When it comes to embedded lending, point of sale is really where the action is at. We have seen the explosion of BNPL volume over the last decade, but not every point-of-sale transaction is suitable for those platforms. Then we have banks, who have missed out on the credit card volume that has been lost to BNPL. Ideally, they would like to embed a lending solution into the point of sale that they control. This is where our guest today comes in.My next guest on the Fintech One-on-One podcast is Yaacov Martin, the CEO and Co-Founder of Jifiti. Based in Israel, but doing business globally, Jifiti works with large banks to customize embedded lending solutions at the point of sale that they can control. How this technology works and what it means for the future of lending is the focus of this conversation.In this podcast you will learn:The roots of Jifiti and how it began in the gifting business.Why IKEA encouraged them to move into lending.What they have created in embedded lending that is unique.How their technology works on the backend.How they work with the credit box of the lender.Why they chose to focus on banks in their go to market strategy.How they work with Citizens Bank as an example.The range of order sizes that they are working with today.What Yaacov has learned from working with large banks.Why the bank-fintech partnership challenges of 2024 hasn't impacted Jifiti.How their recently launched Tap Now Pay Later technology works.The beauty of working with digital wallets today.How they can power an installment loan through a wallet transaction.How they adapted their technology to work in different global markets.The scale that Jifiti is at today.His vision for the future of embedded finance.Connect with Fintech One-on-One: Tweet me @PeterRenton Connect with me on LinkedIn Find previous Fintech One-on-One episodes

There is a looming retirement crisis in the US and in many other countries for that matter. A large portion of the population has no retirement savings at all and will have to rely primarily on social security for their retirement income, and the future of that program is shaky at best. In fintech, not a lot of attention has been paid to this huge sector of financial services: retirement savings. And yet, there is so much room for digital innovation as much of it is still antiquated and paper-based.My next guest on the Fintech One-on-One podcast is Romi Savova, the CEO and Founder of PensionBee. An established fintech in the UK with a history going back 10 years that included an IPO in 2021, PensionBee is focused on bringing innovation to retirement savings. They have recently launched in the US market.In this podcast you will learn:The frustration that Romi experienced that led to the founding of PensionBee.The average number of times people switch jobs in their lifetime.How PensionBee helps workers simplify their retirement savings.The state of retirement in the UK.The traction that PensionBee has made in the UK.Why they decided to become a public company in 2021.What was behind their decision to expand to the US now.How their partnership with State Street works.Where they are at with their US rollout.The different investment options available for US investors.How many workplace retirement accounts have been abandoned in the US.The difference between the US and UK when it comes to retirement savings.How the PensionBee onboarding process works.How Romi views the future of retirement in the US.Her goals for PensionBee in the US.Connect with Fintech One-on-One: Tweet me @PeterRenton Connect with me on LinkedIn Find previous Fintech One-on-One episodes

Welcome to a new occasional series we are doing on the podcast called Fintech Revealed. This is where we take a deep dive into one specific topic with a couple of industry experts.In our first episode we are focused on one of my favorite topics: cash flow underwriting. I invited two of the leading credit experts, Kevin Moss and Alex Johnson, to provide a well-rounded discussion on this topic highlighting both the benefits and challenges of cash flow underwriting. We covered so much territory in this conversation, so whether you are curious about cash flow underwriting or are a seasoned veteran, I am confident you will learn a great deal.This episode was sponsored by Prism Data, the modern cash flow underwriting solution.In this podcast you will learn:What cash flow underwriting is exactly.Why cash flow underwriting is not captured in the FICO score.How Kevin was using transaction data at Wells Fargo in the early 2000s.What has happened that has accelerated the use of cash flow data in underwriting.Why banks haven't moved more quickly to implement cash flow underwriting.How subprime and prime consumers have been segregated in the current credit system.How cash flow data is different from alternative data.Why cash flow underwriting gets us back to the traditional way we used to be approved for credit.The real mission of cash flow underwriting.How well cash flow data predicts default risk and where it has the most value.What tokenization for connecting bank accounts will look like for borrowers.How streamlining the authorization process will supercharge cash flow underwriting.The types of lenders and products that are using cash flow underwriting today.The most promising use case for cash flow underwriting.How it can help the mortgage lending process.Kevin's view on how cash flow underwriting will replace debt-to-income.Why regulators such as the CFPB like cash flow underwriting so much.How cash flow data creates a lending market with more fairness.Connect with Fintech One-on-One: Tweet me @PeterRenton Connect with me on LinkedIn Find previous Fintech One-on-One episodes

[Editor's note: This interview was recorded on November 13 and in the fast-moving transition to a new administration, some items discussed here as possible or unlikely have already come to pass.]The new Trump Administration is going to have a dramatic impact on leadership at Federal banking regulators as well as on the new rules impacting fintech. So, I thought it would be useful to bring on an expert to tease out this impact and how fintechs can adapt to the changing of the guard.My next guest on the Fintech One-on-One podcast is Armen Meyer, the Co-Founder of the American Fintech Council, the former head of public policy at LendingClub and a public policy expert. We cover a lot of territory on this show as Armen prognosticates on what the change of administration could mean for fintech.In this podcast you will learn:Armen's history with fintech and forming the American Fintech Council.What changes we are likely to see at the top of the regulatory agencies.Why the Federal Reserve will see a lot of noise under Trump.Why the CFPB will not focus their attention on Section 1033.What might happen with the new BNPL rules.The future of the credit card late fee rules.What might happen with EWA, overdraft rules and regulating big tech.The impact on BaaS bank consent orders.How the state regulators may react to the changes at Federal agencies.How the pendulum swing back and forth between Democrats and Republicans impacts banking and fintech.What the end of the Chevron Doctrine might mean for fintech.Whether we will see some kind of new limited fintech or payments charter.Why Armen is optimistic for the new Trump Administration.Connect with Fintech One-on-One: Tweet me @PeterRenton Connect with me on LinkedIn Find previous Fintech One-on-One episodes

The consumer lending space has seen a great deal of innovation in the past decade or more. But the number of completely new lending concepts that cross my desk has reduced to a trickle in the past couple of years. That is why I was excited to see an idea that was completely original and compelling.My next guest on the Fintech One-on-One podcast is Veetahl Eilat-Raichel, the CEO and Co-Founder of Sorbet. While you could think about Sorbet as an unsecured consumer lender, because that broadly defines them, they have discovered a completely untapped niche: PTO (Paid Time Off). Most employees accrue PTO that has real value and Sorbet has figured out how to tap into that value to create a lending product.In this podcast you will learn:The founding story of Sorbet.The size of the unused PTO marked in this country.The percentage of employees that accrue PTO.How their PTO advances work.How they integrate with payroll systems.When the issued their first loan.Their unique capabilities to underwrite PTO.What they consider to be their technological moat.What happens if someone uses all their PTO and then leaves their job.The two types of personas that uses Sorbet.The average loan size and the range of interest rates charged.What they have learned in the data so far.How they are going to market.How they are educating the market on the concept.What they learned from the earned wage access space.The three revenue streams they have.Their biggest challenge in growing the business today.How they are funding their loans.The early pivot they made that transformed the company.Connect with Fintech One-on-One: Tweet me @PeterRenton Connect with me on LinkedIn Find previous Fintech One-on-One episodes

When you have been covering fintech as long as I have you get to know others in the space doing similar things. Zack Miller, the founder and managing editor of Tearsheet, was writing about fintech and interviewing people as I was getting serious about fintech lending back in 2012.Since I no longer own a fintech media company, we are no longer competitors so I wanted to get him on the show to talk about Tearsheet. He has done a great job building it up into one of the leading media companies in the industry today.In this podcast you will learn:How Tearsheet went from a passion project to a fintech media business.How they started doing small-scale high-end events.What they found out in their Gen-Z working group.The different components of Tearsheet and how they make money.How they decide what goes into their content.How to build trust with the largest financial institutions.The trends that Zack is looking at most closely.What banks have learned from their fintech partnerships.Why he is still a big fan of blockchain.What the future holds for Tearsheet.Connect with Fintech One-on-One: Tweet me @PeterRenton Connect with me on LinkedIn Find previous Fintech One-on-One episodes

Account payable automation software is one of those areas of fintech that doesn't get as much coverage as it should. Creating an efficient accounts payable system is a pain point for pretty much every company, but particularly for those businesses occupying the middle market. This is the opportunity that our guest today seized upon when starting his company nearly 25 years ago.My next guest on the Fintech One-on-One podcast is Michael Praeger, the CEO, Chairman and Co-Founder of AvidXchange. Mike founded his company all the way back in April 2000 and it is been through several phases in its growth to where it is today. It took them 10 years to get to $10 million in revenue but in the following decade they went from $10 million to $400 million. And then he took the company public. How he was able to do this makes for a really interesting discussion.In this podcast you will learn:The catalyst that led to the founding of AvidXchange in 2000.How they were able to grow over 30% a year for 12 years in a row.What excites Mike is the business today.Why they decided to raise a large amount of money in 2015.How he describes the different components of their business.The huge number of accounting systems they integrate with.Why they focused on the middle market and have not gone after small businesses.The core benefit they are bringing to the table.How Avid Pay Direct is able to enhance a standard ACH payment.Why cross border payments is not a major part of their business.Why middle market companies are not focused on speed of the payment.Examples of how they are using AI in their systems today.How being a public company has changed AvidXchange.Why he decided to start his own podcast and what it is about.Connect with Fintech One-on-One: Tweet me @PeterRenton Connect with me on LinkedIn Find previous Fintech One-on-One episodes

While there are tens of millions of Americans still struggling with their financial health the reality is that fintech is starting to have a significant impact here. Some companies are reaching scale and are helping those people living paycheck to paycheck save huge amounts of money in aggregate particularly when it comes to punitive bank fees.My next guest on the Fintech One-on-One podcast is Zuben Mathews, the CEO and Co-Founder of Brigit. As a college student, he lived the challenges of not having enough money and was motivated to do something about it. Today, Brigit is helping over one million people become more financially healthy, and in the process saving them over $1 billion in overdraft fees.In this podcast you will learn:The problem Zuben had in college that led to the founding of Brigit.How he got the company off the ground.His thoughts on the impact of overdrafts and NSF fees.What Brigit's app provides and how it helps consumers.Why they decided to make subscriptions their primary revenue stream.The top use cases for their wage advances.How they are measuring their impact on the financial health of their users.The mechanics of how their advances work.The data they look at in their underwriting process.How their users are becoming more educated about financial health.How their credit building system works and why it is different.How they help people earn more income.The astounding amount of revenue they are earning per employee.Why they decided to call the company Brigit.Zuben's vision for Brigit.Connect with Fintech One-on-One: Tweet me @PeterRenton Connect with me on LinkedIn Find previous Fintech One-on-One episodes

Imagine serving unsecured consumer loans to a population that has no credit file and no banking activity whatsoever. This population primarily uses cash and operates outside of the traditional financial system. Is it even possible to serve this population with short-term loans profitably?My next guest on the Fintech One-on-One podcast is Roberto Salcedo, the CEO and Co-Founder of Baubap. Roberto and his team have done exactly that, building the technology and the underwriting models themselves to serve Mexico with small dollar loans. How he has been to do that makes for a fascinating story.In this podcast you will learn:How he was able to leverage his knowledge as a banker to start Baubap.Why Mexico has lagged the rest of Latin America in adoption of financial services.Why the cash economy in Mexico makes it harder for banks.Baubap's core lending product and how quickly it is delivered.How they created their hypothesis for their unique approach to underwriting.The types of data they feed into their underwriting algorithms.How they started using AI in their initial models.Why they created all the fraud, identity verification and KYC features themselves.How they have been able to improve their approval rates over time.Some of the signals they use to indicate creditworthiness.The typical borrowers they are working with.Their lucrative referral program.How they are finding their borrowers.Their track record of profitability.How they were able to close a $120m debt facility from a US investor.Roberto's expansion plans for Baubap.Connect with Fintech One-on-One: Tweet me @PeterRenton Connect with me on LinkedIn Find previous Fintech One-on-One episodes

Despite all the advances in fintech lending, the way data has been furnished to the credit bureaus has remained largely unchanged for several decades. We still operate on a 30-day payment cycle with no allowance for real time data. Not to mention all the recent credit innovations such as BNPL and short-term cash advances. This is about to change.My next guest on the Fintech One-on-One podcast is Christian Widhalm, the CEO of Bloom Credit. They have created a system that can work with cash flow data, can work with BNPL, can work with real time payment data, all while staying within the legacy confines of the Metro 2 data format of the credit bureaus.In this podcast you will learn:How Christian helped the founder of Bloom Credit get things going.Why Bloom Credit pivoted from B2C to B2B.What convinced him to join as CEO in 2021.The problems with Metro 2, the 26-year-old credit bureau data format.How their solution works as the intermediary between the bureaus and lenders.How Bloom Credit works with real time payment data.Why they store the payment data themselves.The types of FIs using Bloom Credit today.How Bloom Plus works and how it is different from Experian Boost.How Bloom Plus can help people build credit without taking on debt.The key trade lines from a checking account that are reportable to the bureaus.How new immigrants and new adults can enter the credit system.Why this is such a great opportunity for community banks and credit unions.How winning Finovate Best in Show in May has helped Bloom Credit over the last few months.Christian's vision for Bloom Credit.Connect with Fintech One-on-One: Tweet me @PeterRenton Connect with me on LinkedIn Find previous Fintech One-on-One episodes