Tag: AI

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 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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Meet Proov.ai — A Demo Day[s] 10 Presenting Startup

Posted on by Jim Smith

This year, FinTech Sandbox Demo Day[s] will take place across two days, April 9 & April 11. The presentations will be virtual and the event, as always, is free. Demo Days are exciting because we get to showcase startups that are on the very cutting edge of innovation and you get to see what they’re up to before they’re discovered.

Today, we’re talking to Maya Urman Bahar, Co-Founder & CEO of Tel Aviv based Proov.ai. Bridging the gap between data science and compliance teams, Proov.ai disrupts fintech regulation with automated model validation, revolutionizing Model Risk Management for banks. Proov.ai is presenting on Thursday, April 11.

Q. Maya, tell us a bit about Proov.ai. What problems are you solving?

A. All Models in financial institutions need to be governed to meet regulations. The approval process is lengthy, costly, manual and unorganized. FinTech Data Science teams are forced to constrain and compromise the accuracy of the models to meet regulatory review requirements.

Q. What is your company’s origin story?

A. Einat and I, having worked together at a fintech company, encountered the widespread challenge of a lengthy and costly model approval process, which not only compromised the accuracy of our models but also directly impacted the company’s bottom line. Recognizing the inefficiency and unsustainability of the current approach in the era of AI, we were inspired to set out on a mission to revolutionize Model Risk Management (MRM).

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

A. It is amazing to be part of such a group of accomplished people!

Q. Why is data access important to your startup?

A. Data access is essential to our startup as it allows us to create synthetic data using Generative Adversarial Networks (GAN). We require access to diverse types of data, including bureau, transactional, and demographic data, to generate synthetic datasets that accurately represent real-world scenarios. Synthetic data is crucial for maintaining security, ensuring privacy, and simulating extreme conditions without risking sensitive information. This approach enables us to train our models effectively and develop robust solutions for model validation.

Q. What milestones has Proov.ai achieved so far?

A. We developed our first phase of the product. Are working on a POC with a BAAS provider.

Q. What trends in fintech are you most excited about?

A. Gen-AI and LLMs.

Q. How does Proov.ai think about leveraging AI in a differentiated way?

A. Our company takes a differentiated approach to leveraging AI by focusing on the core use of AI technology in our platform:

1. Generative Adversarial Networks (GAN): We utilize GANs to generate synthetic data, creating diverse datasets that closely represent real-world data. This synthetic data forms the foundation for testing against various protected features, ensuring the robustness and fairness of our models.

2. Comprehensive Training Data: We train our models on comprehensive datasets, including bureau, transactional, and demographic data. This enables us to develop more accurate and reliable models.

3. Deep Learning: We employ deep learning techniques to conduct stress tests and fairness assessments at a very deep level. This allows us to evaluate the resilience and equity of our models under various scenarios, ensuring their reliability.

4. Large Language Models (LLMs): Our platform leverages LLMs to generate insightful documentation. This streamlines the communication and decision-making processes.

Q. What’s next for Proov.ai?

A. As our technology continues to evolve, with a current focus on Gen-AI-based documentation, our primary goal is to gain traction by broadening our reach and onboarding additional banks and fintech partners. We are also exploring new ways to enhance our platform’s capabilities and deliver even more value to our clients.

To hear more about Proov.ai and 11 other exciting fintech startups, be sure to register for FinTech Sandbox Demo Day[s] 10!

Meet Starlight — A Demo Day[s] 10 Presenting Startup

Posted on by Jim Smith

This year, FinTech Sandbox Demo Day[s] will take place across two days, April 9 & April 11. The presentations will be virtual and the event, as always, is free. Demo Days are exciting because we get to showcase startups that are on the very cutting edge of innovation and you get to see what they’re up to before they’re discovered.

Over the next few weeks, we’ll highlight a few of this year’s presenting entrepreneurs. Today, we’re talking to Catherine Xu, Co-Founder of Brooklyn-based Starlight, which is unlocking the $140 billion in government benefits left unclaimed each year for households in need by using AI-powered coaching. Starlight is presenting on Tuesday, April 9.

Catherine Xu, Co-Founder of Brooklyn-based Starlight, which is unlocking the $140 billion in government benefits left unclaimed each year for households in need by using AI-powered coaching.

Q. Cat, tell us a bit about Starlight. What problems are you solving?

A. Today, 41% of America is financially vulnerable. At the same time, there is over $140 billion unclaimed in government financial assistance programs that could provide households with a financial bridge in tough times. Starlight helps financial institutions connect their customers to government programs that give them the financial help they need. Our white-labeled technology platform proactively identifies and matches customers to relevant programs and provides personalized guidance through the application process.

Q. What is your company’s origin story?

A. My co-founder and I had left our jobs in big tech to focus on problems facing underserved communities. For six months, we were Fellows with the Robin Hood Foundation, doing on-the-ground research and running co-design sessions with different communities, e.g., gig/frontline workers, young parents. Starlight formed after we heard repeatedly from communities about the awareness and process challenges when it comes to government benefits.

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

A. Being a part of Fintech Sandbox has allowed us to connect with like-minded financial innovation groups such as Commonwealth, a national nonprofit focused on financial security.

Q. Why is data access important to your startup?

A. Data access helps us to quickly test some of our key use cases, including the usability of data to proactively identify individuals who could qualify for benefits.

Q. What milestones has Starlight achieved so far?

A. Reaching 5000 workers, using financial data to match them to benefits they may be eligible for but not know about, and helping them save on average $1000/year. We also forged early pilot partnerships with fintechs and nonprofits like Steady and Neighborhood Trust Financial Partners.

Q. What trends in fintech are you most excited about?

A. Hyper-personalized digital experiences that effectively employ data and proactively meet the financial needs of each member/customer. New sources for non-interest revenue for financial institutions, in lieu of regulatory changes around fees, and more customer-centric products that address holistic financial health and recovery.

Q. How does Starlight think about leveraging AI in a differentiated way?

A. Using AI to more efficiently process unstructured data at scale, including inferring needs from user-permissioned financial data. Using AI to deliver hyper-personalized experiences, such as financial resources delivered at the right time and in the right format.

Q. What’s next for Starlight?

A. Expanding partnerships with credit unions and community banks, with Starlight providing an easy-to-integrate, value-added product that helps grow balances and reduce delinquencies.

To hear more about Starlight and 11 other exciting fintech startups, be sure to register for FinTech Sandbox Demo Day[s] 10!

Meet Hansa — A Demo Day[s] 10 Presenting Startup

Posted on by Jim Smith

This year, FinTech Sandbox Demo Day[s] will take place across two days, April 9 and April 11. The presentations will be virtual and the event, as always, is free. Demo Days are exciting because we get to showcase startups that are on the very cutting edge of innovation and you get to see what they’re up to before they’re discovered.

This week and next we’ll continue highlighting this year’s presenting entrepreneurs. Today, we’re talking to Henry Magun, CEO of Hansa, which is based in New York. Hansa is helping small business owners ensure the data that financial service providers use to find, qualify, and underwrite their businesses is up-to-date, accurate, and consistent. Hansa is presenting on Tuesday, April 9.

Today, we’re talking to Henry Magun, CEO of Hansa, which is based in New York. Hansa is helping small business owners ensure the data that financial service providers use to find, qualify, and underwrite their businesses is up-to-date, accurate, and consistent.

Q. Henry, tell us a bit about Hansa. What problems are you solving?

A. Hansa facilitates efficient information exchange between SMBs and the financial service providers that want to serve them, before an SMB even submits an application for funding. Despite the fact that there are 30 million SMBs in the US and that the SMB financing market tops $1.4T, small business owners still struggle to get access to the financial products and services they need to thrive.

A leading cause of this is that financial institutions don’t have access to 1st-party, verified data about SMBs. Without it, they are forced to use out-of-date and frequently incorrect data to inefficiently market their products to wide bands of SMBs, and SMB owners are inundated with offers for products they don’t qualify for. Hansa is closing this data gap. We empower small business owners to participate in creating the data that is used to find them, helping them feel confident that they’ll be considered for services they qualify for, and won’t be bothered with those they aren’t.

Q. What is your company’s origin story?

A. My mother is a small business owner, and through her, I saw how much inefficiency exists in the way that financial products are marketed and sold to SMBs today. This hurts the SMBs the most, as the onus ultimately falls on them to do the work to determine what products they might qualify for. I saw how much time and effort it took for my mother to find the right products that fit her business, and knew that there could be a better way.

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

A. The Fintech Sandbox community has been incredibly impactful for Hansa. We’ve had opportunities to meet other amazing startups in our space, as well as build deep relationships with the program’s partners. The members of the Fintech Sandbox management team have all been huge advocates for us, and have gone out of their way to give us as many opportunities as possible to spread the word about Hansa.

Q. Why is data access important to your startup?

A. Hansa’s mission is to empower SMBs to use their data to their advantage, by helping them leverage it to get access to the financial projects they need. A necessary component of this is helping them access the data that already exists about their businesses. That’s where Hansa’s partnerships with data providers come in. We work with companies like Equifax (a Fintech Sandbox partner), to enable small business owners to access, understand, and monitor the data that financial services providers are using to make decisions about them every day.

Q. What milestones has Hansa achieved so far?

A. We have signed up hundreds of SMBs that proactively share information about their businesses with Hansa and have direct access to dozens of loan products from our partner lenders. We’ve built early partnerships with other SMB data companies to help our members understand their existing data presence. We’ve developed a data furnishment product to help SMBs build business credit history by paying off their existing loans.

Q. What trends in fintech are you most excited about?

A. Rapid growth of embedded lending. Use of AI to custom-tailor financial product experiences and content to match the needs of individual customers. Digitization of SMB finance and data management.

Q. How does Hansa think about leveraging AI in a differentiated way?

A. The capital needs and financial profiles of small businesses vary immensely, and AI enables Hansa to offer customized and hyper-specific funding and credit building experiences for business owners.

Q. What’s next for Hansa?

A. Expanding our partnerships with lenders, SMB data companies, and financial services providers to help SMBs get the products they need, when they need them. Launching our full SMB-facing application covering access to capital, credit building, cost saving and more.

To hear more about Hansa and 11 other exciting fintech startups, be sure to register for FinTech Sandbox Demo Day[s] 10!

Meet Tenure — A Demo Day[s] 10 Presenting Startup

Posted on by Jim Smith

This year, FinTech Sandbox Demo Day[s] will take place across two days, April 9 & April 11. The presentations will be virtual and the event, as always, is free. Demo Days are exciting because we get to showcase startups that are on the very cutting edge of innovation and you get to see what they’re up to before they’re discovered.

Over the next few weeks, we’ll highlight a few of this year’s presenting entrepreneurs. Today, we’re talking to Jonathan Hillis, Founder and CEO of Ontario-based Tenure, which is building an AI-powered platform redefining employee recognition, boosting engagement and retention while driving financial well-being. Tenure is presenting on Tuesday, April 9.

Q.   Jon, tell us a bit about Tenure. What problems are you solving?

A.   Tenure addresses the crucial aspect of financial savings for organizations by significantly reducing the costs associated with high employee turnover and low productivity through its innovative engagement strategies. By integrating AI-driven budgeting and financial literacy tools, Tenure empowers employees to achieve personal financial growth, which, in turn, boosts their motivation and sense of belonging in the workplace. This holistic approach provides middle managers with a tangible link between employee satisfaction and productivity, offering a compelling incentive to foster a culture of recognition and achievement.

Q.   What is your company’s origin story?

A.  Tenure’s origin story is rooted in a recognition of the profound disconnection between workplace culture, employee well-being, and financial stability. Our founders, having experienced first-hand the stifling environment of unproductive workplaces with no supportive culture, saw how such environments not only push employees down rather than building them up but also ignore the critical aspect of financial well-being. Witnessing the widening gap in financial inclusion and the troubling trajectory towards a paycheck-to-paycheck existence for an increasing number of people, they identified a pressing need. This need was for an inclusive workplace culture that actively fosters financial well-being, understanding that such an environment is not just beneficial but essential for the productivity and growth of both individuals and businesses.

Tenure was born from the belief that financial health is a cornerstone of employee satisfaction and company success, aiming to bridge this gap by integrating financial wellness into the fabric of workplace culture.

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

A.   Joining the Fintech Sandbox community has been an exceptional experience for us. It has provided unparalleled access to essential resources and industry expertise, which has been instrumental in our development journey. The support and connections we’ve made with leading professionals and companies have significantly shaped our startup’s trajectory, enabling us to create a solution that promises to impact employees and businesses positively. This collaboration has been a cornerstone of our progress, and we’re eager to see where it leads.

Q.   Why is data access important to your startup?

A.   Data access is crucial to Tenure for several pivotal reasons, primarily because it underpins the development and refinement of our AI and machine learning platform. With comprehensive data access, we can expedite the creation and improvement of sophisticated AI models that are essential for delivering personalized and impactful financial recommendations to our users. This enhanced capability allows us to more accurately and effectively address the unique financial well-being needs of each Tenure user, ensuring that our platform not only meets but exceeds their expectations in fostering financial growth and stability.

Q.   What milestones has Tenure achieved so far?

A.   Tenure has made significant strides on its path to transforming the landscape of workplace culture and financial well-being. A highlight of our journey so far includes securing partnerships with over 20 pilot customers, showcasing the demand and support for our mission even before our public launch. This early achievement signals strong market validation and eagerness for solutions that Tenure aims to provide.

In anticipation of our next big steps, we are gearing up for the release of our MVP. This phase is crucial as it will allow us to directly engage with users, refining our offering based on real-world feedback and interactions. While the engagement with 1500 users is on the horizon, our focus remains on ensuring that when this milestone is reached, it marks a significant leap forward in delivering value and impact.

Furthermore, Tenure is poised for exciting growth, with plans to launch our product in the United States in the coming months, following our debut in Canada. This strategic rollout underscores our commitment to fostering inclusive, supportive, and financially aware workplace cultures across North America. Our comprehensive rebranding efforts have laid a strong foundation, emphasizing the tone of inclusiveness and the transformative potential of Tenure. These steps collectively mark critical milestones in our journey towards creating a platform that benefits both employees and businesses by prioritizing financial well-being and productivity.

Q.   What trends in fintech are you most excited about?

A.   Tenure and the team is particularly enthusiastic about the convergence of financial wellness platforms and AI-driven personalized financial advice within the fintech sector. These trends not only embody the shift towards a more holistic approach to financial health but also offer Tenure an unprecedented opportunity to enhance our platform. By integrating comprehensive financial wellness tools and utilizing AI for tailored financial guidance, we can significantly elevate the user experience. This approach ensures that each user receives personalized insights and recommendations, fostering a more informed and financially savvy workforce.

Furthermore, the emergence of embedded finance and the potential of decentralized finance (DeFi) open new pathways for Tenure to seamlessly incorporate financial services into everyday work life, making financial well-being an accessible goal for all employees. The focus on Environmental, Social, and Governance (ESG) criteria in financial products aligns with our vision of promoting social responsibility and sustainability. Leveraging these fintech trends, Tenure is poised to offer a platform that not only supports the financial growth of its users but also encourages a value-driven approach to financial decision-making, setting a new standard for what it means to be financially well in the modern workplace.

Q.   How does Tenure think about leveraging AI in a differentiated way?

A.   Tenure’s innovative use of AI, particularly in the realm of hyper-personalization, is deeply integrated into our budgetary and financial literacy management tools. By harnessing real-time transactional data, we offer users tailored recommendations through a sophisticated financial literacy manager. This system not only provides personalized financial advice but also empowers users with the knowledge and skills necessary for effective budget management.

Our platform goes beyond mere transaction tracking to actively guide users in making informed financial decisions, promoting a deeper understanding of financial health principles. This approach ensures that recommendations are not only relevant to the user’s immediate financial situation but also aligned with their long-term financial goals, thereby enhancing financial well-being and literacy. By focusing on this dual approach, Tenure significantly differentiates itself, delivering a comprehensive service that supports users in navigating their financial journeys while fostering a culture of informed financial decision-making within the workplace.

Q.   What’s next for Tenure?

A.   Our immediate next step involves launching our MVP, a significant milestone that marks the beginning of our journey to redefine workplace engagement and financial well-being.

But our vision extends far beyond the MVP. We are building towards a comprehensive platform designed to shift the power dynamics in workplace benefits and engagement, placing control directly into the hands of employees rather than HR departments. Our aim is to offer a suite of features encompassing benefits, rewards, recognition, and engagement, all tailored to meet the unique needs and preferences of individual users. Hyper-personalization is the cornerstone of our strategy, as we believe it represents the future of employee engagement and financial wellness. By leveraging advanced AI and real-time data analytics, Tenure is set to lead the way in creating a personalized work environment where every employee feels valued, recognized, and financially secure. Our platform will not only support employees in their personal and professional growth but also empower them to take charge of their financial futures.

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To hear more about Tenure and 11 other exciting fintech startups, be sure to register for FinTech Sandbox Demo Day[s] 10!

Meet Revelata — A Demo Day[s] 10 Presenting Startup

Posted on by Jim Smith

This year, FinTech Sandbox Demo Day[s] will take place across two days, April 9 & April 11. The presentations will be virtual and the event, as always, is free. Demo Days are exciting because we get to showcase startups that are on the very cutting edge of innovation and you get to see what they’re up to before they’re discovered.

Over the next few weeks, we’ll highlight a few of this year’s presenting entrepreneurs. Today, we’re talking to Chit-Kwan Lin, Founder and CEO of Revelata, which is based in Palo Alto, California. Revelata is building an AI platform that automatically discovers and extracts structured data from your unstructured, long-form text documents. The company’s first product, called deepKPI, is currently in beta. Revelata is presenting on Thursday, April 11.

Chit-Kwan Lin is Founder and CEO of Revelata. Revelata is building an AI platform that automatically discovers and extracts structured data from unstructured, long-form text documents.

Q.   CK, tell us a bit about Revelata. What problems are you solving?

A.   We make investment professionals bionic by automatically unlocking the information that’s buried deep inside financial texts and across documents.

Q.   What is your company’s origin story?

A.   In 2020, I met up with Eric, an old friend, just to catch up. Over the several decades of Eric’s finance career in investment banking and private equity, whenever we met up, Eric would reliably grumble to me about the sheer amount of grunt work his analysts needed to do to make use of unstructured documents.

This time it was no different, “Can’t you computer science guys do something to automate this?” In the past, I’d always said what he wanted was still science fiction. But this time, I had recently spent some time in natural language processing, and specifically, working out how to train large neural language models. Suddenly, what Eric had wanted all these years seemed just within reach. So, I founded Revelata in 2021, with the mission to use natural language AIs to help make investment professionals bionic — and Eric is one of our key Advisors.

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

A.   The Fintech Sandbox community is incredibly supportive. Of course, the data access program is a key tangible benefit, but more than that, you know the staff and community are in your corner and want you to succeed. Being a part of Demo Day is a huge leg up for early-stage startups like Revelata, since it significantly amplifies our reach within our target audience. As our company grows, we anticipate Fintech Sandbox will continue to be a great partner and look forward to giving back to the community.

Q.   Why is data access important to your startup?

A.   Revelata’s first product, deepKPI, discovers and extracts hard-to-get KPI time series from public SEC filings. Our next step is to go beyond these public documents, to earnings calls and news articles. As a startup, tackling these wouldn’t be possible without the Fintech Sandbox’s Data Access program, simply because we wouldn’t be able to get to this data easily.

Q.   What milestones has Revelata achieved so far?

A.   We have raised $870K in pre-seed, with a grant from the National Science Foundation SBIR Program, and support from JAZZ Venture Partners, and industry insiders. We launched the private beta of deepKPI, our first product, in Q1 of this year, and will open up our public beta in Q3!

Q.   What trends in fintech are you most excited about?

A.   Top of mind is the introduction of AI assistants into financial analysis and professional’s workflows. Of course, there’s huge risk here due to the underlying architecture of generative AIs, but as NLP experts, we understand those and believe we have a way to avoid them entirely.

 Q.   How does Revelata think about leveraging AI in a differentiated way?

 A.   We are a team of computer scientists specializing in AI and are, of course, an AI-first company. While generative AI has revealed some tantalizing, low-hanging fruit, we believe that there’s no free lunch — you have to put in the work to get AIs to do something that is of value to the market and that is defensible in the market. This really means that you have to do the hard work of specializing AIs to a specific problem domain, especially those problem domains where the only alternative is grueling manual labor. We view our platform’s ability to extract hard-to-get information out of complex unstructured financial documents is a great example of this kind of differentiation.

 Q.   What’s next for Revelata?

A.   We started out providing concrete value by having our AI automatically surface hard-to-get information from SEC filings. We want to expand on this foundation and drive towards a broader vision of bionic finance, where the growing volume and richness of data is simplified by an increase in what we can automate. Ultimately, we want Revelata’s platform to be where accurate and auditable work — ranging from surfacing data to day-to-day analyses and even insight generation — can be done by simply talking to our AI. And we want to extend these capabilities beyond equities into other instruments such as embedded derivatives, private data, and beyond.

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To hear more about Revelata and 11 other exciting fintech startups, be sure to register for FinTech Sandbox Demo Day[s] 10!

Meet Nufi — A Demo Day[s] 10 Presenting Startup

Posted on by Jim Smith

This year, FinTech Sandbox Demo Day[s] will take place across two days, April 9 & April 11. The presentations will be virtual and the event, as always, is free. Demo Days are exciting because we get to showcase startups that are on the very cutting edge of innovation and you get to see what they’re up to before they’re discovered.

Over the next few weeks, we’ll highlight a few of this year’s presenting entrepreneurs. Today, we’re talking to Hans Villa, CEO of Nufi, which is based in the city of Monterrey in Mexico. Nufi empowers all companies in Mexico to make accurate and reliable decisions based on identity validation. Nufi is presenting on Tuesday, April 9.

Hans Villa is CEO of Nufi, which is based in the city of Monterrey in Mexico. Nufi empowers all companies in Mexico to make accurate and reliable decisions based on identity validation.

Q. Hans, tell us a bit about Nufi. What problems are you solving?

A. Nufi revolutionizes identity verification in Mexico, streamlining background checks to a single data point for quick, secure trust decisions. With unique data sources and a flexible platform, Nufi targets financial services, real estate, and hiring, enhancing digital trust and simplifying operations.

Q. What is your company’s origin story?

A. Nufi started when my co-founder Ilich Núñez and I saw a big problem: verifying someone’s identity in Latin America was slow and complicated. We decided to fix this by using technology to make it quick and safe. With just a photo of an ID, Nufi can tell businesses everything they need to know to trust someone. Ilich and I are deeply committed to building trust within the LatinX community around the world, making every transaction secure and straightforward.

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

A. Being part of the Fintech Sandbox community has been transformative for Nufi. This engagement has provided us with invaluable resources, such as access to premium data feeds and APIs, which have been instrumental in refining our technology and scaling our services. The collaborative environment has fostered connections with industry leaders, offering mentorship opportunities and insights into fintech trends. It’s been a platform for growth, innovation, and networking, enhancing our capabilities and positioning us as a key player in the identity verification space.

Q. Why is data access important to your startup?

A. Data access is crucial for Nufi because it powers our identity verification service. The more data we can gather, the better and more accurate our background checks become. This helps us build stronger trust with our clients by offering them precise and current information. Simply put, having access to a wide range of data allows us to improve our services continuously and address our clients’ needs effectively, ensuring their transactions are safe and reliable.

Q. What milestones has Nufi achieved so far?

A. Nufi has achieved several significant milestones that showcase our journey towards enabling trust and transforming identity verification in Mexico and for the LatinX community worldwide:

1. Extensive Customer Base: We’ve built a strong foundation with over 190+ B2B customers, generating substantial revenue and demonstrating the market’s trust in our solutions.

2. Capital Raise: Successfully raised USD 450K in an angel round, highlighting investor confidence in our vision and execution capabilities.

3. Techstars and Google Accelerator Alumni: Participation in these prestigious accelerators, Techstars W21 and Google Accelerator W22, underscores our innovative approach and potential for scale.

4. Exclusive Data Sources: Nufi is the sole provider of certain crucial data sources in Mexico, offering unmatched depth and breadth of information for identity verification.

5. Comprehensive Background Checks: Developed the most exhaustive background check system in Mexico, ensuring our clients can make quick and safe trust decisions.

6. Flexible and Modular Solutions: Offering both a user-friendly platform for immediate checks and an API for seamless integration into clients’ workflows, showcasing our adaptability to diverse client needs.

7. Growth and Expansion: Focused on scaling, with goals to capture a significant share of the Serviceable Obtainable Market within the next three years, targeting approximately $22.5 million in annual revenue.

Each of these milestones represents a step forward in our commitment to providing a safer, more efficient, and trustworthy environment for transactions and interactions in the financial services sector and beyond. Ilich and I have a deep commitment to enabling trust in the LatinX community throughout the world, driving every innovation and decision at Nufi.

Q. What trends in fintech are you most excited about?

A. I’m really excited about a few fintech trends that I think are changing the game:

1. AI and Machine Learning: These are making our work faster and smarter, especially when it comes to checking someone’s identity. It helps us catch fraud better and make sure our clients can trust the people they’re dealing with.

2. Blockchain: This technology is all about making transactions super secure. It keeps records safe and unchangeable, which is great for protecting personal info and building trust online.

3. Digital Identity Verification: As more of our lives move online, it’s super important to have a safe way to prove who we are on the internet. We’re working on making this process really easy and secure for everyone, especially for the LatinX community around the world.

4. RegTech for Compliance: With all the rules and regulations out there, fintechs need to stay on top of them without slowing down. Technology that helps with this is really important for keeping things smooth and legal.

5. Financial Inclusion: Fintech is helping bring banking and financial services to people who haven’t had them before. By making it easier to verify identities, we’re helping open up these services to more people, which is something I’m really passionate about.

Each of these trends is helping us at Nufi do our job better and make the financial world a safer, more inclusive place.

Q. How does Nufi think about leveraging AI in a differentiated way?

A. At Nufi, we approach AI with a distinct perspective, focusing on enabling trust across financial interactions, especially within the LatinX community. Here’s how we differentiate our use of AI:

1. Custom AI Models for Identity Verification: Unlike generic solutions, we develop AI models specifically tailored to the unique challenges of verifying identities in Latin America. These models are trained on a wide range of data points, including those exclusive to Nufi, ensuring higher accuracy and reliability.

2. Real-time Data Analysis: We leverage AI to analyze vast amounts of data in real-time, providing immediate insights for decision-making. This capability is critical in environments where speed and accuracy are paramount, such as in fraud detection and customer verification processes.

3. AI-driven Compliance and Regulation Adherence: Given the complex regulatory landscape in Latin America, our AI systems are designed to adapt to and comply with local laws and international standards. This proactive approach to compliance is a key differentiator, ensuring our solutions meet the highest standards of legal integrity.

4. Enhanced Financial Inclusion: Our AI technologies are instrumental in extending financial services to traditionally underserved communities. By simplifying and securing the identity verification process, we make it easier for individuals and businesses to access essential financial services, fostering greater inclusivity.

5. Continuous Learning and Improvement: Our AI systems are built to learn from each interaction, constantly improving their accuracy and effectiveness. This commitment to ongoing learning ensures that our solutions evolve alongside our clients’ needs, maintaining our edge in innovation.

In essence, our differentiated approach to leveraging AI is deeply intertwined with our mission to build trust and enhance security in financial services, all while promoting greater inclusivity through technological innovation.

Q. What’s next for Nufi?

A. Looking ahead, Nufi is focused on expanding our reach and impact, particularly in serving the LatinX community across the Americas. Our roadmap includes several key initiatives:

1. Expansion into New Markets: We’re planning to extend our services beyond Mexico, targeting key markets in Latin America and the United States where the LatinX community significantly benefits from enhanced identity verification and financial inclusion services.

2. Product Innovation: Continuing to innovate our platform with the latest AI and machine learning advancements to offer more comprehensive and efficient identity verification solutions. This includes developing new features that cater to the specific needs of our expanding customer base.

3. Strategic Partnerships: Forming strategic partnerships with financial institutions, fintech startups, and community organizations to broaden our reach and impact. These collaborations will allow us to bring our services to underserved communities, furthering our mission of enabling trust and financial inclusion.

4. Regulatory Compliance: As we expand, we’ll continue to navigate the complex regulatory environment of each new market, ensuring that our services remain compliant while advocating for regulatory frameworks that support innovation and inclusivity in financial services.

5. Community Engagement: Deepening our engagement with the communities we serve through educational initiatives, financial literacy programs, and community-based projects. We believe that empowering individuals with knowledge and resources is key to fostering financial wellness and inclusion.

Our journey is driven by the belief that access to trustworthy financial services is foundational to economic empowerment. As we move forward, Nufi remains committed to being at the forefront of using technology to break down barriers to financial inclusion, making safe and equitable financial services accessible to all, especially the LatinX community.

To hear more about Nufi and 11 other exciting fintech startups, be sure to register for FinTech Sandbox Demo Day[s] 10!

Meet Manifest — A Demo Day[s] 10 Presenting Startup

Posted on by Jim Smith

This year, FinTech Sandbox Demo Day[s] will take place across two days, April 9 & April 11. The presentations will be virtual and the event, as always, is free. Demo Days are exciting because we get to showcase startups that are on the very cutting edge of innovation and you get to see what they’re up to before they’re discovered.

Over the next few weeks, we’ll highlight a few of this year’s presenting entrepreneurs. Today, we’re talking to Meenakshi Lakshmanan, Co-Founder and CTO of Chicago-based Manifest, which is building the first-ever digital transfer solution for retirement accounts. Manifest is presenting on April 11.

Meenakshi Lakshmanan is Co-Founder and CTO of Chicago-based Manifest, which is building the first-ever digital transfer solution for retirement accounts.

Q.   Meenakshi, tell us a bit about Manifest. What problems are you solving?

A.   Manifest is building the first-ever digital transfer solution for retirement accounts. We are working to make safe, easy, and quick 401k transfers possible for everyone.

Q.   What is your company’s origin story?

 A.   In 2017, while pursuing my MBA at The University of Chicago Booth School of Business, I had the opportunity to meet Anuraag Tripathi, who was working on a 401(k) provider for small businesses. Recognizing the potential in his startup, we decided to join forces and collaborate on his venture.

During our journey of serving 300,000 Americans, we encountered a significant challenge in the retirement savings landscape. It took up to 60 days to consolidate 401(k) accounts, which posed a real obstacle for individuals. To understand the extent of this issue, we conducted a survey of 2,500 employees as they left their jobs. The results were eye-opening: on average, most individuals had three old retirement accounts, and balances under $15,000 were frequently cashed out for non-emergency reasons.

Motivated by these findings and the desire to make a positive impact, we founded Manifest. In 2018, Manifest was selected as one of the 11 start-up finalists to present at the prestigious New Venture Challenge at Booth’s Polsky Center for Entrepreneurship. The company’s concept resonated with the judges, leading to Manifest securing the grand prize, which amounted to over $315,000 in seed funding.

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

A.   Being part of the Fintech Sandbox community has provided an incredibly supportive ecosystem tailored to the unique circumstances and developmental stages of a young startup, ensuring we never feel alone in our journey. The access to exceptional data partners, who are not only willing but also responsive to our requests, has been instrumental in accelerating our product development and market readiness. Moreover, the community has opened doors to a high-quality network of friendly and helpful individuals.

Q.   Why is data access important to your startup?

A.   Data access is crucial to our startup because the process of retirement account transfers is fundamentally a data-intensive operation. Having access to timely and accurate data is essential because it enables us to streamline the transfer process, making it seamless for our customers. This accuracy and timeliness in data access not only improve the efficiency of transfers but also enhance the overall customer experience by minimizing errors and delays, ultimately fostering trust and satisfaction with our service.

Q.   What milestones has Manifest achieved so far?

A.   Over the past two years, we’ve made significant progress in streamlining the transfer process and maximizing retirement outcomes, achieving a 70% automation rate. This efficiency is reflected in our NPS score of 94, showcasing user satisfaction. We have access to over 250,000 participants through various employers, we are committed to helping them achieve their retirement goals. Additionally, we have engaged with four out of the top 15 retirement providers, paving the way for extensive market reach.

Q.   What trends in fintech are you most excited about?

A.   Fintech companies are leading the financial industry towards customer-centricity, leveraging technology for more than just cost reduction. Startups are prioritizing user needs and developing products that offer financial ease, automation, and transparency. As a result, these innovative approaches are gaining traction in traditionally overlooked or unprofitable areas, presenting opportunities for startups like Manifest to address challenges like retirement transfers with efficient technology, replacing manual and inefficient solutions.

Q.   How does Manifest think about leveraging AI in a differentiated way?

A.   Our company leverages AI in a differentiated way by focusing on the creation of a retirement concierge service that goes beyond mere transactional support. By incorporating AI, we aim to demystify the complex world of retirement benefits and navigate through the dense jargon that often overwhelms individuals. Our AI-driven approach is designed to provide personalized, easy-to-understand answers to questions about retirement benefits, making the process of planning for retirement more accessible and less intimidating.

Q.   What’s next for Manifest?

A.   From a product perspective, our company is dedicated to continuous innovation, introducing new features to enhance the ways we assist users in maximizing their retirement outcomes. We are also prioritizing the development of high-quality, reliable data pipelines between providers to further streamline the transfer process, ensuring a seamless experience for our customers. On the business front, we are rapidly expanding our reach by forging partnerships with employers and retirement providers to distribute our product effectively.

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To hear more about Manifest and 11 other exciting fintech startups, be sure to register for FinTech Sandbox Demo Day[s] 10!

The New Faces of Fintech — Featuring Tamsey

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 Grishka Bonlong, Founder and CEO of London-based Tamsey. Tamsey is creating innovative solutions that will transform how payments are made globally. The Tamsey team is enabling low-cost international money transfers and payments that are also fast, safe, and secure for both individuals and businesses.

Grishka Bonlong is Founder and CEO of London-based Tamsey. Tamsey is creating innovative solutions that will transform how payments are made globally.

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

After obtaining my Engineering degree, I spent the next decade in banking during which I qualified as an accountant. I started my career in systems management and reporting, but then evolved into finance, risk management, and later treasury management.

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

Tamsey is a cross-border payment solution that specialises in solving two problems: (1) simplifying the process for individuals to send money home to their loved ones; and (2) reducing bottlenecks for businesses who pay salaries and suppliers abroad. The undergoing next phase of our evolution is focused on the African market, where our solution will significantly reduce the number of adults without access to formal banking services.

We are reducing the cost of doing business internationally while increasing the percentage of adults with access to digital financial services in Africa. According to the World Bank’s Global Findex Database, only 55% of adults in Sub Saharan African have access to digital financial services, which is substantially lower than the global average of 76%.”

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

Being born and having lived in Africa has enabled me to experience how lack of access to reliable and convenient financial services can hinder economic prosperity. Tamsey was born out of the deep desire to contribute to the global democratisation of finance that has been enabled by technology.

Tamsey means “Together”, because we want to enable people to remain connected to what’s important to them, no matter where they are in the world. More importantly, we were motivated by contributing our efforts to the huge challenge of increasing financial inclusion in Africa. That is the reason why we started in remittance to get a detailed understanding of the global payment landscape, learning from what has worked and failed in other continents, to design practical solutions that sustainably democratise access to financial services in Africa.

What milestones has your company achieved so far?

We have registered more than five thousand users on our platform after having obtained licenses in the UK and Canada from the FCA and FINTRAC respectively. We have built a payment network that spans four continents. Our Tamsey For Business solution facilitates bulk payments to hundreds of recipients in just a few clicks. We are present in more than fifty countries in Africa, four countries in Asia. We have begun the pilot phase of our neobanking solution aimed at the African market.

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

Being part of the Fintech Sandbox community has been extremely rewarding first from a personal point of view because participating at events has enabled me to meet extremely talented and resourceful people that I continue to learn from. Access to timely and quality data is extremely important, especially due to the volatile nature of some fintech markets. I was able to connect with a Data Partner to discuss a potential partnership to access more accurate currency exchange rate data.

What’s next for your company?

In June 2023, McKinsey & Company published an economic research paper predicting that by 2050 Africa would add 796 million people to the global workforce and be home to the world’s largest and youngest population. Our existing payment network will help these workers receive their salaries on time regardless of where the employer is in the world. We are building a merchant payment solution that will make it easier for the rising African middle class to transact, consume, and travel.

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

It doesn’t matter how many times you fall. The point is to get back up and keep going.

What fintech trends are you most excited about right now?

I’m very excited about the AI enabled liveness detection solution. They help reduce the cost of keeping the financial system safe, which is very positive.

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

“Le Meilleur Médicamment, C’est Vous!” by Dr Frédéric Saldmann.

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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.