Articles

Machine Learning Meets Credit Scoring: How it Can Help Reduce Loan Delinquency Costs

In a previous analysis, we laid out the machine learning process we conducted for Destacame.cl, an investee of the Catalyst Fund, which provides alternative credit scoring to underbanked consumers in Latin America. For a firm like Destacame.cl, the investment in predictive algorithms for credit scoring is a no-brainer. It is an inherent part of their digital product and data-driven business model, and can be seamlessly incorporated.

Articles

Articles

What banks can learn from Amazon
In the last year alone, Citi, BBVA, Capital One and other major banks have opened their APIs to third party developers to innovate better and faster To truly be customer-first and prioritize the customer experience above all, banks should look to platforms as business models, not tech constructs No one knows if Amazon will be buying a bank anytime...
FinTech as Digital Solutions for SMEs
The financial technology ( FinTech ) field grew and developed rapidly as a response to the financial problems we face, from making financial information more accessible to addressing the lack of financial inclusion in various countries. Small and medium-sized enterprises (SMEs), in particular, can benefit from the digital solutions offered by...
Why Alternative Lending Struggles to Scale in Emerging Markets – And What Fintech Companies Can Do About It
During the past 10 years, the US, the UK and China have seen a rapid expansion of what has come to be called “alternative lending” – non-bank lenders using digital platforms to serve distinct niches such as consumers and SMEs, which have been ignored by conventional lenders. In these environments with rich data sets and developed capital markets,...
Note to Banks: You Won!
Lending Times , an online publication that specializes in writing about Fintech lenders, reported the following: “In a pessimistic new report, researchers from Morgan Stanley have concluded that while Fintech companies style themselves as disruptors they will do more to strengthen than undermine incumbents in the long term.” The Morgan Stanley...
Fintech Tools That Can Change The World Of Finance
Fintech, or financial technology, is rapidly gaining ground with consumers as a more accessible alternative to traditional payment and banking systems offered by financial firms. As new fintech tools and software emerge to disrupt the established model, financial services are improving, offering enhanced efficiency, speed and accountability...
To Understand the Future of the Financial Services Industry, We Must Look Beyond FinTech
While businesses are catching up with the rise of e-commerce and the mobile-first world, physical interfaces altogether are gradually falling into obsolescence. The year 2017 gives strong reasons to believe that working on the enhancement of the experience with any physical interface could be a wasteful attempt to better feed a horse instead of...
Business Banking Sucks – but a few FinTechs and Big Banks are trying to change this
As a business owner, I rarely log into my business bank account. They make it too hard for me to log in, and when I do, the level of capability doesn’t reflect the jobs I have to do on a day-to day-basis. We are hugely busy building our company, 11:FS , and I can’t be bothered with something that doesn’t give me basic insight and isn’t at all...
Fintechs and Banks: An Unequal Partnership
Years ago I consulted with the legacy Wachovia Bank, headquartered in Winston Salem. Back then the bank-teamed credit and line bankers on each commercial loan, terming their working relationship an “equal partnership.” In fact, when you spoke with management offline, many admitted that the credit people were a bit more equal than line personnel...
How Banks Can Compete Against an Army of Fintech Startups
It’s been more than 25 years since Bill Gates dismissed retail banks as “dinosaurs,” but the statement may be as true today as it was then. Banking for small and medium-sized enterprises (SMEs) has been astonishingly unaffected by the rise of the Internet. To the extent that banks have digitized, they have focused on the most routine customer...
Can 'fintech' innovations impact financial inclusion in developing countries?
Financial technology, “fintech,” has been reshaping the financial services industry with the level and speed of innovation that’s simply fascinating. A month ago, my colleagues and I attended the 5th Annual Lendit USA conference to check out about the latest innovations and thinking in this field and see how we can apply it to our work. There is...