Earlier this week, American Banker described the science that FinTech companies use to learn the spending habits of consumers, the Payments Genome.
All four fintech companies cited in the article are Finovate alumni. Here are the techniques employed:
- Truaxis uses an algorithm to infer consumer behavior.
- T8 Webware uses a modified version of an algorithm used by gene scientists to create new crop species, Hidden Markov Model
- BillGuard uses its userbase to flag questionable transactions (i.e., crowd sourcing)
- Micronotes performs regression analysis on each customer’s transaction data to cross-sell products.
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To learn more about each of these companies, watch Truaxis’ FinovateFall 2011 demo, T8 Webware’s FinovateFall 2011 demo, BillGuard’s FinovateFall 2011 demo, and Micronotes’ FinovateFall 2010 demo.