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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
We’re starting off our Women in Fintech series this year with a conversation with Erin Wynn. As Executive Director of Product Management at NCR Voyix, Wynn helps both community banks and credit unions form strategies to implement their digital transformation and product roadmap initiatives.
Wynn also works as a mentor and coach for the company’s internal pre-sales teams. In this role, she helps ensure that sales engineers, solution architects and business analysts are supporting NCR Digital Banking’s vision and solutions.
We caught up with Erin Wynn to talk about her own beginnings in fintech, as well as what she is learning from her customers and clients about the most important trends in our industry.
NCR Corporation changed its name to NCR Voyix in the fall of 2023 as the company spun-off its ATM-based business, known as NCR Atleos. Headquartered in Atlanta, Georgia, the company has 35,000 employees globally, and trades on the NYSE under the ticker symbol “VYX.” NCR has been a Finovate alum since 2015.
How did you get started in fintech? What has led you to where you are today in your career?
Erin Wynn: I began my career in 1998, working at a bank, where I got my first taste of fintech. I worked so closely with one of our vendors, Digital Insight, that I even went to work for them for a few years before a different opportunity presented itself. In the long run, however, I knew Digital Insight was my home, and I returned to them in 2012. Digital Insight was acquired by NCR Voyix’s Digital Banking platform in 2014, but has managed to keep the familial relationship that drew me back here.
My dedication to being a lifelong learner has led me to amazing opportunities, holding various positions within NCR Voyix. I look at every experience as a chance to be curious and learn something new. Whether it be from a client, a colleague, or a partner, I believe everyone has something valuable to share and learn from.
My passion and deep understanding for how our products work and helping financial institutions achieve success have been central to my growth. As the executive director of product management for Digital Banking at NCR Voyix, I lean into my banking experience to help community financial institutions develop strategies for implementing digital transformation and better support their consumers and communities. I empower them to help customers and members improve their financial wellness — a topic I’m especially enthusiastic about (and one that’s driven my career in banking!).
Which digital banking features and capabilities are most resonating with clients? What trends are top of mind for customers?
Wynn: A significant trend we’ve seen is centered around personalization, which really means reminding the consumer that you know and care about them; they’re not just another number. This means creating digital experiences that feel like they’re catered to each user. Financial institutions are realizing that they can’t just compete on low loan rates or high deposit rates. Even if that’s what got the consumer in the door, it won’t be what keeps them there. The financial institutions that emphasize building and maintaining relationships, as well as providing meaningful tools and support (such as financial wellness resources), will be better positioned for loyalty and success.
Another major trend I’ve seen is finding ways to increase overall efficiency. This can mean embracing more automation or researching ways to better maximize current staff and technology. Our clients, like most people, are looking for ways to simplify processes and quickly solve problems. For example, NCR Voyix can support marketing automation, an area of typically high turnover within institutions, helping banks and credit unions make every interaction count.
What has been the impact of AI on banks and credit unions and their accountholders? How should financial institutions begin to incorporate AI into their organizations?
Wynn: AI has notable potential. It can create personalized interactions with each consumer at scale and significantly increase efficiencies. AI can help institutions approach certain processes in different ways. For example, more institutions are using AI when it comes to lending decisions instead of solely relying on traditional factors.
However, when it comes to AI and, especially, generative AI, banks and credit unions should know that the technology is only as strong as the data and information behind it. There is a lot of work to train AI to make AI effective; it’s not a magic bullet. You must give it the right data and training to effectively work, while continuing to provide human oversight.
My advice for banks and credit unions who are considering how to use AI is to first ask themselves what they’re trying to accomplish. For example, is there more of a need to enhance back-office efficiencies? Or are they trying to offer different ways to support users? Don’t try to do everything all at once; it will be too much. Understand that it won’t be perfect from day one. You’re going to have to experiment and improve the AI along the way.
What does it mean to effectively humanize digital experiences? How can banks and credit unions accomplish this?
Wynn: Effectively humanizing the digital experience means leading with empathy throughout the user experience on their phone or online. This could be something as simple as analyzing the language used in an error message. Evaluate everything with a person in mind; are you providing them with relevant information in a human way, making them feel comfortable and supported along the journey? Of course, personalization is also a major factor here, as well. Money and finances are extremely personal, and they need to be treated with care.
Data is a core factor when it comes to humanizing digital. Effectively leveraging data can uncover crucial consumer behaviors, channel preferences, transactional patterns, and key events in the consumer journey. Employing technologies like AI enables financial institutions to analyze this data more effectively, anticipating member behaviors and offering contextual assistance, such as tailoring their website content to specific needs.
Looking ahead, I expect banks and credit unions to prioritize looking for ways to incorporate more empathy and personalization within their platforms, which will drive relationships and loyalty with their consumers.
Are there any leadership tips that you would like to share with other strong females in a male dominated industry?
Wynn: It all comes down to confidence. Knowing your worth and intelligence goes a long way. Surround yourself with a strong group of women who lift you up and encourage you. When you start to see yourself the way others see you, you are more likely to take a risk in your career or feel more confident to speak up. Also, recognize what motivates and drives you, and know that it’s okay if those things change over time. Everyone constantly evolves in their journey, and you’re sure to learn something every step along the way.
Headlines announcing layoffs in fintech and banking have been pulsing throughout the news cycle since the start of last year. And according to one fintech expert, we may see more throughout 2024.
And while there is no doubt that layoffs and job losses are personally devastating to those involved, there may be a silver lining. Freeing up talent– especially experienced and/or technical talent– allows other organizations in the sector the opportunity to capture new, experienced professionals while offering individuals the chance to level up their career.
In a series called Fintech Founders, our sister publication Fintech Futures recently produced five videos on hiring. The videos capture founders’ thoughts on their internal hiring process, how they intentionally build their company culture, their hiring strategy, how they create a versatile team, and upcoming industry trends.
This week on the Finovate Podcast, Finovate VP and podcast host Greg Palmer sat down with fintech strategist, host of the Cyber Insiders Podcast, and owner of PR firm KCD PR, Kevin Dinino.
Dinino is founder and President of KCD PR, one of the top ranked public relations and marketing firms with an emphasis on financial services, fintech, technology, and transportation. He manages the day-to-day business operations for the firm, and leads business development while providing strategic counsel to clients on high profile issues.
Dinino is also host of Cyber Insiders, an iHeartRadio podcast series that features industry leaders involved in the cybersecurity industry.
In his Finovate Podcast interview, Dinino talks with host Greg Palmer about the “wonders and blunders” from 2023. Dinino also shares his ideas about what to expect from the world of fintech and financial services in 2024.
Last year was really quite an eventful year in terms of fintech and banking. Look at the Super Bowl last year to kick of 2023. We had TV commercials with the amazing Larry David in it for FTX and, in the ad, the irony of the campaign was that it was called Don’t Miss Out. And his character was like, ‘Eh, maybe I don’t want to do that’.
So it’s hard not to lump in what happened with crypto in general last year. Various scandals, FTX, and everything that happened with SBF probably being among the bigger ones, for sure. There was plenty on the ‘blunder’ side with that.
Check out Episode 201 of the Finovate Podcast and the rest of the conversation featuring Greg Palmer and Kevin Dinino of KCD PR.
U.S. Bank’s innovation team recently attended the Consumer Electronics Show (CES) in Las Vegas last week on what it called a “Future Safari.” After attending the show in 2023, the team was back on the lookout for emerging tech trends with the potential to impact the financial services industry, emphasizing AI, autonomy, embedded financial services, and the intersection of physical and digital realms.
We interviewed U.S. Bank’s innovation team to get a view of CES under a fintech lens, as well as to get a peek at U.S. Bank’s tech-forward initiatives in 2024 and beyond.
U.S. Bank’s innovation team attended the Consumer Electronics Show in Las Vegas last week. What was the team looking for?
U.S. Bank Innovation Team: We look for several things. First and foremost, we are looking for emerging tech and trends that may have an impact on the financial services industry and/or our customers.
We also look at trends and activity across several technology verticals to see if there is technology that we need to get ahead of.
Another thing we look for is specific new tech we might be able to test and pilot. And, of course, it’s great to see what other industries are doing with the technology that is coming to market.
In general, what are some fintech trends U.S. Bank is currently exploring or excited about?
U.S. Bank Innovation Team: At U.S. Bank, we cover a broad range of technologies, domains, client segments, and industries as part of how we try to develop and deliver the future now. Some of the broad trends we’re exploring at the show include AI and autonomy, of course, and how these technologies can change peoples’ lives; the embedding of financial services into all manner of products, services, experiences; how devices are proliferating and what that means for how we help people optimize their financial lives; and how the physical and digital parts of life are changing thanks to new technologies. We’re exploring dozens of trends in many sectors, but those are a few at a high-level that our Future Safari to CES helps us to gauge.
As a large bank, how does U.S. Bank make the decision whether to build or buy new technologies?
U.S. Bank Innovation Team: As a large bank, we like to focus on our core competencies and make decisions that reduce risk. Particularly in tech areas outside of our expertise (technical or business), we will look first to partner.
For example, we aren’t going to try to build our own quantum computer any time soon. We did build our award-winning mobile app, and we do build the majority of our digital customer facing experiences. Some components of those experiences may be provided by fintechs that we partner with when there is a time to market/cost/economic advantage or they have expertise outside of the banking/financial services realm that will improve our customers’ experience. At the end of the day, it is all about the customer experience.
What are some tech-forward initiatives we can expect to see U.S. Bank come out with this year?
U.S. Bank Innovation Team: While I can’t preview any planned announcements for later this year, we use Future Safaris like these to inform insights that help us create amazing experiences for our clients.
One example of how we’ve used these Future Safari insights in the past is that we were able to be the first bank to integrate with all three virtual assistants – Siri, Google, and Alexa. That work later informed the launch of our own industry-leading virtual assistant, U.S. Bank Smart Assistant, which built the foundation for when we created our Spanish Smart Assistant – the nation’s first Spanish-language voice assistant for banking. All of these were informed by early innovations in voice technology that we were seeing at CES. It gave us early signals into what would be important to people and allowed us to envision how we might integrate these kinds of emerging technologies into how we serve our clients.
What was your favorite non-fintech innovation you saw at the show?
U.S. Bank Innovation Team: We really liked the Genesis Systems WaterCube 100. It is a cube about the size of an air conditioner that pulls water from the air. It runs on low enough power to operate on solar panels and can be dropped in to emergency areas in need of clean water, or it can be used for off-grid and remote applications for both commercial and consumers.
The Federation of International Drone Soccer League out of Korea was very cool! The drone soccer league had a big space where they were demonstrating drone soccer – for Harry Potter fans, it looks a lot like quidditch. We thought it was great as it turns a fun solo activity that kids are into these days into an in-person competitive event. Also, it looks like tons of fun!
We are always amazed by the advances in big farm technology. In the John Deere booth, we saw their latest line of tractors that can be operated manually, remotely, or autonomously. They showed their custom GPS, which can get the behemoth tractors to plow and deliver seeds within one-inch accuracy.
We also noticed a trend of high-end, battery powered campers from the super-luxury concept at LG with built-in bars and entertainment, to Jackery and Goal Zero camper concepts with built-in solar batteries and rooftop tents with low-power fridges and a plethora of glamping features. Going off-grid and connecting to nature may also have plurality creature comforts in the future.
Companies and innovators are raising the bar across all industries, and we continue to push ourselves to do the same.
Group photo left to right: Todder Moning, Head of Applied Foresights; Rosa Dunn, Assistant Vice President, Digital Innovation; Cynthia A. Jackson, Vice President, Digital Innovation; Andrew Cantrell, Sr. Applied Foresights Strategist; Don Relyea, Chief Innovation Officer
Our final Finovate Global column of 2023 celebrates the conversations we’ve had this year with fintech innovators from around the world.
Stay tuned in 2024 for more interviews with some of the most interesting founders, entrepreneurs, and thought leaders in fintech and financial services.
“We developed BehaviorQuant because every financial decision is ultimately made by a person or a team. BehaviorQuant solves a core problem that underlies the entire investment industry: we don’t have systematic knowledge about the people and teams behind investment decisions. And that’s true for financial professionals and clients alike.” Dr. Thomas Oberlechner, founder and CEO of BehaviorQuant. Interview.
“Moniepoint solves the problem of fragmented, inaccessible, and low-quality financial services for businesses in emerging markets. It is a full-service business banking platform seeking to provide all the digital financial services a typical business needs.” Tosin Eniolorunda, founder and CEO of Moniepoint. Interview.
“Eight hundred million voice conversations are recorded daily in Europe and many more worldwide. A tiny 1% of these conversations are checked for quality control, employee training, and business results improvement. Ender Turing is a conversations intelligence and automation platform to close 99% of the conversation gap for business growth.” Olena Iosifova, CEO of Ender Turing. Interview.
“Capital raising is broken. Private companies spend months and even years in the fundraising process, learning how to raise capital and repeating the same mistakes, approaching the wrong investors and often spamming them with irrelevant investment opportunities.” Ulyana Shtybel, CEO of Quoroom. Interview.
“At Refine intelligence, our mission is to help banks regain that superpower of really knowing their customers’ life stories, so their financial crime teams can quickly clear AML or scam alerts triggered by legitimate customer activity. We work with Risk, Financial Crime, BSA and AML teams. Fraud teams look at our technology to help with scam operations.” Uri Rivner, co-founder and CEO of Refine Intelligence. Interview.
“It was an honor to be ranked by CB Insights in its Fintech 250 list and, as one of only seven African start-ups featured, it speaks to the pioneering approach we are introducing to the world – revolutionizing payments and creating a financial services ecosystem for Africa.”
“As sub-Saharan Africa gains recognition on the global stage, we are seeing innovative and pioneering products emerge and rise in popularity amongst consumers, diversifying the products they can choose from.” Tayo Oviosu, founder and CEO of Paga. Interview.
Here is our look at fintech innovation around the world.
Asia-Pacific
Singaporean fiat-to-crypto payment gateway Alchemy Pay forged a partnership with Worldpay from FIS.
Indonesian P2P fintech JULO added insurance coverage with the launch of its JULO Cares solution.
Hungary’s OTP Bank partnered with Intellect Global Consumer banking (iGCB), the consumer banking arm of Indian banking technology copany Intelltect Design Arena.
The Fintech Founders series, presented by our sister publication Fintech Futures, features fintech and financial services veterans sharing their insights and experiences on a range of topics important to businesses in our industry.
Today we share five conversations on fintech funding featuring our panel our fintech experts. As part of our Funding Series of discussions, our panelists talk about issues such as: bootstrapping versus external funding, finding the right investment partners, the importance of producing significant growth, as well as tips for entrepreneurs and surprises our panelists encountered in their own journeys in fintech and financial services.
How will disruptive technologies like Generative AI change the financial services landscape. How will these technologies impact our ability to expand financial wellness and promote financial inclusion?
The rise of disruptive technologies has created new opportunities for banks and financial services companies to bring new and better services to consumers and businesses. Here’s a look at what our fintech experts told us this year at FinovateFall about how disruptive technology will shape the future of finance.
This year at FinovateFall we heard from fintech analysts and financial services professionals on what financial institutions can and should do in order to bring better financial services to more individuals, families, communities, and businesses. Here’s a brief Streamly Snaphot sharing what our experts had to say.
What are the biggest challenges facing banks when it comes to modernization and digital transformation? We checked in with Charbel Safadi, President, Modernization and Transformation, with Zafin, to hear his thoughts on what banks and other financial institutions are doing to future-proof their businesses and better serve their customers.
Zafin made its Finovate debut in 2017 at FinovateFall. The company offers a cloud-based product and pricing platform that simplifies core modernization for the world’s biggest banks. Zafin’s platform enables business teams to collaborate in the design and management of pricing, products, and packages. At the same time, the platform empowers technology teams to streamline core banking systems.
Headquartered in Vancouver, Canada, and founded in 2002, Zafin includes Wells Fargo, HSBC, and CIBC among its customers.
When you look at the current landscape for banks, what is their biggest technological challenge right now?
Charbel Safadi: The predominant technological challenge facing banks in the current landscape is the accumulation of legacy technology platforms that impede adaptability and innovation. These platforms, built over several decades, create a significant tech debt, hindering banks from promptly responding to changing market demands. This stands in contrast to agile fintech startups, unburdened by such legacy systems.
For banks, the challenge lies in modernizing these deeply entrenched platforms to enable transformative experiences and stay competitive in the rapidly evolving financial landscape. Despite significant time and financial investments, the traditional “rip and replace” approach has proven unsuccessful. This tech debt, rather than a lack of inherent competitiveness, is the primary obstacle for banks in delivering compelling value propositions, necessitating a forward-looking, progressive modernization strategy.
You just recently joined Zafin and are part of the company’s new transformation and modernization division. Tell us about why you joined the company and what this new division is all about.
Safadi: Zafin’s mission is to empower banks in reshaping their business models and updating technology platforms. As a leader in our organization, my role is to align our vision with clients’ business goals, fostering a cohesive team that mirrors banks’ transformation strategies. With a background in financial services consulting and experience with global banks, I recognize the market’s strong focus for the next decade and Zafin’s potential impact.
Being part of Zafin’s journey excites me, given its pivotal role in contributing to clients’ transformation agendas. Zafin’s strategic position emphasizes technology and business platforms, distinguishing it in the market. This allows us to provide significant value, aiding clients in kickstarting technology modernization while transforming their business models.
I am confident in our ability to guide clients through this journey, making a substantial impact and offering the necessary tools for success. Zafin’s forward-thinking strategy, coupled with our cohesive team and inclusive culture, solidified my decision to be part of this transformative organization.
Tell us about the launch of Zafin Studio. What challenge will it help Zafin customers resolve?
Safadi:Zafin Studio represents a significant advancement in the modernization of technology platforms, specifically addressing the challenge of crafting forward-looking propositions tailored to each client’s unique values and needs. Unlike existing solutions in the market, Zafin Studio adopts a comprehensive approach to banking propositions. Leveraging the Product and Pricing Index (PPI) tool, it rapidly gathers, filters, and segments data and insights for analysis from leading global banks, bridging a crucial market gap. This empowers various stakeholders within a bank, from business users to product managers and department heads.
Our goal is to equip them with the tools to comprehend market dynamics, enabling swift research on top banks worldwide and insights into their product designs and rate structures. The collected information is entirely external and does not involve customer data. Through Product Explorer, Zafin Studio unravels the intricacies of product offerings, merging external market research with an internal product explorer. The drag-and-drop feature of Proposition Canvas in turn empowers banks to seamlessly design and implement cutting-edge functionalities. Essentially, Zafin Studio acts as a governing methodology and framework, revolutionizing banks’ transformation approaches. We eagerly anticipate our clients utilizing Zafin Studio to elevate co-created value propositions to new heights.
Zafin is headquartered in Vancouver, Canada. What are some of the top concerns for Canadian banks that might differ from those of banks in the U.S., the U.K., or Europe?
Safadi: In Canada, the banking landscape differs significantly from the U.S., U.K. and Europe due to population size and the number of institutions. Canadian banks are primarily concerned with population dynamics, competition, and the regulatory framework. The evolving regulatory landscape indicates that open banking is on the horizon in Canada. This, combined with the rise of innovative fintech firms free from legacy technology constraints, compels banks to prepare for the coming years.
While fintech companies lack the technological burdens of traditional institutions, they also lack the established customer base of incumbents. To capitalize on this, banks must pivot towards a more horizontally aligned approach to product development and proposition modeling. This involves adopting a holistic view of the Canadian customer, encompassing their entire financial journey and value chain. By consolidating data from diverse systems, including mortgages, lending, and deposits, banks can craft compelling value propositions that genuinely resonate with consumers. Prioritizing strong relationships over sheer customer volume is crucial. This means tailoring pricing, offers, and incentives to match the customer’s entire banking journey. This forward-thinking approach ensures sustained delivery of substantial value and the preservation of loyalty within the existing client base, thereby upholding a competitive edge rooted in customer trust.
Speaking of international activity, Zafin recently announced a new operational center in Dubai and the upcoming release of various AI-based solutions for the Middle Eastern market. Tell us about some of the top trends in fintech in the Middle East?
Safadi: Zafin is making significant investments in Generative AI, with Zafin Copilot serving as a central component in our technology portfolio. This tool is pivotal for both external client interactions and internal team processes. We’ve dedicated significant efforts to explore how AI can enhance product and pricing modeling, effectively harnessing continuously generated data, including customer details, transactions, and relationship data. We’ve made it a priority to equip our clients with the technological capabilities needed for full access to the rich data set within our platform.
Globally, AI forms a fundamental part of our strategy, with a notable emphasis on the Middle Eastern marketplace. This region’s substantial investments in AI makes it an ideal ground to explore dynamic pricing, especially in comparison to markets with stricter pricing regulations.
Our core principles of trust, transparency, and fairness in banking guide all AI development initiatives. We ensure strict adherence to regulatory frameworks across global markets. AI is viewed as an intrinsic element of our entire platform, offering benefits to our customers, end consumers, and internal teams while aligning with our commitment to ethical and regulatory standards.
What trends in fintech and financial services are currently being underestimated in terms of their potential impact in the next few years?
Safadi: Many organizations are considering the adoption of Generative AI technologies. The central question revolves around how AI can effectively be utilized to reassess and improve product design, customizing offerings for each individual. This transition not only poses a challenge but also presents an opportunity. AI has the potential to centralize and grant access to the everyday data encountered by most organizations. The focus should now pivot towards creating dynamic product offerings that align with the unique value of each individual, taking into account the customer’s current life stage, priorities, and preferences.
In addition to well-explored areas like AI, another crucial emphasis lies in the design of the next-generation product architecture. Through global discussions and collaborations with banking clients, trailblazing organizations such as Zafin are actively shaping a horizontal model for the next generation of product architecture in financial institutions. This architecture should span the entire spectrum of banking, delivering a tailored and dynamic experience precisely meeting the customer’s needs at any given moment. Banks should persist in prioritizing depth and loyalty in customer relationships, recognizing their significance in the forthcoming years.
What can we expect from Zafin over the balance of 2023 and into 2024?
Safadi: Zafin is firmly dedicated to executing its strategy, aiming to provide substantial value to our clients. This dedication empowers them to not only modernize their technology platforms but also to transform their business models. Our intense focus revolves around delivering the essential technology, capabilities, and skills required for both these endeavors. Through robust partnerships within our deep ecosystem, our goal is to offer comprehensive customer modernization journeys.
We strive to spare our clients from spending excessive time — potentially three to four years or even longer — struggling to overhaul their technology landscape without having the capacity to contemplate new product architectures and business models. Everything we undertake is geared towards facilitating a low-risk approach to modernize their technology platforms, unlocking the potential to construct next-generation product architectures promptly.
Simultaneously, we remain committed to upholding trust, transparency, and fairness in how our clients deliver products and services to their client base.
What are the opportunities and challenges of AI in the fraud prevention and identity verification space? We caught up with Heidi Hunter, Chief Product Officer for IDology, a GBG company, to find out.
IDology delivers a comprehensive suite of identity verification, AML/KYC, and fraud management solutions to help businesses drive revenue, deter fraud, and maintain compliance. Founded in 2003, IDology made its Finovate debut in 2012. GBG acquired the company in 2019.
Ms. Hunter joined GBG Americas in 2011 and has worked in both product innovation and customer success roles during her career with the company. She brings more than 13 years’ experience in supporting customers and helping them with their business needs through product innovation, support, and implementation roles.
Currently, Ms. Hunter is responsible for driving the company’s product roadmap and bringing new innovations to the identity verification market through strategic product development.
AI has brought on challenges and opportunities when it comes to fraud and financial crime. What are the principal challenges financial institutions are facing?
Heidi Hunter: There are four main areas of concern: cybersecurity and fraud, biased models, human oversight, and regulatory compliance.
Deloitte has written on the growing concern of AI as a cybersecurity and fraud threat, noting that 51% of executives interviewed believe that the cybersecurity vulnerabilities of AI are a major concern. One issue is the problem of more and better fake documents. AI will simplify creation of passports, driver’s licenses, and ID cards that are virtually indistinguishable from genuine ones. Another issue here is increased synthetic identity fraud. Generative AI is a productivity tool for fraudsters, creating highly realistic synthetic identities at scale.
Additionally, there is more effective phishing and social engineering. A recent study of 1,000 decision makers found 37% had experienced deepfake voice fraud. And Generative AI is used to fuel a surge in phishing tactics.
You also mentioned biased models, human oversight, and compliance.
Hunter: The use of AI and machine learning (ML) algorithms have come under scrutiny with concerns over data bias, transparency, and accountability. With regard to human oversight, 88% of consumers reported that they would discontinue a helpful personalization service if they didn’t understand how their data would be managed.
Lack of human oversight is also a regulatory concern. AI often lacks transparency, leaving businesses exposed when they must explain their decisioning, which has brought expectations of future regulation. AI-generated deepfakes are moving fast and policymakers can’t keep up.
Can the same technology that’s enabling fraudsters also enable FIs to thwart them?
Hunter: Yes, especially when AI is paired with human intelligence. AI benefits from experts charged with overseeing incoming and outgoing data. A trained fraud analyst accompanying AI-based solutions can catch new and established fraud trends. This includes novel threats that AI solutions on their own may miss.
From a compliance perspective, this means businesses can offer a more transparent solution and manage potential bias. Supervised AI can eliminate the need to manually verify an ID, and help provide the explanation needed for compliance and regulatory requirements.
Automation plays a major role in AI. So does human oversight. Can you talk about the relationship between AI and automation?
Hunter: Automation is typically rule-based and follows predetermined instructions, while AI can learn from data and make decisions based on that data. In other words, automation software operates on a set of predefined rules, while AI can make predictions and decisions based on the data it is presented with. The ‘predictions’ aspect of AI- and ML-based tech is where human supervision plays such an important role.
What is the proper balance between human oversight and AI? What role do humans have in an increasingly AI-powered world?
Hunter: Like with any tool, human-supervised AI is great when it’s one part of a larger identity verification (IDV) strategy.
Humans have a role at every ‘stage’ of AI use or implementation: in development, in terms of what data is being used to train a model; during deployment, where an AI-based tool is used and to what degree; and when it comes to holding AI-based tools accountable. This means analyzing a given output and what decisions a FI makes based on that output.
For identity verification specifically, how has human-supervised AI helped solve problems?
Hunter: Consumers also set the bar high for seamless interactions. For example, 37% of consumers abandoned a digital onboarding process because it was too time-consuming. Overcoming this challenge requires a comprehensive strategy. Human-supervised AI can play a critical role in the process, as it can quickly scrutinize vast volumes of digital data to uncover patterns of suspicious activity while also providing insight and transparency into how decisions are made.
Are businesses embracing human-supervised AI? What hurdles remain to broader adoption?
Hunter: Yes, because while there is a lot of excitement around what AI can do, several businesses and people in the academic community believe AI isn’t ready to make unsupervised decisions. As mentioned earlier, businesses show concern over AI operating on its own. Concerns range from ethical questions, to cybersecurity and fraud risks, to making a bad business decision based on AI. On a positive note, businesses are becoming more aware of benefits of supervised learning models.
With more than 100 new loans in Q2 and over a billion dollars in new loan commitments, Silicon Valley Bank (SVB) is “doing the same thing we’ve been doing for over 40 years,” according to SVB’s Head of National Fintech and Specialty Finance Nick Christian. Now a division of First Citizens Bank, Silicon Valley Bank has been a key component of the innovation economy since 1983, providing critical financial services to Bay Area technology entrepreneurs and their companies.
Nick sat down with Finovate Vice President and host of the Finovate Podcast Greg Palmer earlier this month in the wake of SVB’s recently released Future of Fintech report. The report looks at the outlook for innovation in the fintech sector based on SVB’s unique sector knowledge and proprietary data. How are cash reserves holding up for fintechs? Which direction are valuations going? What can we expect from funding growth heading into 2024? Nick and Greg discussed these issues and more including:
The resilience of early-stage companies in the face of the funding slowdown
The importance of becoming cash-flow positive
How embedded finance is revolutionizing payments and putting new emphasis on monitoring and compliance
What is the future of open banking in the U.S.? Today, financial connectivity innovator AtomiclaunchedPayLink, a new suite of solutions that streamline payment switching for consumers.
The new offering provides for an improved user experience for financial services consumers. It is also a big step towards helping banks and other financial institutions align themselves with the Consumer Financial Protection Bureau’s goals with regards to open banking.
We talked with Andrea Martone, Head of Product for Atomic, to learn more about PayLink, and the drive toward a more open banking system in the U.S.
Headquartered in Salt Lake City, Utah, and founded in 2019, Atomic made its Finovate debut two years ago at FinovateFall 2021. Jordan Wright is co-founder and CEO.
Congratulations on the launch of PayLink. Tell us more about this new suite of products.
Andrea Martone: Thank you! We’re thrilled about the launch of PayLink. We’ve taken our expertise in building user-permissioned connectivity for sharing and updating data and expanded it to merchant accounts, streaming services, and recurring bill providers, enabling consumers to seamlessly update their payment methods on file and retrieve information on upcoming payments. Building PayLink was a natural next step on our journey towards helping consumers update their primary banking relationship as it helps overcome a major point of friction in the process. To build it, we leveraged our cutting-edge TrueAuth technology that allows users to authenticate directly on their devices, without ever sharing login credentials.
For our readers who are new to Atomic, can you tell us a little about the company?
Martone: At Atomic we believe that making it simple for consumers to access, share, and update their financial data is key to unlocking new financial opportunities. By embedding Atomic’s SDK into their online and mobile banking applications, financial institutions can enable consumers to easily update direct deposit instructions, verify income and employment, import W2s and, now, update payment methods on file with merchants without leaving their application. With our solutions, financial institutions help grow new account adoption, qualify borrowers, and streamline tax filing.
Open banking was a major topic of conversation at our FinovateFall conference a few weeks ago. What is your take on the state of open banking in the U.S.?
Martone: Open banking in the U.S. is at an interesting juncture. With the CFPB taking bold steps in their public commentary, there’s an exciting momentum building around the consumer-centric transformation of financial services. While Europe has been ahead in this race, the U.S. is catching up, and I believe we are headed for an ecosystem that allows for significant innovations to support both consumers and financial institutions.
One of the issues that came up in our discussion on open banking was the idea that open banking is integrally related to the issue of digital identity. Do you agree? Why is this so and why is it important to keep in mind?
Martone: Digital identity is the backbone of a secure open banking ecosystem. As we democratize access to financial data, establishing secure, verifiable digital identities becomes crucial. It’s not just about sharing data, but ensuring that the right data gets shared with the right entities for the right purposes – securely. Our TrueAuth technology, for example, is designed to enhance credential security while empowering consumers.
The CFPB is working on regulations that could impact personal data rights. What are your thoughts on these potential regulations and their impact on companies in the open banking space – as well as the impact on consumer adoption of open banking?
Martone: I view the CFPB’s focus on personal data rights as a necessary step toward fostering a fair, transparent financial ecosystem. Giving consumers greater portability over their financial data opens the door for increased innovation and competition in the financial services space. However, it also creates a wider surface area for exploitation and misuse of data, as well. As a result, regulations will need to set the standards that ensure consumer privacy and data security and, in turn, build consumer trust. For companies evolving into the open banking space, this is an opportunity to align their products with consumer-centric values, which I believe will accelerate consumer adoption and loyalty in the long run.
Atomic is headquartered in Salt Lake City, Utah. We’ve seen a surprising number of innovative fintechs headquartered in Utah. What is it like to be a tech startup in the Beehive State?
Martone: Being headquartered in Utah has been fantastic for us. The state offers a thriving tech scene, a highly skilled workforce, and a business-friendly environment. We also have a dynamic team located throughout the country, which ensures that we comprise a diverse workforce.
What can we expect to see from Atomic over the next few months and into next year?
Martone: We have a busy roadmap ahead! You can expect to see more advanced features being rolled into PayLink, further strengthening its capabilities. You will also see us double-down on our strengths in expanding connectivity where it can benefit consumers to access, share, and update data in secure, transparent, and reliable ways to expand their financial opportunities. Key to this is continuing to advance our authentication methods, including our TrueAuth technology. Additionally, we’ll be focusing on strategic partnerships to widen our reach. Our aim is to continue leading the charge in making open banking a tangible, beneficial reality for all.
