People often ask me, what is FinTech and what does it mean to me?
FinTech is the liberation of everyone living on this planet that has been denied access to banking, credit, payments and wealth management. Freedom of data and transparency in black box decisions is the hallmark of FinTech.
Access to banking is a fundamental human right to transact, store and build wealth without the threat of being harassed by hidden fees or overtaxed and tricked into privacy loopholes. FinTech is to deliver banking services to every man, women and child everywhere on this planet and beyond. Paypal, Venmo, Varo, Chime, N26, and pioneers like Simple are just some of the examples of FinTech companies delivering banking services to everyone.
Access to credit is the ultimate uplifting tool one can leverage to get an education, a car, a home, and a future. FinTech is destroying decades of manual underwriting, subjective and experiential decisions and most importantly, archaic math such as traditional credit scores that just don’t tell the whole story and end up denying millions of people access to credit.
This credit-score-centric credit system that plagues us in the United States, UK and Australia should be completely reconstructed with FinTech that leverages alternative data, behavioral data, spending data and use data science to truly understand why the applicant in question is seeking credit. The “3 digit score” system we’ve been using for the past six decades needs a serious reform now. That’s what FinTech is about. ZestFinance, Tala, Plaid, Yodlee, and Argyle are poised to redefine how we access to credit and how lenders grand credit. FinTech is on the cusp to providing access to all.
We are at the crossroad of technology, data, financial information, and workforce behavioral data. We finally have the technology to understand not just how many payments a person’s made to a credit card balance but why is this person is in need of a personal loan?
We can finally combine this information and make a real-time, holistic and continuous decision to help seven and a half billion people to transact, borrow and prosper. That’s FinTech and “We are in the golden age of FinTech” — Ron Suber.
Timothy Li, Founder of Alchemy Technology, Inc.