The Buzz

Bank Automation News
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The Buzz

Bank Automation News's podcast covers current trends and news in automation and and AI. Bank Automation News is at the forefront of tracking banking automation and AI. Automation is the next frontier of financial services technology. It transforms banking processes from customer experience to compliance, lending solutions and investment. This podcast charts that transformation.

  1. FairPlay launching AI fairness index tool

    FEB 24

    FairPlay launching AI fairness index tool

    FairPlay, a “fairness as a service” startup is launching an index tool in Q3 of this year that shows financial institutions how their underwriting affects consumers. Los Angeles-based Fairplay uses AI-powered data analytics software to help FIs assess the accuracy of their automated loan decision models and provides them with metrics to help identify potential biases, Kareem Saleh, founder and chief executive at FairPlay, tells Bank Automation News in this episode of “The Buzz” podcast. Saleh was named one of BAN’s executives to watch in 2024. “Fundamentally, what we do is help financial institutions stress test their AI, identify blind spots in their AI and then correct those blind spots,” Saleh says. “And what we find is that something like 25% to 33% of the folks that financial institutions declined probably would have performed as well as the riskiest folks they approve.” Since being founded in 2020, FairPlay has raised $14.5 million toward its tech, according to the online financial database Crunchbase. Keeping data in check But even AI-powered decisioning algorithms require careful examination of the datasets they use, Saleh says. “The conventional wisdom is that AI stands for ‘artificial intelligence,’ but it can sometimes also stand for ‘accidentally incorrect,’” he says. “If you don't have a real clear-eyed view about this bias in the algorithms to overfit to the data, then you might miss the blind spots.”5 questions for compliance The Consumer Financial Protection Bureau in June 2024 approved a rule requiring FIs that use algorithmic appraisal tools to ensure compliance with nondiscrimination laws. Multiple lenders received fines from federal regulators for unfair lending practices in the past two years, including $2.6 trillion Bank of America, $2.4 trillion Citi and $560.5 billion TD Bank. FairPlay’s software enables FIs to answer these questions to help ensure compliance: Is this algorithm fair?If not, why not?Could the algorithm be fairer?How could being fairer economically affect our business?Did we double-check declined loan applications for undeserved denials?Three of the top 10 largest banks are already using FairPlay fair lending analysis software. The names of the banks were not disclosed, but the top three banks by asset size are $4 trillion JPMorgan Chase, followed by the aforementioned Bank of America and Citi. Its newest partner, $7.6 billion Pathward Financial, was added Feb. 18, Saleh says. “Banks that use our software are often able to increase their approval rates by 10%, increase their take rates by 13% and increase positive outcomes by 20%,” he says. Listen to this episode of “The Buzz” podcast as Saleh discusses how banks can leverage AI to improve loan approval rates. Subscribe to The Buzz Podcast on iTunes or Spotify, or download the episode.

    17 min

  2. FEB 6

    How an anti-fraud startup fights deepfake fraud

    Financial institutions are looking to deepfake detection solutions in their fight against the growing threat of generative AI-driven fraud.  The growing deepfake detection market is expected to be a $15.7 billion industry by 2026, according to consultancy firm Deloitte.  AI voice fraud detection startup Herd Security is one tech provider that banks are channeling to reduce targeted attacks against their organizations and clients, Brandon Min, co-founder and chief executive of Herd Security, tells Bank Automation News on this episode of the “The Buzz” podcast.   Herd Security, launched in 2023 by Min and his co-founder and chief technology officer Greg Bates, "can detect the presence of AI on any live call or previous audio-based recording with less than 10 seconds of audio,” Min says.   Herd Security will demonstrate its technology at Bank Automation Summit 2025 in Nashville, Tenn., on Monday, March 3.  Listen to this episode of “The Buzz” podcast as Min discusses how banks can layer in deepfake detection tools to reduce fraud.

    20 min

  3. JAN 27

    Banks as tech providers for SMB clients

    Small business owners are looking to banks to provide data, tools and analytics to help them make more informed financial decisions.  “Business owners need better tools to make better financial decisions, understand their finances and where their finances are going,” fintech Monit Chief Executive and founder Steve Dow tells Bank Automation News on this episode of “The Buzz” podcast.   Banks of every size must be equipped with the right tools and data to serve small business customers effectively, he says.   While major FIs, like $4 trillion Chase for example, are building proprietary technology like Chase Customer Insights to serve their SMB clients, smaller FIs also can compete by looking to fintech providers for the tools their SMBs are seeking, Dow said.   Boston, Mass.-based Monit, founded in 2019, provides financial institutions with cash flow analysis, forecasting, industry benchmarking and other insights that can be tapped by small businesses as demand for these solutions grows, Dow says.  The tech provider has raised $14.3 million in funding, according to Crunchbase. The tech offers integrations with banking platforms including Q2, Apiture, Banno and Narmi.

    16 min

  4. 12/03/2024

    AI for credit portfolio management

    AI-driven risk management decisioning and monitoring platform EnFi is automating the credit approval process for financial institutions while maintaining compliance, freeing up employees to focus on other areas of operations.  EnFi uses natural language processing and modern AI models to extract information from loan and security agreements and offer instant compliance, Chief Technology Officer Scott Weller tells Bank Automation News on this episode of “The Buzz” podcast.   Digital bank Grasshopper Bank is among users of the tech, he says.   EnFi will demonstrate its technology at Bank Automation Summit U.S. in Nashville, Tenn., on March 3.

    21 min

  5. 11/12/2024

    From disaster recovery to IT resilience

    Financial institutions are focused on IT resilience as outages repeatedly disrupt operations such as the ones that affected Crowdstrike, Bank of America, Monzo and others this year.  With outage repercussions in mind, organizations are investing in infrastructure, teams and resiliency strategies to reduce downtime and losses, software company Cockroach Labs co-founder and Chief Executive Spencer Kimball tells Bank Automation News on this episode of “The Buzz” podcast.  In a survey conducted by Cockroach Labs and Wakefield Research, 100% of respondents said they had experienced unplanned or unexpected downtime in the past 12 months. The report surveyed 1,000 senior cloud architects and engineering and technology executives from Aug. 29 to Sept. 10.   The report also found:  53% of banking and financial service companies experience outages or service interruptions weekly or more frequently; 93% of executives surveyed said they lose sleep over the impacts of unplanned downtime; and Cost per outage ranges from $10,000 to $1 million.  Listen as Kimball discusses what is causing these outages and how to build resilient infrastructure.

    24 min

  6. 11/08/2024

    Fintech founder Pranger touts virtues of ‘practical’ AI

    Fintech Appli recently launched an AI-driven financial calculator that can be embedded into a financial institution’s lending platform in minutes using just one line of code.    "AI is best used when it's most practical,” founder and chief executive of the Salt Lake City startup Tim Pranger tells Bank Automation News on this episode of the “The Buzz” podcast.  Appli’s solution, which can be customized or white-labeled for financial institutions, uses AI to drive better lending and engagement experiences on financial institutions’ websites, Pranger says.  Using AI-driven confidence models, Appli takes client inputs including income, debt, potential credit score and determines in real time the likelihood of loan approval, he says. Customers then get “specific, tailored advice to them” about lending options.  Appli will demonstrate its technology at Bank Automation Summit U.S. 2025 in Nashville, Tenn., on March 3.  The technology is currently used by three financial institutions, Pranger tells BAN, declining to identify them.

    14 min

  7. 09/30/2024

    Esquire Bank to launch lending platform in 2025

    Esquire Bank considers client needs when determining where to invest in products and innovation.  The New York-based bank, which provides small businesses lending and litigation finance, is working on customized lending for its litigation platform that is expected to roll out early next year, Chief Executive Andrew Sagliocca tells Bank Automation News on this episode of “The Buzz” podcast.   “The best thing we can do in either vertical we serve nationally is to make sure we shut our mouth and listen to what the client not only has to say, but more importantly, let them describe their business, ... their pain points and what their frustrations are,” he says.  When lending to niche markets, traditional tech providers often don’t have the products necessary out of the box to serve those clients; that’s where significant customization of technology comes into play, he says.   To offer customized tools to clients, the bank keeps two to three projects in its innovation pipeline with 20 to 30 programmers at a time, he said.  Listen as Sagliocca discusses Esquire’s approach to serving underserved markets  tapping tech-driven solutions and quality data.

    26 min

  8. 08/20/2024

    JPM connects to French payments network Cartes Bancaires

    J.P. Morgan is joining French payments network Cartes Bancaires, Mike Lozanoff, managing director and global head of merchant services at J.P. Morgan, tells Bank Automation News on this episode of “The Buzz” podcast.  The bank is tapping cloud-based Renovite to build the connection to the network, Lozanoff says. The bank acquired Renovite in 2022 and is using the cloud-based solution and its team to build the tech, he says.   “We’ll be the first American bank actually part of the French banking system, where we’ll be registered and able to offer that card type directly in France,” he says.  Cartes Bancaires is “favorable to merchants” as a network as the cost of payment is low, Lozanoff says. The bank plans to have the card offering available by 2025.   Listen as Lozanoff discusses updates to JPM’s merchant acquiring business, including international efforts, e-commerce innovation and in-store offerings.

    16 min
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About

Bank Automation News's podcast covers current trends and news in automation and and AI. Bank Automation News is at the forefront of tracking banking automation and AI. Automation is the next frontier of financial services technology. It transforms banking processes from customer experience to compliance, lending solutions and investment. This podcast charts that transformation.

Information

  • Creator
    Bank Automation News
  • Years Active
    2019 - 2025
  • Episodes
    306
  • Rating
    Clean
  • Copyright
    © Royal Media - 2021
  • Show Website
    The Buzz

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