Companies

December 2021 | to watch

fintechmagazine.com in 2022

LendingPoint:
AI-driven,
Partnered up: CreditTech
Banking and the
digital ecosystem Legal & General
America:
Payments: Transforming
Automation life insurance
and payment
transformation Pepper
Financial
Finserve: Services:
IoT and 5G Lending in a
connectivity digital age

BRITAIN’S
FIRST BLACK
FEMALE
CHARTERED FINANCIAL
PLANNER
TheWealthCheck’s Makala Green is an expert on all things finance
Allianz Global Investors turbocharges
its digital transformation and vendor
management journey with SirionLabs
Through SirionLabs’ smarter contracting solution - SirionOne, Allianz Global
Investors has modernized its supplier management processes. The multinational
financial services company uses SirionOne to manage time-intensive tasks like
contract searching, categorizing, obligation management and vendor collaboration.
It has also been able to manage KPIs, milestones and deliverables while providing
greater visibility to their suppliers.

Get Smarter Contracting!

Allianz Global Investors digitizes its supplier
management processes with SirionLabs
“Allianz Global Investors is leveraging other vendor managers, I think that’s a very,
best-in-class technology to supercharge the very powerful thing.”
transformation of its vendor management,” says
The result is a true, tightly integrated, holistic
Helmut Boisch, Head of Vendor Management
supplier ecosystem. Boisch is actively working
for Allianz Global Investors, about the key
to onboard more of Allianz Global Investors’
partnership with Contract Lifecycle Management
suppliers to simplify documentation, improve
leader SirionLabs.
collaboration and provide greater control and
“The journey with SirionLabs stands out,” accuracy over documentation and obligation
Boisch says. The bank uses SirionOne to manage oversight. The company is thus all set to extract
everything from the simple but time-intensive the maximum value out of their contracts by
tasks of categorising and searching through evaluating contract performance in its truest
contracts, to specifics such as surfacing and sense.
monitoring obligations and raising those with
vendors. “Those things get managed
automatically in SirionOne, the smarter
contracting platform,” says Boisch. “That’s
just one example, but there are many others
for how we use SirionOne.”

Other important processes, such as structuring

and organising KPIs, creating reporting
dashboards for internal stakeholders, and
tracking impacts and trends that do not fall Examples include tracking a certain number
within traditional metrics are also seamlessly of obligations on the part of the supplier,
handled inside SirionOne. But Boisch says the accessing documentation to prove the
true value of the partnership lies in the “many completion of external audits, or other vital
things SirionLabs is doing to broaden the way data the firm needs to measure and collect.
that the software can be used”.
“We are always looking at opportunities that
“And that’s not even including all of the thought require more scope within SirionOne, and how
leadership that comes out of SirionLabs,” Boisch to connect the dots between Sirion and other
adds. “For a software vendor like SirionLabs providers that might be used in complementary
to not only take the forefront of the development departments within our firms,” Boisch says.
of how one steers a vendor like this, but to “Over time, we’ll continue to expand that.”
also provide the thought leadership and the
ecosystem that allows you to connect with
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EDITOR-IN-CHIEF CREATIVE TEAM DIGITAL VIDEO PRODUCERS MEDIA SALES DIRECTOR
JOANNA ENGLAND OSCAR HATHAWAY EVELYN HUANG RICHARD TURNER
SOPHIE-ANN PINNELL JACK NICHOLLS SALES AND MARKETING DIRECTOR
EDITORIAL DIRECTOR
HECTOR PENROSE MARTA EUGENIO JOE MARRITT
SCOTT BIRCH
SAM HUBBARD ERNEST DE NEVE
PRODUCTION DIRECTORS MIMI GUNN THOMAS EASTERFORD MANAGING DIRECTOR
GEORGIA ALLEN JUSTIN SMITH DREW HARDMAN LEWIS VAUGHAN
DANIELA KIANICKOVÁ REBEKAH BIRLESON CHIEF OPERATIONS OFFICER
MARKETING DIRECTOR
DUKE WEATHERILL STACY NORMAN
PRODUCTION MANAGERS JORDAN WOOD ROSS GARRIGAN
OWEN MARTIN MARKETING MANAGER
CEO
PHILLINE VICENTE VIDEO PRODUCTION MANAGER
EVELYN HOWAT GLEN WHITE
JACK THOMPSON KIERAN WAITE
JANE ARNETA SAM KEMP PROJECT DIRECTORS
JAKE MEGEARY
PRODUCTION EDITOR MOTION DESIGNER
MICHAEL BANYARD
JANET BRICE TYLER LIVINGSTONE
JOE PALLISER
 FOREWORD

NEW YEAR, NEW FACES

As we welcome 2022, we are also welcoming a new
FinTech Magazine editor
This month, we can bid our final goodbyes to 2021,
a year that emerged from the terror of the 2020
pandemic, and saw the creation of a brave new world
where digital transformation has swept across the globe.
It's been 12 months of intense change that has
emerged from necessity. But that necessity has driven
innovation, and inspired and spawned a multitude of
new services and products.
With a range of cutting-edge trends set to disrupt
2022, life in fintech will continue to be fast-paced,
exciting and diverse. From central bank digital
currencies to crypto, and sustainable fintech initiatives
“It's been as well as vast leaps forward in technology, there is so
much to look forward to.
12 months
of intense
New beginnings
And Fintech Magazine is having its own seismic change
change for January 2022, as we welcome Derin Cag into the
hot seat as the brand’s new editor-in-chief.
that has Derin is truly passionate about all things fintech,

emerged from
and his encyclopaedic knowledge on the subject is an
absolute asset to the team. I look forward to reading
necessity” and learning much from all the new insights he has
planned for FinTech Magazine next year.
In the meantime, it’s not quite adios from me as I
am still on the FinTech Magazine team. But I shall be
prioritizing our other up and coming brand, namely,
InsurTech Digital, which looks set to be thoroughly
disruptive in 2022 as well.
So, I hope you enjoy the festive issue and that the
holidays are both restful and refreshing. Wishing you
all a great Christmas and New Year – see you in 2022!

FINTECH MAGAZINE JOANNA ENGLAND

IS PUBLISHED BY
joanna.england@bizclikmedia.com

© 2021 | ALL RIGHTS RESERVED

fintechmagazine.com 5
 CONTENTS

Our Regular
Upfront Section:
10 Big Picture
12 The Brief
18 Timeline:
PolyNetwork
20 Trailblazer:
Michael Bloomberg
22 Five Mins With:
Makala Green

42
Banking
Partnered up:
Banking and the
digital ecosystem

24 52
Legal & General America Tableau
Transforming the life insurance space Visualise to monetise
68
Payment Solutions
Automation and payment
transformation

78
Pepper Financial Sevices
Andrew Day: Transformational
lending in a digital age

96
Finserv
IoT and 5G connectivity in Finserv

104 120
LendingPoint Top 10
AI-driven, CreditTech FinTech companies to watch in 2022
COMING
SOON
FOLLOW N OW

E DU C ATE • M OTIVATE • E LE VAT E

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We recognise, celebrate and champion the

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Our community offers practical and compelling

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FO LLOW N OW
BIG PICTURE

10 December 2021
Embracing ESG
Sweden, Scandinavia
Fintech startups in Sweden are embracing ESG
directives, and encouraging more companies to adopt
sustainable operations and processes. Leading the
pack is climate impact startup Doconomy, which
announced a $17mn funding round in September,
making it Europe’s largest ever climate fintech round.

Other green fintechs are the Stockholm - based data

platform, Datia, and the renewable energy investment
company, Trine.

fintechmagazine.com 11
THE BRIEF
“Rather than seeing
fintech companies BY THE NUMBERS
as a threat, the big We asked the FinTech community
The Bank of England has warned that the
banks should see growth of cryptocurrency could end up damaging
them as a hotbed the global financial economy if it crashes.
of innovation that How should regulators respond?
can enhance their
existing services” 34% 24%
Leave it alone Attempt to
Mahmood Noorani
CEO,
control it
Quant Insight 

READ MORE

“Human oversight cannot

guarantee consistent
security against fraud or
hacking at those scales. 42%
So there is no going back Action some
on automation” regulations

Martin Rehakl
CEO,
Resistant AI 
9,311 RISKY BUSINESS
READ MORE
That’s how many fintech A new report from Gartner
startups there are in the has called for changes in
EMEA region in 2021 modern risk management
“Thanks to open banking,
according to Statistica to account for third-party
fintechs can plug-in-and-
relationships, mitigating
play with different APIs
risk in an ‘iterative way’
in one automated, secure US$26.5tn after a study revealed that
process” only 29% of business and IT
Julie Chariell The global financial sector executives globally know
Senior analyst, is expected to be worth how diligently their partners
Bloomberg Intelligence 
US$26.5tn in 2022 with a are working regarding
READ MORE CAGR of 6%. security.

12 December 2021
  POMELO
YOUNG FINANCIERS The Latin American

GOOD TIMES BAD TIMES

fintech, which
launched earlier this
According to a survey by the personal year, has just raised
finance comparison site, Finder.com, $35mn in a Series A
children in the UK are embracing fintech. funding round led by
The data showed that 61% of children Tiger Global.
between the ages of 10 and 15 in the UK
use an app to manage their pocket money.
 CRED
10-year-olds The Indian fintech
But it's not just the teens who are managing CRED has been valued
their money electronically. The data showed at $4bn following its
the 49% of 10-year-olds were receiving and most recent $251mn
saving their pocket money through specially fundraising drive. The
developed apps that keep a track on their startup has amassed
spending, and incentivise them to earn more over 7.5 million
money by carrying out chores that are then members.
logged on the parent version of the app.

 MONZO
DEC21
UK challenger Monzo
has withdrawn its
application for a
banking licence in
the US following
application difficulties
that have been
ongoing since April
2020.

 CREDIT SUISSE
Swiss police recently
More young savers raided Credit Suisse
As well as encouraging a sensible savings offices and seized
mentality, the apps encourage youngsters to documents relating
engage with different financial products and to the failure of the
services through gamification incentives. bank's $10bn range of
The study went on to show that since 2016, supply chain finance
Google search interest in the term ‘kids funds that were linked
debit card’ has risen 227%, with a rise of 42% to Softbank-backed
between 2020 and 2021 alone. Greensill.

fintechmagazine.com 13
TIMELINE
POLY NET WORK
AND THE CURIOUS
CASE OF
‘MR WHITEHAT’
The biggest cryptocurrency heist of all time happened amidst the most bizarre of
circumstances. Over US$611mn of assets were stolen from the Poly Network DeFi
platform. There then followed a very public conversation between the hacker and
the victim, which played out on Twitter and resulted in all the funds being returned
less than two weeks later.

Mr Whitehat
$611mn is stolen
The hacker reveals his
Poly Network announces nickname as Mr Whitehat.
the attack on Twitter in the News agencies report further
following tweet: “Important $260mn is returned attempts to return the stolen
Notice: We are sorry to funds have been made.
announce that #PolyNetwork The hacker responds to Poly Coindesk says the hackers
was attacked on @ Network’s appeal from the have attempted to transfer
BinanceChain @ethereum and previous day with a message a portion of the assets from
@0xPolygon.” of their own, which states they one of the three wallets
carried out the hack to reveal into liquidity pool Curve.fi.
The assets are transferred to the network’s vulnerabilities. However, the transaction is
hacker's addresses and consist Poly Network announces on rejected. An estimated $100
of: Twitter that $260mn of the million is also moved out of
$273mn Ethereum stolen funds has been returned another of the wallets and is
$253mn BSC but that $353mn remains deposited into liquidity pool
$85mn Polygon outstanding. Ellipsis Finance.

August 10th August 11th August 12th

14 December 2021
 All assets returned

All funds are duly returned to

Poly Network by the hacker
- or hackers. According to
Mr. Whitehat, the intention
had always been to return
the stolen cryptocurrency
after highlighting security
Poly Network offers hacker vulnerabilities. He said in an
$500,000 Hacker offered job at Poly interview over social media
Network during the event, “That was
While Mr. Whitehat assures always the plan! I know it
Poly Network of his intentions Could this story get any hurts people when they are
to return all the stolen assets, weirder? As Poly Network attacked, but shouldn’t they
the crypto exchange still offers attempts to recover the last learn something from it?”
a $500,000 ‘bug’ bounty for $200mn of stolen assets, it He added, “I didn’t want to
the return of the assets, but the offers Mr Whitehat a job at the cause real panic in the crypto
next day, he publicly turns the company, as its chief security world. I took important tokens
offer down. advisor. and didn’t sell any of them.”

August 13th August 17th August 23rd

fintechmagazine.com 15
TRAILBLAZER
 MICHAEL Job Title: Businessman,
BLOOMBERG
philanthropist
and politician
Company: Bloomberg L.P.

N
ot much is publicly written about
Michael Bloomberg’s early life. But the
banker, former New York Mayor, one-
time US presidential candidate and founder
of Bloomberg L.P. does not seem to have had
a remarkable childhood or upbringing.
Various reports show that he came
from moderate beginnings and both his
parents worked in respectable, blue collar
professions.
Bloomberg’s father was a Polish immigrant
who worked seven days a week as an
accountant and his mother was a secretary.
The family lived in a quiet suburb of Boston,
Massachusetts, and Michael was born in
February of 1942.
At the age of 22, he graduated from
Johns Hopkins University with a degree in
engineering. The year was 1964 - and with
a career in finance as his goal, Bloomberg
enrolled on an MBA at Harvard University.
After graduation, he took an entry-level
position at Salomon Brothers investment
bank - his launchpad into the dizzying world
of finance.
However, despite rising
through the ranks and
performing well, Saloman
Has donated
Brothers merged with Phibro
Bros in 1980 and Bloomberg $8.2bn
found himself without a role to charitable
causes
at the newly formed entity.

fintechmagazine.com 17
TRAILBLAZER

U.N. Secretary-General Appoints

Mike Bloomberg as Special Envoy for
Climate Ambition and Solutions

Keen to avoid litigation, the bank pulled A politician at heart

out its cheque book and he ended up in the Not content with being a leader in the world
comfortable position of being fired - with of finance, Bloomberg has also enjoyed a
a severance package of $10mn. significant political career. He was the Mayor
The incident was the push (and the of New York from 2002 to 2013, and, when
capital he needed) to branch out on his US elections took a farcical turn in 2020,
own. In 1981, he formed his own company, he even ran as the Democratic presidential
Bloomberg L.P. nominee.
While not strictly involved with But the experience was a tough one as
investment banking, Bloomberg has he was heavily grilled by rival candidate
always been at the forefront of financial Bernie Sanders during the debate on the
information, software and media arm. number of homes in his property portfolio.
As the company’s CEO and chairman Bloomberg lives in New York and apparently
for 20 years, Bloomberg amassed an has eight homes in the state. He reportedly
incredible fortune. Last year, he was owns several properties in London, Florida,
ranked the 20th richest man in the world Colorado, and Bermuda and has an
by Forbes, and experts estimate he has extensive luxury car collection - last public
a net worth of $59bn. count put the number at 42 vehicles.

18 December 2021
“THE COLD Charity work
Bloomberg is generous with his good

HARSH REALITY
fortune and has reportedly donated more
than $8.2bn to charitable causes via The
Giving Pledge initiative.
IS THAT WE HAVE He is still the majority owner and
co-founder of Bloomberg L.P. and despite
TO BALANCE THE his high ranking position, has kept a low
profile in terms of his personal life.
BUDGET” Bloomberg married his now ex-wife,
Susan Brown, in 1975. The couple had two
daughters - but divorced in 1993.
MICHAEL BLOOMBERG Bloomberg now lives with senior
banking executive and former New York
Superintendent of Banks, Diane Taylor.

fintechmagazine.com 19
FIVE MINUTES WITH...

MAKALA GREEN
Makala Green is an expert on all things finance. She’s Britain’s first
black female Chartered Financial Planner, founder of Green Wealth
Planning and runs her Instagram account @TheWealthCheck to
help people manage their money better. She's also passionate
about opening up the world of finance as an attractive career to
people of all backgrounds.
reach financial freedom. It's a great read for
anyone wondering what the best thing is to
Q. WHO WAS YOUR CHILDHOOD do with their savings.
HERO AND WHY?
» Beyonce! I just loved the strength and Q. NAME ONE PIECE OF TECHNOLOGY
confidence she possesses as a female. In a YOU COULDN'T LIVE WITHOUT AND
world dominated by men, it was refreshing TELL US WHY (EXCLUDING YOUR
to have a woman to look up to who MOBILE PHONE)
encompassed many of the qualities I strived » My phone is everything to me, but
to embody myself. She showed me that you excluding that, I would say my AirPods
could be strong and feminine simultaneously; (earphones). I love listening to music; it helps
one doesn't cancel out the other. keep me motivated. When they first came
I also love her music; there's not one song I out, I wasn't that convinced, but honestly, it
don't enjoy listening to. My favourite one has really has made life easier since having them.
to be Independent Woman (Destiny's Child). Over-the-head phones are fantastic for
music, but they are bulky and take up a lot of
Q. WHAT'S THE BEST PIECE OF ADVICE room in my bag. So AirPods are a real game-
YOU EVER RECEIVED? changer, in my opinion!
» Get comfortable being uncomfortable.
I know it is one we have all heard before, but Q. WHO DO YOU LOOK UP TO
when you are outside your comfort zone, IN TERMS OF LEADERSHIP AND
that's when you begin to grow and learn MENTORSHIP?
about the world around you and yourself. » I have a group of women that I absolutely
It's important to become more familiar with admire who do amazing things, and I take
uneasiness because it helps you become advice from them at every opportunity.
more in tune with your instincts and know I also look to myself for leadership and
which feelings to trust and action. mentorship by looking back at past actions
and experiences. I often ask myself, "What
Q. WHAT WAS THE LAST BOOK YOU could I have done better?" or "If I had another
READ - AND HOW LONG AGO DID YOU opportunity, what would I do differently?". I
READ IT? think having the ability to reflect and analyse
» Unshakeable by Anthony Robbins, which your decisions is a skill you have to practice,
I read last week. This book has practical and it's valuable to do so. It's also important
information on how to invest your money and to remember that your decisions are often
borne out of circumstance, so don't beat
yourself up too much if you make a mistake.
Keep moving forward!

Q. WHICH ACTIVITY ARE YOU MOST was amazing. It was such a great feeling. These
LOOKING FORWARD TO DOING WHEN were in the Financial Adviser of The Year and
THE PANDEMIC IS OVER? Woman of the Year- Investment categories.
» I am most looking forward to going on
holiday; it would be great to relax and unwind Q. WHAT INSPIRES YOU IN FINTECH
on a beach. I adore the sunshine, and so to be TODAY?
able to enjoy it all day long would be a great gift » I recently attended an evening event
– especially after the lack of it this summer. celebrating fintech, and it was so refreshing
to see young and female founders. Fintech is
Q. IS THERE A PERSONAL changing the face of finance, and it is so inspiring
ACHIEVEMENT FROM THE PAST to see the shift. It's more accessible, more
12 MONTHS OF WHICH YOU ARE diverse, appeals to a much younger audience,
PARTICULARLY PROUD? and it's more affordable than traditional finance
» Being shortlisted out of over 2,000 routes.
nominations as a finalist for two Professional I look forward to more progressive change
Adviser Women in Financial Advice Awards and a world where we all embrace fintech.

fintechmagazine.com 21
Flexibly build new finan
products to meet your
customers’ needs.
ncial
 TRANSFORMING
THE LIFE
INSURANCE
SPACE

WRITTEN BY:
JOANNA ENGLAND

PRODUCED BY:
JAKE MEGEARY

24 December 2021
fintechmagazine.com 25
 LEGAL & GENERAL AMERICA

Mark Holweger, President & CEO

of Legal & General America,
tells us how the sector is transforming
in the wake of COVID-19 and
innovative technologies

A
s one of the largest life
insurance companies in the
US, Legal & General America
has been providing protection
for families and businesses for
more than 70 years. But the past decade has
seen a sea of change taking place that has
been driven by increased connectivity and
digital transformation.
Four years ago, Mark Holweger moved to
the US from Legal & General UK to become
the President & CEO of Legal & General
America. He has been at the forefront of
the company’s digital transformation – a
move that saw Legal & General America
well prepared in terms of both services
and operations when the pandemic hit in
March 2020.

Changes in the life insurance space

It is hoped that increased digitisation and
regulation changes in the US life insurance
sector since the pandemic will make life
insurance protection far more readily and
easily available to customers. It’s an area that
Holweger, who spent many years in the UK
life insurance sector, is passionate about.
“I think my background gave me an
understanding of international businesses.
My career started on the P&C side working
for various international companies, running
really broad spectrum and distribution
channels,” he explains.

26 December 2021
 Example of
an image caption

fintechmagazine.com 27
IF YOUR
POST-IT HABIT
IS MORE THAN
A PACK A DAY
YOU MAY HAVE FOMA.

We know what it’s like to feel FOMA,

or Fear Of Missing Anything. That’s why
we’ve created insurance risk assessment tools
that provide the most comprehensive picture
of your applicants, making it easier than ever to
identify risks and opportunities.

Milliman IntelliScript®
See more. Fear less.
 Video Placeholder
728.504 px * 416.288 px

WELCOMING DISRUPTION WITH A By contrast, leaders who flourish through

FEARLESS “YES/AND” MINDSET disruption have a “yes/and” mindset. They manage
to preserve venerable cultures and brands even as
Digital underwriting got a boost from the pan- they adopt groundbreaking new tech—not for its
demic, but insurtech—the real industry disruptor own sake but because it generates real ROI.
—made its debut long before COVID-19 forced Insurers who’ve partnered with IntelliScript
widespread change. Forward-thinking insurers over the last 20 years can attest to that ROI.
began implementing Milliman IntelliScript’s data- IntelliScript offers ingenious but pragmatic data
driven innovations years ago, but insurtech’s aggregation and interpretation solutions that
early adopters didn’t just act because they were modernize workflows, speed up decisions, and cut
afraid of missing out. They were afraid of missing costs. It’s harnessed AI with its Risk Score predic-
anything—whether it was information that would tive models and instantly illuminated hidden risks
refine decisions or the opportunity to write more like tobacco and cancer with Medical Data.
business, trim a loss ratio, and meet changing Christensen recognized changing business
customer expectations. models and expanding markets as two hallmarks
Harvard’s Clayton Christensen popularized the of disruption. We can see those two things
term “disruption” in his bestseller, The Innovator’s happening today, as insurtech powers direct-
Dilemma. He noted that disruptive technologies to-consumer distribution and makes it possible
rarely took legacy companies by surprise. Rather, for carriers to profitably extend coverage to the
CEOs underestimated new tech or adopted a wait- middle market.
and-see attitude—an unduly cautious either/or As the original industry disruptor, IntelliScript is
mentality that impeded progress. By the time they ready to help carriers meet whatever comes next.
were ready to move, customer expectations (and With a “yes/and” mindset—and the right partner—
brand preferences) had moved on. disruption can be welcomed, not feared.
 LEGAL & GENERAL AMERICA

Legal & General America: Transforming

the Life Insurance space

“There is no one size “These experiences made me realise that

there is no one size fits all ‘plug and play’
fits all ‘plug and play’ business model solution. And just a couple of
business model solution. variables in a business model means it won't
work in another country either,” he says.
Just a couple of variables
in a business model Business models in new markets

means it won't work in Holweger cites cultural and behavioural

differences as the main drivers that prevent
another country” certain business models from working in other
markets and says that the US life insurance
MARK HOLWEGER market is fundamentally different to that of
PRESIDENT & CEO, the UK as buying policies and getting coverage
LEGAL & GENERAL AMERICA can be a long and arduous task. Holweger
is dedicated to tackling these issues and
Holweger then moved into running transforming the space in his position as
emerging markets – which he says, President & CEO of Legal & General America.
encompasses basically every country bar the “Insurance is about getting people back
UK and the United States. He learned about on track when things go terribly wrong. It’s
international markets. He also set up and about enabling them to carry on with their
co-founded a new international digital direct life,” he says, “and that’s what attracted me
to consumer broker, which, based in Gibraltar, to it. I think we can make a real difference to
distributes P&C products in Europe and the UK. society and help families.”

30 December 2021
 LEGAL & GENERAL AMERICA

Because obtaining life insurance cover

in the US is generally a drawn out process, MARK HOLWEGER
it can also be expensive. As a result, only TITLE: PRESIDENT AND CEO
certain demographics prioritise having cover INDUSTRY: INSURANCE
– and generally, these customers are within
LOCATION: MARYLAND, UNITED STATES
high income brackets. This is an aspect that
needs to change, Holweger says, because Mark Holweger is President and CEO
those that fall hardest when tragedy strikes of Legal & General America’s insurance
are the vulnerable, low to middle earning division, which includes operating
families who simply either can’t afford cover, companies Banner Life Insurance Company
or have chosen not to take it out because it’s and William Penn Life Insurance Company
difficult to apply for - and it's expensive. of New York. He is responsible for the day-
“Protection for this section of society to-day operations of the business, ensuring
needs to be more flexible,” says Holweger. service excellence, continued distribution
“For me, life insurance is the life jacket, and expansion and achievement of the digital
how much life insurance you want depends transformation strategy.
if you just want a basic life jacket or you In 2011, he joined Legal & General Group
maybe need a safety boat. It's up to you, but in the UK where he held a number of senior
it has to offer affordability as well.” level positions including Managing Director,
Partnerships for Legal & General Insurance
Digital transformation and Director of Broker and Intermediary
Holweger is adamant that digital for Legal & General’s General Insurance
transformation has provided the tools life business. In 2018, Mark relocated to the US
insurance providers in the US need to offer as Executive Vice President of Distribution
better, faster, easier and lower cost cover. and Marketing for Legal & General America.
Prior to joining Legal & General, Mark
was a co-founder of Coverwise.com,
an International digital
insurance broker,

1981
Year founded
and held various
senior roles at other
insurers including RSA

630+
Number of
Insurance Group
UK where he was
EXECUTIVE BIO

employees Distribution Director

for Emerging markets
According to a

2020
and AXA Insurance UK
where he was Director
LIMRA Insurance of Corporate
Barometer Study, just
Partnerships.
54%
of all Americans have
life insurance coverage
 LEGAL & GENERAL AMERICA

“The reality as well is

sometimes missed
in all this. As life
insurers, we're there
to pay claims. And
99% plus of claims
are paid whether it's
in the UK or the US”
MARK HOLWEGER
PRESIDENT & CEO,
LEGAL & GENERAL AMERICA

And for his team at Legal & General America, “We've taken a lot of our learnings from
the task of reducing the protection gap can’t the UK. But one of the big differences in the
happen soon enough. US is the requirement of a medical or the
According to a 2020 LIMRA Insurance need to often have a medical where you're
Barometer Study, just 54% of all Americans taking fluids, which happens far less in the UK.”
have life insurance coverage. The number The procedures are triggered by
has declined over the past decade, as in contestability, explains Holweger, who points
2010 63% of US citizens had some form out that in the UK, a life insurer can check the
of insurance protection. The study also information was correct at the time of claim.
shows there are 60 million uninsured and However, in the US, after two years, even if the
underinsured households in the US. information you collect about the customer
Holweger says, “Our whole strategy was incorrect at the time - or maybe the
actually, even pre-COVID, was all around customer made a mistake and didn't tell you
digital transformation and making life about a medical condition they had, insurers
insurance more accessible. We've already must still pay a claim.
been pioneering and driving the use of “This is why in the US, the process has
data, leveraging new technology and digital been so complex and it takes so long,” he
platforms to make the purchase of life says. “It takes months historically to get
insurance easier. offered life insurance cover, and that's

32 December 2021
because of all the medical records, asking budgets of the uninsured, also must be
customers to go to the doctors to have fluids prioritised. Holweger says that over the four
taken to check that the life insurers have all years he’s been working in the US market, he
the data.” has encountered several critical barriers that
While life insurers in the US inevitably need to be addressed.
dislike the two-year rule, Holweger takes “One of the key drivers of the protection gap
a practical approach. “The reality as well is is the cost of distribution. The need to have
sometimes missed in all this. As life insurers, medicals, the fact it was taking months to get
we're there to pay claims. And 99% plus on cover, the fact that it's expensive; these are
of claims are paid whether it's in the UK or all preventing the industry from reaching new
the US. But like I say, there's that significant markets. Very often, brokers say, ‘I can't afford
difference between the two markets which to talk to middle America and down because I
historically has made life insurance in the US don't make enough money because it takes so
more complex and more expensive to buy.” long to get on cover.’ There's such a complex
process involved.
Changing the culture “So, they just talk to the wealthy and sell
But it’s not only processes that need to be life insurance to this audience. That is why
streamlined. Marketing, distribution and the gap has developed. Nobody is talking to
creating products that suit the needs and people in middle America and below about

fintechmagazine.com 33
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Starting in 2017, Legal & General America (LGA)
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embarked on an enterprise-wide digital transformation
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website. The Sitefinity platform has provided the so easy to do it. Sitefinity takes
scalability, integration, agility, and operability that LGA all the headaches away that we
desired. used to have.

Within the website are two rebranded experiences -

one for customers and the other for advisors, now Megan Morris,
Brand & Experience Manager,
tailoring content to the appropriate audience. Both
Legal & General America
customers and advisors have expressed confidence
and satisfaction in using the new website. This
sophistication is just one small sample of the
customized strategies now in place to drive increased Read the Full Story
reach, conversions, and revenue. As a result of the
“Nobody is talking to people
in middle America and below
about the benefits of life
insurance. That's what we
have to change”
MARK HOLWEGER
PRESIDENT & CEO,
LEGAL & GENERAL AMERICA

36 December 2021
 LEGAL & GENERAL AMERICA

the benefits of life insurance. That's what we

have to change. We have to make it easy and
accessible for all families in America.”
Another barrier to market entry is the
fact that life insurance isn’t something that
protects the obvious, as other types of cover
do. And getting the message across that
having life insurance can be – well, lifesaving
in the event of a crisis – isn’t an easy task.
“People don't wake up in the morning and
think, ‘You know what, I'm going to go and buy
some life insurance.’ They might think about a
house and a car because it's a tangible asset,
but not with life insurance,” says Holweger,
who believes that getting the message across
to that market segment is all about good
communication and better accessibility.
Digitisation is also an essential ingredient.
“When you explain to somebody what life
insurance does and actually how affordable
it is, because basic term insurance is not
expensive, they say, ‘Well, why wouldn't
anybody buy that?’ But somebody has to
explain to them, and that's not happening
in the United States because the cost of
distribution was just too high.
“That's why digitising and making it easier
and simpler is going to transform the market,
'' he says. “It will make life insurance more
accessible for more people, but most
importantly it'll mean that they can become
educated. And you have to explain to the
customer exactly what life insurance does.”

A rapidly changing market

Despite the fact that the pandemic has
placed many global industries under
unprecedented strain, the US life insurance
sector has actually been driven forward over
the past two years. Holweger says that not
only has it placed mortality at the forefront
of people’s minds, but it's resulted in
insurance companies becoming more agile,

fintechmagazine.com 37
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38 December 2021
 LEGAL & GENERAL AMERICA

“By putting
low code into
our business
we can have
our people
able to adapt
the journeys
and build the
journeys as
well”
MARK HOLWEGER
PRESIDENT & CEO,
LEGAL & GENERAL AMERICA

innovative and embracing new technologies. providers could not expect their customers
Legal & General America has also started to to go to clinics to have medical examinations
offer cover that suits the marketplace better, that would enable policies. The event
in that it is easier to apply for – and more essentially acted as a catalyst for the
cost effective. insurance industry in the US to leap forward
“We've absolutely seen more interest and innovate via the use of data, thus
in our products since the beginning of the transforming the space for providers and
pandemic – and that’s mainly because customers alike.
COVID has made American families think “It's really made life insurers realise we
about the ‘what ifs’. However, the increased have to change how we operate. Legal &
interest has also been a result of the product General America were already going down
which we offer. It’s fairly straightforward. It that route. But it accelerated the process.
isn’t complex. The policy is backed by an We’re using data analytics and AI, to reduce
upstanding, financially stable company.” the number of questions we have to ask -
Holweger says that change was forced and we can use data to get instant decisions.
to happen during the pandemic because Currently in the US we're over 25% in terms

fintechmagazine.com 39
 LEGAL & GENERAL AMERICA

of instant decision, and we're on our way to more accessible to customers. Low code is
targeting 50%. This is transformational for the another aspect that has been transformational.
US market because it enables customers to “We don't have to have complex programmers
achieve instant cover.” doing all the work. By putting low code into
Holweger says Legal & General America our business we can have our people able to
is focusing heavily on its digital platform, adapt the journeys and build the journeys as
which works on agile principles, carrying out well. So we're leveraging lots of things at Legal &
sprint releases every two weeks as part of the General America,” he says.
company’s strategy to allow for great flexibility
and constant development. This ensures the Future-proof strategies
platform stays up to date with the changing Clearly, Legal & General America is leading the
market trends. way as life insurance in the US transforms, and
The underwriting process has also been Holweger says the journey is an exciting one,
reinvigorated through robotic process which will be dominated by new distribution
automation (RPA) to create better efficiency. channels, data driven processes, clearer and
This has enabled Legal & General America to more customer friendly products and services
keep their pricing competitive and therefore as well as better cost value products.

40 December 2021
 “New companies will realise that because “There will almost certainly be a rise in
everything is digital, it can all be done via M&A as company owners sell up to other
mobile on apps, customers can go instantly on businesses. Equally, we will see a rise
cover. It means that we'll get new distribution in partnerships as traditional companies
channels coming into the market to talk collaborate with insurtechs to diversify
to families about the importance of life their offerings and find more technology
insurance.” appropriate solutions to legacy processes,”
he says.
More industry mergers The future, it seems, is a positive place
But alongside this shift, companies and to be, because reinvention is revitalising
the ecosystem will see dramatic changes. the industry. He adds, “One thing about
Holweger says that traditional providers will brokers, they adapt because they are smart
have to change if they want to survive, and people, and these changes we’re seeing
this will result in two outcomes. Some will are really exciting.”
embrace the new technologies. Others will
decide that the new market requirements are
not for them.

fintechmagazine.com 41
PARTNERED UP:
BANKING
AND THE
DIGITAL
ECOSYSTEM

WRITTEN BY:
JOANNA ENGLAND

42 December 2021
 BANKING

Forming strategic partnerships to

drive growth is becoming a critical
part of the banking industry’s
future-proofing strategy

E
cosystems, digital partners,
and collaboration. These now-
familiar terms are commonplace
in the banking, finserve and
technology industries.
As legacy systems struggle to morph into
entities that can operate on the new digital
plane, partnering has become more than
just a buzzword. For many companies, these
business relationships are their salvation in
a time of unprecedented change.
While fintech startups have the advantage
of designing their core processes and
models around digital transformation, they
often hit stumbling blocks when it comes to
growing their businesses.
By comparison, incumbents hold all
the cards with a ready database of willing
customers and usually a big budget to
finance the seachange. However, for those
well-established, hallowed halls of finance,
adopting new technologies and practices is
expensive. It’s also disruptive, and entirely
alien in terms of lean and agile principles
and the latest BI practices.
The remedy for this situation lies in
collaboration and ‘side line’ rather than core
developments.
For example, many banks today, rather
than attempt to transform themselves
too fast and risk mistakes, have taken to
launching digital versions of themselves
as subsidiary arms. And they partner
with software and technology solutions
companies to make the magic happen.

fintechmagazine.com 43
Meet the
Top 100 Leaders
fintech
magazine
.com

TOP
in FinTech
OUT NOW LEAD
ERS
2021

A BizClik Media Group Brand Creating Digital Communities

44 December 2021
 BANKING

“The reality is
that banks’
IT operating
models aren’t
typically
geared towards
third-party
collaboration”
PAUL CRERAND
MULESOFT
Exactly when these shifts took place is
difficult to decipher, but Hack believes there
is a fine line between partnering and the
more classical way of looking at it as using
the services (or integrating the products) of
Strictly business partners an outside player.
According to Nikolai Hack, Head of Strategy “One thing is certain, however, the
and Partnerships at Nucoro, the partner government-imposed lockdowns and forced
networks revolution has resulted in a couple closures of physical businesses have shown
of marked events. He says that two things have many players that they need to move faster in
happened in recent times. their digital transformation – and partnering
The first is that partnering (as opposed to allows you to do that,” he concludes.
building or buying) has moved from the fringes Todi Pruteanu, VP of Ecosystems at
and auxiliary parts of a proposition to its core. FintechOS, offers insight into this. “Through
He says, “Whereas in the past, you would have a partner network, banks can accelerate the
partnered on non-essential aspects like KYC speed-to-market and distribution of fintech
checks and digital signatures, now you partner solutions, and in return fintechs can gain
on key parts of the offering like your lending or access to banks and the banks’ customers,”
saving products.” he says. “The reason why these networks
The second change is that whereas have grown in popularity is because they
partnering used to be mainly a tool for benefit both parties.”
smaller players to move faster, it has now Pruteanu believes the relationship
also moved from fintech and challengers to between fintechs and banks is complicated
the biggest incumbents in the space. and becoming more complex. “Fintechs

fintechmagazine.com 45
“It is only
logical
that we will
see more
partnering
happening
in the
future”
NIKOLAI HACK
NUCORO

initially set out to replace banks and “eat

their lunch.” Many are still looking to do so.
But over time, competition has evolved into with specialist fintech providers can have a
collaboration. major impact on performance, cost-saving,
“Whether a bank is small or large, they’re and customer services. Rather than seeing
all collaborating with fintechs. That could fintech companies as a threat, the big banks
be through partnering with them, acquiring should see them as a hotbed of innovation
them, or funding them. It’s quite clear that that can enhance their existing services.”
competition has made way for collaboration, Generally, says Noorani, the real push
where we now live in the era of the began in March 2020 – uncoincidentally at
partnership.” the start of the pandemic. Up until this point,
small fintech operatives and incumbents
A shift in perception had been competing, with banks in a
Some experts say the shift has been due superior position.
to several factors, and that the incumbent “Banks have talked a strong game on
sector embracing partnerships is indicative fintech and innovation, but in practice, few
of changes that are yet to take place. are really moving. This has started to shift in
Mahmood Noorani, CEO of Quant Insight the last 18 months. In the investment space,
explains, “The banking sector is quickly we’re already working in partnership with
waking up to the fact that partner networks several major banks providing quantitative

46 December 2021
 BANKING

API trends in banking

APIs have transformed the partner network
space because they have simplified the act of
diversifying services, products and solutions.
Application programming interfaces (API)
streamline programming and are defined as
‘low code’, because they provide all the required
building blocks, which are then put together by
the programmer.
Paul Crerand of Mulesoft offers his thoughts
and a case study on the use of APIs in banking.
He says, “APIs will emerge as the preferred
solution for building partner networks, acting
as a central mechanism for enabling the
integration that banks require. We’ve already
seen how this works in practice.
“For example, UK-based SME-lender Allica
Bank uses APIs to connect its apps, data, and
devices, so it can quickly bring together all
of its digital capabilities and plug in those of
other organisations to create market-leading
financial market analytics and trading experiences.
insights, to enhance decision-making.” “Allica’s brokerage portal has been rated the
Noorani now believes fintechs have the best on the market by its customers, because its
upper hand. “From analytics, AI capabilities API-led approach enables it to draw data from
to cloud computing and payments services, a variety of external sources to speed up the
fintech companies have so much to offer overall lending process dramatically.”
traditional banks,” he says.

Advantages of partner networks • Faster innovation: A core principle of the

The pros to partnering up with an expert modern economy is the separation of
operative are numerous, and, says Hack, tasks and the efficiency gains we derive
provides three, distinct advantages to banks. from it. By focussing on what you're good
These are: at and getting someone else to do the
other bits, everybody can play to their
• Reducing risk and complexity: By relying on strengths and bring new propositions to
a tried and trusted technology or product life or launch a new product faster than
that is already running and operating otherwise possible.
successfully elsewhere you can remove a
whole lot of uncertainty from the decision • Developing outside the box: Banks' legacy
making process for or against a project. systems are hopelessly convoluted and

fintechmagazine.com 47
BANKING

reform and innovation from within is hard,

if not impossible. Connecting an existing
stack to something that runs mostly
outside your architecture can sometimes
be the only way forward to do anything
meaningful new at all. And it buys you
time to work on the restoration of the core
and transition your organisation bit by bit
instead of all at once.

However, any large-scale move cannot

be without consequences. Hack advises
that there are aspects to be mindful
of. He says, “You have to be aware that
you won't be building up native IP and
owned capacity in whatever area you are
partnering in. The core expertise for a
technology, process, or product will sit
with the player you cooperate with, not
with you.
“It is unlikely that you want to be, or can
be, an expert in all fields that collectively
make up your business proposition.
Hence this focus on what matters should
probably help.”
Despite this drawback though, on
balance, as long as companies do their
homework and make the necessary
preparations, partner networks are a good
idea. He continues, “You have to rely on
the partner to do their job right, probably “To avoid problems, there are essential
without knowing much about their secret requirements that need to be in place.
sauce. Since you are more likely to partner For example, there must be trust between
in areas that you are less familiar with parties. Without mutual trust, especially
(which is the reason why you are partnering in a world where data privacy is becoming
in the first place) you have to make sure paramount, the relationship will be
that a proper due diligence process is problematic.
in place.” “Moreover, financial service providers
Pruteanu expands on this point, saying need solutions to any problem. Any
that partner networks can help to build a collaboration must deliver a tried
wider range of complimentary services and and tested holistic solution rather
products to acquire more customers and than a bundle of different and hard to
boost profitability. connect tools.”

48 December 2021
 “We fully expect
partner networks to
expand dramatically
in the coming years,
particularly in a post-
Covid economy”
MAHMOOD NOORANI
QUANT INSIGHT

legacy systems, where valuable customer

data is scattered across disparate silos.
This makes it difficult for banks to draw
the right customer data sets together to
collaborate with others.”
Crerand says that to navigate these
challenges, banks are increasingly
implementing API-led integration. By
placing APIs in front of each system they
need to draw data from banks that can
become more composable and, exposing
their IT assets as a network of reusable
capabilities that others can discover and
tap into.
“A third-party wishing to make use of a
certain banking capability can simply plug
A boom in APIs the bank’s API into their own product or
And ultimately, technology and the setup service, to create a connected customer
of legacy systems means partnerships experience. The more that banks are able to
are not only advantageous, but also open themselves up in this manner, the more
unavoidable. Even so, making them work in opportunities they have to join new value
practice is not without its challenges. chains, unlocking more revenue as a result.”
Paul Crerand – Field CTO EMEA at
MuleSoft, explains, “Making partner Partner networks of the future
networks work in practice is often far from Strategic partnerships are here to stay – and
straightforward. The reality is that banks’ IT the technology driving them will continue to
operating models aren’t typically geared iron out the challenges many of them, still
towards third-party collaboration. All too in their relative infancy, are facing. This is a
often, banking IT is a complicated mix of conclusion most experts agree on.

fintechmagazine.com 49
 BANKING

“There must be trust

between parties.
Without mutual
trust, especially in
a world where data
privacy is becoming
paramount, the
relationship will be
problematic”
TODI PRUTEANU
FINTECHOS

Noorani says, “We fully expect partner

networks to expand dramatically in the
coming years, particularly in a post-Covid
economy. Forward-thinking banks will look
to nurture partnerships as well as acquire
and embed fintech into their existing
services to stay ahead of the competition.”
Hack also believes this is the logical step
forward, because, in an ever more complex
world of constantly evolving technology,
“regulatory and commercial frameworks
intertwined with faster changing consumer
demands and expectations, it is only logical
that we will see more partnering happening
in the future.”
Crerand concludes, that with customer
expectations for frictionless digital services
at an all-time high and continuing to rise,
“APIs will become a crucial cornerstone of
banks’ IT strategies, offering the flexibility
and agility they need to become ‘digital
ready’ and continue to redefine customer
expectations and industry standards for
connected experiences.”

fintechmagazine.com 51
52 December 2021
 TABLEAU

Visualise to
monetise

WRITTEN BY:
JANET BRICE

PRODUCED BY:
CRAIG KILLINGBACK

fintechmagazine.com 53
54 December 2021
 TABLEAU

View data clearly with Tableau’s simple,

self-service analytics platform which
empowers customers to make game-
changing, data-driven decisions

V
isualise to monetise with
Tableau,” is the message
from Peter Chizlett, Regional
Vice President of Embedded
Analytics at Tableau EMEA,
who is helping organisations transform the
way they use data.
The post-covid business landscape will
see the ‘survival of the data fittest’ with those
that win adopting both a data transformation
and harnessing the monetisation of that
data. Tableau is working with organisations
to share data clearly using its intuitive self-
service analytics platform which empowers
users of any skill level to make game-changing
data-driven decisions, solve problems and
leverage insights.
“The race is on. Companies need to evolve
fast to survive and thrive,” said Chizlett,
speaking from his home office near London.
“All organisations, large or small, have data and
all of them are doing, or thinking about doing
something, with that data externally. So the
race is on – it's a form of digital Darwinism.”
Tens of thousands of organisations around
the world, such as Charles Schwab, Verizon,
Schneider Electric, Southwest Airlines and
Netflix, rely on Tableau to help them, and
their customers, see and understand data.
Tableau was founded in 2003 in Mountain
View, California, and is headquartered in
Seattle, Washington. In 2019 the company
was acquired by Salesforce for US$15.7 billion
and continues to scale its mission to help its
customers see and understand data – while
Peter Chizlett also focusing on R&D.

fintechmagazine.com 55
TABLEAU

“Salesforce realised the analytics platform

PETER CHIZLETT could give them the edge in their offerings to
TITLE: R
 EGIONAL VICE PRESIDENT customers. We're already starting to see the
OF SALES, EMEA benefits of ownership by Salesforce with
LOCATION: UNITED KINGDOM Einstein Discovery being added to the Tableau
platform and even more horsepower behind
INDUSTRY: COMPUTER SOFTWARE
innovation and R&D.”

Pete Chizlett has had various Mission to see and understand data
roles in the technology sector Tableau’s mission is to enable people to see
for more than 25 years. Embarking and understand data and make decisions
on his career at Hewlett-Packard he based on these findings.
quickly moved from internal to field “If you think about what came before
sales roles before starting with the business intelligence tools, it was typically
Microsoft Services division in 2008. rows and columns of numbers so it was
Chizlett started leading teams at hard to identify anomalies or opportunities,”
Microsoft in 2012 where he focused said Chizlett who cites working with an
on Business Application sales and airline that was mystified why they had an
went on to lead teams in both absenteeism problem.
Enterprise and Commercial segments. “We worked with the airline who didn't
In April 2019 he joined Tableau to know the problem was with scheduling
lead sales teams covering Northern until they put their data into Tableau. It
EMEA before leading the Embedded revealed that the absenteeism was always
Analytics and OEM Solutions Business. on a Tuesday because the staff couldn't
He lives in Binfield with his wife and be rostered again until several days later
two children. if they’d phoned in sick on the Tuesday.

2003
Year founded

50,000+
EXECUTIVE BIO

Number of employees

US$15.7bn
The amount Salesforce
paid for Tableau

86,000+
Organisations around the
world, rely on Tableau
 TABLEAU

Tableau : Visualise to monetise

“This is not something they would find

in a spreadsheet. They could only see this “Visualise to
when the data was visualised – through a
heat map or a graph – so that's how we help
monetise with
organisations. In this case it helped improve
employee satisfaction by changing rostering
Tableau”
policies, and we know employee satisfaction
PETER CHIZLETT
drives revenue and customer loyalty – REGIONAL VICE PRESIDENT OF EMBEDDED
which is one of many ways of monetising ANALYTICS, TABLEAU EMEA
data, albeit indirectly.”
Another example of monetising data is Tivian as a customer and partner
used by a major online retailer in the UK “At Salesforce and Tableau, our number one
that charges suppliers to access information value is trust. Together, we use our currency
on what items are best-sellers. “This allows of trust to earn the privilege of being our
suppliers to tailor their promotions, pricing customers’ guide to success in their strategic
and supply to all of their retailers,” said transformations,” said Chizlett. “We are only
Chizlett. “This customer helps external successful if they are successful. When a
organisations find their own insights and customer uses our products, internally our
act upon those.” customer success experts are brilliant

fintechmagazine.com 57
TIVIAN: EXPERIENCE DATA THAT DRIVES SOLUTIONS

UNDERSTANDING
EXPERIENCE DATA
“At Tivian, we continually try to improve the employee and customer experience,
and we partner with a lot of large companies like Ipsos, Kantar PwC, and, of course,
Tableau Software,” says Austin.

“Survey data is some of the most complex data, and it is the job of me and my team
to make it understandable.” Commenting on future plans, Austin says they are
focused on delving deeper into AI and more text analytics.
EXPERIENCE
DATA THAT
DRIVES
SOLUTIONS
Tivian - described as “open and creative” by
partner Tableau Software - drives solutions with
their experience data by always asking: Why?

Asking the simple question “Why?”

helps Tivian enrich data for its global
partners and improve the customer and
employee experience.

Tivian is a leader in experience intelligence

management. The Software-as-a-Service (SaaS)
company, which has been operating across 35 EXTERNAL BUSINESS
countries for more than 20 years, partners with INTELLIGENCE
Tableau Software to drive solutions by analysing
internal and external data. Tivian focuses on external business intelligence.
“We look at our customers and our customers’
“Under the hood, Tivian is a Ferrari for uncovering customers and share those dashboards out to
business challenges,” says Rob Austin, Director them. We look at the ‘Why?’ question. We can
of Business Intelligence at Tivian. “We collect get this by asking the right people, by doing
experience data, analyse and interpret it using market research. We try to enrich that ‘what’
Artificial Intelligence (AI), and turn it into actionable data with the ‘why’ to give us a fuller picture.”
solutions.
Austin notes that Tivian’s team of experts in
“I think of data and business intelligence as a sat customer and employee experience data sets
nav, which helps you make decisions. But when the company apart from its competitors. “We
you add experience data, it’s like having live traffic tend to have millions of data points, and we use
information,” says Austin. cutting edge AI and text analytics to drive this.

Intelligent experience management

tivian.com
 TABLEAU

“All organisations, large or small, have data,

and all of them are doing, or thinking about
doing something with that data. So the race
is on – it's a form of digital Darwinism”
PETER CHIZLETT
REGIONAL VICE PRESIDENT OF EMBEDDED
ANALYTICS, TABLEAU EMEA

60 December 2021
 TABLEAU

at helping them deploy and adopt so they Embedded Partnership Programme. This
get maximum value. When the user is entails closer insights into the Tableau
one step away from us, we have to truly product group for Tivian, but also Tivian
partner with our customer to ensure they feeding back to our product group. They're
are successful and their customers are the ones that are closest to our customers.
successful too. One company that has This helps us take insights and develop our
been a great customer and partner since products to meet customer needs.
2014 is Tivian who are very open and “Our Embedded Partner Programme
creative. also means we are agreed on business
“We've recently started working much goals, things that Tivian wants to achieve.
more proactively together as part of our We approach those goals together to see

fintechmagazine.com 61
 TABLEAU

how Tableau and Salesforce can help

Tivian be successful in their markets.
“We know that by working with Tivian,
we're helping an innovative partner in the
world of analytics. When you consider
your own product as the gold standard in
analytics, as we do, that makes for a pretty
good partnership.”

Competitive differentiation
Chizlett pointed out that one of the benefits
of embedding analytics into either B2B
portals, websites or software for customers
or governments is creating competitive
differentiation.
“As consumers and citizens demand
more information, competitive
differentiation is an essential trait. If you
think back over the last 18 months, the
demand for information among citizens in
uncertain times was really high and it was
all about being engaged, transparent and
delivering value. So, not just giving citizens
information, it's about giving them insights
by which they can make decisions to make
their lives better,” he said. “The same
applies in business.
“If we look at B2B organisations, it is
not just about competitive differentiation,
but you also have to be able to expose or
share analytics and insights with customers
because that is what they are looking for
no more than ever.
“For Independent Software Vendors
(ISV) it's competitive differentiation again.
You no longer log into an application
without expecting to see some insights
from the application, otherwise, many of
these applications are just information
repositories. Unless you get insights out of
them, they're sometimes nothing more than
a good place to file information. In their own
right, information repositories are helpful

62 December 2021
“We know that by working with Tivian,
we're helping an innovative partner
in the world of analytics. When you
consider your own product as the gold
standard in analytics, as we do, that
makes you a pretty good partnership”
PETER CHIZLETT
REGIONAL VICE PRESIDENT OF EMBEDDED
ANALYTICS, TABLEAU EMEA

fintechmagazine.com 63
 TIMELINE OF TABLEAU SOFTWARE

Tableau was founded by Chris Stolte, Pat user-friendly, and Tableau has always been
Hanrahan and Christian Chabot when the innovating to meet the evolving needs of
Department of US Defence approached their users.”
the Department of Computer Science at In 2019 Tableau was acquired by
Stanford University for a project to look at Salesforce for $15.7 billion which has
people’s ability to analyse data. allowed for more R&D and potential for
According to Peter Chizlett, Regional growth.
Vice President of Embedded Analytics , for Marc Benioff, Chairman and co-CEO,
Tableau EMEA, Stolte searched the market Salesforce said: "We are bringing together
DID YOU KNOW...

for tools but was disappointed. “The rest, as the world's #1 CRM with the #1 analytics
they say, is history… Tableau, and VizQL, the platform.
underlying engine that drives the platform, “Tableau helps people see and
was born. understand data, and Salesforce helps
“Over the next 10 years, Stolte, Chabot people engage and understand customers.
and Hanrahan built out a multimillion dollar It's truly the best of both worlds for our
business, which IPO’d in 2013. The reason customers--bringing together two critical
it was so successful is because there was platforms that every customer needs to
nothing else really out there that was so understand their world.”
 TABLEAU

“Salesforce realised The platform allows data scientists,

analysts, and business users across an
that the analytics organisation to create powerful predictive

platform could give

models without needing to write algorithms.
It is a no-code environment that empowers

them the edge in anyone to quickly and confidently make

decisions guided by ethical, transparent AI
their engagement in Tableau.

with customers.
It allows users to bring tomorrow into
today’s decisions with just a few clicks by
We're already starting embedding custom predictions anywhere
people can view or use Tableau. Einstein
to see the benefits Discovery insights are integrated into your

of ownership by
Tableau workflow, to ensure it does not
disrupt analysis.
Salesforce with the Future forecast
Einstein Discovery Chizlett said the future of embedded

being added to the analytics is looking strong with a compound

annual growth rate of 14% up until 2027.
Tableau platform and
more focus on R&D”
PETER CHIZLETT
REGIONAL VICE PRESIDENT OF EMBEDDED
ANALYTICS, TABLEAU EMEA

but delivering insights from that information

can be transformative for their customers.”

What is Einstein Discovery?

Powered by machine learning (ML),
Einstein Discovery delivers predictions and
recommendations within Tableau workflows
for smarter decision-making.
“Einstein Discovery is incredibly intuitive
and it's helping Tableau deliver analytics
to everybody. So analytics as part of this
mission will be ubiquitous. It also means
that from an embedded standpoint, our
customer’s customers can ask questions
about the data.”
 TABLEAU

“At Salesforce and Tableau, our number one

value is trust. Together, we use our currency
of trust to earn the privilege of being our
customers’ guide to success in their strategic
transformations. We are only successful if
they are successful”
PETER CHIZLETT
REGIONAL VICE PRESIDENT OF EMBEDDED ANALYTICS,
TABLEAU EMEA

66 December 2021
 TABLEAU

“In uncertain times, people, citizens, million members in the Tableau community
customers and businesses are looking who are passionate about seeing and
for data more and more to give them understanding data. If you ask a question of
certainty. The pandemic has meant that the community around Tableau, you'll get
many organisations have accelerated their the answer, I wouldn't say it's an Olympic
digital transformation but this also means sport yet, but watch out…”
there has to be a data transformation.
“Every single customer has data and Discover more with Tableau Whitepapers:
that data is growing. Monetising that data
doesn't necessarily have to be building new Power of Data Analytics in Fintech Solutions
products, but it can be giving yourselves
competitive differentiation or business Data Monetisation
advantage through leveraging that data.
“I think solving problems and curiosity
is human nature. We have more than a

fintechmagazine.com 67
 AUTOMATION
AND
PAYMENT
TRANSFORMATION

68 December 2021
 PAYMENT SOLUTIONS

The transformation of the digital

payments space is moving faster than
anyone could have anticipated in the
wake of the pandemic

B
WRITTEN BY:
JOANNA
ENGLAND ack in 2019 - before the world
shifted on its axis, digital payment
solutions from chip and pin and
online transactions, to ApplePay
were thriving.
At that time, according to data released
by the Federal Bank of San Francisco,
US consumers used cash in 26% of their
transactions, and this was down from 30% in
2017. The diminishing role of physical money
was sedately winding itself down, allowing
everyone to adjust accordingly.
Then earlier this year, the same source
released its most recent findings - and
revealed that cash usage in 2020 had
dropped dramatically to just 19%. Data
suggests cash will drop further still,
and could even go as low as 10% by the
end of 2022.
“Paytech will be Fear of spreading COVID-19 through
the use of banknotes and increased online
unrecognisable, shopping has hit traditional currencies hard,
and the need for and even though the world has now opened
automation will up, the numbers continue to tumble.
As cold hard cash and pocket-jangling
be as antiquated change becomes increasingly obsolete,
as cheques are financial technology companies are finding
today” evermore ingenious ways to help us do
business through digital payment solutions.
From voice recognition biometrics
JASON OLLIVIER
CONTIS to blockchain technology and seamless
Amazon store payments, automation is at
the heart of this massive transformation.

fintechmagazine.com 69
FINANCE
THAT SCALES
WITH YOU
Easy multi-entity
management and reporting
Sage Intacct cloud finance
software for financial services

LEARN MORE
 PAYMENT SOLUTIONS

A glimpse into the future of payments

But what will this fast-moving financial
future look like, and who will benefit from
the transition?
According to a recent survey by
Marqeta, the way we pay our bills and
make purchases will look very different
in a decade. Those debit and credit cards
we love to carry will almost certainly
become obsolete, while slick mobile
payment apps will also disappear. The
research found that:

• The future iterations of ambient

commerce include a mixture of
facial recognition and AI-based
decision making

• Payments may become increasingly Changes brought by automation

invisible as we move to more “ambient” Automation of payments has become the
models of commerce – such as the recent logical solution to what would otherwise
emergence of till-less grocery stores. By be a labour intensive and time consuming
2030, this will evolve even further so there process. Martin Rehak, CEO of Resistant
will be no cards or payments devices. AI says manual processing simply isn’t a
Instead, a person’s biometric data would realistic option anymore, given the volume of
be captured by cameras, along with the transactions payment processors deal with
item they are purchasing and sent directly today. This change, although accelerated by
to their bank. While (32%) of surveyed the pandemic, was inevitable.
consumers find the idea of ambient He explains, “Human oversight cannot
commerce ‘creepy,’ experts believe given guarantee consistent security against fraud
how quickly Uber and the like have been or hacking at those scales. So there is no
accepted as a norm, the convenience going back on automation. Done properly,
would soon win people over automation can harden many parts of the
payment process to improve security — but
• 51% of consumers surveyed saying they the caveat, here, is “properly.”
would consider using a contactless
microchip implant to make payments “Thanks to open banking, fintechs
can plug-in-and-play with
• 31% of 18–24-year-old respondents different APIs in one automated,
say they would be comfortable with
secure process”
AI making automated decisions on
their behalf to choose the most ethical FRANCESCO FULCOLI
way to pay TRANSFERGO

fintechmagazine.com 71
PAYMENT SOLUTIONS

Shannon Kreps, Vice President of

product marketing, Medius, a global spend
management fintech, agrees. She says,
“Automation enables manual and time-
consuming tasks such as the accounts
payable (AP) process to be managed far
more quickly and accurately.”
She also points out that the fundamental
purpose of automation is to boost business
productivity – for example in the case of AP
automation, automating payments enables
it to automate workflows, reducing chances
of common errors such as incorrect PO
numbers, line items not matching POs,
missing VAT numbers and invoices that have
been addressed to the wrong department,
she says, “occur all too frequently.”
But it's not only about streamlining
back office processes. Automation in
the payment solutions space has also
been massively instrumental in driving
forward ecommerce and enabling multiple
payment points.
Julie Chariell, Senior Analyst, Fintech,
Bloomberg Intelligence believes the
proliferation of electronic payments
has contributed to greater adoption
of e-commerce, by enabling multiple
types of payments beyond cash and
check at the point store. “This, along Payment technology drivers
with the introduction of NFC (near-field According to Francesco Fulcoli, Chief
communications) technology, has enabled Compliance Officer for TransferGo, there
contactless payments at the point of sale, are currently three main technologies that
where smartphones or NFC-enabled cards drive automation in paytech. The first is the
can be held near a reader as a touchless way companies acquire customers. Between
way to pay. While this technology existed KYC providers and specialist screening
before the pandemic, Covid-19 and the and geolocation technologies, fintechs can
related desire to avoid touching anything, verify, process and conduct customer risk-
especially cash, drove rapid adoption.” assessments in real-time, leading to an
In essence, automation is at the onboarding time of under two minutes.
heart of all the latest innovations in the Fulcoli explains that as part of this, AI
paytech space that are driving the online and machine learning is key to the growth
transaction revolution. of automation in paytech. He says, “When

72 December 2021
 PAYMENT SOLUTIONS

“We are already seeing

retail stores with no
cashiers. Shoppers can
just grab and go”
RON DE BOS
DIGITAL RIVER

Ron De Bos, Director Products

Management – Payments for the global
ecommerce enabler, Digital River, the
global ecommerce enabler, agrees. He says,
“AI in the payments industry can enhance
customer service, by providing hyper-
personalised credit scores and offers. It can
also drive new forms of transactions – we are
already seeing retail stores with no cashiers –
shoppers can just grab and go.
De Bos also points out that AI is
responsible for big advances in the areas of
payment orchestration, billing optimisation
(DCA, TOD submission of renewals
optimisation), customer identification
and authentication based on multiple
data sources, fraud detection, payment
optimisation, credit scoring, monitoring,
and alerting.
applied to transaction monitoring and
screening, it can handle requests at scale, A driver of digital currencies
and at pace, and is more efficient than other Automated transactions and the
processes in significantly reducing error. development of the space are also set to
“Finally, the method in which fintechs change the financial markets as we know
connect to payment systems has been them. Cryptocurrency and Central Bank
underpinned by automation. Thanks to open Digital Currency (CBDC) are being driven
banking, fintechs can plug-in-and-play with forward at an extraordinary rate because
different APIs in one automated, secure technology is enabling their usage in more
process. Information is exchanged in real- and more marketplaces.
time between different financial providers or Indeed, recently the Bank of England
intermediaries, enabling the user to enjoy a issued a warning that cryptocurrency could
range of benefits including faster and more even lead to another large-scale financial
secure payments.” crash that damages the global economic

fintechmagazine.com 73
PAYMENT SOLUTIONS

AUTOMATION CASE STUDY

Rob Israch, GM Europe, at Tipalti, tells order to gain the visibility and overview needed
us about how automation has helped to help sustain and scale the company’s growth,
scale Hopin the team at Hopin worked with Tipalti to cut
out manual intervention and future-proof
“The event technology platform Hopin is one processes. This meant being able to bring invoice
of Europe’s fastest growing start-ups. It launched processing back in house, while the multi-
in June 2019 and was valued at $7.75bn just two entity setup provides complete visibility across
years later. It has seen tremendous growth as it operations.”
helps customers host immersive virtual, hybrid Melissa Richards, Senior Accounts Payable
and in-person event experiences. Analyst at Hopin, “Our workflow is quick and
For the company’s finance team, this easy with all our payment processes in one
meant needing to process a huge volume central location - the days of juggling different
of international payments, initially in a time systems and exporting files are long gone – we
consuming, manual and complicated manner have no manual intervention. With automated
including manually selecting the correct accounts payable, we can continue to scale and
currencies. Knowing it needed to automate in not have to add more headcount to keep up.”

74 December 2021
 PAYMENT SOLUTIONS

“Human oversight of the automated payments network, are

allowing cards to be used to buy crypto and
cannot guarantee access crypto accounts to make payments at
any merchant accepting their cards.”
consistent security She adds, “Crypto providers such as

against fraud or
Coinbase, have built crypto-wallets for
investors to store and transact in their digital

hacking at those currencies, plus tools to help merchants

accept crypto-payments.”
scales. So there is What will the future of payments look like?
no going back on As Amazon matches forward with its entirely
contactless stores, the world of payments
automation” is already becoming unrecognisable when
compared to just a decade ago. But what will
MARTIN REHAK it look like in the future?
CEO OF RESISTANT AI Kreps believes it will simply be much
more efficient - but this will be driven
financial system, simply because its by necessity rather than innovation for
accelerated usage shows no sign of slowing innovation’s sake. “I think [the paytech
down, and its stability is negligible. space] will be much better than today
De Bos says blockchain technology is – with increasing trade across borders,
the motivating factor behind the increased especially when there are issues like today
use of crypto - and even the social media with supply chain, we’ll need to find ways
giant Facebook is considering entering to pay suppliers faster and electronically,
the digital currency market as a result of with increased transparency.
it. “The largest and most successful
technology for making international
payments possible is blockchain. The
immutable and transparent nature of
blockchain places it at the forefront
of the payment industry trends.
It's an excellent candidate for an
international cashless currency. Even
Facebook is planning to create
a virtual currency.”
Chariell concurs, “Payments
automation makes it easy to
accept multiple types of payment
mechanisms, from cards to digital
wallets to bank accounts directly, and
most recently, to crypto payments.
Visa and Mastercard, the backbone

fintechmagazine.com 75
PAYMENT SOLUTIONS

“Thanks to open
banking, fintechs can
plug-in-and-play with
different APIs in one automated,
secure process. Information
is exchanged in real-time
between different financial
providers or intermediaries”
JULIE CHARIELL
BLOOMBERG INTELLIGENCE
 PAYMENT SOLUTIONS

“It will need to be quick to avoid issues

in FX fluctuations and to stop suppliers
worrying about long settlement times
– this space is definitely changing and
will allow us to expand where we trade
quickly,” she says.
Other experts say there will be changes
that transform it entirely - and that even
automation itself will be outmoded by
better technologies. Jason Ollivier, Head
of Disruption for Contis, says, “Paytech
will be unrecognisable, and the need
for automation will be as antiquated
as cheques are today. Processes will
be so innately efficient that the idea of
automation will be redundant.”
Ollivier believes that blockchain
and open finance movements will be
mainstream and act as channels through
which data analytics optimise the act and
safety of transacting.
He says, “Something as painful as getting
a mortgage will require me only to input
the amount I want to borrow and the
property (including the price) I am looking
to buy. My identity will automatically
be anonymised, relevant information
about me will be automatically pulled
(salary, years in job, relevant bank account
details) and automatically posted for the
mortgage providers to review and bid for
my business, in similar way to internet
advertisers bidding to put their content
before an internet user based on the their
browsing history.”
Ollivier adds, “What comes back to
me as a customer is a summary of offers
in a form that allows me to either press
'accept' or 'decline'. For me as the user,
the process will be streamlined to such a
degree that it becomes as simple as, ``this
is what I want, and I accept.”

fintechmagazine.com 77
ANDREW DAY:
TRANSFORMATIONAL
LENDING IN A
DIGITAL AGE

WRITTEN BY:
JOANNA
ENGLAND

PRODUCED BY:
MICHAEL
BANYARD

78 December 2021
PEPPER GLOBAL

fintechmagazine.com 79
 PEPPER GLOBAL

Andrew Day, Chief Data Officer for

Pepper Global Financial Services
Group, talks technologies, data and
emerging market challenges

he world of financial services has

shifted, with the past decade
particularly having ushered in a raft
of new technologies that have
transformed the industry globally. Data, the
way it is used, and the services companies
offer have all undergone massive changes
which have been accelerated since the start
of the pandemic.
Andrew Day, CDO for Pepper Global,
believes the use of data will be key in
improving the financial wellbeing of millions
of people globally, who have been left behind
by traditional financial systems.
A data and analytics leader with a career
background that saw him spend many years
in the telecommunications industry, Day
believes that the key to better customer
services, products, and a healthier financial
market, is all dependent on how data is used.
In the world of finserve, it’s also a way to bring
financial literacy to those who have been
sidelined by traditional institutions.

Doing data differently

Day believes data and its handling
is a cross-industry skill – and that all
businesses could benefit massively from
the correct handling and analysis of data.
“I think the headline is that a lot of the
problems you solve in any industry with data
and analytics are transferable from industry
to industry. So how you collect, collate and
manage data is the first part of the process.

80 December 2021
 Example of
an image caption

fintechmagazine.com 81
 PEPPER GLOBAL

“We build innovation

projects and experiments number one problems in the
that enable us to test the telco space, for example, is
predicting who is going to
innovations” leave your network and join
another person's network. You have exactly
the same problem in lending businesses.
ANDREW DAY
GROUP CHIEF DATA OFFICER, Who is likely to prepay their loan, move
PEPPER GLOBAL their loan somewhere else?”

A lot of the problems that any business A company of two halves

faces in understanding, predicting, and Pepper Global acts as a lender in multiple
adapting to customer behaviours are countries and a specialist servicer – working
completely consistent.” with banks, non-banks, fintechs, and funds.
Customer behaviour, he says, is key. Day’s main role is to work out how the
And understanding it will result in better organisation can leverage data it gathers
business management, regardless of which from its 13 globe-wide centres, and use it
industry you might be in. “One of the to deliver better outcomes to customers.

82 December 2021
 ANDREW DAY
TITLE: GROUP CHIEF DATA OFFICER
COMPANY: PEPPER GLOBAL
INDUSTRY: FINANCIAL SERVICES
LOCATION: LONDON, UK

Andrew has responsibility

for managing and driving
commercial value from Pepper
Global’s data and identifying new
business opportunities through
the use of machine learning and
artificial intelligence.
He has extensive experience in
driving transformational change
through the exploitation of big data
across diverse industries, including
telecommunications, media, retail
and financial services.
Andrew holds a Bachelor
of Science majoring
He describes the task of recognising and in Geography
managing data as a three-pillared process. and Geographic
The first pillar is recognising that as a Information
group, or rather in the group function. “We Systems with
don't have a monopoly on good ideas,” says Honours from
Day. “One of my roles is to work out how we the University
surface the good stuff that's happening in the of Salford.
various business units around the world.
EXECUTIVE BIO

We work out what’s happening from a data

and analytics and tech perspective. We then
make sure that's shared across the group so
we can replicate that where appropriate.”
The second part of the process involves
innovation and experimentation – an area
that Day is passionate about. He heads up
a team of engineers, data scientists, and
technologists, who work with the business
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A D
 PEPPER GLOBAL

“I think the thing

with fintech that
inspires me is The third pillar of the process involves the

the ability to be upstream customers. Day says, “We work with

banks and fintechs, delivering analytic solutions
customer-focused for them on a commercial basis. We take the
experience we've got in managing our own
and data-driven” business using AI, machine learning & data, and
provide that as a commercial service to some
of our partners.”
ANDREW DAY
GROUP CHIEF DATA OFFICER, By his own admission its broad remit is in
PEPPER GLOBAL a very entrepreneurial business, which Day
describes as “very exciting.”
units to identify applications that could
potentially deliver value back to Pepper Emerging markets and data patterns
businesses and their customers. In his capacity as CDO, Day is playing a lead
He explains, “We build innovation projects role in Pepper Global’s decision to use its
and experiments that enable us to test the expertise to launch cutting-edge financial
innovations. When we find ones that work, services in Indonesia – which has one of
we push them into the business units and the the highest unbanked populations globally.
business units then take ownership and deliver According to a recent report by
those outcomes to the customers.” the Jakarta Post an estimated 66% of

fintechmagazine.com 85
“The fintech world Indonesia’s 275 million-strong population is
currently unbanked.
is all about meeting Breaking into an emerging market brings

a customer
with it a massive set of challenges that
include lack of technological infrastructure,

need through geographical roadblocks, no financial history

and cultural resistance to change. As Day says,
technology and “How can you credit check someone with no
financial history - or enable people to get into
underpinning the world of financial services, to build a credit

that with data

history, and really drive financial inclusion?”
Giving customers alternatives in that part

and insights” of the market, he says, is a huge opportunity

that is massively beneficial for nations and
customers alike. “The idea that you can make
ANDREW DAY borrowing accessible, get people onto the
GROUP CHIEF DATA OFFICER,
PEPPER GLOBAL financial services ladder, and enable them to
build a credit file, is a very exciting prospect.
That then becomes self-fulfilling in many

86 December 2021
 PEPPER GLOBAL

Title of the video

respects. It's often seen as the way that the And establishing some sort of profile
middle classes grew up in nations, that notion on customers without a credit history is far
of becoming increasingly financially inclusive.” from impossible because data can provide
key indicators on loan repayment capacity.
Weighing up the challenge “Without credit files and credit bureaus,
Day believes the opportunities by far outweigh we're quite often reliant on data that acts
the difficulties, even though one of the as an alternative to traditional credit
challenges is that as people enter the world of scores,” says Day.
borrowing in particular, the commitment that “We've had to learn the hard way in
they're taking is quite often misunderstood terms of what data is valuable in those
or poorly understood. “Part of our job is to be processes and see that partnering with
a responsible lender. Being mindful ecosystems in that respect is a
of bringing customers into a lifetime valuable way to progress into
journey is incredibly important. emerging markets.”
We do that in a way that suitably “That’s not to say that traditional
informs them, and gets them into 2000 credit data isn’t important. It's critical
Year Pepper
a position where they understand Global was where it exists, but either where it
their commitments, and that we lend founded is lacking or non-existent, seeking
to them in a responsible fashion.” alternative methods is a necessity.”

fintechmagazine.com 87
 PEPPER GLOBAL

It’s an evolving process that is growing

and improving as technology and more
information is gathered. Indeed, it’s even
possible that alternative credit checks could
even become more of a reliable indicator of
solvency and loan repayment reliability, than
$68.1bn
Total Assets Under
old-fashioned financial histories. Management

“Inevitably, when you're starting with a

blank sheet of paper without any borrowers, $17.5bn
Lending Assets
you have to hedge a little bit. You take some Under Management
chances. You make some sensible decisions
around the data you can get access to, and
you create rules around who you should and
1.7m
Customers
shouldn't learn to lend to. Off the back of that,
you lend some money and see what happens. $50.5bn
It's a classic machine learning challenge. Servicing Assets
Under Management
“As you start to gather data, performance
data on loans, then you can start to work out
what data genuinely enables you to score well 3216+
Employees
in the broadest sense and make increasingly
more reliable decisions.” *All figures are in USD and
correct as of 30 June 2021

Defining useful data sources

Deciphering which data is the most
useful in assessing customer reliability,
is where Day’s former experience in
telecommunications comes into its own.

“Inevitably, when you're starting

with a blank sheet of paper
without any borrowers, you
have to hedge a little bit. You
take some chances. You make
some sensible decisions around
the data you can get access to”
ANDREW DAY
GROUP CHIEF DATA OFFICER,
PEPPER GLOBAL

88 December 2021
 $1.82bn
In April 2017,
American hosting company
GoDaddy acquired
123 Reg from the parent
company, HEG.

#1
123 Reg is is the UK's top
domain registrar.

$1.82bn
American hosting company
GoDaddy acquired
123 Reg from the parent
company, HEG.

fintechmagazine.com 89
 The Analytics
“Finance technology
optimization means
extracting more value

Automation from accounting and

enterprise resource
planning (ERP) systems

Playbook while adopting digital

technologies to improve
finance processes.”
for Finance & Gartner Top Priorities for Finance
Leaders in 2020

Accounting DISCOVER MORE

TWITTER FACEBOOK INSTAGRAM YOUTUBE

 PEPPER GLOBAL

Pepper is concentrating more on long-term

values for customers rather than short-term
sales. Their aim is to build a relationship with
their users, providing them with a range of
services that keep them coming back for life-
cycle events.
He explains, “Mobile telco data becomes
important in some markets and there are a
number of people that are building credit
scores from mobile phone data. We actually
see the world in more than one dimension
from a scoring perspective.
The credit score is one thing, but also the
ability for us to manage a customer through
a life cycle, to think about lifetime value or
longevity of loan, the ability to cross and upsell
are all part of that scoring process, and so the
more data, both specific customer level data
that you might get from a mobile phone or crop volumes will be below par and as a
from an app, a wallet or whatever, as well as consequence, the local economy will suffer.
markets data and local market data is valuable.” Pollution is also an indicator. The higher the
And there are highly accurate ways to assess air pollution is in an area, the greater indicator
the viability of a customer in terms of loans that of better credit scores. “Why is that? Because
are also outside the IoT sphere. Day explains air pollution is an indicator of economic activity.
that data on weather patterns in various regions We look for signals in markets that are not
can indicate if and when a loan will be paid. If necessarily the traditional signals, and couple
rainfall is exceptionally high or low, it indicates those where we can with customer-level data,
and that's part of the magic sauce,” he explains.
“We look for signals
in markets that are Data harvesting and management
As the IoT grows exponentially, and more
not necessarily the and more data becomes readily available to
traditional signals, and companies, insights become razor-sharp.
But so too do the potential pitfalls. Too
couple of those where many times, businesses have fallen foul of
we can with customer- regulations, by either selling customer data to
third party companies, getting bogged down
level data, and that's with data gravity and silos, or even letting
part of the magic sauce” sensitive and exploitative information fall
into the hands of cybercriminals. Managing
the way data is collected, used, stored,
ANDREW DAY
GROUP CHIEF DATA OFFICER, and then disposed of, is a task that bears
PEPPER GLOBAL heavy legal and ethical ramifications.

fintechmagazine.com 91
 PEPPER GLOBAL

“There's not a
single big lever.
It's about a myriad
of applications
across the
value chain”
ANDREW DAY
GROUP CHIEF DATA OFFICER,
PEPPER GLOBAL

Day is only too aware of the cost of poor

information management, and says though
it can be handled effectively, it’s not an easy
task. He explains, “I would like to say it's
really clean and straightforward. But that's
far from the case. Pepper has a standard
footprint of technologies.
But like every group company, it’s not
helpful or practical to mandate the specific
use of these in each of the business units.
They are at liberty to create or choose the
technologies that help them deliver the best
possible service into the local market. We're
there obviously to provide advice, but we
certainly aren't the tech and data police.”
Instead, Day’s job is to make sure all units
are operating as efficiently as possible. And
to do that Pepper uses technologies that
include Microsoft Azure and GCP. These
are paired with tooling that is core to data
management, enabling the data to be shared
across the group.
“We use DataRobot, Alteryx, Tableau and
Snowflake in some business units,” Day says.
“We also have Power BI widely deployed. So
it really is a question of us providing advice on
tooling from a group perspective, and letting

92 December 2021
 PEPPER GLOBAL

the individual business units decide how the

technology suits their own situation.
A really good example of this is actually as
we enter some of the emerging markets, the
availability of some cloud providers isn't there,
so we have to think creatively about how we
move from cloud to cloud, or from technology
to technology.”

Data as a growth enabler

Day works with data from a holistic
perspective, with the view that it is of use
throughout the entire value chain. The
end-to-end process is critical, he says,
because data answers key questions that
emerge throughout the process, such as:

1. How to make the right investment

2. How to manage customer engagement
more efficiently
3. How to manage operations
4. How to develop the right products
5. How to understand customer behaviour

For Pepper, the deployment of natural

language processing (NLP) in their call centres,
has been an innovative step in gauging the
intentions of the customer, from stress-
related phone calls that could dictate better
question patterns, to pick up on potential
fraud attempts.
“Amongst other applications, we're using
NLP to help manage compliance processes,”
Day says, “So, literally every step of the process
from thinking about what products you
might develop for a marketplace through to
managing a customer in the latter stages of
them being a borrower is where we see the
opportunity to drive value through data.
“I think there's not a single big lever.
It's about a myriad of applications across
the value chain rather than one big thing

fintechmagazine.com 93
“People want to engage through WhatsApp built with agile core
technologies, other
and SMS, email and video calls, and companies with a
face-to-face so we've had to think about longer history have not
how we re-engineer business processes found the task quite
and customer processes as a result of such a smooth ride.
But shaking off the
customer demand” old and embracing
the new can be an invigorating process if the
ANDREW DAY business culture is welcoming of change.
GROUP CHIEF DATA OFFICER,
He explains, “I think businesses that are
PEPPER GLOBAL
20-plus years old have a degree of legacy -
that's going to make a massive difference, certainly from a tech perspective. Widespread
although they do vary in scale obviously from use of cloud, software as a service, etc.,
application to application.” are relatively speaking in technology terms,
new to the party. And actually, when we
Digital transformation started 20 years ago, smartphones didn't exist.
While many new fintechs took to digital “So I think it's fair to say that the business
transformation with ease because they were has been on a journey. I think a lot of that is

94 December 2021
 PEPPER GLOBAL

“People want to engage through

WhatsApp and SMS, email and video
calls, and face-to-face so we've had to
think about how we re-engineer business
processes and customer processes as a
result of customer demand.”
Day says this is a common theme around
the way that Pepper approaches its markets
because the company prioritises thinking
about the customer at the core of the process
and product development.
“Ultimately, I think the thing with fintech
that inspires me is the ability to be customer-
focused and data-driven. The fintech world
is all about meeting a customer need
through technology and underpinning that
with data and insights, and I think how you
create enduring customer relationships has
historically been very transactional but could
be far beyond that. The focus is now on how
you build trust by improving the experience
and helping customers reach their financial
goals, and in turn to come back to you when
they need to.
about how we reframe the businesses in a He adds, “I think in the financial services
kind of digital, data, and tech savvy way.” world, a lot of organisations think about
Day says an example of this ‘reframing’ is that one-time transaction. How do I sell this
the way Pepper Savings Bank in Korea created customer a loan? How do I sell this customer
a digital bank alongside the existing bank, a pension? How do I sell them a product? I
largely because trying to create a sea change might sound like a bit of a broken record, but
within the legacy platforms is challenging and providing customers with an opportunity to
innovating on the side was the answer. re-engage with you is the thing that I think will
“I think it's also fair to say that over the set the winners apart from the losers.
last 20 years, the relationship between “For me, that means the key measure
lenders, borrowers, and intermediaries, of success probably isn't assets under
like websites and brokers, has completely management or the number of products
changed. They used to be very linear. You you've sold, it's lifetime value, and I think
want a mortgage, you go to your mortgage that's probably the number one change that
advisor or your broker, you apply for the loan customers deserve, and it re-frames the
that he thinks is right for you, and you do whole financial services conversation.”
that through paper-based or maybe email-
based transactions. But today, the customer
journey is far from linear.

fintechmagazine.com 95
FINSERV

IoT and 5G
CONNECTIVITY
in
Finserve

N
Greater connectivity ot so long ago, 3G was the
transformative technology of the
should equal better
decade. It opened up a world of
financial services. We possibility for finserve customers, initially
take a look at the IoT through the advent of mobile banking.
and what the technology However, 3G was limited; slow, and rather
will do to the space insecure depending on if you were using a
public network. It’s days were limited when
4G arrived.
WRITTEN BY: Since then, the fintech industry has
JOANNA ENGLAND taken off on a global scale and completely
transformed the financial services space.

96 December 2021
 FINSERV

We have e wallets and ApplePay, open “The next generation mobile

banking and BNPL and cross-border, real network will enable not only
time, low cost transaction options. We
have crypto exchanges and can manage
more advances for fintech
all manner of services via our mobile and financial services, but it
devices. Insurtechs are also revolutionising will also allow for continued
underwriting and claims through wearables security maturation within the
and telematics technology.
industry as well”
The customer space
But more than that, the development of BOB CIPOT
SYNOPSYS SOFTWARE INTEGRITY GROUP
the mobile network as part of the IoT, has

fintechmagazine.com 97
 FINSERV

resulted in many more data sources, taking “Another prerequisite

information from sensors, computers, smart
home appliances and more, which when
for fintechs seeking
aggregated can create the ultimate customer to individually-target
profile for service providers.
These KYC developments have, in turn,
services for consumers
transformed other industries, not least of through instant data
which has been the finserve space. processing at the
But if 4G has been capable of creating these
developments, what milestones will 5G usher edge is better use of
in? With an average performance that is 100 system memory”
times faster than 4G, with higher bandwidth
and low latency, the possibilities, say experts, MANISH DEVGAN
are endless. HAZELCAST
Manish Devgan is Chief Product Officer at
Hazelcast, a leading open source in-memory artificial intelligence, to provide actionable
computing platform, that helps Global 2000 intelligence.
and financial services companies to achieve Devgan predicts that drawing on 5G's
ultra-fast application performance. benefits, mobile and wearable device-initiated
He says, “In the finserve industry, higher commerce has the potential to grow at a much
bandwidth, lower latency and more faster pace. 5G networks will, for example,
reliable networks provided by 5G will enable real-time fraud-checks catapulting
create a foundation for secure, real-time mobile payments to mainstream adoption.
applications and services. Boris Cipot, senior security engineer for
“Pervasive data streams fuelled by Synopsys Software Integrity Group agrees with
ubiquitous connectivity will require real- Devgan. He believes the anticipated changes
time platforms that combine disparate to finserve as a result of 5G innovations, will be
data, filter and aggregate data, and leverage industry-changing.

Which UK networks offer

5G so far?

• EE
• O2
• Vodafone
• Virgin Media
• Three UK
• BT
• Sky Mobile
• HMD Global

fintechmagazine.com 99
FINSERV

“To quote Marc Andreessen cofounder being gathered, all point to the possibility of
and general partner at a16z, ‘software is eating sharper insights, better risk assessment and
the world’,” he says. “5G is the next phase of more accurate customer preferences, it also
better connectivity and faster data transfer brings a raft of pitfalls with it.
speeds. The next generation mobile network Data gravity is already a problem for
will enable not only more advances for fintech many large scale operatives. The more data
and financial services, but it will also allow companies gather, and the more devices
for continued security maturation within the being used, increases the digital footprint,
industry as well.” resulting in greater opportunities for data to
be compromised or stolen.
A question of data And the cost of lost data, as well as the
Although speed of delivery, many more data poor management of it, can result in harsh
points and greater amounts of information penalties. Recently in the UK, for example,

100 December 2021

 FINSERV

“A continuous parade of problems. “Many are turning to colocation

headlines about data as the answer; providing the connections

to strategic partners fintechs need, while
breaches, leakages, ensuring infrastructure remains secure,

compromises, and resilient, PCI, EBA and FCA compliant.”

Jonathan Knudsen, senior security
other doom and gloom strategist, Synopsys Software Integrity

reveals that the software Group, also sheds some light on the
situation.
that serves as the “The underlying theme, in financial
foundational layer for services and everywhere else, is
cybersecurity,” he says. “Our appetite for
our society is brittle functionality and interconnectivity has
and porous” far outrun our ability to build, deploy, and
operate software securely. A continuous
parade of headlines about data breaches,
JONATHAN KNUDSEN
SYNOPSYS SOFTWARE INTEGRITY GROUP
leakages, compromises, and other doom
and gloom reveals that the software that
serves as the foundational layer for our
the courts ruled that a man using several society is brittle and porous.”
smart doorbells on the exterior of his Knudsen says that as more devices
house to provide him with better property go online and more of the day-to-day
security, has breached the data rights of his operations of the human species become
neighbour, who was incidentally filmed by
the devices. The courts ruled in her favour
and he was forced to sell his home to pay
the resulting fine.
In a recent annual report by IBM, the
technology giant revealled that the cost of
lost data to companies in the USA in 2021,
was a massive US$4.24bn. That was the
highest yearly figure reported by the study,
since it was first issued in 2003.
Greater connectivity will almost certainly
result in greater risk, says Mark White, Senior
Manager, Financial Markets and Fintech at
Telehouse. “Ultimately, more connections
means more risks. So, the challenge is how to
take advantage of increased connectivity
without compromising security or compliance.”
White points out that the digital
ecosystem is coming into its own and
offering solutions to this most pressing of

fintechmagazine.com 101
FINSERV

“Many are turning to velocity enabling a whole new breed of real-

time applications,” says Devgan.
colocation as the answer; He points out that a consumer’s
providing the connections behavioural data can be analysed in real-
time to provide more context-aware
to strategic partners recommendations. As a result, fintechs now
fintechs need, while need to instantly understand customers

ensuring infrastructure (particularly those influenced by online

trends) and increasingly process data
remains secure, resilient” streams as the data is generated.
In addition, he says, it will be much easier
MARK WHITE to process an insurance claim in real-time
TELEHOUSE by combining weather data with traffic
conditions, vehicle and road conditions,
an exchange of electrical impulses in photographs from the accident site and
cyberspace, security and software will driver’s history.
become inseparable. “5G ultra-low latency use cases will
“Everyone will recognise that security require a combination of 5G networks and
must be part of every phase of software, edge computing. Data analytics and artificial
from its design and creation through to its intelligence (AI) remains very challenging
testing, deployment, and operation. In the at the edge because available computing
same way that safety is woven inextricably power is often limited by physical space.
into the fabric of automobile manufacturing, Faster edge data processing demands a data
cybersecurity will be woven inextricably into architecture that capitalises on advantages
the fabric of software—how it is built, how it in both the software and memory layers.”
is deployed, and how it is operated.”

Real time applications

According to recent analysis, by the Global
5G Technology & Volume Forecast Report
2021, the worldwide 5G technology market
size was valued at US$4.10bn in 2020.
As long as security protocols are correctly
observed, 5G, better connectivity and an
increase in devices, will also result in a boost
for the software industry. In fact, new 5G
technology is estimated to provide various
vital benefits to numerous sectors such as IT
and telecoms, utilities and manufacturing,
entertainment and media, transportation,
aerospace, defence, healthcare and logistics.
“Improved connectivity will not only
increase data volumes but also result in

102 December 2021

 TECHNOLOGY

Infrastructure changes required

However, there will need to be swift changes
implemented sooner rather than later.
Although 5G has already been rolled out in
pilot areas globally, there are still relatively
few apps that require its features. Similarly,
the commercial sector will also have to
implement a number of changes to facilitate
the new technology.
Devgan points out that most edge
sites don’t have the space for hardware
infrastructure based on servers in data
centres. However, he believes this problem Cipot says, “In a decade, I anticipate paper
can be resolved by running a streaming money will have disappeared. In its place,
engine - which can handle both historical payment methods via smart devices will be
data (data at rest) and data in motion (such the standard, preferred payment method—
as browsing products on an iphone). even over and above card transactions. We’re
“These capabilities are essential for the already seeing many regions of the globe
ingestion, transformation, distribution and moving in that direction rather rapidly.”
synchronisation of data streams as soon as White agrees, but also points out that
they are created,” he says. the new technology will provide endless
"It’s also crucial that a data streaming opportunities for customers to enjoy tailored
tool has a streamlined code base - in other products that provide complete flexibility.
words, that developers don’t have to write “Financial service providers have a huge
complex applications to handle those opportunity to provide the seamless, secure
multiple data streams. and personalised services that today’s
“Another prerequisite for fintechs seeking consumers crave. But doing so will require
to individually-target services for consumers a digital transformation. They will need to
through instant data processing at the simplify their business and operating models
edge is better use of system memory. This to enhance customer service and structurally
breakthrough can be achieved by pooling reduce cost.”
memory for applications using sets of As data volumes and connectivity
networked, clustered servers - this approach increases, he says we can expect to see
enables the infrastructure to share data new developments such as predictive
structures with other applications running in modelling to prepare for ‘what if’
the cluster.” scenarios, automation of front-end sales
and customer facing environments and
The future face of finserve customer care being enhanced by self-
With all this in mind, predicting the trends and service functionality.
innovations that will take place in the finserve White adds, “Having the right IT
space over the next decade, is no easy task. infrastructure to enable fast, secure and
But experts have their suspicions in terms of seamless connections will be critical for
where the key developments will take place. success.”

fintechmagazine.com 103
 AI-DRIVEN,
CREDITTECH WRITTEN BY: PRODUCED BY:
JANET BRICE MICHAEL BANYARD

104 December 2021

LENDINGPOINT

fintechmagazine.com 105
 LENDINGPOINT

106 December 2021

How LendingPoint is using AI
and smart data models to drive
fair credit decisions - within
only four seconds - for US-
citizens who need it most

W
hat can you do in
four seconds? Make a
contactless payment
for your latte, take a
snapshot with your
smartphone and get credit approval
from LendingPoint. Four seconds is the
time it takes for this US-based “non-
traditional lender” to offer its customers
credit, according to KN Kasibhatla, Chief
Technology Officer of LendingPoint.
The customer-first approach used by
LendingPoint harnesses the power of
Artificial Intelligence (AI) and data models
to offer credit to those who are tackling a
home improvement project, consolidating
debt, or paying for an unexpected medical
expense (and much more), and moves
away from the Fair Isaac Corporation (FICO)
evaluation model to approve credit. A FICO
Score is a three-digit number based on
the information from credit reports and
traditionally used by lenders across the US.
“Based on your credit profile and
information on your application form, it
only takes four seconds to get an approval
on the LendingPoint platform,” said
Kasibhatla, who has experience in both
technology and finance.
“We believe in using AI and data models
to deliver money to people whenever
and wherever they may need it. We use
technology to drive these decisions. To do
this, we have collected more than 60 billion
data points on our consumers.

fintechmagazine.com 107
 LENDINGPOINT

LendingPoint: AI-driven, CreditTech

“Our algorithms give us access to credit

that other people don’t have access to and
we are able to do this profitably. This is big
news in the FinTech industry where most of
the players are not profitable. We are able to
serve our customers and make money while
we are doing it,” said Kasibhatla speaking
from his office in metro Atlanta, Georgia.
Founded in 2015, LendingPoint recently
surpassed US$4bn in loan originations
this year. It was built on the principle of
providing fair credit to people who had
fallen through the FICO net but were
deserving of credit to help with medical
bills or home improvements. Since then,
LendingPoint has broadened their customer
base to serve FICO ranges between 575 –
850, and added working capital financing
options to small businesses.
“At LendingPoint we provide unsecured
personal loans for consumers across the credit
spectrum, many of whom are people the
more traditional banks don't pay attention to.

108 December 2021

 LENDINGPOINT

KN KASIBHATLA
TITLE: CHIEF TECHNOLOGY OFFICER
INDUSTRY: FINANCE
LOCATION: KENNESAW, USA

The ability to always ask

questions helped KN Kasibhatla,
Chief Technology Officer at US-based
LendingPoint to drive their digital
transformation. “When I came to
LendingPoint it enabled me to ask the
dumb questions that lead to better
solutions,” said Kasibhatla whose
role covers all aspects of technology
from data science, analytics, and
cybersecurity. Kasibhatla came from
a diverse career background having
worked in telecoms and marketing.
Although he had studied finance - with
an MBA in Finance and Strategy from
the University of Chicago Booth School
of Business - he had always stayed on
the technology side of the industry.
The Next-Gen
Software Partner
To FinTech Leaders
Over the past decade, leading FinTech companies
have scaled successfully and rapidly by partnering
with Trantor. We build, deploy and maintain software
solutions for Fintech companies and innovative
enterprises. Our CaptiveCoE™ (Center of Excellence)
engagement model empowers companies scale their
product development efficiently and at a lower cost.
While you focus on strategy, design, and product; let
us do the heavy development lifting.

Learn more

  
 LENDINGPOINT

“AT LENDINGPOINT WE
PROVIDE UNSECURED
PERSONAL LOANS FOR
CONSUMERS ACROSS THE
CREDIT SPECTRUM, MANY
OF WHOM ARE PEOPLE THE
MORE TRADITIONAL BANKS
DON'T PAY ATTENTION TO.
BANKS ARE VERY GOOD AT
GIVING MONEY TO THOSE
WHO HAVE MONEY - WE
FOCUS ON SERVING THE Digitisation with a human touch
PEOPLE WHO NEED MONEY” Kasibhatla, who focuses on all aspects of
technology from development, support,
data science, and analytics, pointed out that
KN KASIBHATLA
CHIEF TECHNOLOGY OFFICER, as a relatively new company, LendingPoint
LENDING POINT has the added advantage of being cloud-
based from the beginning so there has been
Banks are very good at giving money no legacy architecture to wade through.
to those who have money - we focus on “We were founded by people who
serving the people who need money,” believed in big data and using non-
commented Kasibhatla. traditional data to determine people's
By combining technology and proprietary creditworthiness and we have always been
algorithms, they are driving a better lending a cloud-based company which has been an
and borrowing experience by finding more advantage for us,” said Kasibhatla.
reasons to say ‘yes’ to their customers and “We have never had any infrastructure
are now serving hundreds of thousands on the ground and started out as a purely
of people. LendingPoint also works with digital experience. But one of our interesting
small business and merchant point-of-sale twists is that we also talk to consumers over
lending solutions to further unlock access to the phone and listen to their challenges
affordable loans. and try to solve them. I like to think of this

fintechmagazine.com 111
 LENDINGPOINT

2015
year LendingPoint
was founded

US$4+bn
in loan originations

60bn
data points have been
collected by LendingPoint
on their consumers

99%
of credit applications to
LendingPoint are digital

63%
of credit applications
are mobile-first

“BASED ON YOUR CREDIT

PICTURE AND INFORMATION
ON YOUR APPLICATION as digitisation with a human touch. The
FICO score is now less than 5% weight in our
FORM, IT ONLY TAKES models as we work in non-traditional ways
FOUR SECONDS TO GET to measure somebody's ability to pay back.
LOAN OPTIONS ON THE “The point-of-sale and e-commerce have
evolved over time. It started directly with
LENDINGPOINT PLATFORM”
the consumer, then they came through a
website, where they could apply for their
KN KASIBHATLA loans and get money. But as our consumers'
CHIEF TECHNOLOGY OFFICER,
LENDING POINT needs started evolving we expanded into
the areas popular with our consumers. We're
very focused on providing access when they

112 December 2021

 LENDINGPOINT IN FOCUS

LendingPoint is a provider of unsecured

personal loans for consumers and
small business owners across the credit
spectrum. By combining technology
and proprietary algorithms, they work
to drive better lending experiences and
financial freedom for their customers.

Borrowing range
Personal loans range from US$2,000 to
US$36,500. The loan amount approved
can depend upon an individual credit
profile and the information provided
during the application process.
Lending Point takes several factors into
consideration including a customer’s
current DTI (debt-to-income ratio) and
PTI (payment-to-income ratio).

What states do LendingPoint offer

loans in?
LendingPoint offers loans to consumers
in 48 states and the District of Columbia.
need it most, that is why we entered the Currently we do not offer loans to
point-of-sale and e-commerce spaces. consumers in Nevada and West Virginia.
“During the pandemic, buying via
DID YOU KNOW...

e-commerce became a necessity and has How does LendingPoint keep personal
remained a high-demand preference . We bank information safe?
followed customers online and increased LendingPoint takes extensive
our offerings to include a working capital precautions to protect personal
solution to online sellers.” information using robust industry-
Kasibhatla pointed out that 99% of the leading procedures and safeguards,
total credit applications are digital with including encryption, to secure and
63% of those now starting on mobile. “We protect your personal information.
have seen this transition from a website-

fintechmagazine.com 113
 LENDINGPOINT

WHAT IS A FICO SCORE?

Thirty years ago, the Fair Isaac

Corporation (FICO) debuted FICO
Scores to provide an industry-standard
for scoring creditworthiness that was
fair to both lenders and consumers.
A FICO Score is a three-digit number
based on the information in your credit
reports. It helps lenders determine how
likely you are to repay a loan. This, in
turn, affects how much you can borrow,
how many months you have to repay,
and how much it will cost (the interest
rate). This traditional score is used by
90% of banks in the US LendingPoint driven to a mobile-driven digitalisation and
is now using data and technology to that requires a more specialised way of
drive decisions on offering credit to presenting our brand and how we engage
many citizens who have been refused with and deliver for our customers.
DID YOU KNOW...

credit using this score. “We believe in

using data and technology to deliver How loyalty pays off for LendingPoint
money to people who need it which is LendingPoint takes pride in its customer
not necessarily reflected in their FICO experience, and it shows, 26% of their
scores or any of their credit scores. platform originations in Q2 came from their
We use technology to drive these current customer base. The company has a
decisions,” said KN Kasibhatla, Chief focus on AI and data on their e-commerce
Technology Officer at LendingPoint. and point-of-sale to retain and attract
customers across the US.

114 December 2021

 LENDINGPOINT

“OUR ALGORITHMS GIVE US

ACCESS TO CREDIT THAT
OTHER PEOPLE DON’T HAVE
ACCESS TO AND WE ARE ABLE
TO DO THIS PROFITABLY. THIS
IS BIG NEWS IN THE FINTECH
INDUSTRY WHERE MOST
OF THE PLAYERS ARE NOT
PROFITABLE”

KN KASIBHATLA
CHIEF TECHNOLOGY OFFICER,
LENDING POINT

“That trust becomes a two way

street. So our customers want to stay
with us longer, and trust us enough to
have multiple financial products,” said
Kasibhalta who pointed LendingPoint is on
an aggressive growth trajectory doubling
originations this year.”

Long-term partnership with Trantor

Kasibhatla commented on the value of their
long-term partnership with Trantor - an IT
consulting company that focuses on digital
transformation - the company has been with
“We focus heavily on how we talk to our LendingPoint since day one.
consumers, how we treat our consumers, “They have been an important part of
what their experiences are that they want our success and have worked across the
to come back and do business with us. We company and built strong relationships
treat our customers in a way in which we throughout - they almost feel like an
would like to be treated ourselves. That’s an extension of LendingPoint. They work across
important part of our core work ethic.” marketing, legal, customer experience,
Commenting on how their credit rating product, and risk which allows them to
varies from FICO, Kasibhatla said: “FICO is a understand our business goals. By being
look back, while we look forward and ask – embedded in our processes they are able
ability versus intent to pay back. Our goal is to become part of the extended ecosystem
to make sure we set up our customers for that we have here and help us solve the
success, we don’t want them to overextend. business problem.”

fintechmagazine.com 115
 LENDINGPOINT

“FINTECH IS A VERY DISRUPTIVE

INDUSTRY, SO IT'S ALWAYS
GOOD TO ASK THE QUESTIONS,
THERE ARE NO DUMB
QUESTIONS - THE ANSWERS
WILL ALWAYS SURPRISE YOU”

KN KASIBHATLA
CHIEF TECHNOLOGY OFFICER,
LENDING POINT

When its smart to be dumb

Kasibhatla believes asking simple questions
always results in smarter solutions for a
company which has benefited LendingPoint
as they have embarked on their digital
journey to make financial freedom easier for
their customers.
“When I came to LendingPoint it enabled
me to ask the dumb questions as I am not
from this industry. It allowed me to ask
questions and get down to the answers that
lead to better solutions, not just for our
customers, but also for our employees,” said
Kasibhatla whose role covers all aspects of
technology from development, support,
data science, analytics, and cybersecurity.
“In business sometimes people do things
just because that's how they've always done
them. FinTech is a very disruptive industry, “This industry is an amazingly fast moving
so it's always good to ask the questions, and innovative industry - that’s what attracted
there are no dumb questions - the answers me to this particular vertical. The old ways
will always surprise you. That's the only way of doing business are being torn down every
you learn,” said Kasibhatla. day. We are constantly seeing new ways of
Kasibhatla joined LendingPoint 10 servicing our customers and using technology
months before the pandemic and came to deliver what they need at that point in their
from a diverse career background having journey is pretty amazing.”
worked in telecoms and marketing.
Although he had studied finance he had Planning proved key to navigating pandemic
always stayed on the technology side of Despite starting with LendingPoint a few
the industry. months before the pandemic, this challenge

116 December 2021

 LENDINGPOINT

did not side-step Kasibhatla as he had learnt to “In early January, 2020, nobody would
plan and prepare for the unexpected thanks to have thought the whole world would be
the inspiring leadership of his former CEO. working remotely. Now, everybody's living
“In my early days I had a CEO, Leo Cyr, who on Zoom calls and technology enables
had been a marine. He always had us plan those things. Sometimes, it takes a catalyst
and prepare and be ready for unexpected like the pandemic to drive these changes.
contingencies. I worked for a telephone “My role is to make sure the tools are
company at the time and this helped us to there for my colleagues to do their job
survive when a direct hurricane hit the data and the customers to access fair credit.
centre. We managed to keep our network When we had to go remote, we had all the
running throughout that time and that helped tooling already in place for the call centre
me when the pandemic hit. to operate normally.

fintechmagazine.com 117
118 December 2021
 LENDINGPOINT

“WE BELIEVE IN USING AI

AND DATA MODELS TO
DELIVER MONEY TO PEOPLE
WHO NEED IT MOST WHICH
IS NOT NECESSARILY
REFLECTED IN THEIR
FICO SCORES. WE USE
TECHNOLOGY TO DRIVE
THESE DECISIONS”
KN KASIBHATLA
CHIEF TECHNOLOGY OFFICER,
LENDING POINT

“The main job of technology is to

enable people to do their jobs. From our
consumer's perspective, it's not just the cool
looking screen, you've got to make sure that
they experience the workflow, processes,
everything else behind the screens is aligned
to give them a good experience.
“We take real-time feedback from our
customers on a bill log, we track everything
so we know what's going on, where the
friction points are, and we address those
things on a continuous basis. Our goal is to
provide a fully automated approval process,
that's where AI comes into place, not just on
the approval side, but also on the backend
side to make sure we are able to remove
friction points and make it a more pleasant
journey for our customers using AI and data.
We try to make it flexible and fast for them.”
As Kasibhatla effortlessly drives the
technology behind the algorithms at
LendingPoint, it won’t be long before they
are offering credit options within three
seconds of logging on - watch this space.

fintechmagazine.com 119
 FINTECH
COMPANIES TO
WATCH IN 2022
Discover the fastest-growing financial technology
companies across the world as the fintech sector takes off

120 December 2021

 TOP
TOPTEN
10

As the financial industry changes and evolves with new technologies,

staying on top of trends becomes more crucial. The best way for this
is to keep an eye out for innovative companies emerging as leaders
in fintech.

There are a number of predictions for the future of fintech, as well

as numerous companies attempting to shape the sector. As a result,
we have compiled a list of the ten fastest-growing fintech companies
to watch out for in 2022.

WRITTEN BY:
DERIN CAG

fintechmagazine.com 121
TOP 10

10
Paidy
Currency raised in 2021: $120mn
Founded: 2008

In 2008, Paidy began as a

Japanese payments firm that
allows consumers to purchase
items and pay later. In more
recent years, it expanded to
offer financing options on

09
Rakuten, Japan's largest online
retailer, and Amazon.co.jp.
The future for Paidy looks set
as it currently has over
6,000,000 users and continues
to expand, with a workforce
of over 145 staff. In 2021, the Papaya Global
Currency raised in 2021: $250mn
fintech company secured Founded: 2016
$120mn (USD) in new funds.
The Israeli software as a
service (SaaS) platform Papaya
Global was founded in 2016
to automate international
payroll and HR procedures. The
company enables businesses
worldwide to access a network
of preferred vendors. As more
businesses are predicted to
choose SaaS services over on-
premise software, Papaya Global
is ideally placed to benefit. The
firm has an expanding workforce
of 245 personnel, and it secured
$250 million (USD) in new
investment this year.
 TOP 10

08
Grab Financial Group
Currency raised in 2021: $300mn
Founded: 2018

In 2018, Grab Financial Group

started providing digital-only
payments, financing, insurance,
rewards, and investment-related
services. The Singaporean
company has a staff of 150
individuals and is on track to
become one of Asia's most

07
prominent fintech startups. It
is a separate unit of Grab, the
ride-hailing app. In 2021, it raised
$300mn (USD) in new capital
from investors.
Dapper Labs
Currency raised in 2021: $550mn
Founded: 2018

Based in Canada, Dapper Labs

is the company behind the viral
success of CryptoKitties. The
fintech startup was formed in
2018 to create game-related
products using blockchain
technology and has over 252
employees, including former
staff from companies like EA
Sports, Hasbro, Disney, Amazon,
and Zynga. In 2021, it secured
$550mn (USD) in new funding for
further expansion.

fintechmagazine.com 123
DIGITAL PAYMENTS

Avoid the Top 5 Most

Common Open Source
Vulnerabilities Within
Financial Organizations
Learn what open source vulnerabilities
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services organizations.

LEARN MORE
 TOP 10

06 05
Rapyd
Currency raised in 2021: $600mn
Founded: 2015 Mollie
Currency raised in 2021: $675mn
In 2015, Rapyd launched as Founded: 2004
a full-service provider of
In 2004, payments integration
payments that integrates fintech
business Mollie was founded in
services. The company provides
the Netherlands. The company
merchants with a payment
provides a range of services,
platform that Rapyd can easily
including online payment
integrate into any existing app
processing for merchants and
or website, including WordPress,
user-friendly payment options
Wix, and Shopify. They are
for end-users. It has since grown
headquartered in the UK and
into a workforce of over 515
have 320 employees. In 2021,
individuals and secured $675mn
they raised $600 million (USD)
(USD) of new funding from
of capital to grow their business.
investors this year to support
the company's expansion.

fintechmagazine.com 125
TOP 10

04
Fenergo 03
Currency raised in 2021: $600mn
Founded: 2008
Trade Republic
Launched in 2008, Fenergo Currency raised in 2021: $900mn
Founded: 2015
develops software for financial
services companies such as asset Trade Republic is a Germany-
managers and investment banks based exchange that was founded
to assist them with compliance in 2015. It allows customers
requirements. The company's to trade financial products,
flagship product, Client Lifecycle including cryptocurrencies and
Management (CLM), enables publicly listed securities. The
organisations to identify clients, company boasts a workforce
manage their information, and of over 460 individuals who are
monitor transactions in real-time committed to delivering the
while complying with regulations best trading experience possible
at the same time. The Ireland for their app-based users. In
headquartered startup has a 2021, Trade Republic raised
workforce of more than 700 $900mn (USD) in new capital
employees and received funding from investors to use towards
of more than $600mn (USD) platform development and
this year. growth.

126 December 2021

 02
TOP 10

BharatPe
Currency raised in 2021: $545mn
Founded: 2018

As one of India's biggest fintech

startups, BharatPe provides
business owners with app-based
payments and card acceptance
options. It offers zero transaction
fees and no monthly costs,
making it one of the most
appealing alternatives for small
and medium-sized businesses
wanting to expand in India. In
addition, the company also
offers a card payments machine
so business owners can accept
card payments at physical
locations.

BharatPe was founded in 2018

and also boasts a P2P lending
solution called the 12% Club
to enable alternative financing
options that are not available
through traditional banks. It ​
has a workforce of over 1,100
employees and received funding
of $545mn (USD) this year
from investors to develop
new products and services.

fintechmagazine.com 127
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TOP 10

BlockFi How To Setup Flex Payments

BlockFi
Currency raised in 2021: $850mn
Founded: 2017
US-based company BlockFi was
founded in 2017, it specialises
in crypto-asset lending. The
company provides loans in
USD, GBP, or EUR against
cryptocurrencies like Bitcoin
(BTC), Ethereum (ETH) or
Litecoin (LTC). It is a platform
of choice for people who are
looking to take advantage of
their cryptocurrency assets while
maintaining access to liquidity.

BlockFi also provides a variety

of financial services, including
an interest rate account for
cryptocurrency holders. The
company also has a trading
platform, allowing instant
exchange of crypto-assets for
individuals. It also boasts the
first credit card in the world to
reward Bitcoin. Over 850 people
work for the fintech company,
which secured $850mn (USD)
of new funding in 2021.

fintechmagazine.com 131
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