Category: Fintech 5 Interviews

The Fintech 5 (+2!) with Paula Grieco — SVP at Commonwealth

Posted on by Jim Smith

The Fintech 5 is a series of blog posts consisting of questions and answers designed to help you get to know the people in the Fintech Sandbox community.

Commonwealth is a national nonprofit that builds financial security and opportunities for financially vulnerable people through innovation and partnerships. These are interests we share. Through action-oriented innovation, Commonwealth is reshaping the financial industry to better serve individuals with low-to-moderate incomes (LMI) through collaboration with partners, policymakers, and employers on integrated solutions that transform communities and strengthen the economy.

Commonwealth collaborates with industry leaders to launch cutting-edge financial tools, security benefits, and transformative technologies to drive widespread adoption to create lasting change in financial security and wealth-building. Commonwealth’s mission is to make wealth possible for all through systemic workplace, financial and fintech innovation, and next-gen tech solutions.

Their recent research and initiatives include:

Paula Grieco is a Senior Vice President at Commonwealth, where she oversees a number of the organization’s initiatives, including inclusive investing and financial AI, as well as strategic marketing and development. Paula spoke at Boston Fintech Week in October on the topic of emerging technologies, such as generative AI, and their practical use in retail investing and other financial service solutions.

Paula Grieco — SVP at Commonwealth

#1. Paula, tell us about Commonwealth’s vision to have more than one million new low- and moderate-income investors by 2027, and to serve these investors responsibly.

Participation in capital markets is a proven driver of wealth creation. A growing body of research, both Commonwealth’s own and others, finds that people realize this—including and especially people living on low and moderate incomes (LMI), and that many want to participate and become investors. Yet there is an enormous gap between those who aspire to invest and those who actually participate in capital markets today.

We are embarking on a multi-year, national initiative to enable 1 million new investors—alongside a coalition of industry leaders committed to serving these new investors responsibly. This ambitious undertaking will showcase what is possible, demonstrate what we’ve learned, identify where and what policy actions are required, and foster new conversations about who can and should build wealth. Partnerships and sector collaborations are critical to effecting systemic change in the investing industry. Building the right coalition for this work is vital. The financial services industry will be critical to this coalition, as we see leadership and action by industry as the single most powerful lever of change. We welcome conversations with those entities looking to blaze new pathways for broader wealth creation.

#2. Why does Commonwealth want to get more college students interested in investing?

Actually, research demonstrates that college students are already interested in investing. We have a recent report where 80% of non-investor students from LMI backgrounds express a desire to invest. Commonwealth’s work is to ensure that this early investor market is recognized and served. Early investing presents an important opportunity for the 16.6 million undergraduate students enrolled at academic institutions and those who are recent graduates, providing a fundamental strategy for building long-term wealth and addressing pervasive racial and gender wealth gaps. Federal Reserve data shows white households hold on average eight times more wealth than Black households, with that figure growing to 17 times for the Millennial population and Gen Z.

A shift toward earlier financial engagement is evident: On average, today’s Gen Z adults began saving and investing at 19 years old, compared to baby boomers who started at age 35. Despite this progress, only 18% of young people aged 18-25 are currently investing, highlighting a significant opportunity to increase their involvement and set the foundation for greater financial security. The growing popularity of investing apps among young adults has likely contributed to the rise, creating unprecedented access to wealth-building opportunities for students interested in and actively investing.

However, despite an increase in the number of investors over the past decade, participation in capital markets remains lower among college students living on LMI, according to recent Commonwealth research.

#3. What are some of the barriers student investors from low- to moderate-income households encounter?

Commonwealth’s research reveals that while college students with LMI demonstrate an interest in capital market investing, they face significant barriers to building wealth. Our survey identifies three primary barriers that are likely to deter students with LMI from investing: fear of losing money, gender disparities, and knowledge gaps. These challenges highlight the importance of addressing the systemic concerns that may hinder college students with LMI and provide the necessary support to empower them.

Our work also offers areas of opportunity where industry leaders – financial institutions and fintechs, higher education bodies, and government—may play a role in fostering an inclusive investing ecosystem for college students with LMI. For financial institutions and fintechs, these include developing inclusive products tailored to the needs of these students and integrating streamlined technology features and positive messaging into educational resources and tools.

#4. What should we know about the potential of employer-provided student debt solutions?

Americans owe about $1.76 trillion in student loans, and one in four U.S. adults under the age of 40 has student loan debt. The average U.S. household with student debt owes $55,777. Clearly, student debt is a daunting issue for a significant portion of the population.

More than six in 10 people with student loans report that their student loan debt is a source of stress and emotional challenges (TIAA, 2020). Student loan repayment often takes priority over competing financial goals, preventing many Americans from building short-term savings or investing in retirement savings, and causing them to delay buying homes, getting married, and having children.

Employers can play a critical role in improving the financial well-being of their employees. Tens of millions of workers are feeling financial pressure and this financial stress is bleeding over into the workplace. In our research, we’ve found that nearly one-third of financially stressed employees say their finances are a detriment to their productivity. This is especially true for workers earning LMI. Yet, fewer than one-third of workers have access to workplace benefits that would help them manage critical financial needs. Employers can help build financial resilience for these employees with benefits like student debt assistance.

A 2021 survey by Betterment found that 74% of respondents would be likely to leave their job for an employer that offered better financial benefits; 24% overall, and 49% of Gen Z respondents, noted that student loan financial assistance or repayment programs could entice them to do so.

Many employers are offering student loan repayment assistance as a benefit to their employees to alleviate the student debt burden, and recent policies present new opportunities to do so. For example, the SECURE 2.0 Act allows employers to provide retirement contributions as a match for student loan payments, making retirement savings more possible for employees who are prioritizing paying off education loans.

Our research showed that 40% of respondents said student loan repayment benefits are very or extremely important to their overall employer benefit package. Asked to select the top three benefits they would participate in today if offered by their employer, 60% of respondents selected student debt relief; 47% selected an employer-sponsored retirement plan, and 38% selected an emergency savings solution.

By matching student debt payments with retirement contributions, workers may be able to double their 401(k) balances at retirement. In addition, focusing on student debt reduction and other benefits that address financial vulnerability such as emergency savings can help strengthen the health of the retirement plan benefit by increasing participation and reducing leakage from the plan.

#5. What is an “investor identity” and what can investment firms do to cultivate it among people who aren’t but could be investing today? 

Tens of millions of Americans live paycheck to paycheck with little savings cushion and no meaningful wealth. This is a significant market of “regular working people” who want to save and invest, but are not well served today. This customer wants to invest in capital markets. They want to build wealth. However, there are barriers to their participation, creating a gap between desire and action. Investor identity is one of these barriers.

Investor identity refers to perceiving oneself as the kind of person that can or should invest, and that one belongs in the community of people who invest. It is the feeling that investing is “for me” rather than a space where a customer feels like an outsider. Our research showed that investor identity can be cultivated and developed over time: in fact, 71% of participants told us investing was easier than they thought once they got started.

With support from the Nasdaq Foundation, we launched the “Transforming Investor Identity Research Project,” a groundbreaking, national research and pilot program designed to expand the investing community and make it more inclusive. Over a year, we followed more than 850 beginner investors who each received $150 in seed funding to invest at one of three leading financial platforms: Ellevest, Public, and Stash. Our research unearthed what attracts, motivates, and sustains these new investors so they feel welcome in the wider investing community.

The project provides insight into how the development of an investor identity can allow new investors to fully take advantage of the wealth-building opportunities afforded by retail investing by overcoming initial feelings of doubt, discomfort, or not belonging.

Alongside the research, we created a toolkit for practitioners who would like to better understand investors earning LMI and apply best practices to how to enable and support the development of investor identity. All of our recommendations are based on the research and vary in the level of effort required from incremental, “low-hanging fruit” to new strategic initiatives.

These solutions correspond to each stage of the consumer journey (attract, activate, and retain). For instance, in the “attract” stage, you might use identifiers that address this group directly such as “new investors” or “first-time investors” along with warm, welcoming imagery and content that demystifies the investing experience. In the “activate” stage, consider providing opportunities for beginner investors to participate without the risk of feeling embarrassed through things like chatbots, individual live chats, dedicated webinars, and AI tools that provide safe spaces to ask questions.

#6. Which fintech problem or solution are you personally most interested in right now?

I’m actually really interested in two issues. Over 42 million households are living on LMI. I’m personally most interested in democratizing investing for these individuals who have traditionally been underserved by the investment ecosystem. While technology has expanded access in recent years, the gaps remain stark, particularly for Black, Latinx investors, and women.

Having conducted extensive research into the needs and wants of LMI investors, we’ve piloted human-centered solutions that we believe can increase access and close the interest/action investing gap: modest seed funding, access to quality products, relevant and actionable investing knowledge, and a fundamental shift in who we expect can and should be an investor. The next step is to use this growing body of evidence to drive action by financial service providers, by fintechs, by policymakers, and by people living on LMI themselves.

Second, I’m interested in how financial AI can be unlocked to transform financial security for those living on low to moderate incomes. As has been the case historically, next-generation technologies provide new and creative ways to improve financial security and opportunity for everyone, but they can also carry new risks if they’re distributed unevenly.

Financial services leaders, fintech entrepreneurs, social impact innovators, and others shaping the financial system can have a major impact on creating financial security through the thoughtful use of these technologies. Harnessing the power of AI to serve these previously untapped consumer segments also opens up potential new customer opportunities. This is a pivotal moment for innovators to expand and engage their customer base and bring more people into the financial system.

For instance, our Emerging Tech for All research initiative shows that conversational AI provides a key opportunity to improve access for households living on LMI. These households are nearly twice as likely to want to bank through in-person interactions, yet have significantly lower access rates to local bank branches. Conversational AI can provide the personalized and context-sensitive support this group seeks at scale in a way that has never been possible before. In a Commonwealth field test, we also found that a majority (57%) of LMI participants felt that using a chatbot positively impacted their financial situation.

That said, concerns about privacy and security remain barriers to engagement with conversational AI in finance. Overcoming these barriers through clearer communication and transparent policies will be an important part of building the kind of trust that will allow conversational AI to better support customer financial health.

Our 2024 national survey report, Generative AI and Emerging Technologies, additionally offers actionable insights around larger trends in using generative AI, chatbots, and digital financial services.

#7. If you could change one thing about the fintech ecosystem, what would it be?

Financial insecurity and wealth gaps remain widespread. They cause concern across the political spectrum, and they create social and economic harm. If I could change one thing it would be to ensure that the needs of financially vulnerable people are understood, visible, introduced early into relevant conversations, and integrated into solutions. To that end, in 2023, Commonwealth set a bold four-year strategic vision to drive systemic change in the workplace, in emerging technologies, and in financial services, enabling 10 million working families to build $15 billion in equitable financial security and wealth by the end of 2027. Commonwealth remains dedicated to achieving broad financial security and opportunity for all through continued innovation and partnerships.

Bonus question! What is the best career or life advice you have received?

Commit to your goal – but pair that commitment with adaptability in terms of how to reach this goal.  You will inevitably encounter obstacles. The path to achieving a bold vision is rarely exactly as you planned it. I have found that a willingness and ability to pivot and to adapt, to be able to ask yourself, “How else might we do this?” or “What are our other options?” – is highly necessary to be effective.

Another bonus question! What’s the most interesting thing you’ve read recently?

I recently re-read “The Psychology of Money” by Morgan Housel. In the book, Morgan weaves historical and personal anecdotes on success and failures in capital markets as he shares both this theory on “the psychology of money” and evidence-based practical approaches to building wealth.

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The Fintech 5 with Dev Worah — Senior Client Partner at Slalom

Posted on by Jim Smith

The Fintech 5 is a series of blog posts consisting of questions and answers designed to help you get to know the people in the Fintech Sandbox community.

Dev Worah is Senior Client Partner & Head, Capital Markets, Asset & Wealth Management at Slalom, a global consulting company. Dev has over 25 years of experience leading strategy and innovation initiatives. He works with both multinational firms and technology startups and is skilled at guiding financial services firms through business transformations.

Slalom is a sponsor of Fintech Sandbox and Boston Fintech Week.

Dev Worah of Slalom

#1. Dev, what can I do at a Slalom Element Lab?

At Slalom Element Lab, we offer a unique environment where our customers and technology partners can quite literally experience the future. It’s a hands-on space designed to push the boundaries of what’s possible with emerging technologies. We curate interactive experiences tailored to specific industry challenges, enabling our customers to explore and experiment with cutting-edge solutions in a tangible way. The Element Lab empowers customers to not just talk about innovation but to actively shape it. It’s where they can test-drive the latest technology in a high-powered environment, unleash their creativity, and build innovative energy into the DNA of their businesses.

For instance, the Slalom Element Lab can help a brokerage company reimagine, firsthand, how it interacts and services its clients, using technologies like agentic AI, extended reality (XR) and digital twins in context of its retail branches, contact centers, and digital service experiences. With just one half-day curated experience inside our lab, businesses can gain a deeper understanding into these emerging technologies, reset perceptions around what’s possible, and leave energized with a clear action plan on how best to start introducing new capabilities into their organizations.

#2. Which fintech problem or solution are you personally most interested in right now?

In wealth management, I’m passionate about scaling and democratizing access to sophisticated financial and estate planning. Traditionally, high-touch, concierge-level financial advice has been reserved for high-net-worth individuals, leaving most people to navigate complex financial decisions on their own. However, this creates a significant advice gap, hindering many people from reaching their financial goals.

The convergence of human-centered AI, open banking, and evolving regulatory frameworks offers a timely opportunity to bridge this gap and empower individuals to achieve their financial aspirations.

Imagine an AI-powered wealth management advisor—similar to a personal CFO—that understands your goals, preferences, and financial history. By analyzing data and interacting with you and your family, it provides personalized advice, proactive financial health monitoring, and goal-driven planning, all while collaborating closely with your trusted team of financial experts (e.g., attorneys, tax consultants). This digital advisor could leverage vertical LLMs trained on financial data and AI-driven platforms, becoming an always-available resource dedicated to your family’s financial well-being.

Both WealthTechs and incumbents are working toward this vision, and I’m excited to see how the space evolves over the next couple of years.

#3. Where are we in terms of AI adoption in financial services?

The financial services industry is undergoing a significant transformation driven by AI, though we are still in the early stages of adoption. As we enter 2025, forward-thinking firms are integrating AI solutions into their operations after seeing successful results from AI pilots. Our financial services customers are increasingly leveraging AI to boost efficiency, compliance, and customer experiences. Key applications include automating customer interactions with chatbots and virtual assistants, providing personalized financial advice, and streamlining processes like claims processing, mortgage approvals, and document analysis. AI also plays a crucial role in fraud detection, risk assessment, and regulatory compliance, ensuring security and adherence to evolving standards. In capital markets, AI is enhancing financial analysis, market insights, and algorithmic trading.

While there are challenges, such as data privacy, fairness in decision-making, and the integration of AI into legacy systems, organizations are overcoming these hurdles with a value-based prioritization approach. As these challenges are addressed, we can expect to see significant progress in AI adoption throughout the industry in 2025, unlocking even greater potential for innovation and growth.

#4. How has participation in Boston Fintech Week been beneficial to Slalom?

Slalom’s involvement over the last three years with Boston Fintech Week has delivered significant advantages, unearthing crucial insights into the latest industry trends, emerging technologies, and disruptive innovations impacting financial services. This frontline exposure not only enhances our understanding of where the industry is headed but also enables us to provide our clients with strategic guidance and innovative solutions that align with the rapidly evolving fintech landscape.

In fact, we have leveraged the Boston Fintech Week platform to invite our customers and key partners into more conversations, providing them with unique opportunities to explore potential solutions, connect with innovative startups, and gain a deeper understanding into the evolving fintech landscape. This has allowed us to continue to “bring more” for our customers, while also building a more vibrant fintech community in New England.

#5. What advice do you have for startups about partnering successfully with incumbent firms?

Startups often underestimate the complexity and priorities of enterprise-scale financial services firms. My advice is to focus on understanding the incumbent’s specific pain points and clearly demonstrate how your solution delivers measurable value. Find opportunities and quick wins to exemplify the value of your solution as early as possible. Adapt to their systems and regulatory environment, while approaching the partnership with flexibility and scalability in mind. Relationship-building is equally critical; take time to engage key stakeholders and align your goals with theirs. Finally, be prepared for a longer sales cycle—quick wins through pilots or proof of concepts can accelerate trust and open doors for deeper collaboration.

Bonus Question! What’s the most interesting thing you’ve read recently?

I’m not someone who usually reads books cover to cover, but here are two I’ve been diving into recently that have really stuck with me:

  1. The Power of Regret by Daniel Pink has been a game-changer for me. It’s given me a fresh way to think about regret and how to respond to it. I’m excited to put Pink’s ideas into practice—learning from regrets and using them as a springboard for personal and professional growth.
  2. Mindset by Carol Dweck is another fantastic read. Dweck does such a great job of explaining the power of a growth mindset and shares practical tips for embracing challenges, pushing through tough times, and turning failures into opportunities to learn. Her ideas are so helpful for work, relationships, leadership, and life in general.

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The Fintech 5 with Dan Israel — Managing Director, Global Insurance Accelerator

Posted on by Jim Smith

The Fintech 5 is a series of blog posts consisting of questions and answers designed to help you get to know the people in the Fintech Sandbox community.

At Fintech Sandbox, we work closely with a select group of startup accelerators to complement their offerings with our financial data and infrastructure support. One of these is the Global Insurance Accelerator (“GIA”) which offers an immersive, 100-day accelerator program, with both in-person and virtual components, to startups that are building disruptive products and technologies for the insurance industry.

As Managing Director of one of the world’s top accelerators dedicated to insurance innovation, Dan Israel is responsible for identifying the startups capable of bringing fresh ideas to the ecosystem. The 2025 GIA cohort began work on January 8th.

Like Fintech Sandbox, the GIA is now over 10 years old. Based in Des Moines, Iowa (long known as an insurance hub in the U.S.), the GIA has attracted founders from five continents and invested over $3 million in early-stage companies.

Dan Israel, Managing Director of the Global Insurance Accelerator

#1. Dan, what do you look for in accelerator applicants?

When we review applicants, we’re looking for not only a company which is solving a real problem, but also a really great founding team. In fact, often times I’m looking at the founding team first. The drive for the solution, idea, and company has to come from the founders and if the founding team isn’t in it for the long haul, the idea almost certainly won’t work. We’re also looking for coachability and a desire to be mentored.  Our program is mentor based – if that’s not something that a founder is looking for, they won’t find success in our program.

Beyond that, we’re looking to see that the company is solving a real problem facing insurance and financial services. In order to find long-term success, many of the companies who come through our program will look to partner with incumbent participants. If the founders aren’t solving a real problem or have a solution in search of a problem, it makes finding and engaging those partners incredibly difficult. The more closely aligned their solutions are to problems facing the trends of the industry today, the better opportunity for long-term prospects, and an increased likelihood of growth and success for the applicant both in our program and beyond.

#2. What stands out to you about your 2025 cohort?

 I think what stands out this year is what has made the GIA unique for all the years that we’ve been in operations – the varied ideas and types of insurance that these founders are looking to touch. From health, to claim settlement, sports, and more, I continue to be impressed by the breadth of the ideas and problems that are being solved. I think one of the most unique things about our program is that while our cohort represents our Investors and Sponsors, they also represent some of the biggest trends facing the Insurance and Financial Services Industries today. Our Investors and Sponsors have a large role in helping to determine who becomes a part of our program and that has really paid dividends in ensuring that the founders have mentors and support available to grow and drive change.

Now that our program has started, I am also so excited about how well this group has come together as a cohort already. A big part of our program revolves around companies from different backgrounds and parts of this industry joining together on a shared journey. I’ve loved watching the founders from this group share stories and knowledge about their own journeys, their conversations with potential mentors, their struggles, and successes. These relationships will help to shape how these companies grow and its incredibly fulfilling to watch these interactions even early on in our process.

#3. What should we know about the relationship between the GIA and Drake University and the University of Iowa?

 Part of the magic of the GIA is the utilization of our diverse group of partners, which includes these two impressive universities close to home. Our long-standing partnership with Drake University has allowed us to bring in Interns each Spring who work with our founders on real projects for their companies. This provides the interns with an opportunity to see a different side of insurance while giving the founders access to incredibly smart and talented students who are about to enter the insurance field.

More recently, we’ve cultivated a partnership with the University of Iowa where we’ve worked with the John Papajohn Entrepreneurial Center and Tippie College of Business to build out a co-branded course that our founders participate in as a core part of their 100-day experience. It takes portions of the very successful Venture School and Entrepreneurial Center curriculum and combines it with the Insurance and Financial Services specific knowledge to build an incredible foundation for their first days in our program and throughout their experience. These unique partnerships allow for cross collaboration opportunities for students, faculty, professionals, and founders to see all aspects of this industry and to push it forward together in new and exciting ways!

#4. What role does mentorship play in the GIA program?

 Mentorship is truly the heart and soul of what we do at the GIA. Our mentors represent all different aspects of the industry – from incumbent participants (actuaries, claims leaders, senior executives, etc.), to founders, investors, lawyers, academics, and more. From our very beginning, our mentors have been the fuel that has accelerated the growth in our organization as well as the founders who have participated in our program. A key part of the value proposition for our investors and sponsors is the ability to gain prioritized access to our mentor program for their employees leading to enhanced employee engagement and growth as change agents.

Today, our mentor pool includes approximately 130 mentors, representing 65 different companies from in and around the entire industry. During the first three weeks of the 100-Day Program, each company is able to meet with roughly 75 of these potential mentors to determine fit and compatibility. Through a mutual matching process, each cohort company is ultimately matched with between 8–10 mentors that will work with them to help solve the 3–5 biggest challenges facing their companies. These relationships drive the deep insights, needed company pivots, potential partnerships, talent development, and growth opportunities that are required for the ideas and companies to grow. Our mentor program is distinct to the GIA and we are immensely proud of this world renowned and recognized program built over the last decade.

#5. If you could change one thing about the insurtech ecosystem, what would it be?

I’d love to make it easier for incumbent participants and founders/startups to partner together. Given the ever-evolving market conditions facing this industry, its more vital than ever that new ideas, innovations, and partnerships can be found. Firms like Fintech Sandbox and the GIA can play a role in helping to cultivate these new and innovative partnerships, and help to remove the barriers which can exist between market participants, and in my view, encourage willingness to try out new ideas and solutions. Hopefully this would lead to incumbents understanding that sometimes “No, this didn’t work” is a good answer, as knowledge was gained regardless. There is no shortage of amazing solutions and founders, the key is making sure that those who are solving real solutions and problems are able to find the right partners to bring those solutions to the market to improve the overall ecosystem.

Bonus question! What’s the most interesting thing you’ve read recently?

After a number of recommendations, I finally read Atomic Habits by James Clear and I appreciated his take on focusing on 1% improvements rather than always the end-game goal. Given the work that we do at the GIA, we’re often looking ahead to what’s possible and the “end-game” so this take and focus was refreshing and thought-provoking.

Also, I have annually read The Alchemist by Paulo Coelho.  This was a recommendation from a mentor as a way to stay grounded and think about what matters and focusing on enjoying the journey along the way.

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The Fintech 5 (+1!) with Jennifer Perry — Managing Director at J.P. Morgan

Posted on by Jim Smith

The Fintech 5 is a series of blog posts consisting of questions and answers designed to help you get to know the people in the Fintech Sandbox community.

Jen Perry is Co-Head of Technology Banking, Innovation Economy at J.P. Morgan Commercial Banking where she leads a team supporting high-growth technology companies, founders and venture capital firms across sectors, including fintech. Some of you may be familiar with her from her appearance at Boston Fintech Week in 2023.

Jen Perry, Managing Director at JPMorgan

#1.    Jen, what are some of the ways J.P. Morgan works with fintech startups?

The Payments Banking team within J.P. Morgan’s Innovation Economy business works with companies focused on various facets of the payments ecosystem including fintech software, payments-forward applications, insurtech, payroll, billing software and more. The team helps manage these companies’ deposits and day-to-day transfer of money between parties encompassing payment processors, gateways, and financial technology firms, ensuring secure, efficient and convenient transactions globally.

Payments are a critical capability for the firm more broadly, and our team works closely across J.P. Morgan’s lines of business and with third parties to support fintech startups in a variety of ways. We partner with innovative fintechs to launch new payments solutions, foster an ecosystem of hundreds of third parties that integrate with J.P. Morgan Payments, and regularly invest to reinforce strategic partners and acquire key capabilities.

#2.    What solutions does J.P. Morgan offer startups?

Our goal is to support founders and their companies from inception to IPO and beyond. In addition to providing operating accounts and credit cards, we can provide liquidity management, international capabilities, foreign exchange, cap table management and a variety of debt financing options, including venture debt. Our connectivity to J.P. Morgan’s leading global investment banking franchise positions us well to support capital raising and financing, and strategic advisory when a company is considering an exit. For founders and employees, we also offer a full suite of private banking, wealth transfer planning and mortgage solutions to meet their personal banking needs. Ultimately, J.P. Morgan can grow with you through every stage of your company’s life cycle.

#3.    Does J.P. Morgan work with early stage fintech startups?

Yes! Within our Innovation Economy practice sits a team comprised of seasoned banking professionals as well as former founders, investors and startup mentors who understand the needs of pre-seed and seed stage companies. We offer early-stage founders a simple and seamless banking experience, and connections within and outside of the firm to help advance their networks and scale their businesses.

#4.    You lead a commercial banking team. Where do you see the greatest opportunities for innovation in commercial banking?

Over the last several years, fintechs have identified significant opportunities for innovation across the broader financial services industry and have encouraged more traditional institutions to think differently. We believe that banks can learn a lot from fintechs, and vice versa. For example, many banks have placed an increased focus on data science to help better understand their customers and inform digital strategies.

#5.    Which fintech problem or solution are you personally most interested in right now?

We are at a very interesting moment in the broader tech industry, including fintech. I’m eager to see how the next evolution of artificial intelligence will evolve the fintech sector, as well as how companies will maintain environmentally friendly operational practices.

#6.    What is your outlook for fintech startups in 2025?

We are cautiously optimistic that there will be opportunity to raise capital from private investors in 2025, especially for fintechs that can show operational efficiency and a path toward profitability. It will be important for fintechs to truly understand the regulatory aspects of their business and work with partners that can sustain their business long term. Investors are much more judicious than they were just a few years ago, so it’s important that founding teams develop strong support systems that can help prepare them to engage in fundraising or a transaction.

Bonus question! What is the best career or life advice you have received?

As a woman in financial services, a partner once shared with me that while I knew the answers and had a lot to say, people were either not hearing me or listening to me. She noted that it could be a number of reasons – my tone, volume or projection – but that I needed to find a way to make sure people could really hear me. It was hard feedback to receive, but has been invaluable in my professional life.

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The Fintech 5 with Biju Kizhakhemadtil — SVP of Fintech Solutions at the Fidelity Center for Applied Technology

Posted on by Jim Smith

In this ongoing series of blog posts, we are introducing you to some of the sponsors, partners, advocates, and entrepreneurs who make up the unique Fintech Sandbox community, and without whom our small team could not provide fintech startups with access to critical data and resources, entirely for free.

The Fidelity Center for Applied Technology (“FCAT”) serves as Fidelity Investments’ hub for exploring emerging technologies and social trends that may shape the future of financial services. FCAT’s charge includes assessing, testing, and scaling concepts and ideas that advance Fidelity’s market leadership and enhance customer experiences. FCAT is a frequent sponsor of our events, including, most recently, Demo Day[s] 10 in April.

Biju Kizhakhemadtil is the Head of Fintech Solutions at FCAT, where he has spent most of his career. He is responsible for developing cutting-edge technology platforms that scale with the cloud and leverage AI to power new businesses. Biju engages and collaborates with innovative fintechs to co-create financial solutions built to drive financial wellness and access. He brings decades of proven experience across financial markets and the global fintech ecosystem, including granted patents in the fields of natural language processing and advanced trading.

Biju KK, Head of Fintech Solutions at Fidelity Investments

Question #1.  Biju, how does FCAT engage with fintech startups?

At FCAT, we have a long history of engaging with fintech startups and have developed some wonderful relationships over the years. FCAT engages with fintech startups by providing a platform they can leverage to help advance their solutions and innovative ideas. We are happy for fintech startups to collaborate in experiments, research, and simulations, which also brings innovation into our own business units. We look at emerging technologies three to seven years out to drive the future, and collaborating with startups is critical to understand “where the puck is going”. An example of this is our collaboration with Dogpatch Labs, who we work with to provide support and opportunities to startups, including expertise, resources, and access to a global network. Our research also prompts us to explore startup activity in particular areas of interest so we can develop informed insights.

#2.  What fintech problem or solution are you focused on or most interested in right now?

From a fintech perspective, I’m proud to say that one of FCAT’s core focuses is making investing more accessible for the average person. We’ve seen that financial services firms often use complex and potentially intimidating terminology, so we focus on helping these people overcome that barrier by simplifying language, providing education, and helping fintechs present information more accessibly. We do this by sharing knowledge and tools to help manage the risks associated with investing, which can help the average person move forward in their journey.

#3.  Do you foresee a role for either VR (virtual reality) or AR (augmented reality) in the delivery of financial services in the near future?

FCAT has a solid track record of exploring technologies as they emerge, and we have teams dedicated to exactly this. One of our core principles at FCAT is that we strongly believe that innovation happens at the intersection of technology and customer demands — and when it comes to VR and AR, we believe that these incredible technologies have the potential to open an entirely new paradigm on how we look at, understand and leverage data. For example, this might include 3D data visualizations and data interactivity to uncover new insights.  It’s clear that there is a demand for all things data-related and we are excited to research these technologies more.

#4.  What advice do you have for startups about partnering successfully with incumbent firms?

For a successful collaboration with incumbent firms, my first bit of advice to fintech startups is to try to ensure that you are partnering with a firm that has an innovative or entrepreneurial streak. I’ve found this to be important, as I’ve seen that firms sometimes look for collaborations based on a general managerial urge to see what’s out in the market, but that can lead to mismatched cultures and priorities.

My second bit of advice is to try to fit into the existing ecosystem with minimum friction. Keep in mind that incumbent firms have businesses that operate at an established pace, so it’s easier for a startup to integrate and adjust accordingly. Incumbent firms provide stability and scalability, so it is important to respect their approach and align with their ecosystem.

My final bit of advice is to make sure that you and the incumbent firm understand the problem that you are trying to solve. If your startup and your partner share a clear understanding and are on the same page, everything will be off to a great start.

#5.  If you could change one thing about the fintech ecosystem, what would it be?

I think we need to reshape the paradigm in which startup and legacy fintech firms interact. We often see problems emerge when one party sees the other as a hindrance or a threat — perhaps the startup is too idealistic or hasty, perhaps the legacy firm is too rigid or unnecessarily bureaucratic in its decision-making. But the reality is that both can and should learn from one another, and there is quite often a happy balance stakeholders can strike when appropriately leveraging both the startup’s entrepreneurship and legacy firm’s structure and collective experience.

Bonus Question! What’s the best career or life advice you’ve received?

Many years back when I was managing teams that delivered on “business as usual” projects, someone told me that it was critical to focus on the things that matter, no matter how unrealistic. This changed my perspective and outlook on how I managed my time and career. Since then, I have always looked for opportunities that allow me and my team to push the envelope of what we do as a firm even in the face of risks, failure, and limitations.

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If you are a fintech entrepreneur with an early-stage company and you could benefit from free access to data, cloud hosting and a supportive community, please  visit our website to learn more!

The Fintech 5 with Dan New — Managing Director at EY

Posted on by Jim Smith

The Fintech 5 is a series of blog posts consisting of questions and answers designed to help you get to know the people in the Fintech Sandbox community.

Dan New is a Managing Director at EY, a member of the Fintech Sandbox Advisory Board, and an integral part of the fintech ecosystem in Greater Boston, where he is based. Dan has extensive experience helping clients improve both the effectiveness of their operations and their internal controls.

He is also passionate about helping clients succeed in, and adapt to, a rapidly changing technology and financial services environment.

Dan New of EY
Dan New

Question #1. Dan, what are some of the ways EY works with fintechs at the startup stage?

We collaborate with fintech startups in many different ways, but there is no “one size fits all”. We first want to know and understand them (and have them get to know us). As the relationship evolves, we could provide:

  • Strategy Services: Strategic guidance on business planning.
  • Regulatory Compliance: Assistance with understanding and complying with financial regulations to mitigate non-compliance risks.
  • Technology Consulting: Support in utilizing technologies like blockchain, AI, and cloud computing for building scalable platforms.
  • Funding and Investment: Aid in preparing for funding rounds, including valuation, due diligence, and investor connections.
  • Networking Opportunities: Access to events and workshops for connecting with industry leaders and potential partners.
  • EY FinTech Adoption Index: Visibility and insights through participation in fintech trend studies and consumer adoption research.
  • EY wavespace™: A network of innovation centers for collaborative growth strategy development and business model refinement.
  • Cybersecurity and Risk Management: Services to enhance cybersecurity measures and manage risks.
  • Core Accounting Firm Services: Tax advisory, external audits and/or attestation reports (SOC).

Our services aim to help fintech startups navigate early-stage challenges and succeed in the competitive financial technology landscape.

#2. How are fintech innovations empowering consumers to take control of their financial health?

Today, consumers are increasingly taking the driver’s seat in managing their financial health, thanks to a myriad of fintech innovations.

  • Personal Finance Management Tools. These platforms aggregate financial data from various sources, providing users with a holistic view of their finances. With features like expense tracking, budgeting, and financial goal setting, consumers can make informed decisions and take proactive steps towards financial stability.
  • Open Banking. Open banking is another game-changer, breaking down the walls that once kept consumer data in the hands of a few institutions. By leveraging APIs, fintech companies can offer services that use consumers’ banking data (with their permission) to provide personalized advice, better loan rates, and more competitive savings products.
  • Peer-to-Peer Lending Platforms. The borrowing landscape is also transforming. Peer-to-peer (P2P) lending platforms bypass traditional banking channels to connect borrowers directly with investors.
  • Micro-Investment Apps. Investing is no longer the exclusive domain of the wealthy. Micro-investment apps have lowered the barrier to entry, allowing consumers to invest small amounts of money regularly.

As we look to the future, one thing is clear: the power to shape your financial destiny is increasingly in your hands. My colleague and friend, Matt Hatch (EY’s America’s FinTech Leader), recently wrote a blog post on similar topic which adds additional insights.

#3. How has participation in Boston Fintech Week been beneficial to EY?

We have been a sponsor, attendee and active participant in Boston Fintech Week since the start and have benefited from this participation in several ways:

  • Brand Visibility: Increased awareness and marketing opportunities to startups.
  • Thought Leadership: Establishing EY as a thought leader through panel discussions and presentations.
  • Networking: Connecting with fintech startups, financial institutions, tech providers, investors, and regulators.
  • Market Insights: Gaining knowledge of industry trends and innovations to help refine our services and strategies.
  • Talent Acquisition: Recruiting top fintech talent.
  • Client Engagement: Strengthening relationships with existing clients and better understanding their needs.
  • Innovation Ecosystem: Collaborating within the fintech community.
  • Regulatory Dialogue: Engaging with regulators to better understand the evolving regulatory framework.
  • Showcasing Solutions: Demonstrating our fintech success stories.

Overall, participation in Boston Fintech Week has helped us strengthen our position in the fintech sector, create new business opportunities, and stay connected with the latest industry developments. We are looking forward to Boston Fintech Week 2024 (October 14 -18, 2024)!

#4. Where do you see the biggest opportunities to apply AI to compliance and risk management challenges?

The application of Artificial Intelligence to compliance and risk management presents numerous opportunities to enhance efficiency, accuracy, and effectiveness, including:

  • Regulatory Compliance Monitoring: Real-time monitoring and interpretation of regulatory changes.
  • Transaction Monitoring and AML: Analysis of transaction data to detect fraudulent or money laundering activities.
  • KYC and CDD: Automation of data collection, verification, and risk assessment in customer due diligence, plus ongoing risk profile monitoring.
  • Risk Assessment and Management: Analysis of vast data sets for risk identification and predictive analytics for forecasting.
  • Credit Scoring and Lending: Advanced AI models for more accurate credit risk assessments, supporting informed lending decisions and broader credit access.
  • Fraud Detection and Prevention: Anomaly detection and pattern recognition to adapt to evolving fraud tactics using historical data.
  • Regulatory Reporting: Automated data gathering and report generation for regulatory compliance, enhancing accuracy and efficiency.
  • Cybersecurity: Continuous network monitoring for potential breaches and real-time threat response.
  • Model Risk Management: Validation of AI model performance and compliance with risk thresholds and regulatory standards.

Overall, the biggest opportunities lie in the ability of AI to handle large volumes of data with speed and precision, uncover insights that might be missed by humans, and adapt to new patterns and trends.

#5. Which fintech problem or solution are you personally most interested in right now?

Some of the fintech problems and solutions that are generating significant interest in the industry include:

  • Financial Inclusion: Fintech solutions that aim to provide financial services to the unbanked and underbanked populations are of great importance. Technologies like mobile banking, microfinance, and digital wallets can help increase access to financial services for those who have traditionally been excluded from the financial system.
  • Regulatory Technology: Regtech solutions which aim to simplify and streamline compliance with financial regulations using technologies like AI, machine learning, and big data analytics.
  • Payment Innovations: The continuous evolution of payment technologies, including contactless payments, instant payments, and cross-border payment solutions, is a key area of interest.
  • Blockchain and Cryptocurrencies: The application of blockchain technology in fintech extends beyond cryptocurrencies. It includes solutions for supply chain finance, smart contracts, and tokenization of assets. Cryptocurrencies themselves are also a hot topic, with discussions around their regulation, integration into traditional finance, and potential as an investment.

Bonus question! What is the best career or life advice you have received?

I was told by a mentor if I did not care about you, I would not take the time to provide critical feedback. At the time, I did not want to hear the critical feedback, but it made me a better person, employee and advisor to my clients. The feedback helped with:

  • Growth and improvement
  • Self-awareness
  • Adaptability
  • Quality of work
  • Motivation
  • Trust
  • Professional relationships
  • Problem-solving

They could have easily left the meeting and said, “Great meeting” (even if it was not). I would have felt good (in the short term) but would not have helped my long-term growth. But by taking the time to provide quality, actionable feedback, it made me better. I have never forgotten this. It was not always easy to hear, but by approaching criticism with an open mind and a willingness to learn, I was able to transform feedback into positive change and continuous improvement.

Bonus bonus question! Which podcasts do you listen to?

I listen to various podcasts while out for walks, in the car, or just to clear my mind. Some podcasts I listen to regularly include:

  • All-in
  • Industry veterans (close friends who have different political, business and life views) cover all things economic, tech, political, and social.
  • Various podcasts on my favorite Boston sports teams (city of Champions 😊).
  • Business Wars
  • Business Wars uncovers bitter feuds and highlights what drives the world’s biggest companies, their leaders, inventors, and executives, to new heights and untold riches – or to ruin.
  • The Rewatchables
  • Film podcast discussing movies we cannot seem to stop watching. If you enjoy movies, this is a great listen about movies you have probably seen several times.

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The Fintech 5 with Raul Peralta — CEO of Kaleidoscope

Posted on by Jim Smith

In this ongoing series of blog posts, we are introducing you to some of the sponsors, partners, advocates, and entrepreneurs who make up the unique Fintech Sandbox community, and without whom our small team could not provide fintech startups with access to critical data and resources, entirely for free.

Raul Peralta is CEO of Kaleidoscope which offers a powerful securities research platform that automatically surfaces business intelligence from SEC and SEDAR filings. Kaleidoscope uses data visualization technology and AI to help corporate executives and professionals in many industries make better data-driven decisions.

And Kaleidoscope is now our newest data partner, providing API access to a wide range of pre-defined and searchable securities datasets that have been extracted and aggregated from registered US and Canadian filings, including public companies, investment companies, funds, investment advisors, and US insiders.

Question #1: Raul, as a startup, Kaleidoscope took part in the Fintech Sandbox Data Access Residency in 2018. What was that like for the company?

Fintech Sandbox and its initial acceptance was crucial for our success. We received connections and data that we wouldn’t have had access otherwise and that were vital to fast track our product. From day one we also received plenty of support and mentoring as we worked to grow our product.  The team has always been ready to help in any way they could and for an early startup that meant a lot for us.

#2: What made you want to become a data partner?

Early on because of the amount of support we received from Fintech Sandbox and its very nature, we knew that at some point we wanted to be able to give back to the community. We noticed there was a small gap on the data being provided to early startups and realized that this was the opportunity for us to jump in and help as much as we could.

#3: What fintech problem has your attention right now?

I know there is a lot of focus on Diversity and Inclusion within the industry. As it relates to me is all about Shared Collaboration. Fostering collaboration between fintech startups and traditional financial institutions is important. Collaboration can and will always lead to the creation of innovative solutions that combine the best of both, the agility of startups with the stability and resources of established institutions.

#4: How is Kaleidoscope using AI?

AI is very important on our industry and because of it we have and are investing heavily in it. In data extraction we use our in-house models to process and extract data from the vast amounts of text we have from filings, and we continue to refine them to get better metadata from the filings. We are also releasing soon our own chat-like agent using our data and models for clients to be able to use when looking for information from filings.

#5: If you could change one thing about the fintech ecosystem, what would it be and why?

If I could change one thing about the fintech ecosystem, I would focus on enhancing transparency through the use of AI. Transparency is essential for building trust and ensuring that users have a clear understanding of how their financial data is being used. By leveraging AI, fintech companies can provide users with more detailed insights into their financial activities, such as spending patterns, investment performance, and potential risks.

Bonus question! What’s the best career or life advice you’ve received?

Oh, the one advise I always keep thinking of and it helps in life and my career is from my father. “ …. There is ALWAYS room for improvement.” It’s funny because as we accomplish goals here at Kaleidoscope or just anything in life really, I just keep thinking well that’s great BUT … and it just motivates me to do more.

Another bonus question! What is the most interesting thing you’ve read recently? 

I read all sorts of books, articles, etc., plus I enjoy listening to quite a few podcasts as well. But one that I just read recently and really enjoyed was “The Mysterious Case of Rudolph Diesel”. I knew about Diesel briefly, but the way this book was written it kept me engaged from the beginning to the end, maybe it’s the combination of the historical information but combined with a murder mystery that just kept me reading it to get to the ending fast.

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The Fintech 5 with Michelle Bonat — Chief AI Officer at AI Squared

Posted on by Jim Smith

The Fintech 5 is a series of blog posts consisting of questions and answers designed to help you get to know the people in the Fintech Sandbox community.

Michelle Bonat, CAIO at AI Squared, merges finance and technology expertise to spearhead AI initiatives. With an MBA from Kellogg, she founded a fintech startup, led AI innovation at Chase Bank, and patented her technology. At JPMC, she served as AI CTO, driving transformative projects. Her career includes time as a software executive at Oracle, and product leadership at Ariba and startups, showcasing her strategic prowess. Passionate about diversity, she mentors, judges, and teaches coding to underrepresented groups. A sought-after speaker, she addresses AI, tech, and innovation. Bonat’s leadership at AI Squared reflects her commitment to solving impactful problems with AI and data, delivering cutting-edge solutions for enterprises. Her career trajectory underscores her vision and execution capabilities honed over years of experience in technology and finance.

Michelle Bonat

Question #1:  Michelle, what is an AI Playbook and why is it important?

Recently, I created an AI Playbook that can be used by any organization. An excerpt of this playbook is below. You can find more details here.

A Step-by-Step Guide to Creating your Organization’s AI Playbook: Boat or Moat?

This AI playbook helps you determine if your AI strategy should be geared towards more of a boat (advancing your position) or a moat (defending your position).

An AI playbook is a strategic document that outlines an organization’s approach to implementing and leveraging artificial intelligence (AI) technologies. It includes a series of steps, best practices, and guidelines for integrating AI into various aspects of the business.

Here are some key components that should be included in a organization’s AI playbook:

  1. Business Objectives and Use Cases: Define AI objectives, identify use cases, prioritize based on business needs, develop a rating system, revisit monthly, evaluate quarterly.
  2. Data Strategy: Establish a comprehensive data strategy covering collection, governance, quality, storage, privacy, and security. Ensure ethical compliance and quality management.
  3. Ethical and Regulatory and Governance Considerations: Establish ethical AI guidelines, conduct risk assessments, engage stakeholders, ensure regulatory compliance, and establish model governance procedures.
  4. AI Development Lifecycle: Define your AI lifecycle: ideation, data prep, model dev, testing, deployment, monitoring. Specify team roles.
  5. Model Selection and Evaluation: Define criteria for AI model selection, evaluation metrics, and validation procedures. Specify rules for use of external services like ChatGPT.
  6. Implementation Roadmap: Implement AI in phases with timelines, milestones, and resource allocation. Pilot, scale, iterate based on feedback. AI relies on circular development cycles.
  7. Ethical and Responsible AI Principles: Embed ethical AI principles: fairness, transparency, accountability, bias mitigation in development and deployment. Enforce these principles.
  8. Risk Management and Compliance: Identify AI risks: legal, regulatory, reputational, operational. Develop mitigation strategies, ensure compliance.
  9. Security and Privacy Measures: Utilize secure AI: safeguard data, systems from cyber threats, breaches. Use privacy-preserving techniques, encryption.
  10. IP Protection: Define your IP strategy: Copyrights, Trademarks, Patents, Open Source. Determine an offensive or defensive patent approach. Choose license options.
  11. Cross-Functional Collaboration: Encourage cross-departmental collaboration: data scientists, engineers, analysts, legal, stakeholders. Define team structures and communication.
  12. Training and Capacity Building: Offer AI training: workshops, resources, certifications. Empower staff with skills for effective AI use.
  13. Continuous Improvement and Optimization: Establish continuous improvement for AI: feedback loops, performance monitoring, refinement based on real-world usage. Ensure auditable processes.
  14. Documentation and Knowledge Sharing: Share AI best practices, lessons, case studies. Create repositories for code and models. Consider an internal data, feature, and model sharing marketplace.
  15. Stakeholder Communication and Engagement: Engage stakeholders: employees, customers, partners, regulators, media. Promote transparency, trust. Educate on AI processes. Hold monthly updates.

By incorporating these components into a comprehensive AI playbook, your organization can establish a structured and disciplined approach to AI governance and maximize the value and impact of your AI investments while mitigating risks and ensuring ethical and responsible AI deployment. By completing this playbook your optimal approach “Boat” vs “Moat” becomes more clear. This playbook is a living document that grows with your organization.

#2.  How do we keep historical biases out of generative AI?

Thank you for this question! Keeping historical biases out of generative AI is a complex challenge that requires a multi-faceted approach. Here are some strategies to keep it on point:

  1. Diverse Training Data: Ensure that the training data used to train the AI model is diverse and representative of different demographics, cultures, and perspectives. Use training data that reflects your customers. This can help mitigate biases that may arise from a narrow or skewed dataset.
  2. Bias Detection and Mitigation: Implement techniques to detect and mitigate biases in the training data and model outputs. This may involve using fairness-aware learning algorithms and techniques such as adversarial debiasing or counterfactual data augmentation.
  3. Human Oversight and Evaluation: Incorporate human oversight and evaluation throughout the development process to identify and address biases. This can involve expert review, bias audits, and user testing to assess the fairness and inclusivity of the AI system. Consider red teaming, a method of testing AI models to identify vulnerabilities and prevent harmful behavior,
  4. Transparency and Accountability: Promote transparency in the AI development process by documenting data sources, model architectures, and decision-making processes. Establish clear accountability mechanisms to address instances of bias and ensure responsible AI deployment.
  5. Bias Impact Assessment: Conduct thorough impact assessments to understand how biases in the AI system may affect different groups and communities. Take proactive measures to mitigate potential harms and ensure equitable outcomes.
  6. Continuous Monitoring and Updating: Implement systems for continuous monitoring and updating of AI models to identify and address biases that may emerge over time. This may involve collecting feedback from users and stakeholders and retraining the model with updated data.
  7. Ethical Guidelines and Standards: Adhere to ethical guidelines and standards for AI development, such as those outlined in frameworks like the IEEE Global Initiative on Ethics of Autonomous and Intelligent Systems or the Principles for AI developed by organizations like the Partnership on AI. Get familiar with the recently passed EU AI Act. While the scope for this is currently Europe, we expect it to be adopted at some point globally, much like GDPR got its start in Europe.

By incorporating these strategies into the development and deployment of generative AI systems, we can work towards minimizing historical biases and promoting fairness, diversity, and inclusivity in AI applications.

#3.  What are the biggest risks arising out of generative AI in financial services? What do you worry about?

Generative AI in financial services holds great promise for tasks such as fraud detection, risk assessment, portfolio optimization, and customer service. These are “classic” use cases in financial services that have benefitted from including AI into these processes. Now with GenAI coming into use, we’re seeing organizations incorporating GenAI into these critical processes. However, there are numerous potential risks associated with the use of GenAI in organizations:

  1. Data Privacy and Security: Generative AI models trained on financial data may inadvertently expose sensitive information about individuals or organizations, leading to privacy breaches and security vulnerabilities. Using external foundation models and services like ChatGPT may exacerbate this. Make sure your organization establishes rules for usage of these external services.
  2. Algorithmic Bias: Biases present in the training data used to train generative AI models can lead to biased outcomes in decision-making processes, such as loan approvals or investment recommendations, potentially perpetuating or exacerbating existing inequalities. Particularly in finance, which is highly regulated, we need to pay attention to the origins of the training data.
  3. Model Robustness and Reliability: Generative AI models may produce outputs that are not sufficiently robust or reliable for critical financial decision-making, leading to errors or unexpected behaviors that could have significant financial consequences. This could create end user frustration and inaccurate or harmful results.
  4. Adversarial Attacks: Generative AI models may be vulnerable to adversarial attacks, where malicious actors manipulate input data to produce undesirable outcomes, such as generating fake transactions or bypassing fraud detection systems.
  5. Regulatory Compliance: The use of generative AI in financial services may raise regulatory concerns related to transparency, accountability, and compliance with laws and regulations governing financial transactions, data protection, and consumer rights. Imagine talking to a regulator and explaining the the output given to a customer or employee may be different every time.
  6. Systemic Risk: If widely adopted, generative AI models could introduce new sources of systemic risk to financial markets, such as amplifying market volatility or creating unforeseen correlations between assets.
  7. Ethical Considerations: The deployment of generative AI in financial services raises ethical questions about fairness, accountability, and the potential impact on individuals and society, particularly in terms of financial inclusion, access to credit, and the distribution of economic opportunities.

To mitigate these risks, financial institutions should implement robust governance frameworks, adopt best practices for data management and model validation, invest in cybersecurity measures, prioritize fairness and transparency in AI development, and engage with regulators and stakeholders to address regulatory and ethical concerns. Beyond this, ongoing research and collaboration between industry, academia, and policymakers are essential to address emerging challenges and ensure the responsible and ethical use of generative AI in financial services. I’m happy to report that this collaboration is already underway.

#4.  If you could change one thing about the fintech ecosystem, what would it be?

If I could change one thing about the fintech ecosystem, it would be to systematically and permanently enhance financial inclusion on a global scale. Despite significant advancements in financial technology, there are still millions of people worldwide who lack access to basic financial services such as banking, credit, and insurance. This lack of access perpetuates economic inequality and limits opportunities for individuals and communities to thrive. While I was at JPMorgan Chase. I was so impressed with the strides the company took to work on this, yet there still remains an enormous amount to be done.

To address this, I would focus on:

  1. Developing Solutions for Under-Served Populations that are economically viable for the ecosystem: Encouraging fintech innovation that specifically targets under-served populations, such as the unbanked and underbanked, by providing affordable and accessible financial products and services tailored to their needs. This shouldn’t be a charity; it should function as a business.
  2. Improving Financial Literacy and Education: Investing in financial literacy programs and initiatives to empower individuals with the knowledge and skills to make informed financial decisions and effectively utilize fintech tools and services.
  3. Easing Regulatory Barriers while Maintaining Protections: Working with regulators and policymakers to create a supportive regulatory environment that fosters innovation while ensuring consumer protection and mitigating risks associated with fintech solutions.
  4. Promoting Collaboration and Partnerships: Encouraging collaboration and partnerships between fintech companies, traditional financial institutions, governments, NGOs, and other stakeholders to leverage their respective strengths and resources in advancing financial inclusion efforts.
  5. Harnessing Technology for Social Impact: Leveraging emerging technologies such as blockchain, artificial intelligence, and mobile connectivity to develop innovative solutions that address specific barriers to financial inclusion, such as access to credit, identity verification, and remittance services.

By prioritizing financial inclusion within the fintech ecosystem, we can work towards creating a more inclusive and equitable financial system that empowers individuals and promotes economic prosperity for all.

#5.  What fintech problem or solution are you focused on or most interested in right now?

I’m fascinated by a few opportunities in fintech and the broader ecosystem.

  • How enterprises can leverage AI safely, securely, and in a way that both leverages their own data and at the same time respects (and reflects) their own customers. I expect quality and efficiency tradeoffs we’re all making to improve. For example, should I use ChatGPT for my enterprise to quickly spin up a GenAI system, even if it may take my data? Should I use a foundation model to accelerate an AI experiment even if it may be biased and not reflect my customers, and possibly (probably) be trained on data that does not reflect my customers? Instead of LLMs (Large Language Models) think about SLMs (Small Language Models).
  • Empowering companies around AI regulation. In March of 2024, European lawmakers passed the first major regulatory act around AI (Read about it here). This EU AI Act is expected to take effect this summer for Europe. It provides ground rules to cover how AI is being used. It is the world’s first comprehensive legal framework for regulating artificial intelligence. The AI Act aims to create a safe, ethical, and transparent legal framework for developing, marketing, and using AI in the EU. The act also aims to foster innovation and investment in AI, improve governance and enforcement, and create a single EU market for AI. Similar to how GDPR resulted in global convergence on general data protection and transformed how US privacy laws protect consumers in the US, it is expected that this recent AI legislation in Europe will impact AI regulation in the US. This is an opportunity for entrepreneurs to assist with this regulatory lift.
  • How the fintech ecosystem can be more efficient and equitable with funding ideas. Fintechs and startups in general spend a lot of time connecting with funders, which is time spent they could be working on their business.

Bonus question! What is the best career or life advice you have received?

One of the best pieces of advice I’ve received is to embrace lifelong learning. In both career and life, the world is constantly evolving, and new opportunities and challenges arise. By committing to continuous learning and personal development, you not only stay relevant in your field but also open yourself up to new possibilities and growth opportunities.

I’m fortunate to be a Kellogg graduate, a school which embraces lifelong learning for their alumni. Recently I participated in the Kellogg Global Leaders Summit for alumni where we gathered for a few days in Miami to share learnings, and I was proud to give back and speak to this community about AI.

For me, this also translates to how I like to build workplace teams. I optimize hiring for people that embrace a lifelong learning philosophy. The AI techniques they know today may pass in popularity, but people that have a hunger to learn and experiment will always have an edge in fast moving tech arenas.

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The New Faces of Fintech — Featuring DAIZY

Posted on by Jim Smith

While we may not know exactly how fintech will impact our future, we have an idea as to who will be leading the charge. In the next installments of our ongoing blog series, “The New Faces of Fintech”, we will spotlight some of the emerging leaders in the fintech world to get their thoughts on what the future of the industry will look like.

Their origin stories are different, their paths to entrepreneurship are unique, but their impacts on their respective industries are significant. No one truly knows what the future of fintech holds, but these industry leaders may have an inkling as to what we can expect.

Our next guest is Deborah Yang, CEO & Co-Founder of DAIZY. DAIZY Scribe (currently in private beta) allows you to generate personalized financial content in seconds with compliant data, real-time calculations, and dynamic infographics and do so at scale. Deborah is based in Paris.

Deborah Yang, CEO of DAIZY, is featured in New Faces of Fintech

Deborah, tell us a little bit about your background. What were you working on before founding this company?

Before DAIZY, I was Global Head of Sustainable Indexes at MSCI, leading high-growth franchises including factor indexes, EMEA index, and Asia regions across 18 years. I am also the Co-President of Women in ETFs EMEA.

Tell us a bit about your company? What’s the problem you’re solving?

DAIZY combines compliant financial data, real-time calculation engines, and large language models (LLMs) to bring generative AI solutions to the financial services industry. We enable financial insights and communications production with unprecedented scale, authority, efficiency, and customization.

What’s the origin story behind your company? How and why did you come up with the idea?

We fundamentally believe that the wealth management and broader financial services industry is suffering the consequences of legacy technology and disparate data. The time for firms to make a technological leap is now, and with the adoption of AI there will be massive change and disruption in the industry.

Start-ups are all about the team. Working with Jonty Hurwitz, a veteran tech-founder with a track record including the unicorn FinTech company, Wonga, has been amazing because he is always 10 steps ahead of everyone else in dreaming up “the art of the possible”. We also brought on Jim Wiandt, the visionary behind ETF.com and InsideETFs, because of his deep ties in the wealth and financial services industry. We have the best of the best from seasoned leaders, and we will need to continue to attract the next generation of builders. Together, we have a lot of ideas and potential, but right now we’re laser focused on scalable product-market fit for DAIZY Scribe — our first B2B platform for asset and wealth management firms.

What milestones has your company achieved so far?

We launched our B2B platform beta, DAIZY Scribe, in December 2023.

Immediately after launch, we started running implementations with leading asset management firms and platforms.

We were one of the first investment providers with a plug-in live in the OpenAI plug-in store, seeing huge numbers of queries coming from users.

We have built a team of genuine industry leaders in our business to oversee client implementations and will continue to build to remain agile in this evolving industry.

Can you describe what it’s been like to be part of the Fintech Sandbox community?

As a recent addition to Fintech Sandbox, we’ve already found the experience beneficial. We’ve been impressed with the speed of being able to arrange meetings with partners and the quality of people.

Access to reliable, high-quality data is crucial for the industry. Especially with the widespread concern of ‘hallucinations’ by large language models, we are committed to only using best-in-class data. For financial services firms, trust and accuracy are paramount.

What’s next for your company?

We are highly focused on deepening our scalable product-market fit by adding more Skills for DAIZY Scribe. Our implementations enable us to stay closely aligned with clients’ usage and make direct ties to the amplification of their human capital and revenue growth.

What is some of the best advice you’ve received as a startup founder?

Marc Andreesen famously believes that “only” product-market-fit matters. Though it’s a great point, the question is, how do you get there?

For us, we’re focused on three key areas: 1) building a world-class team by hiring the best talent and ensuring they are agile, 2) listening proactively to clients’ needs and pain points and constantly asking questions, and 3) combining 1 + 2 into a product that adds undeniable value to our clients’ businesses.

We believe we have those pieces at DAIZY, and we know we need to continually prove that. To solve the investing industry’s most daunting problems, first we must earn and maintain our clients’ trust. It’s the only way to bring AI solutions to our industry and generate the ROI we know we can for our clients.

What fintech trends are you most excited about right now?

AI in fintech has captured the industry’s imagination. The adoption of AI in wealth and financial services industry will revolutionize the industry in a way that I have not witnessed in my 25 years in financial services. It will be a step function transformation that will quickly separate the winners and the losers in the space because of the opportunity for massive productivity gains.

Are you hiring?

We anticipate the need for product builders, developers, and client-facing teams as we manage increasing customer demand for our AI solutions.

We’re thrilled to feature some of the incredible entrepreneurs who are participating in our Data Access Residency. If you are aware of any fintech entrepreneurs with an early stage company who could benefit from free access to data, cloud hosting, and a supportive community, please have them visit our website to learn more.

The Fintech 5 with Frazer Anderson — Principal at Vestigo Ventures

Posted on by Jim Smith

The Fintech 5 is a series of blog posts consisting of questions and answers designed to help you get to know the people in the Fintech Sandbox community.

Frazer Anderson is a Principal at Boston-based, fintech-focused venture firm Vestigo Ventures. Vestigo targets initial investment in seed and series A companies. Frazer has a particular interest in how machine learning and SaaS are transforming financial services.

Frazer Anderson
Frazer Anderson

Question #1: Frazer, what fintech problem has your attention right now?

Problems abound! I’m not focused on any one specifically — looking to find excellent founders who want to automate and build analytics on top of existing workflows. If there is one area I would look though it would be platform plays in private markets.

#2: What trends in fintech are you most excited about?

It’s all about AI-driven automation and infrastructure or the API-ification of financial services.

#3: What are some of the biggest learnings from your career journey in fintech and/or entrepreneurship?

Early-stage investing is 100% about the team. Everything else you do as part of diligence ultimately gets back to information about how perceptive, relentless, networked, etc. the team you’re investing in is.

#4: Which fintech companies are you keeping an eye on right now?

SaaSWorks is automating the customer data file and bringing superpowers to the office of the CFO.

#5: Hot take! What are your thoughts on AI in the fintech industry?

Visibility and accuracy are the biggest things holding back the adoption curve. The stakes in financial services are too high to have hallucinations for a lot of tasks and enterprises are going to require visibility into how decisions are made. That’s why there is still plenty of room to build good old-fashioned infrastructure or lean in to super high-value tech-enabled services.

Bonus Question! If you could have coffee with any entrepreneur, who would it be?

Warren Buffet.

If you are a fintech entrepreneur with an early-stage company and you could benefit from free access to data, cloud hosting, and a supportive community, please visit our website to learn more!