Watson, and you get text of the conversation as well as analysis of the voice. Can you detect if a candidate is passionate?”

Pizza Menus, Rebounds, and Blood Sugar: 3 Watson Use Cases

Tuesday, June 14th, 2016

We’ve been told countless times, what you get out of a computer is only as good as what you put in. But what happens if you’re feeding a computer that learns and reasons?

According to Caroline Ong, Business Analytics Leader at IBM Global Business Services Canada, cognitive computing is not necessarily programmed, but designed to understand context, reason (and provide that reasoning). Moreover, cognitive technology means the machine learns from feedback.

And because there are so many applications for this kind of technology, the system becomes specialized according to what it’s used for.

“It’s not one giant machine that takes knowledge from person 1, client X and system Y,” explains Ong. “Watson is a solution tailored to specific industries and specific client use cases.”

Here are three real-life cases from the IBM Watson team and their collaborators that use real life data in surprising ways.

Rebounds

https://www.youtube.com/watch?v=7zKLEyLTqNU

The Toronto Raptors’ system can call up and interpret game statistics from every member of the team – and perhaps more importantly, their prospective opponents, so that the team can be as prepared as possible.

“We’re working with the Raptors to reimagine their data instead of using pen and paper, to pick out who we should be drafting next, or what are some of the tradeoffs we need to make,” says Ong.

Data is an important aspect of this with a feature called “Tradeoff Analytics,” where the user can tweak various statistics and see possible results. But basketball isn’t just a numbers game – personality analytics of players and opponents can also provide some valuable intelligence.

Quote

Blood Sugar Levels

Medtronic, which makes devices that measure blood sugar levels in diabetes patients, are exploring how to incorporate IBM Watson technology to ease the pressure on caregivers.

Ong said that the aim was to improve “quality of life for the patient and for the caregivers of the folks who are dealing with diabetes. The two teams in IBM and Medtronic worked together to see how we predict hypoglycemic levels and events, up to three hours in advance – as opposed to waiting for things to happen before we act on them.”

The aim is to get peace of mind for the caregivers without having them constantly monitor physically every single time.

Other health uses of Watson include Under Armour, data from wearable technology that can be used to make fitness recommendations, and a partnership with the BC Cancer Agency that uses patient data, a genetic profile and medical literature to make personalized treatment plans.

Pizza Menus

https://www.youtube.com/watch?v=jC0I08qt5VU

A robot concierge being piloted by Hilton hotels uses IBM Watson cognitive analysis to give guests advice, for instance, on what nearby Italian restaurants have kid-friendly cuisine.

Connie, the collaboration between IBM and Hilton, takes and interprets local information such as restaurant and tourist information using speech to text, dialog and natural language APIs, and ingests information from IBM travel advice too WayBlazer.

Ong says that the project behaves like a virtual assistant, “but this time the communication is done through talking to a robot in the lobby of the hotel.”

The more questions the robot is asked, the smarter it gets – and the robot keeps a log of questions that people pose it, which is helpful for the hotel itself.

“The good news is, you don’t have to tip the robot,” says Ong.

For a free trial of IBM Watson Analytics click here

Analytics4Life Takes The Stress Out Of Coronary Artery Disease Tests

Wednesday, June 8th, 2016

For a disease recognized as the most common global cause of death – 8.14 million worldwide in 2013 – coronary artery disease is extremely laborious to diagnose. A Canadian firm, Analytics4Life, is looking to cut out a large part of the labor involved – and the danger posed to patients – by leveraging data in new ways.

In a nuclear stress test, patients must exercise on a treadmill to measure blood flow after radioactive dye is injected. Physicians and hospital workers need to spend resources on managing radioactive nuclei. The test can take up to five hours and is only 75% accurate.

Analytics4Life, a startup based in Kingston, Ontario, is attempting to develop a much more straightforward method, using machine learning through neural networks and genetic analysis, with physiological information conventionally considered valueless.

“We’ve been able to demonstrate a very simple test that takes about three minutes to do where you don’t have to stress the patients,” says Shyam Ramchandani, co-founder and Director of Marketing and Business Development at A4L. “It’s just surface electrodes that go on patches on the body: seven of them. Three minutes later, they’re done, and then by the time their patches are off and their shirt’s on the result is on the doctor’s portal.”

Tech Portfolio Fact

This month, A4L is running its first machine learning tests with recruited patients already diagnosed with coronary artery disease, a condition where the vessels that supply oxygenated blood to the heart are obstructed by plaque; if the plaque builds up excessively and hardens, the condition leads to blood clots, angina and cardiac arrest.

After crunching what A4L calls “phase energy” data – which draws on a wide array of physiological signals – from the electrodes, and generating a formula based on the results, the company will then test blind on another selection of patients to see if their formula is an effective predictor.

“‘Phase energy’ is purely a mathematical concept,” explains Ramchandani. “There is no current physiological description of this. We will be the first to demonstrate this.”

The test itself can be administered from a “phase energy signal recorder”, an iPad Mini adapted with proprietary technology to connect to the electrode input. The recorder transfers the data to the cloud. The front-end software and the data processing lives on IBM Cloud, and important code infrastructure is hosted on IBM’s Bluemix platform.

This setup makes it all portable. “You technically can take our test anywhere you have a 3G signal,” says Ramchandani. “You wouldn’t have to fly people in from remote areas to a place that has a special camera.”

According to Ramchandani, IBM infrastructure is ideal for handling healthcare data. “We have an almost off-the-shelf HIPAA compliant tool. When you’re collecting medical information, you have to either de-identify it in a way that it can’t connect it back to the patient, or it needs to be hosted on and transmitted on infrastructure that’s been validated for security purposes.”

A4L completed series A funding last August for CA$10 million, and is hoping to complete series B at the beginning of 2017 to help it fund commercialization activity and a pivotal clinical trial.

Tech Portfolio Fact

That pivotal clinical trial will support their next key step: the FDA approval process. “If you can’t get through regulatory affairs in an efficient manner and get the kind of reimbursement you need, it’s not going to be a business,” Ramchandani says. The company has made senior level hires in order to facilitate interaction with the FDA.

Another option for A4L is expanding in Europe. (They will not start with Canada initially, because the market is too small.)

Although a price for the test hasn’t been set, A4L says that the overheads for its new system, once approved and functioning, are going to be astronomically less than the status quo. “We have no regulated nuclei that needs to be injected, purchased, or handled,” says Ramchandani. “You don’t need a specialized technician, or a specialized camera.”

And no more running on a treadmill, either.

For a free trial of IBM Bluemix click here.

VIDEO: Cognitive Technology Needs the Cloud

Sunday, June 5th, 2016

Cognitive solutions have developed beyond traditional AI capabilities into machine thinking, and startups can now leverage cognitive technologies like IBM Watson through the cloud to offer better solutions to their customers.

IBM’s Watson can digest and reason through information, and come up with solutions. This allows startups to offer their customers APIs like natural language processing without the obstacles that prevent easy, robust and responsive user experiences.

Placing this advanced technology in the cloud provides the resources that cognitive needs to function smoothly, and for it to be accessible through platforms including IBM Bluemix.

For more on this, here’s part of our recent interview with IBM’s Nevil Knupp, Vice President of Cloud, IBM Canada.

https://www.youtube.com/watch?v=24fSC8L3i5Y

For a free trial of IBM Bluemix click here.

For a free trial of IBM Watson Analytics click here.

‘Life is Good’ For Simpler Startups

Thursday, June 2nd, 2016

While many startups may have a desire to change the world, tackling a small problem can be simpler, more viable route to success. According to a report on Inc., Life is Good is valued at $100 million, having built its brand simply on combating negativity. The company sells everything from T-shirts to stationery, some of which feature its now iconic stick-figure character, Jake.

Life is Good: Jake

Life is Good is not the only startup taking a simpler approach to success. Startups like Israeli-based Gigya (data analysis) and Minneapolis-based When I Work (employee scheduling) are solving specific problems that companies face every day – and it’s paying off. Gigya is on its way to a billion-dollar valuation.

Point solutions – apps that also provide an answer to single, simple problems – are also prevalent in fintech, with startups like Trulioo and ChangeJar chipping away at big banks, one product or service at a time. When it comes to funding, Venture Capitalists are increasing looking for startups with a problem-solving mindset.

Simplicity is also key when making development decisions at the onset. Martin Weiner, CTO of Reddit, emphasized this point at a SXSW interactive conference held in Texas earlier this year. He advised that startups focus on “technologies that will help systems scale quickly, and are easier to employ.” This includes building with what he calls ‘boring tech’ – proven technology that works at any scale.

In the early stages of creating a startup, boring might be the right way to go.

VIDEO: Expertise and Mentorship Help Startups Exit the ‘Valley of Death’

Wednesday, June 1st, 2016

Transitioning to a scale-up is proving difficult for startups within Canada’s tech ecosystem. There are many questions about how to better support startups in order to maintain competitiveness and longevity. The transition can be so difficult that Patrick Horgan, VP, Manufacturing, Development & Operations at IBM Canada refers to it as the ‘Valley of Death’.

Bridges are being built over the Valley, though. Initiatives like IBM’s Bluemix Garage – which provides technology support, shares growth experience, and offers mentorship – aims to foster scale up success in the long-run.

To learn more about the challenges startups face in scaling up, and about initiatives that offer support, watch this video:

https://www.youtube.com/watch?v=gGVlvcO3pn0