Speaker: 00:00:01

Welcome to FinTech Confidential, bringing you the people, tech, and companies

Speaker: 00:00:07

that change how you pay and get paid.

Speaker: 00:00:11

Welcome to Accrued, the FinTech Confidential series presented by LoanPro.

Speaker: 00:00:16

We actually have Rakten Mitra, the Chief Loaning Officer from Varroa Bank on.

Speaker: 00:00:21

AI, you know, kind of permeate into this space as well.

Speaker: 00:00:24

So there's a lot of use cases that have already come up around,

Speaker: 00:00:27

you know, the use of FinTech.

Speaker: 00:00:28

AI and servicing.

Speaker: 00:00:29

There's, you know, some fraud use cases.

Speaker: 00:00:31

I think soon enough, we will see more AI use cases in credit.

Speaker: 00:00:37

I recently saw a survey where I think About 45 percent of customers said

Speaker: 00:00:42

that you know, they were looking for credit Credit, which is so important and

Speaker: 00:00:45

they get denied for, you know, whether credit is, uh, it's, it's so important

Speaker: 00:00:49

to kind of think about, you know, how do you kind of serve that space?

Speaker: 00:00:54

The things that have stood up to me in terms of alternate data, it's, it's,

Speaker: 00:00:58

it's the relationship data element.

Speaker: 00:01:00

Uh, obviously cashflow, transaction data, payroll data is very important.

Speaker: 00:01:06

If you, if you just compare it with, you know, traditional bureau data in

Speaker: 00:01:10

terms of underwriting, customer behavior data is another thing that I've seen,

Speaker: 00:01:14

um, you know, reasonable success with underwriting at least for new businesses,

Speaker: 00:01:19

I mean, they have to be fast, as I said, they have to be efficient, they have to

Speaker: 00:01:23

be personalized, they, they, they need to meet the regulation and I, I just

Speaker: 00:01:28

don't know how they do that without.

Speaker: 00:01:30

Um, and if you are in kind of the financial space and the banking space,

Speaker: 00:01:36

you know, enabling, um, the ability to spend, borrow, save at minimum

Speaker: 00:01:42

is a core tenet that you have to kind of at some point in time serve.

Speaker: 00:01:46

Look, I think it's very important that there is, uh, you know, compliance with

Speaker: 00:01:51

the basics of basic elements of banking.

Speaker: 00:01:54

You're talking about KYC, AML, customer due diligence.

Speaker: 00:01:58

You know, having the right fraud controls and mechanisms.

Speaker: 00:02:02

How do you make your businesses more efficient, uh, but at the same time

Speaker: 00:02:06

don't dilute the customer experience.

Speaker: 00:02:08

And, you know, the, the important thing here is, you know, how do you,

Speaker: 00:02:12

uh, leverage technology, be it AI, be it, you know, new tech stack driven

Speaker: 00:02:18

platforms and programs to achieve that.

Speaker: 00:02:21

I wouldn't characterize it as regulation is holding us back.

Speaker: 00:02:24

Regulation, I think, is here to help us, guide us in a way where we deliver

Speaker: 00:02:29

products that set both the customers.

Speaker: 00:02:32

And the financial institution of success.

Speaker: 00:02:35

Here's a quick message from the accrued series sponsor.

Speaker: 00:02:38

As default rates continue to rise and margins compressed lending,

Speaker: 00:02:42

financial organizations are searching for solutions to combine that

Speaker: 00:02:46

operational efficiency with innovation.

Speaker: 00:02:48

Look no further as LoanPro allows lenders to enhance their origination, servicing,

Speaker: 00:02:54

collections, and payments using the foundation of a modern lending core.

Speaker: 00:02:59

Check out LoanPro.

Speaker: 00:03:00

io to learn more about.

Speaker: 00:03:02

How over 600 financial organizations have modernized their tech stack with Loan Pro.

Speaker: 00:03:09

Welcome to Accrued, the fintech confidential series presented by Loan Pro.

Speaker: 00:03:13

In this series, we're deconstructing the complexities of lending and exploring

Speaker: 00:03:18

compliance, optimization, modernization, and personalization through insightful

Speaker: 00:03:24

conversations with the industry's best.

Speaker: 00:03:27

I'm TeddHuff here with my co host Colton Pond.

Speaker: 00:03:29

We'll be guiding you through the intricate lending world.

Speaker: 00:03:32

Whether you're deep into lend tech or just intrigued by how technology is reshaping

Speaker: 00:03:38

lending, you're in the right place.

Speaker: 00:03:40

Now let's dive into another episode of Accrued.

Speaker: 00:03:45

Welcome back.

Speaker: 00:03:46

Thanks, Tedd.

Speaker: 00:03:47

I'm, I'm trying to notice your beard looks really good.

Speaker: 00:03:49

I'm trying to grow the beard as good as yours though, my friend.

Speaker: 00:03:53

So it looks awesome.

Speaker: 00:03:55

Well, I'll have to send you the link to the, to the beard stuff that I use.

Speaker: 00:03:59

I'm telling you it is fantastic, but today we're not talking about beards.

Speaker: 00:04:04

So we've all got a little bit of a beard going on.

Speaker: 00:04:07

We actually have Raktim Mitra, the Chief Lending Officer from Vero Bank

Speaker: 00:04:11

on, and man, welcome to the show.

Speaker: 00:04:15

Thank you for having me.

Speaker: 00:04:16

It's my pleasure.

Speaker: 00:04:17

Before we dive into all the fun questions, like I mentioned, we're

Speaker: 00:04:21

thrilled to have Raktim Mitra on.

Speaker: 00:04:23

He's the Chief Lending Officer of Vero Bank.

Speaker: 00:04:25

He joined the bank back in January of 2022 and has been at the forefront of

Speaker: 00:04:30

our lending initiatives, overseeing the development and implementation

Speaker: 00:04:34

of their credit products.

Speaker: 00:04:36

Now he brings a wealth of experience to this role.

Speaker: 00:04:38

Prior to joining the bank, he held significant positions at

Speaker: 00:04:42

industry giants like Lending Club, Gordon Sacks and Discover.

Speaker: 00:04:47

He's leveraging his experience by launching and scaling businesses has

Speaker: 00:04:51

been instrumental in shaping the way that Varro's lending strategy has evolved.

Speaker: 00:04:57

Now in this role, he's responsible for driving that lending business, which

Speaker: 00:05:01

also includes innovative products like Varro's Advance and their

Speaker: 00:05:04

recently launched line of credit.

Speaker: 00:05:07

His experience in financing solutions and his leadership in the lending space

Speaker: 00:05:11

makes him uniquely qualified to discuss what's going on in the marketplace and

Speaker: 00:05:16

around credit and financial inclusion.

Speaker: 00:05:19

Raktim, welcome to Accrued.

Speaker: 00:05:21

We are so excited to dive into your journey and your perspective on the

Speaker: 00:05:27

lending space and get some great insights from you on the future

Speaker: 00:05:31

of lending and digital banking.

Speaker: 00:05:34

Colton, I know you always have these really good stories and all these little,

Speaker: 00:05:39

little bit of tidbits, but I'd love for you to share with us what your experience

Speaker: 00:05:44

has been with Rock Tim and, and what got you so excited to bring him on the

Speaker: 00:05:48

show.

Speaker: 00:05:49

I mean, the, the quick TLDR is imagine talking to someone, they, they, Was

Speaker: 00:05:55

that discover during discovers crazy growth lending club in the one I've

Speaker: 00:06:02

used the heyday of lending club, right?

Speaker: 00:06:05

The early days before radius, like doing some really cool things.

Speaker: 00:06:08

I had a lot of my, my money and lending club at the time that was

Speaker: 00:06:11

through peer to peer, uh, lending.

Speaker: 00:06:14

And the innovation lending club is doing Goldman Sachs.

Speaker: 00:06:17

And don't think Goldman Sachs.

Speaker: 00:06:19

Well, I think the apple card and what they're doing with apple card and

Speaker: 00:06:22

then, uh, at borrow bank and that breadth of experience all the way

Speaker: 00:06:26

from discover to peer to peer lending to, uh, at borrow bank is a bank.

Speaker: 00:06:31

Now rock team, we're excited to dive into that breadth of experience and,

Speaker: 00:06:34

and dive deep into lending credit.

Speaker: 00:06:36

Thank you.

Speaker: 00:06:36

Thank you

Speaker: 00:06:36

for having me and thank you for the kind words.

Speaker: 00:06:39

So, we talked about all these breadth of all the different areas that you've had,

Speaker: 00:06:44

had been able to participate in, right?

Speaker: 00:06:46

Like, these aren't small things, right?

Speaker: 00:06:49

They're very well household names.

Speaker: 00:06:51

They're products that people are still using today.

Speaker: 00:06:54

I really want to understand what trends you're seeing in the current marketplace

Speaker: 00:07:02

and just from a, like a really high level perspective, how is that adjusting or

Speaker: 00:07:10

changing the current market ecosystem?

Speaker: 00:07:12

Absolutely.

Speaker: 00:07:13

I think, uh, there's, there's a lot of innovation that's happening in this

Speaker: 00:07:18

space, which is, which is, which is good.

Speaker: 00:07:20

I think of late you've seen a lot of companies and institutions Take a very

Speaker: 00:07:26

first principles approach to, you know, products in the space and, you know,

Speaker: 00:07:30

designing products, really keeping the customer pain points in mind, rather

Speaker: 00:07:34

than, you know, historically, I think how products were developed a bit

Speaker: 00:07:38

where, Hey, you know, does this product make sense from a P and L perspective,

Speaker: 00:07:41

let's, you know, find a way to like, you know, stick this to a customer

Speaker: 00:07:44

and, you know, maybe market it to them.

Speaker: 00:07:46

So that's kind of a refreshing approach.

Speaker: 00:07:48

I think what we are also seeing is, is, is a lot of personalization and

Speaker: 00:07:53

customization, which is, I think.

Speaker: 00:07:55

You know, need of the hour.

Speaker: 00:07:56

So even with existing products and services, there's a lot of

Speaker: 00:07:59

personalization that's happening, which is great for customers.

Speaker: 00:08:04

Um, and, uh, I think, uh, outside of that and, and not, you know, you're

Speaker: 00:08:09

seeing a little bit of, you know, risk management and compliance and compliance

Speaker: 00:08:14

kind of, uh, uh, discussions happen.

Speaker: 00:08:17

And, you know, there's always been some new, there's been some news recently

Speaker: 00:08:21

around, you know, uh, You know, some of the, the best kind of players

Speaker: 00:08:25

get under the radar a little bit.

Speaker: 00:08:27

Um, I think, uh, it's, it's kind of, uh, calling out that, you know, while

Speaker: 00:08:32

innovation is important and you want to continue to innovate, you also have

Speaker: 00:08:36

to keep the fundamentals, uh, right.

Speaker: 00:08:39

Get the fundamentals, right.

Speaker: 00:08:41

Um, so in general, a lot, a lot is happening.

Speaker: 00:08:43

Obviously, you know, AI is here and you're, you're starting to see AI.

Speaker: 00:08:47

Yeah.

Speaker: 00:08:49

So that's the earliest in our conversations that's come up.

Speaker: 00:08:52

So, well, well, if

Speaker: 00:08:53

you, if you, if you really ask someone like what's happening and it's, you'll

Speaker: 00:08:57

go amiss if you don't mention AI, but you actually seeing like AI, you know,

Speaker: 00:09:01

kind of permeate into this space as well.

Speaker: 00:09:03

So there's a lot of use case that have already come up around, you

Speaker: 00:09:06

know, use of AI and servicing.

Speaker: 00:09:08

There's, you know, some fraud use cases.

Speaker: 00:09:10

I think soon enough, we will see more AI.

Speaker: 00:09:13

I use cases in, in credit, which I think will, if used correctly is, is going to

Speaker: 00:09:18

be really, really good for the space.

Speaker: 00:09:20

Having said all of that, like fundamentally, I think that

Speaker: 00:09:23

the core problem still remains.

Speaker: 00:09:24

There's like millions of Americans who still don't have timely access to credit,

Speaker: 00:09:30

um, access to, you know, even like core banking services in a way that's

Speaker: 00:09:34

simple, transparent, that works for them.

Speaker: 00:09:37

Um, the good thing, as I mentioned, though, there's a

Speaker: 00:09:38

lot of innovation happening.

Speaker: 00:09:40

A lot of players are trying to address the space.

Speaker: 00:09:42

So I'm really excited to kind of see, you know, what's going on.

Speaker: 00:09:46

The one thing that you brought up that you started to hint towards, right?

Speaker: 00:09:50

And one of the things that, that I'm seeing happen a lot more is really the

Speaker: 00:09:55

focused on the underserved markets, whether that be due to a thin credit

Speaker: 00:10:04

file, or maybe it's because they've had something happen in their life.

Speaker: 00:10:09

How are you seeing the market handle that today?

Speaker: 00:10:14

Maybe with technology and maybe with the empathy piece of it.

Speaker: 00:10:18

How are you seeing those two things play together, especially for that market?

Speaker: 00:10:22

If you look at the size of that market, it's astounding, isn't it?

Speaker: 00:10:26

Um, you know, uh, there's almost 25 to 30 percent of, uh, Americans that have,

Speaker: 00:10:33

uh, what do you call a poor credit store?

Speaker: 00:10:36

Um, you know, Vantage, for example, scores, you know, 240 million Americans.

Speaker: 00:10:41

So that's like, you know, almost 60, 70 million customers you're talking about.

Speaker: 00:10:46

Um, I recently saw a survey where I think about 45 percent of customers

Speaker: 00:10:50

said that, you know, they were looking for credit, which is so important.

Speaker: 00:10:55

From, you know, managing their day to day-to-Day lives, and they get denied

Speaker: 00:10:59

for, you know, where their credit is.

Speaker: 00:11:00

Um, so it's, it's so important to kind of think about, you know, how

Speaker: 00:11:05

do you kind of serve that space.

Speaker: 00:11:06

And then this is not to mention, I think there's about, you know, 50 plus million

Speaker: 00:11:11

customers that are unscorable because they, they don't have a credit file

Speaker: 00:11:15

or, you know, they're not scoreable.

Speaker: 00:11:17

So you have to like, really think about how you, uh, you know, elevate.

Speaker: 00:11:23

Um, you're offering in a way you can, you can serve the space and this is just

Speaker: 00:11:27

talking from a credit perspective, right?

Speaker: 00:11:29

Like if you, if you pull back and, you know, think about it more fundamentally,

Speaker: 00:11:34

you know, millions of Americans don't have basic banking services that work for them.

Speaker: 00:11:40

Uh, in a way that speaks to their pain points, you know, up until recently, uh,

Speaker: 00:11:45

you know, if you look at, uh, up until 2019, uh, banks made an absurd, I think,

Speaker: 00:11:50

11 billion charging overdraft fees.

Speaker: 00:11:53

So, you know, banks are basically dinging these customers in

Speaker: 00:11:56

the moment of their need.

Speaker: 00:11:57

So not just.

Speaker: 00:12:00

The kind of products that they serve don't speak to the customers.

Speaker: 00:12:03

They're also kind of dinging, you know, these customers.

Speaker: 00:12:06

So there's a lot, a lot that needs to be kind of thought through in terms

Speaker: 00:12:09

of putting together, uh, you know, products and services that really speak

Speaker: 00:12:13

to millions of Americans, you know, helping them with their day to day lives.

Speaker: 00:12:17

And it's not easy.

Speaker: 00:12:18

It's not easy.

Speaker: 00:12:19

There's a, there's a reason that that kind of space is not served that well.

Speaker: 00:12:24

It's not easy.

Speaker: 00:12:25

Traditional.

Speaker: 00:12:26

Line of thinking, you know, will immediately tell you, like,

Speaker: 00:12:30

don't go into that space, right?

Speaker: 00:12:33

That's where, that's where I think you have to kind of have that

Speaker: 00:12:37

intent, have that mission, but then, you know, couple that with.

Speaker: 00:12:42

You know, the ability, uh, to serve that space.

Speaker: 00:12:45

And when you talk about ability, you have to have the right capabilities, the

Speaker: 00:12:48

right tech stack to serve that space.

Speaker: 00:12:50

Um, you have to be really, really efficient, uh, when it comes to your

Speaker: 00:12:54

revenue and, you know, cost trade off perspective, we cannot like wait

Speaker: 00:12:58

for, you know, multiple days to get, you know, their needs addressed.

Speaker: 00:13:02

So you have to be fast.

Speaker: 00:13:04

Um, and then.

Speaker: 00:13:06

I think you have to be, you know, personalized and that's the

Speaker: 00:13:09

name of the game today, right?

Speaker: 00:13:11

And you can't have a one size fits all strategy.

Speaker: 00:13:15

Where, uh, you know, unless you're, you're kind of personalized, you are interrupting

Speaker: 00:13:20

in some way some of these customers with, you know, key things like access to money.

Speaker: 00:13:24

And, you know, these customers traditionally don't have a

Speaker: 00:13:27

lot of money lying around.

Speaker: 00:13:28

So it's very important that, you know, you manage those

Speaker: 00:13:30

experiences in a personalized way.

Speaker: 00:13:33

So there's a, there's a lot that needs to come together.

Speaker: 00:13:36

It has to be track driven.

Speaker: 00:13:37

Uh, you have to have the intent.

Speaker: 00:13:40

In the end, you also have the right, you also have to have the

Speaker: 00:13:42

right people driving that, right?

Speaker: 00:13:44

Like marring that intent, marring that tech capability and, and creating

Speaker: 00:13:49

products and services and experiences that speak to these customers.

Speaker: 00:13:53

So, so Raktim, there's a bunch to dive into, but I want to dive into one,

Speaker: 00:13:57

one aspect of what you said, which was awesome is you said, the traditional way

Speaker: 00:14:02

of thinking does not align with this.

Speaker: 00:14:04

And I love that because I feel like for so long, oftentimes

Speaker: 00:14:08

within financial services, When you're like, why do we do this?

Speaker: 00:14:12

The answer is, Oh, cause that's how it's been done.

Speaker: 00:14:14

Um, and that's a bad answer.

Speaker: 00:14:16

If the answer is, Oh, this regulation is this way, or it's more efficient or

Speaker: 00:14:20

something else, that's a great answer.

Speaker: 00:14:22

Um, so when you think about this underserved market, thin file, no

Speaker: 00:14:27

file customers, a lot of folks in the market stay away due to two reasons.

Speaker: 00:14:31

One, fraud risk rate, which we can talk about at another time,

Speaker: 00:14:35

but directly relevant to this is credit risk because we're.

Speaker: 00:14:38

Banks and financial institutions really make money is on taking

Speaker: 00:14:42

deposits, lending those deposits and earning interest on that.

Speaker: 00:14:45

Right?

Speaker: 00:14:45

So alternative credit data has become a big thing, especially within FinTech

Speaker: 00:14:51

and looking at other data points.

Speaker: 00:14:52

We'd love to hear your perspective on where the future of

Speaker: 00:14:56

alternative credit data is going.

Speaker: 00:14:58

And also some examples you've seen from other folks using alternative

Speaker: 00:15:02

credit data well, and what that looks like and what those data points are.

Speaker: 00:15:07

Now let's quickly shine a spotlight on a game changer in the financial world.

Speaker: 00:15:12

Clearing works, simplify your financial management with a one stop solution for

Speaker: 00:15:17

all your AR needs and with a single login.

Speaker: 00:15:20

Are you intrigued?

Speaker: 00:15:22

Visit clearingworks.

Speaker: 00:15:23

com to schedule your demo.

Speaker: 00:15:25

Take

Speaker: 00:15:26

a step back, right?

Speaker: 00:15:28

Like when we talk about credit underwriting, uh, you mentioned

Speaker: 00:15:32

like, you know, serving the spaces is tricky and it's challenging.

Speaker: 00:15:36

So absolutely you, you have to think about underwriting in the context

Speaker: 00:15:39

and you have to understand, you know, what's the customer, uh, you know,

Speaker: 00:15:43

base that you're serving, right.

Speaker: 00:15:44

Uh, and you know, really tailor your credit underwriting to that, but

Speaker: 00:15:48

there's the, for, for good credit underwriting, you have to fold in

Speaker: 00:15:52

multiple other elements as well.

Speaker: 00:15:54

Right along with that.

Speaker: 00:15:56

Mm-Hmm.

Speaker: 00:15:56

one, for example, is, you know, what's the product that you're

Speaker: 00:15:59

kind of thinking through?

Speaker: 00:16:01

Is it a short term cash advance loan?

Speaker: 00:16:04

Is it a credit card product?

Speaker: 00:16:05

Is it, uh, you know, a longer installment loan product?

Speaker: 00:16:09

The second I would say is, is, you know, what's the context in which

Speaker: 00:16:14

you're kind of serving the product?

Speaker: 00:16:15

Is it in the context of an established relationship?

Speaker: 00:16:18

that you have with the customer?

Speaker: 00:16:19

Is it within your ecosystem versus is it served up in more of a direct

Speaker: 00:16:24

to consumer fashion, you know, extending on that, like, how are you

Speaker: 00:16:28

acquiring or onboarding that customer?

Speaker: 00:16:30

You know, are you onboarding that customer through an, uh, through, uh,

Speaker: 00:16:33

an organic channel or are you competing in a space like, you know, credit karma

Speaker: 00:16:38

or not nerd wallet, for example, where you're competing with other offers.

Speaker: 00:16:41

For, for, uh, I'll take examples, you know, that I've been very close to.

Speaker: 00:16:45

So for a product that's delivered in a, in a relationship kind of structure,

Speaker: 00:16:51

right, where you have another sort of engagement with the customer,

Speaker: 00:16:55

leveraging that, that relationship information, that relationship data is,

Speaker: 00:17:00

is extremely important, uh, you know, in, in, in terms of credit underwriting.

Speaker: 00:17:04

Um, If, for example, that, that relationship happens to be the

Speaker: 00:17:08

customer is banking with you, um, you know, bringing in their paychecks,

Speaker: 00:17:12

like you have to look and leverage that, that data in your underwriting.

Speaker: 00:17:15

And it's, it's so important, but it goes beyond that, right?

Speaker: 00:17:19

Like when you have someone interacting, living their financial lives with

Speaker: 00:17:22

you, you get so many other signals and you have to bake in those signals.

Speaker: 00:17:26

One example I'll again give is.

Speaker: 00:17:28

You know, if a customer is raising their hand and saying, Hey, I want

Speaker: 00:17:31

to get on a path to better credit and they have enrolled into your credit

Speaker: 00:17:34

building product, for example, and they're, you know, doing the right

Speaker: 00:17:38

things and taking the right step.

Speaker: 00:17:39

That's a fascinating signal to kind of bake into your, into your underwriting,

Speaker: 00:17:45

um, you know, overall, like, look, like, Credit Bureau data is important.

Speaker: 00:17:49

It's not going anywhere.

Speaker: 00:17:51

But I think increasingly, lenders and institutions are starting to realize,

Speaker: 00:17:55

especially, uh, for a certain combination of, you know, customer based product,

Speaker: 00:18:00

how it is served up, you know, what channel are you serving through, you

Speaker: 00:18:03

know, non, uh, Non credit bureau data, alternate data is perhaps starting

Speaker: 00:18:10

to become a bigger piece of the pie.

Speaker: 00:18:12

Now, in my experience, I've looked at a bunch of data, but as I said,

Speaker: 00:18:17

I think the things that have stood up to me in terms of alternate data,

Speaker: 00:18:21

it's the relationship data element.

Speaker: 00:18:24

Obviously, cash flow, transaction data, payroll data is very important.

Speaker: 00:18:29

Um, If you, if you just compare it with, you know, traditional bureau data in terms

Speaker: 00:18:33

of underwriting, you know, you get a very early and a deeper signal versus trade

Speaker: 00:18:38

bureau data tends to be a bit lagged.

Speaker: 00:18:40

So in the context of who you're underwriting, when you're underwriting

Speaker: 00:18:43

them, that becomes very important.

Speaker: 00:18:45

Customer behavior data.

Speaker: 00:18:46

is another thing that I have seen, um, you know, reasonable

Speaker: 00:18:49

success with it underwriting.

Speaker: 00:18:51

You start using that a little bit more when it gets into fraud risk

Speaker: 00:18:55

management, but I've seen the use case, uh, in, in the credit space as well.

Speaker: 00:18:59

There's a lot of data that you just talked about, right?

Speaker: 00:19:02

And, and, and it's not like it's It's all in this one spot or it's

Speaker: 00:19:06

all in this one spot over here.

Speaker: 00:19:08

It's, it's everywhere and it's in different formats and it has

Speaker: 00:19:13

different descriptions and heck it may have the exact same label but

Speaker: 00:19:18

means something completely different.

Speaker: 00:19:20

How, how are you seeing the market navigate all of that to bring

Speaker: 00:19:28

the real time or near real time decisions you said earlier, the

Speaker: 00:19:32

near real time decisions that are.

Speaker: 00:19:36

Extra important to deliver, especially for those who need the money now,

Speaker: 00:19:41

and they need that instant access.

Speaker: 00:19:43

How are you seeing all that get pulled together?

Speaker: 00:19:45

There's been a fair amount of innovation and decisioning systems and

Speaker: 00:19:48

platforms to be able to enable that.

Speaker: 00:19:49

Like, first of all, there's recognition that.

Speaker: 00:19:52

Yes, we need all that data.

Speaker: 00:19:54

You know, some of that is point in time data.

Speaker: 00:19:56

Some of that it's longitudinal data.

Speaker: 00:19:58

Some of that is like, you know, lines and lines of like transactional data.

Speaker: 00:20:03

And you need to bring all that together from different sources to your point.

Speaker: 00:20:06

Like some of them may be in different formats and kind of also digest that in

Speaker: 00:20:11

a way that kind of, you know, goes into a final decision that is customer facing.

Speaker: 00:20:16

So I think there's recognition of that fact.

Speaker: 00:20:19

And, you know, based on that, there's a, there's, I think a ton of

Speaker: 00:20:23

innovation that's happened, happened in kind of the decision space.

Speaker: 00:20:26

And I'll give you one example, right?

Speaker: 00:20:28

Like, uh, You know, maybe, you know, five, six years ago, uh, when I used to have

Speaker: 00:20:34

conversation with, uh, you know, folks trying to build decision platforms, they

Speaker: 00:20:39

used to always like tell you that, oh, you know, we have a decision platform.

Speaker: 00:20:42

That's a no code platform.

Speaker: 00:20:43

You just can, you know, stitch together a bunch of rules and

Speaker: 00:20:46

decision tree environment.

Speaker: 00:20:47

And that's your decision.

Speaker: 00:20:49

And.

Speaker: 00:20:50

You know, I, I used to be like, like, no, that's not how you can make these

Speaker: 00:20:53

customized personalized decisions because I have to go through so much data and

Speaker: 00:20:58

to be able to digest all of the data.

Speaker: 00:21:00

Some sometimes through like models, machine learning models, whatnot,

Speaker: 00:21:03

but you know, stitch that together to a customer facing outcome.

Speaker: 00:21:07

Like we have to write code and.

Speaker: 00:21:10

It generally like that's what like financial institutions do.

Speaker: 00:21:13

They do a lot of simulations getting into it.

Speaker: 00:21:16

So I think there's a there's that switch.

Speaker: 00:21:18

I've started to see happen, right?

Speaker: 00:21:19

Like people, institutions that are building, you know, decision platforms

Speaker: 00:21:24

are now kind of taking that into account.

Speaker: 00:21:26

That like, this is the reality of what needs to be kind of achieved.

Speaker: 00:21:30

So I've kind of, I'm, I'm seeing the transition happen.

Speaker: 00:21:34

Colton, what I'm, what I'm hearing him say is like, you have to have a modern

Speaker: 00:21:39

tech stack to compete in the market.

Speaker: 00:21:42

Like that's everything that he just said.

Speaker: 00:21:44

That's really where my brain goes.

Speaker: 00:21:46

Yeah.

Speaker: 00:21:46

And it ties directly, Tedd, you're spot on.

Speaker: 00:21:48

Tyson also wrecked him to the point you're making on personalization.

Speaker: 00:21:52

I recently, I did a survey with about 80 or so bankers that I know within the

Speaker: 00:22:00

lending space and only work in banks and credit unions, I said on your current

Speaker: 00:22:03

tech stack, and most of them, I think we know what the current tech stack and

Speaker: 00:22:07

legacy infrastructure is credit unions.

Speaker: 00:22:10

I don't need to call them out, but I said, what is the average time That

Speaker: 00:22:14

it takes to launch a new product from, Hey, I want to launch a new

Speaker: 00:22:18

product to launching a new product.

Speaker: 00:22:20

Um, the average time was 22 and a half months.

Speaker: 00:22:28

So if you think about what really needs to happen, Brock Timper, what you're

Speaker: 00:22:33

talking about is you need to be nimble.

Speaker: 00:22:35

You need to be quick.

Speaker: 00:22:35

You need to launch personalized product.

Speaker: 00:22:37

Maybe it doesn't work.

Speaker: 00:22:38

You roll it back.

Speaker: 00:22:39

You try a new one.

Speaker: 00:22:39

What does that work?

Speaker: 00:22:40

Does that work?

Speaker: 00:22:41

But if you're spending 22 and a half months from beginning to end,

Speaker: 00:22:47

that product is going to work.

Speaker: 00:22:48

You're going to make sure, even if it's not working, you're going to continue

Speaker: 00:22:51

to push it because you have so much set costs that you've, you've put into that.

Speaker: 00:22:54

Right.

Speaker: 00:22:55

Right.

Speaker: 00:22:55

Right.

Speaker: 00:22:55

Absolutely.

Speaker: 00:22:56

Rectum.

Speaker: 00:22:56

I'm curious your thoughts and advice you would give to anyone out there that's on

Speaker: 00:23:00

a legacy infrastructure and experiencing those problems of the inability to launch.

Speaker: 00:23:05

New products or sliced products.

Speaker: 00:23:07

And what does that look like?

Speaker: 00:23:08

What's the advice you would give them to them to compete in a market where

Speaker: 00:23:13

you have folks that are actively

Speaker: 00:23:14

testing new things?

Speaker: 00:23:16

I'll pull back a little bit, right?

Speaker: 00:23:18

Like at the end of the day, every business is, is trying to solve a

Speaker: 00:23:21

consumer problem, consumer pain point.

Speaker: 00:23:23

Uh, you know, that means they know that the customers that they are serving

Speaker: 00:23:28

and what's the key job to be done.

Speaker: 00:23:29

Um, now if, if that key job, job to be done.

Speaker: 00:23:34

Solving that key pain point requires that they elevate themselves to a

Speaker: 00:23:39

more personalized decision, a decision that, uh, you know, uh, needs to

Speaker: 00:23:44

happen on a more rapid cadence, you know, the product evolution needs

Speaker: 00:23:48

to happen at a more rapid cadence.

Speaker: 00:23:50

I'd absolutely, you know, encourage these people to, these organizations

Speaker: 00:23:54

to think through, you know, the platform that they are on and,

Speaker: 00:23:57

you know, how they can get there.

Speaker: 00:23:58

On a modern tech stack, and it's not just about, you know, pushing products quickly.

Speaker: 00:24:03

A lot of it that you're hearing about the gaps in risk management and

Speaker: 00:24:08

inefficiencies being able to kind of test that right before you kind of.

Speaker: 00:24:13

Put put that out in the market and you can get a bunch of impact.

Speaker: 00:24:17

It's also about having the right capabilities and right governance

Speaker: 00:24:21

and controls mechanisms to, you know, get those products to the market

Speaker: 00:24:25

in a safe and sound manner in a manner that's regularly compliant.

Speaker: 00:24:28

So, I think, uh, My advice will be again, like, based on, you know, what you think

Speaker: 00:24:35

is the core pinpoint of your survey.

Speaker: 00:24:37

So solving, you know, your customer base, how you want to kind of see that journey.

Speaker: 00:24:41

Um, you have to kind of make those calls.

Speaker: 00:24:44

But to me, I think.

Speaker: 00:24:46

At least for new businesses.

Speaker: 00:24:47

I mean, they have to be fast.

Speaker: 00:24:49

As I said, they have to be efficient.

Speaker: 00:24:51

They have to be personalized.

Speaker: 00:24:52

They, they, they need to, you know, meet the regulation.

Speaker: 00:24:56

And I, I just don't know how they do that without being on a modern tech

Speaker: 00:25:00

stack where they can iterate quickly.

Speaker: 00:25:02

Uh, they can bring in the necessity complexity on the backend that

Speaker: 00:25:06

creates a smoother front end experience for the customer.

Speaker: 00:25:09

Um, and you know, they can, they can get quicker reps on,

Speaker: 00:25:13

you know, product innovation,

Speaker: 00:25:14

you mentioned.

Speaker: 00:25:15

You know, we're talking about modern tech sack and early, you,

Speaker: 00:25:18

you very early mentioned AI.

Speaker: 00:25:20

So I'm going to just kind of skip, skip a little bit over to that side real

Speaker: 00:25:24

quick, but, you know, machine learning AI, I see that as being A space for

Speaker: 00:25:35

for financial services, companies, banks, credit unions, if they do it

Speaker: 00:25:40

right to leverage that to pseudo test these products before they roll out.

Speaker: 00:25:48

Um, to look at the data that they have in their loan management

Speaker: 00:25:53

software or within their core banking software and run a bunch of models

Speaker: 00:25:58

to get a better understanding of it.

Speaker: 00:26:01

And then also, at the same time, be able to take their, their policies

Speaker: 00:26:05

and procedures that they have around the regulatory environment for all

Speaker: 00:26:09

of those things and just slam it up against the wall with that too.

Speaker: 00:26:14

And I believe, and I feel, and I'd love to get your opinion, I believe that by

Speaker: 00:26:19

using AI and machine learning to use that data to test before you go to market,

Speaker: 00:26:28

before you spend the 22 months, as Colton said, uh, To really figure out, is it

Speaker: 00:26:34

even worth spending any more time on it?

Speaker: 00:26:36

What is your perspective and your thoughts on that?

Speaker: 00:26:39

To build on that, right?

Speaker: 00:26:40

Uh, a lot of times for, you know, companies end up doing is that, you

Speaker: 00:26:44

know, running experimentations, like that's how you learn, but there's

Speaker: 00:26:47

always a cost to experimentation.

Speaker: 00:26:49

You know, sometimes it's, you know, just.

Speaker: 00:26:51

You know, the experiment itself is costly.

Speaker: 00:26:52

Sometimes it's building that experiment is costly.

Speaker: 00:26:55

So you have to be really mindful about, you know, how you run experiments.

Speaker: 00:26:58

So, and there's going to be two kinds of experiments that you run.

Speaker: 00:27:01

One is an experiment that you know has a decent chance of success.

Speaker: 00:27:06

You're just trying to, uh, estimate the scale of that success.

Speaker: 00:27:10

The second experiment, kind of experiment might be more

Speaker: 00:27:12

foundational in nature, where you're intentionally making the investment.

Speaker: 00:27:16

And, uh, To, you know, you know, gather data and learn from that experience.

Speaker: 00:27:20

But regardless, I think where AI can come in and help is, you know, before

Speaker: 00:27:24

you choose to run these experiments, for example, and I'm keeping product

Speaker: 00:27:28

launches aside for a little bit.

Speaker: 00:27:29

And I'm talking about this specific thing.

Speaker: 00:27:32

because this is what you kind of tend to do more frequently.

Speaker: 00:27:35

Um, you know, you can leverage AI to run these simulation models and

Speaker: 00:27:40

scenario analysis to kind of test the boundaries of what could be

Speaker: 00:27:43

possible with certain experiments.

Speaker: 00:27:46

Support provided by Skyflow.

Speaker: 00:27:48

What if you could build fast but not break privacy?

Speaker: 00:27:50

What if you could ensure data privacy?

Speaker: 00:27:52

Governance and compliance with just a few API calls.

Speaker: 00:27:56

What if you could worry less about PCI requirements while actually

Speaker: 00:27:59

improving privacy and security?

Speaker: 00:28:01

How much more time would your team have to truly innovate?

Speaker: 00:28:04

How much faster could you build and ship new features?

Speaker: 00:28:06

How much more powerful could your app be?

Speaker: 00:28:08

Skyflow is a zero trust data privacy vault delivered Skyflow's radically

Speaker: 00:28:14

simple design lets you collect, secure, and tokenize personal information

Speaker: 00:28:18

like card data and payment details.

Speaker: 00:28:20

And with built in features like encrypted data and.

Speaker: 00:28:23

and sharing, anonymization, and advanced governance, your days of choosing between

Speaker: 00:28:28

data security and data usability are over.

Speaker: 00:28:30

Whether you're just concerned with PCI compliance, or need to go further

Speaker: 00:28:34

to include CCPA, GDPR, SOC2, and beyond, SkyFlow has you covered.

Speaker: 00:28:39

What if you could build fast but not break privacy?

Speaker: 00:28:42

With SkyFlow, you can.

Speaker: 00:28:43

Visit skyflowsecure.

Speaker: 00:28:45

com today to learn how.

Speaker: 00:28:47

The

Speaker: 00:28:49

ton of hypothesis that people are generating, you have to distill all of

Speaker: 00:28:53

that hypothesis into a few experiments that you want to, that is really

Speaker: 00:28:57

going to, you know, you know, have a good impact on your future roadmap.

Speaker: 00:29:01

And that is where you can use a lot of, you know, the power that AI has to

Speaker: 00:29:05

run a lot of this scenario analysis, simulation analysis to really understand

Speaker: 00:29:09

like these are the bounds of what I could see through the experiment.

Speaker: 00:29:13

And then you can kind of stare at those results and say, you know, Hey, you know,

Speaker: 00:29:17

out of the 10 experiments that I thought of, like, these are really the things

Speaker: 00:29:20

that, you know, have a good chance of, you know, success, or will, you know,

Speaker: 00:29:25

help us gather data that we could really leverage to, you know, move forward.

Speaker: 00:29:29

So that immediately comes to my mind.

Speaker: 00:29:31

Of course, you know, an extension of that is, you know, if you're trying

Speaker: 00:29:34

to build a product that in my mind is a broader experiment in it on

Speaker: 00:29:37

its own, but you absolutely kind of hit the nail on the head about.

Speaker: 00:29:41

Uh, you know, people generally keep talking about how AI, uh, machine

Speaker: 00:29:46

learning can be used in, like, customer facing, uh, decisions.

Speaker: 00:29:50

And there's a use case there as well.

Speaker: 00:29:52

But on the back end, there's a, there's a big use case for AI, right?

Speaker: 00:29:56

Like you spend ton, ton of time to kind of do all this analytics

Speaker: 00:30:00

scenario analysis, like that can be done so much more efficiently.

Speaker: 00:30:04

Colton, you've brought up a bunch of times, like the importance of being

Speaker: 00:30:07

flexible with, with the, with the customers and, and how, like making a

Speaker: 00:30:12

small change, like moving a due date from the 15th to the 21st can make a huge deal.

Speaker: 00:30:18

And a lot of companies don't even, don't even look at that.

Speaker: 00:30:23

And in my mind, I was just sitting here thinking, because you bring it up.

Speaker: 00:30:26

So you bring it up Colton before, is it.

Speaker: 00:30:29

What if you were able to run that and go, Hey, this person has been, had been

Speaker: 00:30:34

late by two days, a couple of times.

Speaker: 00:30:37

What if we just moved the due date out a couple of days?

Speaker: 00:30:41

Because we're starting to see a pattern here.

Speaker: 00:30:44

And then now I go, I, I, I build that model over here.

Speaker: 00:30:49

It informs my LMS that, you know, we're going to make this adjustment,

Speaker: 00:30:53

or maybe we just send out a message to the person and say, Hey, we've noticed

Speaker: 00:30:58

this has happened a couple of times.

Speaker: 00:31:00

Would it help if we moved it by two or three days?

Speaker: 00:31:04

If yes, click here.

Speaker: 00:31:05

And when they click there, then it's You have a lot of automation in the

Speaker: 00:31:08

background and everything happens.

Speaker: 00:31:10

And I just, in my mind, as you were talking through that, Rock Tim, that's,

Speaker: 00:31:14

that's where my brain was going.

Speaker: 00:31:16

And Colton, I thank you so much, man, because you've, you've brought

Speaker: 00:31:19

it up a couple of times in past episodes that that's, that's exactly

Speaker: 00:31:23

immediately where my brain went.

Speaker: 00:31:24

Yeah.

Speaker: 00:31:24

100%.

Speaker: 00:31:25

One of the cool things, not a Lone Pro promotion, but the we're working

Speaker: 00:31:29

on, on the Lone Pro side, uh, has been an AI based servicing Nexpex action.

Speaker: 00:31:35

So how do you predict?

Speaker: 00:31:36

Right now, um, uh, folks are relatively reactive and with the

Speaker: 00:31:41

legacy infrastructure, customer calls in, I need to do X.

Speaker: 00:31:45

Oh, I can't even do X.

Speaker: 00:31:47

My platform doesn't even allow me to change a due date or to do

Speaker: 00:31:49

this, or I got to do it manually and recalculate a bunch of things

Speaker: 00:31:52

manually, and then maybe make a mistake and get in trouble with regulators.

Speaker: 00:31:55

There's a whole suite of snowball effects with.

Speaker: 00:31:59

Just legacy infrastructure.

Speaker: 00:32:01

Take that out of the equation.

Speaker: 00:32:02

How do we go from being reactive to proactive and how do we use artificial

Speaker: 00:32:07

intelligence to enable us to understand this is a subset of customers I

Speaker: 00:32:12

should reach out to with this message.

Speaker: 00:32:14

Maybe this is a subset of customers most likely to go in and in

Speaker: 00:32:18

default, but aren't in default yet.

Speaker: 00:32:20

Or this is a subset of customers that I can help in this way or

Speaker: 00:32:23

need help with this or need this.

Speaker: 00:32:25

And if you can predict that, There's some really delightful customer

Speaker: 00:32:30

experiences there that drive customer

Speaker: 00:32:32

delight.

Speaker: 00:32:33

Absolutely, and this goes back to my point around like per

Speaker: 00:32:37

personalization and customization has to be the name of the game.

Speaker: 00:32:41

Not just like at, you know, onboarding your customers, you know, putting them

Speaker: 00:32:44

through the right funnel, matching their intent with the value, but.

Speaker: 00:32:48

More importantly, as the customer is, they become your customer, right?

Speaker: 00:32:52

Like on a, on a day to day basis, as they're interacting with your

Speaker: 00:32:55

product, things like, Hey, you know, when I set up my due date, uh, it

Speaker: 00:33:00

was set up for the first, somehow I just get paid on the third.

Speaker: 00:33:04

In a sense, right?

Speaker: 00:33:05

Like you're interrupting this, the customer, this, The, for the same reason

Speaker: 00:33:10

over and over again, and that erodes trust and, you know, how delightful it

Speaker: 00:33:14

will be if you can be proactive and, you know, come up to the customer instead of

Speaker: 00:33:17

the customer calling you and saying, Hey, you know, like, please change the delay.

Speaker: 00:33:21

Like that's a delightful experience that goes over and beyond the

Speaker: 00:33:25

personalization that's kind of necessary.

Speaker: 00:33:27

Another cool example that we've had on our side, cause, uh, um, with our

Speaker: 00:33:31

recent foray over the past three or so years into credit, one of the things

Speaker: 00:33:35

we've seen with revolving credit cards.

Speaker: 00:33:38

Has been, uh, uh, customers who will monitor spend and understand generally

Speaker: 00:33:44

where they're at within the spend.

Speaker: 00:33:46

And if they go over that or are projected to go over that, they'll ping them or

Speaker: 00:33:50

reach out and say, Hey, I just saw a big expense of 5, 000 expense at Home Depot.

Speaker: 00:33:55

Would you like to roll that into an installment loan right away?

Speaker: 00:33:57

Yes, I would.

Speaker: 00:33:59

Great installment loan.

Speaker: 00:34:00

It opens up the line of credit availability for them to do

Speaker: 00:34:03

their purchases that they're generally at those types of things.

Speaker: 00:34:06

And what I love is.

Speaker: 00:34:07

So much of AI has, in my opinion, within lending credit has been

Speaker: 00:34:12

focused on underwriting origination, uh, how to do so on that side.

Speaker: 00:34:17

And.

Speaker: 00:34:18

The concerns a lot of people have are within fair lending

Speaker: 00:34:21

and the CFPB is pushing pretty aggressively on if you can't explain

Speaker: 00:34:25

it perfectly You can't use it.

Speaker: 00:34:27

It won't work.

Speaker: 00:34:28

It won't cut cut the the test for us What's awesome is that shift now that

Speaker: 00:34:33

how does AI impact loan servicing?

Speaker: 00:34:36

collections Payments, the experience post funding, I think is where

Speaker: 00:34:41

there's less focus and even potentially even a bigger gap.

Speaker: 00:34:44

All I was going to point out is that personalization isn't

Speaker: 00:34:49

putting your name on something.

Speaker: 00:34:51

Personalization isn't running you through the funnel.

Speaker: 00:34:54

I think you've both have really outlined really well that personalization is

Speaker: 00:34:59

it every single step it's everything from due dates, it's everything from

Speaker: 00:35:05

Terms it's it's using the right name.

Speaker: 00:35:09

It's it's sending it to the right email or it's sending the right text message

Speaker: 00:35:13

It is truly about Getting it personalized for that individual not in one aspect of

Speaker: 00:35:20

the journey but the entire journey and that that's something that I'm starting

Speaker: 00:35:27

to see happen more in the marketplace as people move to more modern tech stacks.

Speaker: 00:35:34

I would love to get your perspective Raktim is on how How do you

Speaker: 00:35:40

think it could be done better?

Speaker: 00:35:42

We just have to like, get reps on it.

Speaker: 00:35:43

I think these ideas are, are, you know, starting to form now.

Speaker: 00:35:46

As I think Carlton mentioned, when, you know, AI and machine learning, you

Speaker: 00:35:50

know, came about, the first thing was, let's go use this in underwriting.

Speaker: 00:35:54

Um, and, and I think the shift is now happening is that, The, the,

Speaker: 00:35:58

the better usage is in, you know, customer experience, getting that

Speaker: 00:36:02

personalization, going through tons and tons of data to really inform you

Speaker: 00:36:07

that where the customer is on their journey in their individual journey and

Speaker: 00:36:11

tailoring your experience, your front end experience, be it how you communicate,

Speaker: 00:36:15

how you, you know, offer products, elevate them to new products, like to

Speaker: 00:36:19

that individual customer's journey.

Speaker: 00:36:21

And that is where I think people are kind of, uh, getting to.

Speaker: 00:36:24

I think.

Speaker: 00:36:25

Has it been done yet?

Speaker: 00:36:27

No, um, it's, it's perhaps the North Star for a lot of companies and you know,

Speaker: 00:36:31

different companies are at different stages of kind of reaching there.

Speaker: 00:36:35

And again, you know, it's always through experimentation that

Speaker: 00:36:39

you have to kind of go there.

Speaker: 00:36:40

Uh, you also have to feed You know, these models, the right data.

Speaker: 00:36:43

So they continue making the right decisions.

Speaker: 00:36:46

So I, to me, it's, it's a process, but I think the, the thing that I'm excited

Speaker: 00:36:50

about is that recognition is there.

Speaker: 00:36:52

That intent is there.

Speaker: 00:36:54

Um, you know, and companies absolutely realize that, you know, the name of the

Speaker: 00:36:58

game has to be that personalization and customization, so they have to elevate.

Speaker: 00:37:01

I love it.

Speaker: 00:37:02

And I couldn't agree more.

Speaker: 00:37:03

Uh, Raktim, what I would love to do and what I really wanted to

Speaker: 00:37:06

do, actually, from the beginning, we just dove into so many topics.

Speaker: 00:37:11

We've talked about how to actually do it.

Speaker: 00:37:13

Let's rewind back a little bit and Think about what's happening in the

Speaker: 00:37:18

credit and and lending space right now And what i'm personally seeing is we're

Speaker: 00:37:23

seeing debit interchange shrink Uh, and in my opinion and I think generally

Speaker: 00:37:27

industry's opinion is it's only going to go to zero As pay by bank and other

Speaker: 00:37:31

payment methods come debit interchange will become relatively irrelevant

Speaker: 00:37:35

Lots of folks are saying, Oh, cool.

Speaker: 00:37:38

Let me shift your credit.

Speaker: 00:37:39

Let me go figure credit lending out and like make money with

Speaker: 00:37:42

interest in higher interchange rate within credit, uh, transactions.

Speaker: 00:37:47

Um, you have over your career successfully launched several

Speaker: 00:37:51

new lending and credit products.

Speaker: 00:37:54

So I've got a two part question, if that's okay.

Speaker: 00:37:56

One, looking back, when is the right time to say, yes, absolutely.

Speaker: 00:38:02

And how do you think about evaluating where to start and how to expand

Speaker: 00:38:08

when it comes into lending credit?

Speaker: 00:38:10

First of all, I'll say that, uh, you know, the fact that we are offering

Speaker: 00:38:15

customers and businesses, uh, more options to, Pay is absolutely fantastic.

Speaker: 00:38:23

I think the rest of the world, you know, most countries have kind of enabled

Speaker: 00:38:27

that and made significant strides.

Speaker: 00:38:29

It's great to see that, you know, things here in the U.

Speaker: 00:38:32

S.

Speaker: 00:38:32

are catching up with real time payments.

Speaker: 00:38:35

You know, FedNow, I know there's a bunch of institutions that are, you

Speaker: 00:38:38

know, pushing on this, uh, to, uh, manage, uh, payments through bank,

Speaker: 00:38:43

you know, in a kind of risk free way.

Speaker: 00:38:45

Uh, there's, there's, uh, some ground to cover here, but I think it's,

Speaker: 00:38:48

it's pointing in the right direction.

Speaker: 00:38:50

The point around, uh, being reliant on debit and, you know, uh,

Speaker: 00:38:54

having to move, uh, or focus on, you know, credit based business.

Speaker: 00:38:59

I'm not sure if most financial, uh, organizations or institutions, uh,

Speaker: 00:39:04

want to intentionally, uh, You know, build a, build a business model that's

Speaker: 00:39:09

solely reliant on one revenue stream.

Speaker: 00:39:12

It may be where they started, uh, in, but the long term kind of business, uh,

Speaker: 00:39:18

they have to, they have to think about diversifying their monetization, right?

Speaker: 00:39:22

Um, and, and if you are in kind of the financial space and the banking

Speaker: 00:39:25

space, You know, enabling, um, the ability to spend, borrow, save at

Speaker: 00:39:32

minimum is a core tenet that you have to kind of at some point in time serve.

Speaker: 00:39:36

So maybe a lot of businesses are in that phase where they're just, you

Speaker: 00:39:41

know, going from one phase to the other, um, and kind of that, that's kind of

Speaker: 00:39:47

what you're perhaps, uh, seeing, um, to your second part question about

Speaker: 00:39:51

what is the, the right time to, uh, to, to, uh, you know, uh, launch

Speaker: 00:39:57

lending and, you know, go with credit.

Speaker: 00:39:59

To me, it kind of goes back again to that fundamental, uh, the fundamental

Speaker: 00:40:03

thing that I was discussing, right?

Speaker: 00:40:04

Every business is, you know, trying to solve, you know, some customer pain point.

Speaker: 00:40:09

They have a very good idea about who is this customer base that they are serving.

Speaker: 00:40:13

Ideally, they're trying to deliver that value to the, to the customer

Speaker: 00:40:16

that the customer is seeking.

Speaker: 00:40:18

Um, and, and I've seen different businesses go about it in different ways,

Speaker: 00:40:22

uh, for, for someone like a lending club.

Speaker: 00:40:25

Uh, they identified this opportunity to help customers consolidate debt, and

Speaker: 00:40:29

they leaned in with lending and credit.

Speaker: 00:40:32

Eventually, they made the transition towards a more kind of banking space.

Speaker: 00:40:36

For example, Varo, for example, identified a more fundamental need.

Speaker: 00:40:40

As I said, you know, there's millions of Americans that, you know, did

Speaker: 00:40:44

not have access to banking services that work for them, you know.

Speaker: 00:40:48

They often got tanked in their moment of need.

Speaker: 00:40:51

So it was kind of a more fundamental buildup of let's let's offer these

Speaker: 00:40:55

customers a banking service that works for them and then if you look

Speaker: 00:41:00

at the product journey and evolution It has always gone back to There's

Speaker: 00:41:05

always gone back to the core customer need that you're trying to solve.

Speaker: 00:41:09

And if you look at it deeper, you'll always find and you'll probably more

Speaker: 00:41:13

often than not see that it's not just one product or service that

Speaker: 00:41:16

helps you address that pain point.

Speaker: 00:41:18

It's actually a bunch of things that need to come together in a

Speaker: 00:41:21

simple, transparent and logical way for it to truly help the customer.

Speaker: 00:41:26

And that You know, most businesses will be talking to

Speaker: 00:41:30

their customers about it, right?

Speaker: 00:41:32

And that's a very good way to go about it.

Speaker: 00:41:33

So, you know, when you talk to the customers, you get a good sense of, okay,

Speaker: 00:41:37

you know, where they are, what is their pain point, you know, what's the current

Speaker: 00:41:40

value prop and how do I need to elevate that value prop to meet the customer with?

Speaker: 00:41:45

with, you know, what they need to manage their day to day lives and, you know, be

Speaker: 00:41:49

along with them on the financial journey.

Speaker: 00:41:50

So I think the choice that you make in terms of what you lead with and

Speaker: 00:41:56

then, you know, how you evolve your product is, is really based on that.

Speaker: 00:42:00

I've seen different businesses take different models.

Speaker: 00:42:03

Um, The other thing obviously is, you know, lending and credit

Speaker: 00:42:09

requires a slightly different set of muscles and different capabilities.

Speaker: 00:42:14

So that's another thing to consider from a tech capability perspective.

Speaker: 00:42:17

Uh, but to me more often than not So you're

Speaker: 00:42:19

saying we have to do leg we have to do leg day.

Speaker: 00:42:22

You have to skip legs.

Speaker: 00:42:25

I think you have to, what we are realizing is you have to

Speaker: 00:42:27

do leg day regardless, right?

Speaker: 00:42:28

Like with, with, uh, you know, a bunch of the, the, the articles that we are seeing

Speaker: 00:42:33

on the regulatory side and risk management side, you have to do a leg day regardless

Speaker: 00:42:37

if you want to deal with people's money.

Speaker: 00:42:39

Uh, right.

Speaker: 00:42:40

So, but it's just a different, yeah.

Speaker: 00:42:43

Hey, TeddHuff here.

Speaker: 00:42:44

Ever thought about how you could streamline your application

Speaker: 00:42:47

and underwriting process?

Speaker: 00:42:48

Well, let me introduce you to Under.

Speaker: 00:42:50

Why keep using the outdated methods of PDFs when you can

Speaker: 00:42:54

digitize them effortlessly?

Speaker: 00:42:56

All you can do is upload the PDF.

Speaker: 00:42:59

Send it out for digital signature and voila, you're set for the digital age.

Speaker: 00:43:03

Are you curious how to make that happen?

Speaker: 00:43:05

Head over to under.

Speaker: 00:43:07

io forward slash FTC and get started for free.

Speaker: 00:43:11

It's really that simple.

Speaker: 00:43:13

Let's let's jump into like day.

Speaker: 00:43:15

And I want to ask a controversial question, if it's okay, given that we

Speaker: 00:43:19

went there and it's very topical and I'd be remiss if I didn't ask about it.

Speaker: 00:43:25

You work at Varo Bank.

Speaker: 00:43:26

Varo is a chartered financial institution.

Speaker: 00:43:28

Y'all went that direction.

Speaker: 00:43:30

There are a lot of folks that do lending and credit and deposit

Speaker: 00:43:34

and any banking relationships through sponsor banking aspects.

Speaker: 00:43:37

And we've had, in my opinion, some of the best sponsor banks on this actual series.

Speaker: 00:43:43

We had Robert Kyle from Finwise Bank.

Speaker: 00:43:45

They do an incredible job.

Speaker: 00:43:47

And we had the folks over at Column as well doing some really cool stuff.

Speaker: 00:43:50

It's

Speaker: 00:43:51

fun having been on.

Speaker: 00:43:52

It.

Speaker: 00:43:52

It was awesome.

Speaker: 00:43:53

Um, what's, what was fascinating over the past few weeks and shout out to Jason

Speaker: 00:43:58

McCullough, he's done a really good job covering it, uh, from a news perspective.

Speaker: 00:44:02

Evolve got a consent order.

Speaker: 00:44:04

Evolve got the data, uh, hack shortly after, um, today there was

Speaker: 00:44:09

a consent order with ThreadBank.

Speaker: 00:44:11

Yeah.

Speaker: 00:44:11

Um, I don't think it's gonna stop, right?

Speaker: 00:44:14

I think that there's more coming.

Speaker: 00:44:16

I think there's certain sponsor banks that do a really good job and are very focused.

Speaker: 00:44:20

From your perspective, Rock Tim, what does the future look like

Speaker: 00:44:23

given this regulatory uncertainty when it comes to sponsor banks?

Speaker: 00:44:27

For folks that are outside of being a regulated financial

Speaker: 00:44:30

institution and relying on that.

Speaker: 00:44:32

Yeah.

Speaker: 00:44:33

Yep.

Speaker: 00:44:33

Uh, it's, uh, it's, it's interesting to see this.

Speaker: 00:44:37

Of course, it's also hard to kind of listen to some of the customer

Speaker: 00:44:41

stories that have unfortunately gotten caught in the middle of this.

Speaker: 00:44:45

Um, Look, I, I think it's very important that there is, uh, you know, compliance

Speaker: 00:44:52

with the basics of, of basic elements of banking and you're talking about

Speaker: 00:44:56

KYC, AML, customer due diligence, you know, having the right fraud

Speaker: 00:45:01

controls and mechanisms, uh, basic safety and soundness, uh, aspects,

Speaker: 00:45:07

uh, right, like, you know, liquidity controls and capital requirements.

Speaker: 00:45:11

These are the basics and these requirements, and therefore a

Speaker: 00:45:14

reason we've all seen multiple times and, you know, a priori.

Speaker: 00:45:19

Until very recently, right?

Speaker: 00:45:20

Like, not, not long ago, where, you know, noncompliance with these basic

Speaker: 00:45:26

tenets of banking can, you know, have severe impacts, not just on the

Speaker: 00:45:29

customers, but, you know, in some scale to the broader American economy.

Speaker: 00:45:35

Um, I think it's also definitely eroded, um, you know, customer confidence.

Speaker: 00:45:41

Um, but at the end of the day, it highlights the importance of prudent risk

Speaker: 00:45:45

management and governance frameworks.

Speaker: 00:45:47

Um, And I think there's something to be said, uh, here, uh, about,

Speaker: 00:45:53

uh, being a regulated bank, uh, about having a skin in the game,

Speaker: 00:45:58

uh, which in some sense necessitates that you build, you know, everything

Speaker: 00:46:03

on top of a solid risk management, uh, And governance like foundation.

Speaker: 00:46:09

So I mean, like that, that's kind of where my head is going.

Speaker: 00:46:11

Uh, I know this is like evolving story.

Speaker: 00:46:13

I, I agree.

Speaker: 00:46:15

I don't think this is going to be the end of it, unfortunately.

Speaker: 00:46:18

So,

Speaker: 00:46:18

so you say it's an evolving story.

Speaker: 00:46:21

I hear you.

Speaker: 00:46:24

I was like, pun intended.

Speaker: 00:46:28

But I think the way you've described it is, is really interesting

Speaker: 00:46:35

because we've got a couple of factors also kicking in, right?

Speaker: 00:46:37

So we've got, we've got the economic climate where, you know, most lenders

Speaker: 00:46:43

are seeing slower and slower repayment.

Speaker: 00:46:47

You're seeing inflation continue to increase.

Speaker: 00:46:51

Now we start to see financial institutions that, Have have shown to have been

Speaker: 00:46:58

participating in unsafe business practices on top of that, as Colton

Speaker: 00:47:05

mentioned a little bit ago, is the reduction in a major revenue stream

Speaker: 00:47:10

for a lot of these organizations being credit card or debit card interchange.

Speaker: 00:47:16

How are you seeing.

Speaker: 00:47:22

Yourself at Varro as well as others in the industry really navigate that

Speaker: 00:47:28

level of uncertainty and ambiguity that is really going on between

Speaker: 00:47:33

the regulators and the economy.

Speaker: 00:47:37

Talk about a lot of people do right, especially in credit.

Speaker: 00:47:40

For example, it's very easy to give away money You really have to you know, do

Speaker: 00:47:45

your due diligence and you know, how you get that money back So from a credit

Speaker: 00:47:48

perspective you you need to again not just have the right underwriting criteria But

Speaker: 00:47:54

you have to have the right setup You know the right product use case match to be

Speaker: 00:48:00

able to kind of serve that space and I've seen a lot of Folks kind of get tripped

Speaker: 00:48:05

up with that last part, which is like, Oh, you know, I looked at all the data I

Speaker: 00:48:08

could and I did this fancy underwriting, but still, you know, the product isn't

Speaker: 00:48:12

performing and you go back and it's a clear mismatch between the use case

Speaker: 00:48:16

that you're trying to serve and in the product construct that you have created.

Speaker: 00:48:20

Um, And I think the other thing that's happening, um, and will, you know,

Speaker: 00:48:27

institutions will have to navigate that.

Speaker: 00:48:29

And, you know, some, some unfortunately have to kind of level, not unfortunately,

Speaker: 00:48:34

some have to level up their game is, is the compliance with necessary regulation.

Speaker: 00:48:39

I think there are.

Speaker: 00:48:40

Sometimes with the push to, you know, do things quickly, uh, in a cost efficient

Speaker: 00:48:45

manner, as I said, you kind of forget the third leg that you have to do

Speaker: 00:48:48

this in a, in a, in a compliant way.

Speaker: 00:48:52

And that is where, you know, some institutions have to like

Speaker: 00:48:54

level the, level up their game.

Speaker: 00:48:56

Um, because otherwise, like you may be, you may be in business, but you're

Speaker: 00:49:01

not in a business that's sustainable.

Speaker: 00:49:04

Right?

Speaker: 00:49:04

Like you have to kind of do all of those things together.

Speaker: 00:49:07

So, um, I don't think there's a perfect answer again, um, here, but there's a few

Speaker: 00:49:14

things to consider on the credit side.

Speaker: 00:49:16

As you said, I think it's a, it's a very interesting space we are in, right?

Speaker: 00:49:22

Like, um, you know, it's been a few, a few interesting years, right?

Speaker: 00:49:27

Like 2020, when we suddenly went into, you know, COVID related.

Speaker: 00:49:31

Uh, you know, shutdowns, I think most financial institutions thought that we

Speaker: 00:49:35

are going to walk into, you know, a deep recession that led to, you know, deep

Speaker: 00:49:39

underwriting cuts, you know, people, you know, pulled back on marketing heavily,

Speaker: 00:49:45

um, in the government put in stimulus.

Speaker: 00:49:47

You, you know, financial institutions saw the, the, the, the opposite

Speaker: 00:49:51

of what they were expecting, and they then had to get step on the,

Speaker: 00:49:54

the, the growth pedal a little bit.

Speaker: 00:49:56

Um, financial institutions did, you know, these things that were really good for

Speaker: 00:50:01

customers or customer assistance programs?

Speaker: 00:50:04

But, you know, what that essentially did is a lot of the

Speaker: 00:50:07

signals that went into your data, it kind of masked those signals.

Speaker: 00:50:11

So you, you did see kind of some of the, the defaults and

Speaker: 00:50:15

credit losses kind of go up.

Speaker: 00:50:17

Uh, you know, people, I, I think latest origination cohorts seem like, seems

Speaker: 00:50:22

like, you know, there's been some control there in terms of managing those losses.

Speaker: 00:50:27

But we are not out of the woods yet, right?

Speaker: 00:50:29

Like, uh, you know, inflation is sticky.

Speaker: 00:50:32

Interest rate continues to be high.

Speaker: 00:50:34

A lot of, uh, you know, savings, uh, that were built up through the

Speaker: 00:50:39

stimulus programs have been eroded.

Speaker: 00:50:41

So it's kind of a watch kind of game, um, for the next one year at least.

Speaker: 00:50:47

And then there's, you know, all of these other items that

Speaker: 00:50:50

you have to keep an eye on.

Speaker: 00:50:52

Love that.

Speaker: 00:50:52

So as we talk about today, we've talked about a lot of things

Speaker: 00:50:56

from what I've loved about the conversation personally has been.

Speaker: 00:50:59

AI within servicing.

Speaker: 00:51:01

We haven't spoken about that.

Speaker: 00:51:02

And I love that, that theme.

Speaker: 00:51:04

Um, let's four minute at the end of every episode we do in the series.

Speaker: 00:51:08

We, we ask you to look in the crystal ball, step inside the time machine,

Speaker: 00:51:15

look three to five years in the future.

Speaker: 00:51:18

My son, actually, my year old son, Hudson, uh, the other day came up to me and said,

Speaker: 00:51:22

dad, when are we going to travel in time?

Speaker: 00:51:27

Great question, Hudson.

Speaker: 00:51:28

I don't know if it'll be possible.

Speaker: 00:51:30

We're gonna try and do it with Rakuten here.

Speaker: 00:51:32

Um, specifically when it comes to lending credit, let's look at lending

Speaker: 00:51:35

credit in the next three to five years.

Speaker: 00:51:37

And what are some of the themes that You're paying attention

Speaker: 00:51:40

to as you're looking at cutting edge or what's upcoming.

Speaker: 00:51:44

You continue to see, um, you know, products evolve and see introduction of

Speaker: 00:51:49

new products and, you know, some of it may be enabled by AI, some of it may not, but

Speaker: 00:51:55

I think we've already started to see that.

Speaker: 00:51:56

And it's a good thing for the customers that we are seeing products

Speaker: 00:51:59

being built from first principles.

Speaker: 00:52:02

Um, I believe I also mentioned that.

Speaker: 00:52:04

Uh, and we've spoken about this multiple times, so it's kind of beating a dead

Speaker: 00:52:08

horse here, but like, the, the need to, need to elevate, elevate experiences

Speaker: 00:52:12

with, you know, your current products.

Speaker: 00:52:15

So, you know, that, that needs to happen.

Speaker: 00:52:17

Uh, I think it's, it's been a theme right now that, you know, while you do all of

Speaker: 00:52:22

that, you need to ensure prudent risk management practices and compliance.

Speaker: 00:52:26

Um, and, and.

Speaker: 00:52:29

You know, now the final thing is kind of how do you make

Speaker: 00:52:32

your businesses more efficient?

Speaker: 00:52:34

Um, but at the same time, don't dilute the customer experience.

Speaker: 00:52:37

And you know, the, the important thing here is, you know, how do you,

Speaker: 00:52:41

uh, leverage technology, be it AI, be it, you know, new tech stack driven

Speaker: 00:52:47

platforms and programs to achieve that.

Speaker: 00:52:50

Um, and you know, one of the use cases you, you mentioned here is servicing.

Speaker: 00:52:54

I think there's a lot of focus on, you know, digital servicing.

Speaker: 00:52:57

A lot of customers right now are, you know, interacting with you digitally.

Speaker: 00:53:02

So, you know, how do you enable a digital servicing ecosystem, which is

Speaker: 00:53:08

also, doesn't kind of take away from the fact that, you know, you know,

Speaker: 00:53:11

you see some of the complaints about, uh, digital ecosystem where, you

Speaker: 00:53:15

know, people want to talk to people.

Speaker: 00:53:16

Where the, the reason behind that is, you know, the responses perhaps you're

Speaker: 00:53:20

getting back, are not personalized to you.

Speaker: 00:53:22

The generic responses.

Speaker: 00:53:23

So how do you make those, you know, more personalized, uh, but still kind of serve

Speaker: 00:53:28

them up in a, in a ecosystem that the customer is willing to interact with you?

Speaker: 00:53:32

Like, that's one example that I see, uh, not necessarily the lending space,

Speaker: 00:53:37

but absolutely in the lending space, but the broader banking space kind

Speaker: 00:53:40

of embrace, uh, a little bit more.

Speaker: 00:53:44

Just to sum it up, you said something that was spot on, Raktim.

Speaker: 00:53:47

How to drive operational efficiency without diluting the customer experience.

Speaker: 00:53:52

There's a lot of decisions that are made to drive operational efficiency

Speaker: 00:53:56

than to dilute the customer experience.

Speaker: 00:53:58

Solutions you should look for combine both together and that's the

Speaker: 00:54:02

key operational efficiency with a best in class customer experience.

Speaker: 00:54:08

I think one of the things that we haven't really touched on that has been

Speaker: 00:54:13

alluded to a number of times through the conversation is the fact that the

Speaker: 00:54:17

products and services that are being delivered today and the product services

Speaker: 00:54:20

that are going to be delivered in the future are going to be focused heavily

Speaker: 00:54:23

on digital natives, not the digital tourist or the digital refugees.

Speaker: 00:54:29

Um, as I like to call them because they, they, they weren't, they weren't

Speaker: 00:54:33

from the digital native, but they're, they're, they're kind of getting to the

Speaker: 00:54:36

point where it makes sense for them.

Speaker: 00:54:39

But all of these things that you've mentioned really are showing that like

Speaker: 00:54:43

we've got to focus on the digital natives, got to have the modern technology stacks,

Speaker: 00:54:49

got to have the personalization that.

Speaker: 00:54:53

Gen Z and Gen A are becoming accustomed to with all of the consumer based products

Speaker: 00:55:00

and services that they're using today.

Speaker: 00:55:02

And all the things you just mentioned really line us up to

Speaker: 00:55:05

say, Hey, this, This has to happen.

Speaker: 00:55:09

It's no longer going to be a choice.

Speaker: 00:55:11

And although it may seem today, like the regulatory environment

Speaker: 00:55:15

doesn't allow for it to happen.

Speaker: 00:55:18

That's where we as financial technology leaders have to figure out

Speaker: 00:55:23

how do we deliver that experience.

Speaker: 00:55:26

While maintaining that regulatory compliance and delivering

Speaker: 00:55:29

a safe and secure product.

Speaker: 00:55:31

That's what I heard throughout today's conversation is that we keep

Speaker: 00:55:35

coming back to that piece of it.

Speaker: 00:55:37

I just make one point though, which is, uh, I, I don't think it's correct

Speaker: 00:55:42

to say that regulatory environment doesn't allow us to do certain things.

Speaker: 00:55:45

Like, if you look at, you know, what's happening, I'll take,

Speaker: 00:55:48

for example, open banking.

Speaker: 00:55:50

Right?

Speaker: 00:55:50

Like that's a law that was probably, it's probably a decade old.

Speaker: 00:55:53

The CFPB is now, you know, intently pushing forward on enabling open

Speaker: 00:55:57

banking, which is very, very good for the customers, right?

Speaker: 00:56:01

The ability to share customer permission data so that a customer

Speaker: 00:56:04

can get a better product and service is being enabled through regulation.

Speaker: 00:56:09

Um, so I, like, I wouldn't characterize it as regulation is holding us back.

Speaker: 00:56:13

Regulation, I think, is here to help us guide.

Speaker: 00:56:16

Uh, us in a way where we deliver products that set both the customers and the

Speaker: 00:56:22

financial institution of a success.

Speaker: 00:56:24

Like that's, that's kind of my take there.

Speaker: 00:56:27

I think, and I love that perspective where I was more coming from is when

Speaker: 00:56:33

we look at regulation, it's typically reactive as Colton mentioned before.

Speaker: 00:56:39

And in financial technology, we have to be a little bit more proactive

Speaker: 00:56:43

and then adjust to the regulatory environment that may not be currently

Speaker: 00:56:48

configured in a way that makes sense for that type of product and service.

Speaker: 00:56:54

And I, and I, and I get what you're saying, like, yeah, it isn't really

Speaker: 00:56:56

holding it back, but it does, it isn't also at the same time, it isn't enabling.

Speaker: 00:57:01

Right.

Speaker: 00:57:02

Or, or pushing us forward.

Speaker: 00:57:03

We've, we've got to, we've got to, we've got to pull the regulatory

Speaker: 00:57:07

process with us versus wait for it to push us, I guess is where I was going.

Speaker: 00:57:12

Right.

Speaker: 00:57:12

Right.

Speaker: 00:57:12

Like, and obviously as we, as we think about new products, uh, you'd have to

Speaker: 00:57:16

kind of think about regulation, but I think in my personal experience, you

Speaker: 00:57:20

know, something that I've seen is if you really, you know, think about a product or

Speaker: 00:57:24

a service with, you know, two key things.

Speaker: 00:57:27

One is like.

Speaker: 00:57:29

Is this the right thing for the customer?

Speaker: 00:57:31

And am I setting up the customer for success?

Speaker: 00:57:35

You really, really, and I stress on the word, really, you know,

Speaker: 00:57:38

come across a point where you are at odds with regulation.

Speaker: 00:57:43

Like I, at least in my experience, you know, I haven't seen that, but like,

Speaker: 00:57:47

that's what kind of, I think about, uh, when I think about, you know,

Speaker: 00:57:51

trying to do something new or, you know, trying to think about a product

Speaker: 00:57:56

or a capability in a, in a new way.

Speaker: 00:58:00

Well, Tim, it's that time, man.

Speaker: 00:58:03

I want to tell you, thank you so much.

Speaker: 00:58:05

The conversation today has definitely been intellectually and mentally stimulating.

Speaker: 00:58:12

So I appreciate you diving in and sharing your perspectives and your insights.

Speaker: 00:58:18

Definitely learned a lot by listening to you today and really appreciate you

Speaker: 00:58:22

coming on the show and sharing that experience and that knowledge with us.

Speaker: 00:58:27

Thank you so much for having me.

Speaker: 00:58:29

It was a fascinating conversation.

Speaker: 00:58:31

Loved every bit of it.

Speaker: 00:58:32

Yes.

Speaker: 00:58:33

Thank you, Rakesh.

Speaker: 00:58:34

Thank you.

Speaker: 00:58:36

Well, folks, that does it.

Speaker: 00:58:37

That's another episode of Accrued.

Speaker: 00:58:39

If you've made it this far, be sure to like, share, subscribe, head over

Speaker: 00:58:44

to fintechconfidential forward slash.

Speaker: 00:58:47

access to go ahead and sign up to be notified of when the next episode launches

Speaker: 00:58:52

and any of the great notifications that we send out on a regular basis.

Speaker: 00:58:57

And as always, keep moving forward.

Speaker: 00:59:01

As we wrap up today's episode, I've got one last thing for you.

Speaker: 00:59:05

If you're in the trenches, fighting fraud and financial crime, you

Speaker: 00:59:09

know, it's a complex battlefield.

Speaker: 00:59:10

That's where Hawks AI tools for real time payment screening,

Speaker: 00:59:14

AML transaction monitoring.

Speaker: 00:59:17

And dynamic customer risk rating come into play.

Speaker: 00:59:20

These aren't just buzzwords.

Speaker: 00:59:22

They're game changers designed to make your compliance more

Speaker: 00:59:25

effective and less of a headache.

Speaker: 00:59:27

Imagine slashing through false positives with precision and giving your

Speaker: 00:59:33

compliance strategy, the edge it needs.

Speaker: 00:59:35

Head on over to get.

Speaker: 00:59:38

HawkAI.

Speaker: 00:59:39

com to sign up for a demo and discover how their platform can revolutionize

Speaker: 00:59:44

how you fight fraud and financial crime.

Speaker: 00:59:47

This has been a production of DD3 Media with all rights reserved.

Speaker: 00:59:51

This is provided for informational purposes only.

Speaker: 00:59:54

It is not offered or intended to be used as legal, tax, investment,

Speaker: 00:59:57

financial, or other advice.

Speaker: 00:59:59

We strive to provide accurate and up to date information but will

Speaker: 01:00:02

not be responsible for any missing facts or inaccurate information.

Speaker: 01:00:06

You comply and understand that you should use any of this

Speaker: 01:00:09

information at your own risk.

Speaker: 01:00:10

Cryptocurrencies are highly volatile financial assets, so research and

Speaker: 01:00:14

make your own financial decisions.