CEOs shouting, “More AI apps!”
Flash demand for AI, embedded finance, and BFR construction
Bill Rice
February 22, 2023
Pressure mounts for tech execs to build more AI apps faster
Financial services companies are tightening their belt (laying off people and tightening budgets), and the recent hype around ChatGPT and generative AI is turning up the heat on tech executives to deliver AI and machine learning applications.
In this recent, Wall Street Journal article Amerisave (mortgage) and AFLAC (insurance) cite challenges in answering these demands.
Many companies have begun investing in these capabilities but find it difficult to source the right talent and quickly develop solutions.
Photo by Hitesh Choudhary on Unsplash
The obvious answer is to start turning to third-party vendors already solving and delivering production-ready solutions.
Here are a few notable examples:
ProPair: Provides seamless integration of AI/ML-powered predictive lead scoring, intelligent lead distribution, and enhanced campaign targeting for aged leads, direct mail, and portfolio retention.
Capacity: Uses AI to support loan originations and servicing back office processing and automation.
Zest: Provides AI-powered underwriting and credit analysis for lenders.
Start by identifying high-priority use cases and then go into the market to find the rapidly emerging choice of innovative AI companies already working on your problem.
It doesn’t mean you need to stop your initiatives, but it will accelerate your competitive advantage in the market.
Additional Reading:
What AI and machine learning use cases are top of your priority list?
Deep dive on neobanks and maybe how you can adopt some of these concepts into your own organization
There are some really interesting concepts in here that are worth taking away and exploring as strategic themes.
Banking as a Service (BaaS) and embedded finance are ways to turn services into discrete components and introduce them into other innovative customer experiences. Buy Now Pay Later (BNPL) companies are killing it with this strategy.
Targeting affinity groups and other demographic segments versus geographic segmentations - branches have been the natural organizational structure for years. Still, as the consumer goes online, they will likely be better attracted by a sense of personalization than the “local guy.”
It used to be location, location, location. Now it’s experience, experience, experience.
What neobank concepts can you introduce into your positioning strategies?
Built for rent (BFR) is on fire
Wondering why DSCR, bank statement, single-close construction, and other real estate investor loans are so hot?
In case you aren’t familiar, BFR housing refers to single-family homes, townhouses, and apartments built specifically for rental purposes rather than for sale.
This trend reflects a growing demand for rental housing due to affordability concerns and changing attitudes toward homeownership.
Are you taking advantage of this financing demand?