the tech in fintech: the data and algorithms that power the industry
TRANSCRIPT
The Tech in Fintech:The data and algorithms that power the industry
November 2016
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Presented by
Greg Lamp CTO & Co-founder
Previously @ OnDeck
Colin RistigProduct Management
Previously @ PayJunction
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Agenda
● What is fintech?
● What are the leaders doing differently?
● Why isn’t everyone doing it?
What is fintech?
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Fintech exists because companies can now make better financial decisions faster.
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Consumer & SMB Lending
Wealth Management
Investing & Trading
Credit & Reporting
Financial Literacy
Mortgages
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Consumer & SMB Lending
Wealth Management
Investing & Trading
Credit & Reporting
Financial Literacy
Mortgages
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$4.0B $2.6B $1.9B
Consumer & SMB lending is a $15B+ with clear leaders.
$2.0B
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The underlying product these lenders are offering is the same.
Money Wells Fargo = MoneySofi = MoneyLendingClub
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The methods for deploying that capital also look very similar.
What are the leaders doing differently?
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Leading companies make better lending decisions.
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They make better decisions using data.
1. Creating new data streams -or-
2. Getting creative with existing data
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What types of decisions are fintech companies automating with data?
Marketing
Personalization Fraud detection
Credit decision
Risk based pricing
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Marketing
● Attribution● Segmentation● Targeting
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Personalization
● Recommendations● New vs Returning
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Fraud detection algorithms
● Types of fraud● Types of data
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Credit decision algorithms
● Clean vs messy data● Proxies for risk● Missing data
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Risk based pricing algorithms
● Willingness to pay● Expected loss
Why isn’t everyone doing it?
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Marketing
Personalization
Risk Based Pricing
Fraud Detection
Credit Decision
Implementation
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Marketing
Personalization
Risk Based Pricing
Fraud Detection
Credit Decision
x Intertwined
Implementation
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Marketing
Personalization
Risk Based Pricing
Fraud Detection
Credit Decision
x Multiple AppsMarketing
Personalization
Risk Based Pricing
Fraud Detection
Credit Decision
Marketing
Personalization
Risk Based Pricing
Fraud Detection
Credit Decision
Implementation x Intertwined
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Marketing
Personalization
Risk Based Pricing
Fraud Detection
Credit Decision
x Many CountriesMarketing
Personalization
Risk Based Pricing
Fraud Detection
Credit Decision
Marketing
Personalization
Risk Based Pricing
Fraud Detection
Credit Decision
Marketing
Personalization
Risk Based Pricing
Fraud Detection
Credit Decision
Marketing
Personalization
Risk Based Pricing
Fraud Detection
Credit Decision
Marketing
Personalization
Risk Based Pricing
Fraud Detection
Credit Decision
Implementation x Intertwined x Multiple Apps
Marketing
Personalization
Risk Based Pricing
Fraud Detection
Credit Decision
Marketing
Personalization
Risk Based Pricing
Fraud Detection
Credit Decision
Marketing
Personalization
Risk Based Pricing
Fraud Detection
Credit Decision
Marketing
Personalization
Risk Based Pricing
Fraud Detection
Credit Decision
Marketing
Personalization
Risk Based Pricing
Fraud Detection
Credit Decision
Marketing
Personalization
Risk Based Pricing
Fraud Detection
Credit Decision
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Oh and we’ll need to update our models regularly,
support 100K users in real time, monitor our in app performance...
Implementation x Intertwined x Multiple Apps x Many Countries
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Marketing
Personalization
Risk Based Pricing
Fraud Detection
Credit Decision
ScienceOps takes the pain out of production.
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Easily integrate hundreds of fintech algorithms into any website or mobile app.
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Update credit models without involving IT.
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Continually monitor and record your financial model portfolio.
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Thank you! Questions?