Welcome back to the fifth podcast of the new series Under The Hood from 11:FS and Synapse. In this series, we’re diving deep to uncover the banking infrastructure that is disrupting traditional banking models and shaking up the system to improve the financial lives of millions around the world.
This week, we’re taking a close look at lending and how fresh ideas and technology are coming together to bring new solutions for consumers. To elaborate on this topic the co-hosts, Simon Taylor, co-founder of 11:FS, and Sankaet Pathak, founder of Synapse are joined by Melanie Aliperti, Head of Product at Nova Credit, and Tucker Haas, CEO at Quo.
The discussion begins with a look at why lending is ripe for disruption, the rich data sources that are fueling new fintech products, and what the new players offer that the banks can’t. They explore the routes to starting a lending product if you aren’t a bank and how the various lending models work in this new frontier. They continue with a look at regulations, including how fintechs and non-banking lenders can protect themselves against defaults.
“It’s not that lending in itself is getting disrupted, there are aspects of that as well for sure, but the most interesting part is that lending is getting embedded in applications that by and large have a mission to improve the financial lives for consumers and businesses.”
They continue with a discussion about credit reporting and credit scores exploring questions like how new algorithms are starting to change what is considered in a credit check, and are we moving away from traditional FICO scores and to something more inclusive? The group concludes with a look ahead, discussing areas of need and opportunity, and the trends that will influence lending models over the next 5-10 years.
In this episode, Sankaet is joined by Misha Esipov, CEO & Co-Founder of Nova Credit, to unpack how new BaaS capabilities address the technical complexities of launching credit products to previously underserved market segments as well as how to take credit global.
In this episode, we explore the Fintech culture and regulatory sandboxes. What is the culture of the Fintech ecosystem? What is the importance of knowing the regulatory and compliance framework? What is a regulatory sandbox and how can it support innovation?
In this episode, we delve deep into the OCC and Blue Ridge Bank Agreement. What was the nature of the agreement? What likely drove the guidelines in the agreement? Is this the beginning of a trend for further OCC agreements?