Hi Stefania, welcome to the Fintech interview series. Please tell us about your tech journey so far.
Since investing was born, its only goal has been generating financial performance. Nobody was considering all the negative effects of investments on the planet. I wanted to change that. I wanted to bring good into the financial industry, helping move money to companies and projects that protect the environment and society. So I learned all about sustainable finance and became one of the first Impact Investing fund managers in Europe.
Then I realized that portfolio skills alone were not enough to make a real difference and drive innovation. I needed to combine the best technologies and industry knowledge to build a groundbreaking solution that could quickly scale. I started learning all about fintech and immersed myself in the world of startups. That was the beginning of Physis.
How is Physis bringing greater transparency to the financial industry? Can you nutshell how it functions?
Physis is a platform built for investors serious about impact. Financial metrics do not help investors understand the impact of their investments. The Physis Platform provides a technology that provides its users with an incredible amount of extra financial information by simply searching for a company, fund, or customized portfolio. Since the day of the first investment, you can measure the amount of water used or recycled, women in management positions, plastic recycled, and much more for all the invested companies. We help measure impact, track the investment’s sustainable and financial performance, and understand how your money is making a difference in protecting the planet.
Could you please explain to our readers how can they understand, track and measure the impact of their investments?
Physis has a unique data system that collects information from over 14,000 companies worldwide and analyzes data quality by peer comparison and 14 years of historical performance. Physis is an immense digital data library where investors can access the information needed to allocate their money towards impactful activities and companies that are better aligned with their goals, both financially and ethically.
How are AL and ML helping Physis to boost its digital experience?
The Physis system is built on algorithms and deep industry knowledge. We carry the heavy work on our shoulders to make it easy for investors to access an incredible amount of quality data. Our system is secure and fast, in a matter of seconds, it provides deep analysis and transparency into the sustainable information of any investment. We are also working on an exciting generative AI project, to make it fun and easy for investors to quickly find and compare information.
The global investments market grew from $3532.16 billion in 2022 to $3837.1 billion in 2023 at a compound annual growth rate (CAGR) of 8.6%. What are your comments?
We live in a world of exciting transformations and opportunities. ESG assets recently reached $42 trillion in the capital markets, almost ⅓ of total investment worldwide, and yet, no one can answer this simple question:
what is the impact of money on the planet?
I believe that this is the biggest opportunity to transform the way we perceive investments and returns. Physis was built to answer this question and help investors make an impact. I am looking forward to seeing global investment numbers grow in terms of ESG and impact allocation.
Which model of algorithmic quality assessment your tech is based upon? Any plans to diversify in near future?
It is never just about the data, but about providing the best data in a way that is easy to understand and use. After our process of automatic data collection, we have built in-house algorithms to: normalize the data, create unit uniformity, check outliers, compare data trends by historical performance and peer review, and much more. To me, this section of our technology is the most exciting one, the one where we had to face many border cases and solve them. I always say the system gets smarter every day, with more and more data that we are now able to process.
In the near future, we are working on a generative AI solution that will make it easier for users to access and understand quality impact data.
Can you throw some light explaining the terminology “ESG Analysis”? How is client supposed to use it in their portfolio tracking?
Our ESG analysis monitors over 25 environmental, social, and governance factors, offering a comprehensive investment experience. Considering extra-financial information in every portfolio analysis has proven to be a competitive advantage that improves investors’ efficiency, innovation, and growth while generating positive value. ESG information is important to compare a company’s sustainable performance at a thematic level and across peers. ESG data maps a wide array of risks and opportunities associated with portfolios. It helps to estimate long-term performance and investment returns more accurately.
One investment advice that you would like to give to our readers?
As investors we can be unlikely heroes, we can invest in companies that make a difference on the planet and earn positive returns. It’s a win-win.
Also Read: Global Fintech Interview with Manish Bhai, Founder and CEO at UNO Digital Bank
Your favorite fintech quote.
The future of finance is tech and impact, as fintech leaders we have a unique opportunity to accelerate the transition to a better world by leveraging new technology and data.
Thank you, Stefania ! That was fun and we hope to see you back on globalfintechseries.com soon.
[To share your insights with us, please write to sghosh@martechseries.com]
Stefania Di Bartolomeo is a quant-humanist dedicated to promoting female empowerment and sustainable investing. As the founder of Physis Investment, her vision is to bring greater transparency to the financial industry. Initially starting alone, she has been able to attract exceptional individuals who share the Physis mission. Together, they assist investors in understanding, tracking, and evaluating the impact of their portfolios.
Stefania’s passion for sustainable investing stems from her inherent love for nature and her desire to preserve our natural ecosystems. She firmly believes in equality and strives to leave the world a better place for future generations.
Physis Investment leverages data to help investors understand, track, and measure the impact of investments through our online platform. It help institutional investors build and report on advanced impact portfolios in the capital markets.
