On the 9th of September, we had the extraordinary pleasure of presenting at Finovate Fall in downtown New York. Held in the breathtaking confines of the Hilton Hotel, over 1,600 attendees gathered to build connections and exchange ideas. Running since 2007, Finovate offers a select number of startups the opportunity to present their newest innovations in a brief 7 minute presentation.
After showcasing our AutoInvest feature in 2015, we were delighted to be asked back to present our automatic scoring system for borrowers this year. We loved connecting with so many of you and hugely enjoyed the event as a whole. Many excellent apps and innovations were presented and we are truly excited for the future of fintech.
Let’s take a brief look at our presentation and the standout startups.
What is Bitbond’s automatic scoring mechanism for borrowers?
Since early 2015, we have been working with a research team at the University of Potsdam to automate the borrower rating process. This started by building complicated machine learning algorithms which could evaluate thousands of datapoints made available by the borrower.
By analysing historical data, the algorithm has been continually improving its accuracy, now predicting creditworthiness with excellent precision. As a result, our credit rating process now involves only very minimal levels of human interaction. The benefits of this are manifold. Firstly, it allows for a more accurate evaluation of a borrower’s creditworthiness. Human error is taken out of the equation, and the machine learning algorithm operates without bias, continually re-evaluating data-points and improving as a result.
Secondly, we can now rate borrowers far quicker than before, as our automated system can do in a few seconds, what human’s could achieve in a day. We are therefore in a great position to scale our operations, as any number of borrowers can now be assessed quickly and accurately.
At present, our credit scoring team double-checks every rating provided by the algorithm. This is to ensure a high standard of rating, and spot any inconsistencies before we move to a fully automated process.
We are very excited by this new feature and were delighted by the response it received at this years Finovate.
Key takeaways from Finovate Fall 2016
Finovate is the gold-standard for technology and finance conferences around the world. The presenters and attendees were excellent, with the event as a whole going down as a great success in our eyes.
Compared to previous years, it was interesting to see the noticeable shift from front-end to back-end applications. While previous occasions showed off slick new interfaces and innovative user experiences, this years event focused on streamlining regulatory processes and cutting down on paperwork.
Our automatic rating feature is one good example of this, but many others come to mind. Australia-based Identitii for example, showed off an excellent token-based system designed to help bank’s outgrow out-dated legacy systems. Similarly, Trulioo presented their innovative identity verification process, which could massively cut down on the time companies like Bitbond need to spend on verifying the identity of users.
Banking is clearly being democratised, and Finovate showed that more than anything else. Startups like N26, Bitbond and many others, are bringing essential financial services to normal people, and taking them out of the grasp of huge corporate entities like banks. In doing so, smaller platforms are now facing new challenges, and Finovate 2016 comprised many startups showcasing fantastic solutions.
“RegTech” as it’s referred to, involves the streamlining of important KYC and AML procedures, with many smaller companies, like Trulioo and Identitii spearheading solutions. This will no-doubt continue to play a vital role in the future and it was excellent seeing Finovate leading the charge for financial innovation once again.
Conclusion – Thank you Finovate for an excellent event
It was a great honour to present at this years Finovate conference in New York. Meeting so many wonderful people and exchanging such stimulating ideas has made us very excited for 2016 and the innovation fintech can bring. All financial services, whether banking, lending, trading, investing or saving, are being transformed and we are delighted to be a part of it.
Thanks for reading.