NEWS
During August, The Fintech Times, highlighted some of the amazing things fintechs are doing around the world. In this article, Provenir’s SVP of Global Solutions, Carol Hamilton, weighs in on how fintechs can help the developing world.
ON-DEMAND WEBINAR
Online lending is a prime example of an industry tackling the ever-present issue of ease of customer journey vs secure customer identification.
Online applications are a perfect testing ground for cybercriminals to attempt to commit fraud so organizations must ensure their defences are resilient enough to only approve good customers.
Yet, new sources of data provide exciting new opportunities for both fintech companies and banks to provide a super streamlined process. In this webinar, you’ll learn:
ON-DEMAND WEBINAR
Artificial intelligence is more than just the latest buzzword – using AI has a meaningful impact on decisions across the entire customer lifecycle. From improving fraud detection and decisioning accuracy to optimizing pricing and managing bias, AI has a key role to play in changing the way financial services products are developed and offered to customers.
In this panel discussion, we’ll cover how AI can:
Senior Vice President, Global Solutions, Provenir
EVP, Chief Data & Analytics Officer, Yapi Kredi
Research Analyst, Finovate
NEWS
New research outlines the “risky business” and the greatest credit risk analysis challenges, opportunities, and trends fintech decision makers see in 2022
Parsippany, NJ — March 7, 2022 — Only 18 percent of fintechs and financial services organizations believe their credit risk models are accurate at least 75 percent of the time. The finding is revealed in new research outlining the greatest credit risk analysis challenges, opportunities, and trends fintech decision makers see in 2022.
The study also shows the growing appetite for AI predictive analytics and machine learning, data integration, and use of alternative data as the means to improve credit risk decisioning and support the key imperatives of fraud detection/prevention and financial inclusion.
The study, sponsored by Provenir, a global leader in AI-powered risk decisioning software for the fintech industry, surveyed 400 decision makers in fintech and financial services organizations across North America, Latin America, Asia Pacific, Europe and the Middle East.
A copy of the full report is available online.
“Consumer credit markets have changed dramatically over the past two years, yet many financial services organizations are still employing legacy approaches to credit risk decisioning. The net result is that organizations today have a substantial level of uncertainty in the accuracy of their risk models which results in less inclusive credit, fewer approvals, and reduced opportunity for business growth,” said Larry Smith, CEO and Founder of Provenir.
This “risky business” uncertainty in credit risk modelling accuracy may be why real-time credit risk decisioning was survey respondents’ No. 1 planned investment area in 2022. Additionally, the survey shows organizations are recognizing the value of AI and machine learning, alternative data, and data integration in credit risk decisioning approaches.
AI-enabled risk decisioning is seen as key to usher in improvements in many areas, including fraud prevention (78%), automating decisions across the credit lifecycle (58%), improving cost savings and efficiency (57%), more competitive pricing (51%) and improving accuracy of credit risk profiles (47%).
The survey also gauged how organizations want to use alternative data in credit risk analysis; improving fraud detection and serving the underbanked/unbanked were the top main objectives cited. Sixty-five percent of decision makers polled recognize the importance of alternative data in credit risk analysis for improved fraud detection. Additionally, 51 percent recognize its importance in supporting financial inclusion, 43 percent see its value in expanding target markets, and 40 percent say its use results in more accurate credit scoring.
Despite strong recognition of the value of alternative data, many organizations struggle with operationalizing alternative data within their credit risk models. Data integration was cited as the biggest impediment to the use of alternative data by 7 out of 10 respondents.
According to the study, organizations are also looking to lean into the latest technology advancements in their automated credit risk decisioning platform selection:
The study, sponsored by Provenir and conducted by Pulse, surveyed 400 decision makers in fintechs and financial services organizations across North America, Latin America, Asia Pacific, Europe and the Middle East. The survey responses were gathered between Oct. 13 and Dec. 21, 2021. Respondents were Managers, Directors, VPs and C-Suite executives at small-to-mid-sized organizations with less than 1,000 employees, in North America, Europe, Asia, and Latin America.
What is a decision engine and how does it help your business processes?
Pulse and Provenir surveyed 400 decision-makers in fintechs and financial services organizations globally to find out what they believe will be the biggest challenges, opportunities and trends of 2022 and how they plan to address them with data, AI and decisioning.
What is a decision engine and how does it help your business processes?
In a digital first world everything is available on demand. Consumers expect instant gratification, not just for small things like movies or music, but for everything, including financial services. If you’re not approving a loan application in real-time, there’s a competitor who will.
In our latest ebook, we explore what the future of data for risk decisioning looks like. And, how real-time, on-demand data will:
Download the ebook today to discover how curating a single source for historical and real-time data simplifies data access, enhances data science and machine learning strategies, and democratizes data use across your organization.
What is a decision engine and how does it help your business processes?
uy Now, Pay Later (BNPL) is absolutely everywhere these days. Record transaction numbers, new providers, new markets served. What does this rapid growth mean for the future of BNPL? What impact will increasing regulations have on the seemingly endless runway of opportunity? Hear from industry influencers what they believe the future of BNPL has in store – for providers, merchants and consumers.
Learn about:
What is a decision engine and how does it help your business processes?
NEWS
The economies of Latin America are benefitting from a lively and innovative fintech sector. What used to be a two-step process – where the customer would purchase items online and then pay for them at check-out using a cash-based payment method – has now transformed into a more inclusive payment ecosystem where consumers now have increased spending power and can more easily manage their finances.
Jose Luis Vargas-Favero, Executive Vice President and General Manager, Latin America, with Provenir, explains how the fintech boom in Latin American has been driven, in part, by millennials and Generation Z who are digital savvy and more accepting of modern banking /financial services as opposed to traditional banking methods.
Read the full article at Global Finance Magazine.
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TED Talks are thought provoking, inspirational, and arguably one of the best ways to make your daily commute entertaining. One of the most amazing things about TED Talks is the diversity of topics that speakers discuss, and how their talks are frequently at the forefront of emerging technology.
In our last TED Talks blog post we selected a number of inspiring TED Talks that address the subject of Lending, and how machine learning, alternative data, and technology are changing the way lenders operate and offer their services. This time we’ve binge watched our way through talks that explore the topic of FinTechs and how technology is advancing the world of finances.
When it comes to FinTech, banking, and well, financial services in general it’s easy to get lost in the numbers (pun intended), and forget about the potential impact a business can have on their industry or even the world. Fortunately, TED Talks are available to inspire you to look at the big picture and use technology to create positive change in both financial service accessibility and the impact banking availability can have on an individual.
The following TED Talks focus on the subject of FinTech and cover a range of topics including the influence FinTech is having on the world of financial services, how its improving the payments industry, the ways its improving access to financial services, and perhaps most inspiringly, the positive ways it can change the world.
Here is our recommended viewing list of top TED and TEDx talks to inspire you to innovate and explore the potential of FinTech:
In the financial services industry, technology has gone from pinch hitter to MVP, but it hasn’t stopped there. In this fascinating TED Talk, author and industry expert Chris Skinner delves into the world of fintechs and why many of the most successful fintechs are founded by ‘kids’—also known as the under-40s—including Revolut, Stripe, and PayTM. Chris explores the cultural and environmental role fintechs will play in the future and how fintech can be used for the greater good to provide protection, improve inclusion, and increase education.
When it comes to making life easier for consumers, FinTech is far ahead of many of the traditional banking institutions, but Tom Blomfeld, CEO of UK challenger bank Monzo, thinks the real banking revolution is still to come. In this short, but thought provoking TEDx talk Tom discusses what the future of banking could look like when financial institutions are required to provide easy access to data.
Spiros Margaris is a world renowned FinTech thought leader, advisor, and venture capitalist. In his TEDx Talk Spiros discusses how FinTech is providing not just a positive influence on the banking industry, but also in the world. For many of us, banking is something that we take for granted, but there are a huge number of individuals who are underbanked or unbanked, such as refugees, recent immigrants, those with poor credit histories, and individuals with thin credit files. Spiros explores how FinTechs can improve the lives of the unbanked and underbanked by providing innovative banking solutions that are accessible and offer a human approach to banking services.
FinTech is evolving the future of payments! Carey Kolaja, who was Vice President of Global Consumer Products at PayPal when she recorded this inspirational TED talk, looks at our current relationship with payment transactions and how technology will drive change in the payments industry. Carey discusses the innovative ways that businesses are using technology to make payments more secure, accessible, and reliable. She also explores the potential uses of this technology in the future, from helping in emergency situations to providing economic opportunities to individuals.
Author, teacher, and Chairman of the FinTech Association of Hong Kong, Henri Arslanian explores how FinTech is revolutionizing the banking industry to create new user friendly financial services. With a digital first approach, FinTech has created new and innovative ways of interacting with existing and potential customers to extend banking services, such as investment advice typically reserved for the wealthy, to everyone. His talk doesn’t just look at the ways finTech will change how consumers access banking, it also explores how it will extend who has access to services. With so much change happening in the banking industry, are the new generation of bankers ready for a digital first banking industry?
Provenir is a risk decisioning platform that puts the power of the decisioning process in the hands of the business. It gives financial services organizations the ability to quickly integrate to data sources through APIs, deploy new risk models, and make risk decisions in seconds. Explore Provenir’s platform to learn how you can use more sophisticated decisioning models to get deeper insights into your consumers and generate decisions in microseconds.
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The business financing world is undergoing a transformation, with a myriad of freshman financial technology pioneers reshaping the way businesses acquire capital. Often, traditional lending avenues simply aren’t cutting it for small and mid-sized companies, many of which don’t follow conventional business models. These organizations, as well as those that only have a few years of operations under their belt, are being better served by the newest slate of B2B financing companies that place speed, convenience, and customer-centricity at the forefront. Toronto-based FundThough is a leader in this sphere, providing an innovative way for businesses to close the gaps between invoicing and receipt of payment.
FundThrough is one of the few invoice financing companies with a qualification and funding process that’s completed entirely online. It offers a simple application that only takes accounting information, invoice history, and the applicant’s customer-base into account, and it’s this approach to credit approval that makes FundThrough stand out.
While most lenders set strict thresholds for things like revenue, years in business and personal credit scores in order to mitigate risk, FundThrough founders believe that lending risk can be better assessed by revenue patterns and the quality of a company’s customers. In other words, organizations that do business with other trustworthy companies are more likely to be able to pay back invoice funds, regardless of the other aspects most lenders take into account.
In October 2016, FundThrough announced that it had obtained $24.6 million in its second round of funding. According to co-founder and CEO Steve Uster, these funds are being used “…to bring on partners who understand the needs of small businesses and the challenges they face.” To this point, the company has recently partnered with Quickbooks Online and FreshBooks to provide seamless access to funding directly from these accounting platforms. A new collaborative relationship between FundThrough and the enterprise and workforce management application developer Jobber is also making it easier for companies to close gaps in the payment cycle by integrating funding into the software.
There are a number of opportunities for FundThrough to expand in the invoice funding market. Uster is making the company’s underlying technology a priority, with upgrades slated for its credit decision automation process as well as further optimization of the platform’s user experience. There are also plans for additional partnerships with digitally-based accounting companies and other organizations that cater to small and medium businesses.
