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Jonathan Camhi
Jonathan Camhi
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5 FinTech Startups To Watch

A look at five diverse startups joining the New York City-based FinTech Innovation Lab that are looking to change the way banks do business.
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Revolution Credit aims to bring gamification and predictive behavioral analytics into the credit decisioning process. If a bank looked at 1000 different customers with similar credit scores, Revolution Credit would be able to predict which ones will be more likely to repay, Zaydoon Munir, the company’s founder and CEO, said during yesterday’s presentation.

Traditional credit scoring can’t really predict future customer behavior. It just gives insight into a customer’s past, Munir pointed out. And credit scoring methods are useless when it comes to the millions of potential customers who don’t have any credit history. Often these customers get caught in a cycle of rejection because they don’t have the history to prove credit-worthiness, Munir added.

Revolution Credit solves this issue by “engaging the customer in [gamified] activities and extracting behavioral signals that indicate willingness to pay back,” Munir explained. This helps mitigate loan losses, while improving customer experience and acquisition, he said. Working with one lender, Revolution Credit helped reduce customer delinquency rates by 30%.

 

Jonathan Camhi has been an associate editor with Bank Systems & Technology since 2012. He previously worked as a freelance journalist in New York City covering politics, health and immigration, and has a master's degree from the City University of New York's Graduate School ... View Full Bio

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Lucky1Jaguar
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Lucky1Jaguar,
User Rank: Apprentice
7/2/2014 | 8:02:05 PM
re: 5 FinTech Startups To Watch
I think that is a smart move to provide a true, and more accurate challenge for encouraging both the financier and the borrower.
Kelly22
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Kelly22,
User Rank: Author
6/30/2014 | 4:50:18 PM
re: 5 FinTech Startups To Watch
There are some really cool ideas here and I agree that banks should keep an eye on the new technologies these startups are using. Gamification is one, and I noticed a couple of these are using neuroscience/behavioral data as well - interesting use of data and could be traced back to the underlying importance of fully understanding the customer.
Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
6/30/2014 | 3:12:40 PM
re: 5 FinTech Startups To Watch
Gamification was an interesting trend. Especially in the use of judging credit-worthiness. The current customer experience with the credit bureaus is kind of awful. If one had the choice of going through that or playing a simple online game, I think the game would win every time.
KBurger
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KBurger,
User Rank: Author
6/29/2014 | 12:58:21 AM
re: 5 FinTech Startups To Watch
Obviously not all of these firms will have long-term success in the financial services industry, but banks definitely need to pay attention to the technologies firms such as these are deploying, and how they are deploying. For example, two of these firms are incorporating gamification/gaming techniques in their offerings to address a few different banking challenges. They are adopting a "think different" approach to long-standing banking challenges. Very interesting.
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