Fintech-Driven Scoring Uncovers How COVID-19 Impacts Your Investments

Fintech-Driven Scoring Uncovers How COVID-19 Impacts Your Investments

MARCH 30, 2020 • DARA ALBRIGHT

Fintech-Driven Scoring Uncovers How COVID-19 Impacts Your Investments

Israeli fintech company Innovesta has announced the launch of its COVID-19 Resilience Innodex (CRI).

As COVID-19 continues to send shock waves through the financial world, hurling equity markets from unprecedented highs to three-year lows and setting new records for daily gains and losses, investors find themselves scrambling to protect their holdings and form new investment strategies in treacherous market conditions.

Based on Innovesta’s AI and natural language processing technology, CRI is a comprehensive score based on a business’ ability to be impervious to the effects of a pandemic such as COVID-19.

“Concise data allows for smart and comprehensive insight,” said Yali Harari, Innovesta’s CEO. “Too often panic-ridden reporting tends to muddy the pool of usable data, simple, and factual data. That pure data becomes scarce and thus valuable. Professional investors and businesses need access to digestible data regarding virus trends and infection rates as it relates to them. Our COVID-19 Resilience Innodex is doing just that.”

With the virus rapidly emerging as a new mid-to-long-term business risk factor, investors are left asking questions, like:

  • How is COVID-19 specifically affecting my portfolio companies and their suppliers?
  • Do my portfolio companies possess viable disaster plans?
  • How much of my portfolio company’s team is in quarantine?
  • How much of my portfolio company’s team is on paid leave?
  • Which industry sectors are most impacted by COVID-19?

Such questions can’t be answered through traditional research tools and macro level reports. These extraordinary times call for the deployment of modern technology along with the broadening of fundamental analysis to include a host of new time-sensitive, present-day data points.

At the same time, businesses across the globe find themselves now grappling with a host of unforeseen challenges including supply chain disruption and government forced shutdowns.

It is critical that today’s businesses remain one step ahead of supply disruption. It is equally important that investors, financial advisors and bankers maintain an accurate and timely assessment of a company’s financial health. 

It is no longer enough to rely on conventional analytic tools in order to obtain a clear financial picture of where today’s businesses and their suppliers are headed.

Dara Albright is a recognized thought provoker and frequent speaker on topics including fintech, digitalfinance, cryptofinance, peerfinance & crowdfinance.

https://www.fa-mag.com/news/fintech-driven-scoring-uncovers-how-covid-19-impacts-your-investments-54912.html

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