Cre8tek’s Flamingo and Nationwide Insurance go live with Virtual Assistant
Published on: | by Trevor Hoey
Cre8tek (ASX:CR8), owner of high-tech, Artificial Intelligence company and Cognitive Virtual Assistant platform provider, Flamingo Customer Experience Inc. has announced the commencement of its post testing go-live phase with Nationwide Insurance using Flamingo’s Cognitive Virtual Assistant platform, ROSIE.
This news proved to be a significant catalyst for CR8’s share price as it surged from the previous day’s close of 6.9 cents to hit a mid-morning high of 8.4 cents, representing an increase of more than 20 per cent.
The past performance of this product is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.
Nationwide Insurance is a US-based Fortune 100 company, and after the successful completion of a ‘soft-launch’, the group has now entered the next phase of ‘go-live’, where the platform is being used by Nationwide to interact with customers on an extended basis for their Guaranteed Retirement Income direct-to-customer product.
As a backdrop, CR8 acquired Flamingo Customer Experience Inc. in November 2016. The company is based in New York and Sydney, operating in the emerging Conversational Commerce field. Flamingo is an Enterprise SaaS company which provides a Cognitive Virtual Assistant (AI) platform designed for selling complex financial products online. The group’s cognitive Virtual Assistants are called ROSIE and MAGGIE.
Commenting on this recent development, Nationwide’s Innovation Lead, Scott Bair, said, “We are excited to see the impact that introducing Flamingo’s virtual assistant, ROSIE, has on the decision-making process for our customers who are considering Guaranteed Retirement Income from Nationwide.”
This deployment further strengthens the relationship with Nationwide, which has been a client of Flamingo’s since 2015.
Since bringing Nationwide on board as a client Flamingo has conducted a number of trials (four) of earlier versions of the platform across its various insurance products and in May 2016 a Master Services Agreement (MSA) was forged between the two parties, a very significant achievement for an early stage company.
Of course as Flamingo is an early stage company, investors should seek professional financial advice if considering this stock for their portfolio.
In January 2017, Flamingo signed a Statement of Work to design a Virtual Sales Assistant for Nationwide, and by August a Production Statement of Work related to the implementation of the Virtual Sales Assistant (now live) had been negotiated. The Production Statement of Work contract included a Monthly Recurring Revenue (MRR) component which has provided revenue visibility and predictability for the group.
Integral to the deployment was a program of highly rigorous security and data privacy audits, technology architecture reviews and these were successfully completed by Flamingo.
The MSA allows the company to conduct other Statements of Work and Flamingo is currently in active discussions related to potential deployments in multiple Nationwide business units.
Given the security and technology review work already conducted it is expected that future deployments will be substantially faster to implement. These high standards will also act as a considerable barrier to entry for other players or competitors trying to enter this market.
Flamingo also highlighted the fact that all current client implementations are progressing well, with management indicating it would be providing the market with further updates on progress with client deployments.