After the launch of UBS Next in October last year, the team set the challenge for the students to see if they could create a user-friendly tool with advanced algorithms to identify the next big fintech startup investment opportunities.

UBS office location in Kowloon, Hong Kong

Over the last decade, the financial services industry has seen a huge transformation through new business models. Fintech startups are disrupting the traditional banking services and seeing centuries-old institutions change the ways in which they work. For UBS Next, as its primary aim is investment funding for strategic fintech startups, it’s crucial to monitor and evaluate startups efficiently and effectively identify the next big disrupter.

‘Identifying the next big fintech startups’ became the topic of this year’s competition. During the four weeks, each team (made up of 5 students) had to create a prototype for the venture investment analysts. The challenge involved:

  • Researching and reviewing existing methods for machine learning, data prediction and data processing
  • Developing statistical models using key features of high potential fintech startups
  • Modelling optimization and performance evaluation
  • Developing a graphical user interface to present findings

The students took the data from publicly available databases, such as Crunchbase, and public records. They used this to identify success factors for the next funding rounds. They asked themselves questions such as if location matters, if the background of a founder is a success factor, and whether previous investment rounds make a difference. They tested their hypotheses and the algorithms with the highest accuracy were chosen for the final models.

Teams were mentored by UBS experts from UBS Next, the Artificial Intelligence Center of Excellence, and other UBS innovation experts. They held weekly check-ins where the teams were able to refine approaches and test hypotheses with their mentors. On the 28 January 2021, the final presentations were held in front of a global UBS judging panel.

 “Our students were assigned team mentors from UBS, but still had a lot to learn about the job of a venture investment analyst and a whole slew of software tools,” said Prof. Betty Lin, course instructor. “Although this was a tough challenge, all six teams solved this challenge in four weeks and delivered a well-choreographed final presentation. My happiest moment is always when students wear a big smile after solving a tough problem, and then say, ‘Give me another one, please!’”

UBS values the close collaboration with students and academic partners as it enables us to get unconventional side angles, in addition to our expert’s approaches. Furthermore, it is a pleasure to collaborate with the next generation of tech talent. Working with the students is inspiring to see so many great ideas and enthusiasm. Kalpa Goel, one of the students taking part in the competition said: “Having gone through several ups and downs, the project experience was extremely rewarding and helped me translate my learnings from an academic setting to solving a real-life investment challenge. It really sparked my passion and interest to dig deeper and gain insights into what it is like to work in the financial industry and confirm my future career choice.”

This article is for informational and educational purposes only and should not be relied upon as investment advice or the basis for making any investment decisions. The views and opinions expressed may not be those of UBS. UBS does not verify and does not guarantee the accuracy or completeness of the information presented. No affiliation, association, sponsorship or endorsement is suggested or implied by UBS to any person, entity, company or organization appearing, featured or mentioned in the article, although UBS may have or have had a relationship with, or may provide or have provided products and/or services to, certain persons, entities, companies and/or organizations mentioned herein.