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In this episode of Accrued, hosts Tedd Huff and Colton Pond engage with Ensemblex leaders Shawn Budde and Chloe Zhu to explore challenges and opportunities in lending and financial technology. The discussion highlights common pitfalls for fintech startups, such as prioritizing customer acquisition while neglecting critical processes like servicing and collections, which are essential for long-term success. The importance of clean, organized data for informed decision-making is emphasized, along with strategies to enhance operational efficiency through structured approaches. They also address the role of AI, stressing the need for human oversight to prevent errors and biases while using it as a tool to improve automation and decision-making. Practical advice is provided on meeting evolving regulatory requirements, ensuring compliance is integrated into business operations. Finally, the episode examines advanced financial practices in countries like India and Brazil, offering lessons on improving accessibility and efficiency in U.S. markets. This conversation delivers actionable insights for professionals seeking to refine their strategies in fintech and lending.

Takeaways

1️⃣ Avoid the Biggest Lending Mistake Startups Make

2️⃣ AI Won’t Fix Everything

3️⃣ Start Compliance Early to Save Time and Money

4️⃣ What’s Your Customer’s Long-Term Value

5️⃣ Look Globally to Stay Ahead

Links:

EnsembleX: https://www.ensemblex.com/

EnsembleX LinkedIn: https://www.linkedin.com/company/ensemblex/

Shawn Budde LinkedIn: https://www.linkedin.com/in/shawn-budde-584aa4/

Chloe Zhu LinkedIn: https://www.linkedin.com/in/chloe-zhu-cfa/

Fintech Confidential

Notifications: https://fintechconfidential.com/access

LinkedIn: https://www.linkedin.com/company/fintechconfidential

X: https://x.com/FTconfidential

Instagram: https://www.instagram.com/fintechconfidential

Facebook: https://www.facebook.com/fintechconfidential

Supporters

LoanPro: As default rates continue to rise and margins compress in lending, financial organizations are searching for solutions that combine operational efficiency with innovation. Look no further, as LoanPro allows lenders to enhance their origination, servicing, collections, and payments using the foundation of a modern lending core. Check out loanpro.io/demo to learn how 600+ financial organizations have modernized their tech stack with LoanPro.

Skyflow, the leading data privacy platform trusted by top financial institutions. Protect your customers' data with Skyflow's innovative solutions. Get started at www.skyflowsecure.com

HAWK:AI - A game-changing approach to compliance. With real-time monitoring, adaptive learning, and advanced AI, it cuts false positives, simplifying your compliance efforts. Upgrade your surveillance with ease. Visit https://gethawkai.com for more intelligent, more effective compliance.

About:

Guest

Shawn Budde: Shawn Budde is a Principal at Ensemblex and has over 30 years of experience in consumer finance. His career includes leadership roles at Capital One, where he managed various divisions, including subprime credit cards and customer marketing. Shawn co-founded Zest AI, applying machine learning to lending decisions, and has consulted with numerous lenders to optimize their credit operations. He holds a B.A. from Columbia University and an M.B.A. from the Wharton School at the University of Pennsylvania.

Chloe Zhu: Chloe Zhu is the Director of the Venture Studio at Ensemblex and brings a diverse background in investment banking, impact investing, and fintech. She has held roles at J.P. Morgan and Goldman Sachs and led new product initiatives at Mission Lane. Chloe also co-founded projects at Gestalt and Stealth. Her expertise includes building scalable credit products and managing investment portfolios, focusing on improving financial inclusion and operational efficiency in fintech.

Ensemblex: Ensemblex partners with companies worldwide to help start, scale, and improve credit products. Their clients range from fintech startups to global financial institutions. With deep expertise across every credit product, customer segment, and stage of the credit lifecycle, Ensemblex focuses on tailored business solutions, operational efficiency, and advanced analytics to meet their clients’ needs.

Host:

Tedd Huff is the Co-Founder of Voalyre and the President & Founder of Diamond D3, a consultancy renowned for its expertise in global payments and marketing. With over two decades of experience in FinTech, Huff has played a pivotal role in shaping the industry through his contributions to various startups and established companies, focusing on growth, innovation, process improvements, and enhancing user experience in the complexity of payments.

Colton Pond: Colton Pond is a seasoned marketing executive with a strong fintech and financial services background. In his latest role, Colton is the CMO for LoanPro's API-first lending platform, aiming to meet the increasing market demands. His track record includes a significant tenure at Truv, where he led the marketing team to achieve a 300% growth in year-over-year revenue. Colton has also held key marketing and sales positions at MX, Lucid, and HealthEquity, demonstrating his ability to drive success and innovation within the fintech sector.

Diamond D3, Media: A media creation, management, and production company delivering engaging content globally

Chapters:

03:27 Introducing Ensemblex Guests

06:13 Challenges in Scaling Credit Products

08:17 Common Mistakes in Lending and Credit

11:47 Importance of Servicing and Collections

15:13 Data and Analytics in Financial Services

18:08 AI in Financial Services

23:45 Regulation and AI in Lending

24:18 Challenges with Machine Learning Models

27:46 Regulatory Interactions and Compliance

29:06 Community Banks and AI Adoption

31:20 Future Opportunities in FinTech

35:53 Global Innovations and Predictions

40:49 Conclusion and Final Thought

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