The last couple of days at Fintech Meetup were intense and well worth the time to attend. Like other fintech conferences, innovation was a theme brought out in the keynotes and the engaging discussions across the panels. The aspect of this conference that stands out from any other is its 1:1 meeting program. Conference attendees participate in back-to-back, carefully curated 15-minute meetings with people who want to collaborate. This is a roll-up-your-sleeves conference where attendees come together to make things happen! It was outstanding!
Here are some themes that emerged from the many conversations:
Fintechs are continuing to modernize small business lending and provide access to capital for underserved businesses that have been traditionally overlooked by the banking system because of the cost to serve. Using technology to automatically access accounting data is not new – but there have been advancements in technology to process disparate data and a wider ability for lenders to access business sales data by tapping into payment...
American Banker Small Biz Banking:
The vast diversity of Small Businesses requires nuanced banking solutions and experiences
The American Banker Small Biz Banking conference took place this week, November 13 – 15, in Nashville TN. It was my first time at this conference and my first experience in Nashville. Both exceeded my expectations! I was impressed with the keynotes and panel discussions with leaders bringing unique perspectives and some conflicting opinions.
The mix of attendees across community banks, credit unions, larger banks, and digital-first small business fintech providers created some interesting conversations, particularly around digital innovation and the importance of human relationships. The small business banking market is vast with many different sectors and approaches—and it was fascinating to speak with a wide array of providers serving the industry.
Here are some themes that emerged from the many conversations:
Advances in technology and access to external transaction data can allow banks to look beyond their internal data to better understand their customers. Banks now can...
If you are like me and attended Money 20/20 earlier this week, you are likely still decompressing and working through your to-do list. This year’s conference started early Sunday morning with an intensity that did not abate. I always look forward to this event and am grateful for the opportunity to see so many of my favorite people in one place and hear first-hand the trends that are shaping the industry. Despite industry headwinds, this was an energizing event. The mood was reflective while also enthusiastic about the opportunities ahead. It feels like it’s time to get back to business.
Here are some thoughts and observations:
There was and will continue to be much discussion about open banking, open data, and 1033. 1033 will be a massive change requiring the sharing of data historically enjoyed by the largest of banks. Some benefits seem to be proven, agreed upon, and understood such as the ability to use account cash flow data to improve...
The product is beneficial and economically rational—but needs some guardrails
Why Buy-Now Pay-Later is Growing so Quickly
Over several years there has been much interest and discussion around Buy Now Pay Later (“BNPL”) and its role within consumer credit. The concept of paying for a purchase in installments is not a new concept at all—in the distant past however, it was incredibly inefficient compared to electronic ways to pay and finance at the point of sale, like credit cards. The use of technology to streamline the customer experience at the point of sale has brought the product back in popularity. While we are several years into its resurgence, there are still developments and shifts in the market that make it important to watch if not participate in.
A BNPL product facilitates a purchase whereby the purchase amount is split into generally four payments over a six-week timeframe without an interest cost during the payment period.[1] The product was already on a growth...
Several hundred fintech founders, investors, bankers, and analysts convened at FinvoateSpring in San Francisco this week, where we witnessed demos of innovative products and solutions and discussed emerging trends in a fast-paced atmosphere. The mood was lively and optimistic with a focus on forward-thinking areas of opportunity and growth despite the headwinds facing our industry.
The keynote by Greg Palmer recognized that it will no longer be good enough for providers to simply outrun their direct competitors. The industry is now at an inflection point with many external pressures and customers expect more; the next 5-10 years will be transformational as providers adapt and compete within this broader context.
Here are some themes I observed at the conference:
AI and data should be harnessed to truly understand your customer and deliver personalized customer experiences. Gone are the days of product-focused cross-selling efforts – a requirement is customer engagement along a customer journey, all supported by data and analytics. Data is not valuable until...
This year’s Fintech Nexus did not disappoint! The gathering and active discussion and debate among participants showed the resilience and enthusiasm of the industry. There was plenty of 1:1 networking and the opportunity to reconnect with friends and relationships while also meeting new connections. And of course, there were many, many parties where conversations continued through the night. There was a recognition that things are tough and we need to get through this cycle. The optimism for the future was contagious with an understanding that great solutions and companies are being created right now – the future is looking bright beyond today’s challenges.
Here are some takeaways from this year’s conference:
1. The current environment is tough and one that we have not seen since the dot.com bust. Investor appetite has dramatically slowed since exits are unclear. This is a cycle, and growing companies need to manage their runway to survive and come out the other end. Focus should be on profitability and unit economics while adhering to...
April 28, 2023
The Importance of Small Business Lending in the United States
Small businesses across our nation play a crucial role in the health of our economy. As of 2019, small businesses employed 46.4% of total employees in the United States and paid 39.4% of the nation’s wages.[1] Women and racial minorities own 43.2% and 19.4% of small businesses, respectively.
Despite their significant contributions to the U.S. economy, many small business owners have difficulty accessing credit to launch and/or grow their businesses. Small businesses may not have sufficient revenue history or other information to qualify for credit, their financing needs may not fit within the credit box of banks, or other factors. Access to credit is particularly difficult for women and minority small business owners if their business and/or personal credit histories are not well-represented in traditional credit reporting datasets.
When it comes to small business lending, community banks have an advantage over large national banks given their deep understanding of the communities...
March 23, 2023
The inaugural in-person Fintech Meetup conference took place this week (March 19 – 22) in Las Vegas and is positioned to be a key event in financial services, banking, and Fintech. The gathering brought thought-provoking discussions and a slew of impactful 1:1 meetings for attendees. Despite market volatility, there was still an air of excitement over opportunities and resilience that can be created in times of industry stress.
Here are some takeaways related to Fintech Meetup from this week:
There is a flight to safety, given market volatility and fragility. Newer Fintech providers need to look inward, focus on themselves, and continue to innovate. Larger Fintechs need to figure out how to leverage their scale to position to grow. All need to refocus and figure out who they are and what they are good at so they can focus on these core strengths.
Open banking is exciting but there is uncertainty as to its governance. There is an increased willingness...
November 5, 2022
Money 20/20 is one of the biggest events in financial services, blending all things digital across banking and FinTech. Despite economic and market uncertainty, this year’s event held last week in Las Vegas, brought energy and optimism that could only be described as infectious.
Over 11,500 registered attendees convened at the Venetian to explore new developments in the industry and challenge the status quo. A major theme of the conference was the need for the industry to strengthen and prove the governance function between FinTechs and their Bank partners, coupled with the availability of automated tools and techniques to support these relationships and their overall risk management functions that benefit FinTechs and Bank partners alike.
Here are some takeaways related to this theme from Money 20/20 this year:
FinTechs continue to need access to a Bank’s charter to move money and/or provide financial services under the watchful eyes of regulators who monitor compliance with KYC, AML, BSA, fraud monitoring, OFAC screening, UDAAP, fair...
