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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
With digital rising to the preferred channel for audiences across the globe, it is more important than ever for firms to manage their brands’ digital presence. Organizations no longer need to just worry about sending out consistent messaging, they also need to ensure that the information that search platforms are sharing about them is correct and consistent in order to uphold their reputation
Earlier this fall, Finovate Research Analyst David Penn spoke with Stuart Greer, VP of Enterprise Sales at digital presence platform Yext to get an idea of how the company not only helps brands manage their reputation, but also with managing information on data aggregators about their physical locations, setting up , and more.
“One of the biggest things I’d say that large enterprise financial services companies deal with… is their online presence across all of the platforms, said Greer. “Yext is a digital presence platform that essentially helps multi-location businesses. When you think about multi-location businesses, you can think of banks, ATMs, wealth advisors, insurance agents– anyone who has that presence online.”
Yext was founded in 2006 to help brands with multiple locations manage their digital presence. Companies can leverage Yext’s platform to ensure they deliver accurate, consistent information, while connecting with customers across the globe via digital channels. The New York-based company leverages AI to automate workflows at scale and provide actionable insights to do everything from enhance SEO to manage social media reputations. Michael Walrath is CEO.
Leveraging AI to enhance the customer experience is one the biggest challenges – and greatest opportunities – in fintech and financial services.
Today we share the insights of Rahul Kumar, VP and GM for Financial Services and Insurance with Talkdesk, on the central role of contact centers in AI-driven customer experience. In our Streamly Snapshot conversation, which took place in September at FinovateFall 2024 in New York, Kumar discusses what financial institutions are doing to overcome the barriers to delivering a superior customer experience. Kumar also explains why leaders in financial services are prioritizing the contact center as a central part of their AI and CX strategy.
“One of the things we’re seeing in the industry is that customer experience is fast becoming a strategic initiative for executives across the board — for banks and for credit unions. Recently, in a survey, we polled over 200 customer experience professionals and the responses were unsurprising: 86% of executives said that they do believe CX is a strategic investment priority that can lead to brand differentiation for themselves. 63% felt that they could tie CX metrics to value. And 80% do believe that contact center is fast becoming a strategic investment area for them. It’s definitely top of mind for executives.”
Founded in 2011 and headquartered in San Francisco, California, Talkdesk is an international cloud contact center leader for businesses of all sizes. The company’s contact center platform leverages AI and automation to enable businesses to deliver exceptional outcomes for their customers. Talkdesk’s AI-powered customer experience platform helps enterprises reduce costs, grow revenues, and streamline operations to boost efficiency. Tiago Paiva is Founder and Chief Executive Officer.
In his role at Talkdesk, Rahul Kumar leads business, product, and go-to-market strategy for financial services and insurance. He also leads the customer success function for all strategic industry customers, managing C-suite relationships for enterprise customers.
How can companies take advantage of the opportunity of AI to grow revenues, help develop new products, and better engage customers? Our latest Streamly interview features Chris Brown, President of Intelygenz, who shares strategies for businesses to effectively implement AI.
In this interview, conducted by Finovate Senior Research Analyst Julie Muhn, Brown talks about Intelygenz’s engagement models that quickly deliver measurable ROI. Brown also discusses Intelygenz’s “Day Zero” promise, successful use cases in financial services, and explains what the metrics for success are when it comes to AI projects.
“There are a few things actually that I think organizations can do: I think the first thing is try and get yourself out of the AI buzzword, out of that AI hype, and really try to understand where you can apply AI within your business. Try and cross match your strategy, your challenges to the art of the possible of AI.”
“Don’t get hung up and leave that technical jargon. Leave all those hype words to the machine learning engineers and data scientists. Really focus on ‘What are the challenges I’m facing in my industry?’ ‘What will make a difference to my business?’ And if you do that, I can promise people from our vantage point that over many years you will put yourself in a really good position.”
Headquartered in San Francisco, California and founded in 2002, Intelygenz provides expert AI consultancy and implementation services. Specializing in AI, Deep Learning, Computer Vision, and other enabling technologies, Intelygenz guides businesses and organizations through their AI journeys – from conceptualization to implementation.
Summer’s officially over. But you’ve still got plenty of time to catch up on episodes of the Finovate Podcast that you might have missed while on vacation or just taking a break from the fintech buzz.
EverBank is a nationwide specialty bank that serves both consumer and commercial clients. A pioneer in online banking, EverBank is headquartered in Jacksonville, Florida.
Fintech Sandbox offers entrepreneurs free access to data and resources in order to build their early-stage fintech solutions via its Data Access Residency program. Fryer is Executive Director.
Finovate Podcast host Greg Palmer interviews Jeff Trammell of Merchants & Marine Bank on the issue of cannabis banking and community banks. As a COO, Trammell offers his perspective on implementing new programs. Ep 225.
Headquartered in Pascagoula, Mississippi, Merchants & Marine Bank is a community bank that has served customers in the Gulf Coast region of the U.S. for more than 120 years.
Author of Web3 in Financial Services, Martins’ book examines the transformative potential of Web3 in the financial services space.
Alex Harris of Fiat Ventures shared his 2024 mid-year review this summer. In this podcast conversation with host Greg Palmer, Harris handed out a few tips for founders and gave his prediction for what’s next for the fintech industry. Ep 223.
Headquartered in San Francisco, Fiat Ventures is an emerging VC focused on supporting the next generation of market-leading, early-stage fintech companies. Harris is Co-Founder and General Partner.
This week, we turn to Uzbekistan, a Central Asian nation and former Soviet republic with a population of just over 37 million. The doubly-landlocked country (one of only two in the world) has been transitioning toward a market economy for years and has been credited by the Brookings Institution for its high economic growth and low public debt. A major producer and exporter of cotton, Uzbekistan has leveraged major natural gas supplies to be one of the largest electricity producers in the region. HSBC has predicted that the country will have one of the fastest-growing economies in the next few decades.
We interviewed Oliver Hughes, former CEO of Tinkoff and current Head of International Business for TBC Bank Group – which recently expanded to Uzbekistan. In our extended conversation, we discussed TBC’s goals in Uzbekistan, nature of banking in Central Asia, what key financial services are in the most demand, as well as how enabling technologies are helping financial institutions in the region better serve their customers.
You joined TBC a few years after the bank expanded to Uzbekistan. First, what drew you to TBC?
Oliver Hughes: Joining TBC in Uzbekistan was a great opportunity for two reasons. First, the market itself is full of potential and ripe for disruption. A young, growing population of 37 million people, of which 59% are under the age of 30, economic reforms and liberalization, a favorable macroeconomic environment and an under-penetrated digital banking market create huge demand for world-class online banking services, so I could see a clear path to success.
Second, I knew that TBC Uzbekistan would be a great place to work and an environment that would allow me to make an impact. Since coming to Uzbekistan in 2019, TBC has built a world-class team, secured a banking license, reached profitability within two years, and outlined a vision that aligns with my previous experience of building and scaling a best-in-class, profitable digital banking ecosystem.
Uzbekistan was TBC’s first international market outside of its native Georgia. Why Uzbekistan?
Hughes: Uzbekistan is a hidden gem, previously largely overlooked by the international investment community, but slowly getting on the radar of investors and fintech heavyweights. It is Central Asia’s largest country by population, which is young and getting younger each year. This supports demand for modern digital financial services. The country has also embarked on a large-scale program of economic reform and liberalization, empowering the private sector and starting to attract more international investment.
TBC Uzbekistan is part of London-listed TBC Bank Group and we are proud to play our part in attracting major global investors to the country. Through TBC, large global investment funds like Fidelity, JPMorgan Asset Management, Schroder, BlackRock and Vanguard have been investing in Uzbekistan, and more investors are coming in every month.
The macroeconomic picture is strong, with GDP expanding at an average annual rate of around 6% for the past decade and forecast to almost double to $160 billion between 2023 and 2030.
In addition, Uzbekistan has a deep tech talent base. It’s both because of its highly educated domestic workforce – a product of a strong education system, and also because Uzbekistan is benefiting from an influx of returning expats and a broad range of international tech specialists from neighboring countries.
What does the financial services ecosystem look like in Uzbekistan? What is the level of interest in fintech innovation there?
Hughes: The financial services sector is still largely dominated by major state banks, which command around 70% of the market. However, competition is increasing as the government continues its drive for privatization and other reforms. A recent example of this was with Hungary’s OTP, which in June 2023 became the first international player to participate in the privatization of the Uzbek banking sector, acquiring former state-owned Ipoteka Bank. And recently, Kaspi announced its intention to participate in the privatization of Humo, Uzbekistan’s second largest open-loop domestic payment system.
TBC Uzbekistan is part of London-listed TBC Bank Group PLC, which also operates Georgia’s leading tech-enabled commercial bank. Despite being part of a multinational group, we consider ourselves to be a local player because we operate as a standalone company in Uzbekistan with a separate tech stack and separate team purpose-built for this country.
In terms of the ecosystem as a whole, it is a mix of state banks, international operators, and local Uzbek players, as well as a developing fintech scene covering everything from payments to crypto.
The level of innovation in the local fintech market is very advanced, thanks to open banking. The key development, which has not yet been replicated in developed markets, is the full banking interoperability that open banking enables in Uzbekistan. In practice, it allows customers to seamlessly interact with multiple financial institutions.
For instance, when a customer of one bank opens an account with another institution, the new bank gains visibility into the customer’s transaction history and account balances from their original bank, while the new bank is also able to initiate fund transfers or debit transactions from the customer’s account at the original institution. This helped TBC enter the market in 2019 via the acquisition of the leading P2P payments app Payme to quickly achieve profitable growth and access to a huge customer base.
Let’s talk a little more specifically about TBC Uzbekistan. How is it structured? What is its mission?
Hughes: Our mission is simple – to make people’s lives easier. As I described earlier, the financial services sector has been and is still to some extent dominated by state institutions that operate in a traditional fashion. We see that there is demand for modern, digital banks that provide a great, convenient user experience and that is what we are building.
At present, there are three components to TBC Uzbekistan: TBC Bank Uzbekistan (TBC UZ), a mobile-only bank; Payme, a digital payments app for individuals and small businesses; and Payme nasiya (Payme instalments), an installment credit business. London-listed TBC Group owns 100% of both Payme and Payme nasiya and is the major shareholder of TBC UZ, with a 60% stake. The other 40% stake in TBC UZ is split between two institutional investors: the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC), part of the World Bank Group.
What are some of the biggest areas of opportunity in your opinion?
Hughes: We see some really exciting opportunities in Uzbekistan. At present, we are focused on consumers and specifically consumer lending. Despite over 45 million cards in circulation across the country, product offerings remain limited and retail lending is especially underdeveloped, representing just 12% of GDP.
Demand from consumers for financial services is already significant and continuing to grow, with point-of-sale (POS) digital payment volumes tripling to over $22 billion in the three years ending in 2023, with the number of POS terminals and bank cards in circulation doubling over the same time period.
There are interesting opportunities in other areas as well, including a new, product-rich debit card, financial services for SMEs, insurance and brokerage, with the latter two being at a fairly nascent stage of development in Uzbekistan. So, we plan to leverage those as well in the future.
TBC Uzbekistan recently raised a significant amount of capital. How will the new funding help the bank?
Hughes: Our business in Uzbekistan is scaling rapidly, but there is still significant potential for further growth, including through diversifying our offering to address market demand. The recent funding is being used to increase our loan book — which we are currently doubling year-on-year — advance financial inclusion, and accelerate our progress in launching new product lines.
In addition to powering our growth, new funds help us to continue to diversify our funding base.
What are some things about Uzbekistan that those of us on the outside may be surprised to learn?
Hughes: Uzbekistan is a country that largely exists outside the mainstream consciousness in the West. Some people might have their preconceptions, and would be surprised to learn about the advanced state of open banking in the country. Building on that, the level of innovation in financial services is pretty impressive in Uzbekistan. The fintech sector is thriving and strongly supported by the government and the wider ecosystem that is fueled by local and international tech talent.
In terms of other things that may surprise you about Uzbekistan, it’s the food scene. The food here is incredible, so I urge everyone to come over and try it!
There is a lot of talk about enabling technologies such as AI. Are any of these major areas of innovation in Uzbekistan’s fintech scene?
Hughes: Artificial Intelligence is a key innovation area and one that I am proud to say that TBC is leading among peers by integrating AI into our services.
Our plans are ambitious. We are building an AI Virtual Assistant that takes customer service to the next level. The most common customer service solution right now is chatbots, but we’re skipping that stage and going straight to an interactive voice assistant. What’s more, we’re enabling functionality in the Uzbek language and, in the future, in other local languages such as Tajik and Karakalpak, which tend to get overlooked by major tech giants.
We ultimately envision this Virtual Assistant being able to guide our users across all of our product offerings within TBC Uzbekistan, including the ones we plan to launch in the future, such as insurance, brokerage, travel and ticketing.
How do you see TBC Uzbekistan growing over the next two-to-three years?
Hughes: Since launching in 2019, TBC Uzbekistan has scaled significantly and established itself as a leading player in the market. As disclosed in our recent half-year results, we have grown our user base to 16 million unique registered users and achieved an operating profit of $61 million, up 87% year-on-year, with TBC Uzbekistan accounting for 7% of total profit for the group, as well as 13% of revenue and 44% of consumer loans on the group level. This is a very significant contribution, which is set to expand further.
We plan to continue to grow rapidly over the next 2-3 years, launching new product lines and gaining an increased percentage of market share. This is reflected in the guidance we have issued to the market: a net profit for TBC Uzbekistan of $75 million for the full year of 2025, with 30% of the Group’s loan book coming from TBC’s operations in Uzbekistan.
Where might TBC expand next? Are there any areas of special interest?
Hughes: We’re not yet at the stage where we can point to a specific market. However, I can tell you the types of markets we are considering. Our attention is on emerging markets with a population of around 30 to 70 million people, scope for growth and other favorable characteristics. For now, we still have a lot of exciting things to do in Uzbekistan.
Here is our look at fintech headlines around the world.
Sub-Saharan Africa
South African fintech Happy Pay locked in $1.8 million in pre-seed funding in a round co-led by E4E Africa and 4Di Capital.
Ghanaian crypto platform, Mybitstore, went live in Nigeria this week.
Nigerian fraud detection company Regfyl raised $1.1 million in funding.
Central and Eastern Europe
Germany’s Commerzbank partnered with Deutsche Börse subsidiary, Crypto Finance.
Instanbul, Turkey-based fintech Colenda AI launched new AI solution to help financial institutions enhance decision-making and boost loan performance.
Bulgaria-based Paynetics teamed up with tell.money to launch its Confirmation of Payee (CoP) service.
Middle East and Northern Africa
UAE-based B2B payments platform Xpence teamed up with Egypt-based Paymob to enhance digital payments in the region.
Egyptian fintech SETTLE raised $2 million in pre-seed funding.
Mesh integrated with digital asset trading platform CoinMENA FZE to enhance crypto transfers and account management for customers in the MENA region.
Central and Southern Asia
India-based insurtech Onsurity raised $21 million to power expansion plans.
ZaakPay, the payment gateway arm of India’s MobiKwik, partnered with Meta to provide an embedded payment option via WhatsApp.
Indian financial services platform Kaleidofin secured $13.8 million in funding.
Latin America and the Caribbean
Uruguay-based MercadoLibre secured $250 million in financing from JPMorgan.
JMM Group and Liberty Latin America launched microlending service MYNE Lend for Jamaican customers.
dLocal, a cross-border payments platform based in Uruguay, forged a partnership with MoneyGram.
Asia-Pacific
Vietnam Maritime Commercial Joint Stock Bank (MSB) teamed up with TerraPay.
Paysend launched instant cross-border payouts to China UnionPay cards for enterprise customers.
From hyper-personalization to compliance automation to product management, the digital transformation in retail bears many similarities to the digital transformation taking place in financial services.
In both instances, greater digitization and enabling technologies like AI and machine learning, are empowering businesses to better know and serve their customers, build innovative solutions and services, and secure their operations and their customers’ data against cybercrime.
We caught up with Lohith Kumar Paripati (LinkedIn), Product Lead at Walmart, to talk about the digital transformation in retail. In our extended conversation, we discuss Walmart’s efforts to make ecommerce more effective for merchants, the pain points retail customers are currently facing, and how innovations in AI and an emphasis on personalization are helping enhance the customer experience.
At FinovateSpring earlier this year, you were involved in a discussion on digital transformation in retail. What were some of your key takeaways?
Lohith Kumar Paripati: I was privileged to be part of this event as a panelist and speaker at FinovateSpring, where I discussed how AI and LLMs are revolutionizing retail through improved operational efficiency and personalized customer experiences. My reflections touched on the impact GenAI is having on the industry with its hyper-personalized recommendations as well as robust payment offerings, thus changing the purchasing experience.
What caught my attention was the buzz throughout. FinovateSpring has always been known for its exciting ambiance, and this year’s event was no different. There were live demos from various innovative companies that kept me tuned in while networking opportunities were unrivaled. From my fellow panelists, I heard insights about bridging ecommerce and in-store experiences for Gen Z consumers who want seamless technology-driven relationships.
The event reiterated that Finovate isn’t just about presentations but is also a forum where leaders in the industry converge towards innovation, networking, and learning.
You spearheaded the Walmart Seller Savings Platform. What are its goals? How do you measure success?
Paripati: The Seller Savings Platform has been built around the idea of seller success and offers financial incentives that promote best practices on the marketplace. The platform encourages sellers to offer affordable pricing and delivery speed, as well as maintain product listing quality, which are important drivers of sales growth for them.
Through the platform, we introduced a various programs such as Pro Seller, which gives visible importance and credibility through a badge and also reduces referral fees by 5%. Furthermore, with the Pro Listing program, sellers who have the ability to deliver their items fast and on time, or at low prices, can get an extra 10% discount. For new sellers, the New Seller Savings Program offers up to 25% fee reduction for the first 90 days while providing them with tools like Walmart Fulfillment Services and Sponsored Search ads that help them grow more quickly.
The key aim of this platform is to encourage sellers by offering resources and incentives that contribute towards better business outcomes. Success is measured by seller performance metrics: delivery rates, customer satisfaction levels, and program participation. At its core, however, it is all about helping sellers reach their goals, boost GMV figures, and improve overall marketplace experience for all.
How did your experience at technology companies like Microsoft, Intuit, and Samsung inform the work you did for Walmart?
Paripati: Microsoft, Intuit, and Samsung gave me a strong foundation in product management, strategic thinking, and customer-centric innovation skills that I’ve applied to multiple projects for Walmart. At Intuit, I developed deep expertise in fintech and commerce which has been invaluable in shaping initiatives like the Walmart Seller Savings Platform.
In my tenure with Microsoft, I was able to lead and drive solutions within large organizations structures. That experience empowered me to build comprehensive payments data infrastructure of Walmart sellers. From Samsung, I learned how to drive innovation in big firms so that every fresh thought is effectively integrated into previous systems. This enabled me to introduce more payment/billing options available to Walmart sellers in multiple geographies.
A combination of creativity, tactical planning, and working together are what have shaped my ambition for creating a suite of products and tools for merchants within the walls of Walmart Marketplace.
Were there any interesting challenges on the road to launching the platform?
Paripati: Managing the scale and complexity of Walmart’s vast marketplace was one of the greatest obstacles I faced when building the platform. We had to have a system that can manage personalized saving programs for thousands of sellers and millions of items while at the same time be accurate, transparent, and responsive in real-time, especially during peak times like holidays.
Also important was balancing technical requirements with wider business goals. We had to make sure that platforms like this supported objectives such as increased seller engagement or customer satisfaction without being too expensive. This meant working continuously with other people within finance, operations, and marketing–among others–ensuring that value is delivered at each level.
Another crucial aspect was building adaptability into our architecture. We needed an infrastructure that would not only satisfy today’s needs but also support future initiatives. The key takeaway points were learning about how scalability is important and how cross-functional collaboration can be powerful. Successful launch required seamless coordination between product, engineering, and business teams, resulting in both technological excellence and strategic impact.
You’ve been a Product Manager for technology companies for more than a decade now. How has that job changed over the years?
Paripati: Over the years, my role as a product manager has evolved from being feature-focused to becoming a central driver of business strategy. Early on, my work involved managing specific product features and ensuring their successful execution. As I progressed into leadership, my responsibilities expanded to include not just product development but also aligning those products with overall business objectives, balancing customer needs with strategic goals, and pivoting quickly when necessary to stay ahead in the market.
In the broader industry, product management has shifted from being a function focused on execution to becoming the core of business success. While stakeholder management and collaboration have always been key aspects, today’s emphasis is on creating a product-first culture. Product managers are now at the forefront of driving revenue, building scalable products, and contributing directly to the company’s financial success.
Today’s product managers must be agile, ready to pivot as market demands shift, and play a crucial role in shaping the company’s direction through data-driven insights and a deep understanding of customer needs. This evolution has made the role more dynamic, impactful, and integral to a company’s growth.
What role will enabling technologies – AI, machine learning, automation – play in the digital transformation of retail?
Paripati: AI, machine learning, and automation have altered retail by offering practical use cases that improve operations as well as customer interactions.
For example, AI-powered demand forecasting predicts product trends, thereby optimizing inventory levels and reducing costs. Inside stores, real-time shelf stock monitoring using computer vision driven by AI detects when items are running out, thus alerting attendants to restock before shelves go empty. Automated checkout systems make shopping faster by eliminating traditional checkout lines for frictionless shopping experiences.
Customer experiences are made more personalized by machine learning that result in product recommendations that continuously adjust prices. From the comforts of their homes, customers can virtually have a look at themselves with the help of AI-driven virtual try-ons.
In logistics, robotic automation accelerates order fulfillment, but delivery times are being reduced through automated delivery systems such as drones and autonomous vehicles. These technologies are revolutionizing retail, making it more efficient, agile and consumer-driven.
Where are the biggest pain points for retail consumers and how will this transformation in retail help resolve them?
Paripati: A major concern among retail customers is the disconnection between online and offline experiences. Several retailers find it difficult to provide customers with a seamless experience across all channels, even though that is what they expect today. Moreover, digital transaction fraud rates are very high, and payment security issues loom large as consumers become more concerned about security. Additionally, consumer retention becomes difficult when there are an overwhelming number of product choices due to a highly competitive landscape where retailers vie for customer loyalty.
The digital transformation of the retail industry addresses the problem by merging physical with digital channels to create an omni-channel experience. To achieve greater confidence from buyers, Artificial Intelligence (AI) and automation are used to secure payments while reducing fraud. In order to maintain customer loyalty in an extremely competitive market, retailers use their personalized offers alongside loyalty programs which improve shopping experience.
However, there are many countries where access to even basic goods remains an issue. It is an opportunity and a responsibility that retailers have to enlarge their reach and ensure that underserved consumers get hold of essential products. By using innovative distribution networks, technology can be employed by retailers to bridge this gap, provide more equitable access to goods, and ensure everyone benefits from the digital transformation in the retail industry.
What excites you most about what’s happening in the retail space right now that few people are talking about?
Paripati: Embedded finance has already been discovered as one of the greatest things happening in retail, even if it is not widely recognized. The ability to integrate financial services directly into the retail experience changes everything. On-demand lending at checkout, digital wallets, and buy-now-pay-later options are all instances of embedded finance which alters how consumers work with retailers.
The convergence of AI with physical retail is another area that fascinates me. Advancements in AI are enabling us to introduce new approaches to improving the shopping experience, such as using AI-based tools to customize product displays or optimize store layouts according to customer behavior. This blend of digital and physical is establishing a new frontier for retailers – a world that allows them unlimited space for innovation.
Our Streamly series of interviews continues with four more conversations from fintech and financial services professionals who spoke at FinovateSpring earlier this year.
For more from Streamly and FinovateSpring, check out our blog post from last week, AI in Financial Services: Automation, Profitability, and Fraud Prevention.
Unlocking advertising potential: Financial services on Amazon
Chief Revenue Officer at Revive Media Danielle Shamos discusses strategies to reach targeted audiences and how the effective use of data can enable even further audience growth. Shamos also talks about the uniqueness of Amazon as an advertising platform.
How can community banks gain a competitive edge through technology?
Barb MacLean, SVP and Head of Technology Operations and Implementation at Coastal Community Bank, talks about how technology can help community banks secure a competitive edge. MacLean also discusses the importance of internal innovation and the challenges of banking-as-a-service.
Reimagining community banking: How can you adapt your strategy to changing customer needs?
John Waupsh, Chief Revenue Officer of Manifest Financial, explains why it is important for community banks to define their strategic purpose at a time of increasing competition. Waupsh also discusses the importance of adapting business strategies to ever-evolving customer needs.
Credit union solutions: What’s different about this landscape?
Managing Director at TruStage Ventures Sam Das discussed the unique challenges that confront credit unions today – from membership retention to cybersecurity. Das also explains that while there is demand from credit unions for tailored fintech solutions, fintechs needs to “come prepared” if they want to successfully partner with these financial institutions.
What challenges are small and medium-sized businesses facing when it comes to getting the capital they need when they need it? What role does technology – especially enabling technologies like automation and AI – play in helping make it easier for entrepreneurs and SMBs to access critical financing?
This week, Finovate VP and host of the Finovate Podcast Greg Palmer spoke with Marius Silvasan, CEO of eCapital, to discuss these and other issues important to small businesses and the financial services companies that serve them.
“SMBs in this current market are under pressure,” Silvansan explained in his Finovate Podcast interview. “They are challenged. And the reason behind that is we’ve come from an environment in which inflation is coming down, but has been high over the last year-and-a-half. We’ve come from an environment in which borrowing costs were near zero – and they’ve increased substantially over the last several years. And the labor market has been very tight, so it’s been tough for SMBs to hire, it’s been tough for SMBs to retain qualified personnel. So that’s made the environment for SMBs quite challenging over the several years.”
Headquartered in Miami, Florida, eCapital helps small and medium-sized businesses secure the financing they need in order to grow. Founded in 2006, eCapital offers a wide range of financing solutions including freight and invoice factoring, payroll funding, asset-back lending, equipment refinancing, and lines of credit.
The question of deploying AI technology in fintech and financial services is no longer a question of “if” – or even “when.” As our recent spring fintech conference confirmed, innovators and entrepreneurs across our industry have already decided that the answer to both of those questions is “yes” and “now.”
But there are hurdles and challenges for fintechs and financial services companies as they seek to deploy AI in their products and offerings. Unlike other industries, fintechs and financial services companies operate in a high-risk environment where issues of trust, transparency, and explainability – to say nothing of regulatory oversight – are virtually existential.
Earlier this year at FinovateEurope in London, Israel-based Citrusxdemoed its platform that enables all stakeholders in the AI pipeline to remain in the loop and benefit from 100% transparency in their models.
We caught up with Citrusx’s VP of Business Development Michal Berdugo (pictured) to talk about the company, how it helps businesses effectively deploy AI technology, and what we can expect from the company in the near future.
What problem does Citrusx solve and who does it solve it for?
Michal Berdugo: In today’s data-driven world, everyone wants to adopt AI for various use cases, but they often face many roadblocks. In high-risk industries, the primary obstacles are a lack of understanding and trust. When key decision-makers can’t trust their AI systems it can lead to potential reputational and regulatory damages.
Citrusx comes in to help financial institutions and other organizations in highly regulated industries speed up their time to production while ensuring their models are accurate, robust, explainable, fair, and comply with regulatory requirements.
How does Citrusx solve this problem better than other companies or solutions?
Berdugo: High-risk sectors such as banks, loan providers, and credit unions, face unique challenges in adopting AI solutions. The lengthy production timelines and the inherent opacity of AI systems leave these companies vulnerable to liability issues. Without transparency, they are unable to fully understand or explain AI-driven decisions, heightening their exposure to legal and regulatory risks.
Citrusx’s patent-pending technology delivers real-time insights, accurate explanations, and critical validation measurements throughout the development cycle and offers proprietary monitoring and prediction methods, making it model-agnostic and resilient to feature correlation problems. Citrusx empowers businesses to build trust and deploy AI responsibly, unlocking its full potential.
Who are Citrusx’s primary customers? How do you reach them?
Berdugo: Citrusx attracts risk leaders and data science leaders who are actively seeking innovative solutions. These forward-thinkers are constantly on the lookout for ways to mitigate risks and maintain compliance with regulations. Peer recommendations validate Citrusx’s effectiveness, while articles featuring insights about us and thought leadership also spark interest.
When these leaders search for cutting-edge tools, Citrusx naturally emerges as a preferred option. Additionally, understanding the unique challenges in high-risk industries such as finance and insurance allows us to effectively address their specific pain points. To explore how Citrusx can benefit your organization, reach out to us directly via our website and book a demo.
Can you tell us about a favorite implementation or deployment of your technology?
Berdugo: One of the Big Five banks in Canada approached us because they wanted to deploy an AI model, but finding a way to make it explainable while complying with regulations was a challenge. When models become more complex, understanding their decision-making processes and fostering accountability and trust in the outcomes becomes difficult. Additionally, without any transparency of the rationale of the model, it can cause vulnerabilities and biases to slip through the cracks, which could lead to reputational and regulatory damages.
To help them combat these issues and build a robust, explainable, and fair model, we provided them with a framework to explain the inner workings of their model accurately. Using proprietary explainability methods, we gave them the tools to see the model’s results on a global and local level, yielding a full report of each sample in their dataset.
With our help, the bank achieved a deeper level of understanding of their model, giving them the trust to finally put them in deployment! All stakeholders, including those who are non-technical, were able to understand the model’s decisions, allowing them to approve it faster with confidence.
Instead of taking six to nine months to deploy their model, we cut the time in half. We also gave them the assurance that their models remained compliant with regulations.
What in your background gave you the confidence to tackle this challenge?
Berdugo: Based on my experience, I gained an understanding of the significant gap companies in the financial sector are facing. While organizations want to keep pace, they are falling behind because of regulations. On top of that, there is a lack of transparency and trust in their models. At Citrusx, we had the confidence to take on this problem because we onboarded a global bank as our first main customer. With our combined backgrounds in the financial sector, government, and AI/ML development, we had the tools to build the best solution for our clients and potential clients.
Above: Citrusx’s Michal Berdugo and Dagan Eshar, VP of Research and Development
What is the fintech ecosystem in Israel like? What is the relationship between fintechs, banks, and traditional financial services companies in the country?
Berdugo: Israel’s fintech ecosystem is thriving, boasting a high number of startups creating innovative financial solutions for a relatively small population. There are roughly 550 fintech startups in Israel, and 20 of those companies are valued at over $1 billion. This makes Israel a major player in fintech on a global scale.
The relationship between fintechs, banks, and traditional financial institutions in Israel is evolving. There’s both competition and collaboration. Banks are partnering with fintechs to improve their digital offerings and reach new customers, while fintechs benefit from the banks’ established infrastructure and customer base. This symbiotic relationship helps both sectors grow and provide better financial services in Israel.
You demoed at FinovateEurope earlier this year. How was your experience?
Berdugo: The experience was great, as it was the first conference we participated in since launching from stealth. We were excited to share more about our product and the crowd was incredibly receptive. We gained many interesting insights about what different stakeholders in the AI pipeline are focused on in the coming quarters. The Finovate team was also very helpful and gave us great feedback in preparation for the demo.
What are your goals for Citrusx? What can we expect to hear from you in the months to come?
Berdugo: We are signing new clients and working on growing and expanding our product and team in the coming year. We are working toward a time when Citrusx’s solutions will be a standard practice.
The regulatory landscape for companies innovating in fintech and financial services is complex and ever-changing. Whether a company is developing solutions in the crypto space or seeking to take advantage of the opportunities in open banking, open finance, or Banking-as-a-Service, a comprehensive understanding of the regulatory environment is critical for success.
In its latest series of video conversations from our sister publication Fintech Futures, Fintech Founders interviews six industry professionals – all Founders and Co-Founders – to hear from them what they believe will be the biggest regulatory challenges for fintech start-ups in the coming years.
Check out our conversations on compliance in fintech and financial services featuring:
Today we’re sharing our final set of conversations from our European fintech conference, FinovateEurope. This round of interviews expands beyond our recent look at embedded finance, open banking, and the customer experience in financial services to cover broader themes like AI, the intersection of geopolitics and finance, and the customer of tomorrow.
The truth about generative AI: What financial institutions really need to know about adoption
Author, Generative AI expert, and founder at Tamang Ventures, Nina Schick discusses the realities facing financial services companies when they adopt generative AI. Schick talks about lessons financial services companies can learn from early adopters of the technology in other industries, and why partnerships are the way forward for most companies in banking and finance to best take advantage of AI.
The geopolitical super cycle and what that means for financial services
CEO at London Politica, Manas Chawla talks about the geopolitical risks facing the financial services sector in 2024 – from Ukraine to Gaza to the upcoming Presidential election in the United States. Chawla also discusses the geopolitical supercycle and the challenge of “grey rhino” threats that leaders in both business and politics need to be aware of.
The blue dot consumer: What can financial services learn from Taylor Swift, Red Bull, and United Airlines
A consumer behaviouralist at The King of Customer Experience Ken Hughes introduces the concept of the blue dot consumer in his discussion of what he calls “the customer of tomorrow.” Hughes talks about the relationship between technology and the human experience, how successful brands build loyalty, and what banks and financial institutions can do to foster true loyalty.
A part of Landings Credit Union for nearly a decade, Lee has spent the last four years as CEO. He started as CFO of the Arizona-based financial institution and, before that, worked as both a regulator and in public accounting. Founded in 1953 as “Tempe Schools Credit Union,” Landings Credit Union today has more than 15,000 members and assets of more than $238 million.
Last year Landings CU received the Dementia Friendly business designation, which ensures members that credit union staff are trained to both recognize and support individuals with Alzheimer’s disease or dementia. “In Arizona we are the fastest growing state for new cases for Alzheimers,” Lee explained, “so it’s a big deal here for us.”
This year, the financial institution garnered national recognition for its commitment to financial inclusion, earning the Juntos Avanzamos designation. The designation recognizes the work done by credit unions to serve and empower Hispanic, Latino, and immigrant communities. A national network launched in 2015, the Juntos Avanzamos program has a presence in 29 states, serving more than 12 million consumers at 141+ credit unions in the U.S.
In their Finovate podcast conversation, Palmer and Lee talk about using technology to bring new projects to life in the context of these recent successful outreach efforts. “How can we comb through our data and find these new data points that we’re looking for, aggregate (them), and say ‘Let’s be the ones who are going out and reaching out to people’,” Lee explained. “Whether from our own data or community data that’s out there: how do we use that to be able to serve more people?”
Check out Episode 213 of the Finovate Podcast and the rest of Greg Palmer’s conversation with Landings Credit Union CEO Brian Lee.
