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.
- Agenda and Bios
- Summary Article
- Watch videos of each conference session on our YouTube channel.
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