Fintech has been playing an increasing role in shaping financial and banking landscapes. Financial companies are benefiting from artificial intelligence and machine learning (AI/ML) technologies in their credit decisions, custom marketing programs, custom wealth management services, fraud detection, cybersecurity, anti-money laundering, Know Your Customers (KYC programs), and more.

The use of alternative data sources, big data, and complex AI/ML algorithms allows faster service and a lower cost of credit assessments and monitoring, creating savings that could potentially be passed on to consumers. Some examples of these alternative data sources include information drawn from utility payments, electronic records of deposit and withdrawal transactions, insurance claims, bank account transfers, use of mobile phones or the Internet, other personal data, such as consumers’ occupation or details about their education, and more. Public statements and reports from some lenders indicate that they no longer rely on the traditional credit risk measures when determining loan qualifications.  Concerns have emerged about the use of alternative data sources by fintech lenders and the impact on financial inclusion. These innovations could carry a risk of disparate treatment because some lenders may not fully understand the black box algorithms used through some AI vendors. The conference intends to provide a platform for industry practitioners, regulators, policymakers, business leaders, and researchers to come together and share their vision and wisdom.

We hope that the rich discussion from the conference will provide guidance in developing the best policy solutions that would result in greater efficiencies and benefits to all parties. Our in-depth understanding of the interplay among the various activities, rules, policies, and guidance would help to enhance policy effectiveness without potential unintended consequences.

Conference Organizing Committee:

  • Julapa Jagtiani, Federal Reserve Bank of Philadelphia
  • Rosalind Bennett, Federal Deposit Insurance Corporation
  • Christopher Feeney, Bank Policy Institute
  • Itay Goldstein, The Wharton School of the University of Pennsylvania
  • Richard Herring, The Wharton Financial Institutions Center
  • Aaron Klein, Brookings Institution, Center on Regulation and Markets
  • Kevin Werbach, The Wharton School of the University of Pennsylvania

Conference Advisory Committee:

  • Kelvin Chen, Federal Reserve Board
  • Carol Evans, Federal Reserve Board
  • William Spaniel, Federal Reserve Bank of Philadelphia

Agenda

Tuesday, November 13

Opening Remarks and Introduction
Patrick T. Harker
President and CEO, FRB Philadelphia

Opening Keynote
Lael Brainard
Governor, Board of Governors of the Federal Reserve System

Fintech CEO Perspectives: Using AI to Identify the “Invisible Prime”

Moderator: Patricia Hasson, President and CEO, Clarifi, and Member of the Board of Directors, FRB Philadelphia

Speakers: 
Al Goldstein, Chairman and CEO, Avant Holding Co.; CEO, Amount

Jeffrey Meiler, Founder and CEO, Marlette Funding, LLC

Ken Rees, CEO, Elevate

Jason Gross, Cofounder and CEO, Petal

Fintech CEO Perspectives: Data Aggregation and Alternative Data

Moderator: Paul Saltzman, Partner, White & Case LLP

Speakers:
Paul Gu, Cofounder, Upstart

Sanjoy Malik, CEO, Urjanet, Inc.

James Wu, Founder and CEO, MonJa

A Conversation with Patrick Harker 
Patrick T. Harker
President and CEO, FRB Philadelphia

Moderator: Richard J. Herring, Director and Cofounder, The Wharton Financial Institutions Center

Fintech Industry Research 

Moderator:  Julapa Jagtiani, Senior Special Advisor, FRB Philadelphia

Paper 1: “Fintech: Fact Versus Fiction”
John Wirth, TransUnion

Paper 2: “Fintech Small Business Lending Efficiency”
Usman Ahmed, PayPal, Inc.

Paper 3: “Developing Transparent Credit Risk Scorecards More Effectively: An Explainable Artificial Intelligence Approach”
Gerald Fahner, FICO

Paper 4: “Trended Credit Data Attributes in VantageScore Model”
Nick Rose, VantageScore Solutions

The Roles of Alternative Data in Expanding Credit Access and Bank/Fintech Partnership

Moderator: Christopher Feeney, Executive Vice President, Bank Policy Institute

Speakers:
Nathaniel Hoopes, Executive Director, Marketplace Lending Association

Arlen W. Gelbard, General Counsel, Cross River Bank

Scott Pearson, Partner, Ballard Spahr, LLP

Brad Pennington, Chief Risk Officer, PayJoy

Travis Skelly, Senior Vice President, Citi Ventures 

Brian King, CRO, Digital Banking, Goldman Sachs/Marcus

Evening Keynote 
Jelena McWilliams
Chairman, Federal Deposit Insurance Corporation

Introduced by Patrick T. Harker, President and CEO, FRB Philadelphia

Wednesday, November 14

Responsible Fintech Small Business Lending

Moderator: Ami Kassar (Founder and CEO, MultiFunding LLC

Speakers:
Bernardo Martinez, U.S. Managing Director, Funding Circle

Louis Caditz-Peck, Director of Public Policy, LendingClub

Sam Taussig, Head of Global Policy, Kabbage