Demos: Funding Circle, Glia, 9 Spokes

Transcription:

Matt Shearer (00:08):

Good morning. My name is Matt Shearer.

Andrés Avila (00:11):

I am Andres Avila.

Matt Shearer (00:13):

We work at Funding Circle US. We lead our lending as a service channel where we partner with financial institutions around the country to co-brand White label our award-winning SMB digital lending platform. We are incredibly excited to be here today because just last week the small business administration along with us made public that funding circle was selected for an SBLC, so the ability to originate SBA seven A loan. So we are now the first and only FinTech in the country to be able to do that. You can imagine pretty exciting for us over at Funding Circle. So the two words that we heard from the Small Business Administration in terms of why we were selected came down to accessibility and inclusivity. So what we're going to show you today is we're going to show you kind of that fast, seamless digital application process, but in addition to that, we are going to talk a little bit about our expertise specific to small loans, which have for a long time been difficult to do efficiently for a lot of our bank partners.

Andrés Avila (01:20):

So before we get started, probably important to give you guys a little bit more background on funding circles. So we were founded back in 2010. If you are doing the math and dog years, that makes us a pretty old FinTech. We went public in 2018 and since inception we've originated over 20 billion through our platform and serve the financing needs of over 140,000 small businesses. And then when you think about this segment, the small businesses that we've served, you can think of this credit plus type customer with an average FICO of seven 50 and really the folks that had access to financing from multiple options and the reason they chose Funding Circle was the speed and efficiency that we bring to the table. Now many fintech's talk about speed efficiency. We've seen a lot of them get in trouble for thinking about that over compliance first and really that's not our culture here at Funding Circle.

(02:22):

We are hyper-focused on this compliant risk management program that is really at the core of this digital end-to-end lending platform, but also at the core of us delivering a bank-like high-performing loan product to our bank partners and other investors. And to give you guys a better idea in terms of the mission that drives folks like Matt and myself and then the rest of the team of Funding Circle is really this mission to help small businesses get access to the capital that they need to win. Very simple, very straightforward. Now where we see the value alignment and why it is that we're going to market with financial institutions like yourselves is because you guys are at the center of the relationship with these small business customers. You guys know how to serve them well, how to put the best products in front of them. You guys have taken care of that relationship for many years and really we just view ourselves as a strategic technology partner to really just augment what you're already doing in your communities and also give us the ability to farther a mission of helping these small businesses get access to the capital that they need.

(03:34):

Now, what you guys are going to view on screen is really a demo of how our financial institution partners are leveraging our technology. And we'll start here on this landing page. What you guys can imagine here is this being your website. So when it comes to speed and efficiency, we're not just focused on the making it fast and efficient for the borrower. We're also thinking about our FI partners. How can they stand us up more quickly? How can they go to market at a better speed that allows them to still focus on some of the many things that are going through their head? I know a lot of people have stress dreams about core conversions. We want to make this as seamless as possible for you to stand up in a way that can cover in the form of a landing page. But in terms of customizability, it can be farther integrated into your guys' website or your mobile banking up. It's really up to you guys and your strategic initiatives and how it is that you guys want to serve those small business customers. So we'll get started. We'll just go ahead and click on check my rate first page of the loan application. It's very similar to what you guys were used to. Go ahead and click continue.

Matt Shearer (04:48):

Yeah, I think couple key points. So SBA seven A, the idea that we can now do loans up to $500,000 in days as opposed to the weeks and months, we expect that to be an incredibly big deal, right? And so I think one of the key points when you're thinking about this application is everything that we're designing has been built over the last 14 years. We heard in the last presentation for anybody who's in the room, this idea of iterating and continuing to iterate. Our focus has been on these small loans for these small businesses over the last 14 years. So every screen, every click, everything has been really well thought out and iterated on over the last 14 years to get to what you see today. The key point on this screen is we're thinking a lot about how do we find out those disqualifiers early in the process because we want to be thoughtful about the customer's time and making sure that we avoid wasting their time by getting them all the way through submitting this process only to find out, whoops, we actually knew early in the process it wasn't going to be the right fit for you

Andrés Avila (05:52):

Moving forward. It's also very important for us to get to know the business and some of this firmographic data that essentially we're feeding back into our model is one of the many inputs that we use to create a more accurate assessment of the credit worthiness of not just the borrower but the business itself. So going to add that click continue. Here's where we get to know a little bit more about the majority business owners before they finally finish and submit this application. So we'll collect some of this data, we'll signal that it'll be a soft pool of credit. Again, we want to make it as easy as possible for them to check their rate, see what to qualify for, and then we'll click continue here. Now what's happening on the background is that we've tapped into a variety of APIs. You guys can think of the Experian consumer report commercial report along with others with the goal to really augment the initial information that was submitted by the applicant and create a more comprehensive credit profile up this forward that would allow us to either make a decision with the prescreening of they should move forward with the process or they should not.

(07:04):

In this case it's a positive outcome and that'll lead to document submission.

Matt Shearer (07:10):

I know we're getting low on time. One of the key points I want to make sure we get across to folks because in addition to us getting granted a license, there was some change in regulation. Show of hands, how many of you guys have been following that change in regulation? There are some folks very excited about it, some folks a little bit less. So what we internally call the do what you do language was a really big part of the change in regulation and what that allows us to do at Funding Circle is effectively mimic our non SBA document intake policies and credit underwriting mimic that process where we're funding 80% of our loans within 48 hours. Now we get to apply those to the SBA program. So that is an incredibly key point here and it gives you an idea of how seamless, how easy it is to collect those minimal documents. And for folks who are really familiar with the SBA program and have an idea of why do I have to collect this and why are there more forms that we have to submit? Part of the new regulation is giving us the ability to again adhere to the time tested over the last 14 years process and policies and allow us to collect less, making it much less cumbersome for these borrowers and ultimately get them access to the capital they need quicker.

Andrés Avila (08:22):

Great. So now that application has submitted documents were uploaded, and one of the things that was touched on in this session prior to this is how do you blend this digital process with the human touch and that making it a seamless process that still feels personal to the borrowers? So what happens at this point is our dedicated account management team will reach out to that borrower on behalf of our FI partner. They'll be the ones setting the expectations with the borrower, reaching out to the SBA, managing all the loan supporting operational work to ultimately get that loan to the finish line and close it. Now, one thing to highlight here is that for the majority of our partnerships, we're the ones managing the servicing and to end on behalf of our F fi partners. And when it comes to funding really works in a couple different ways where a lot of our bank partners see value in them funding the loans directly themselves, not just for the interest income there, but also as a way to gather credits for CRA and for today's environment where balance sheet is tight. Some other folks see value in still getting those loans funded, whether they fit their credit risk appetite or not through our institutional investors on the backend, but still being a fully end-to-end experience that's been branded as the FI and not really the institutional investor on the backend.

Matt Shearer (09:49):

As we wrap up a couple key points, so hopefully we've given you guys a flavor of what it can look like. One of the things I want to emphasize is there's tremendous customizability flexibility both pre, during and post origination so that we can align with our financial institution partners broader digital strategy. Many of them have different goals and how do they interact with their customers, what do they want this to look like? So it's important to call out, hopefully again, you've gotten a flavor of how easy this can be to turn on. I thought Ben Walter's comment yesterday during the opening remarks for anybody who's in the room spot on in terms of the ability to partner with fintech's. It is a skill, it is a partner and we built this program very much with the idea that we want to minimize how strong that muscle needs to be from our partner because there are different layers and flavors that make it very, very easy to turn this on and make it accessible to your customer. So hope we get the chance to meet and talk with many of you guys over the next day. Plus thank you guys for the time.

Andrés Avila (10:49):

Thank you.

Jeff Nolan (10:52):

Thanks everyone for being here today. I'm Jeff Nolan. I'm a strategic account executive with Glia. We are a digital interaction platform focused on specifically helping FIS through really redefining how you serve your customers from a support and servicing perspective. So as you think about what your focus is either in revenue generating activity servicing, how you're pairing that digital self-serve investment, how they're using your tools and platforms with your support organization as well as your bankers. If you think about this in the lens of small business, how we can actually blend what's happening digitally with customer interactions with the human element of the knowledge and the value that your bankers can provide to those support interactions. So there's three key things I'm going to highlight here in the demo today, really focused on somebody going through an account opening or conversion process for a small business product.

(11:50):

This can also be applied to servicing. So as you think about how a customer interacts, navigates works within your online banking platforms, lending platforms, there are many use cases there as well that can bring value. But the first thing that you're going to see in the demo is how do we identify a customer that's digitally engaged that's in a point where there's value connecting them with a human agent or a banker to bring them through a more complex process or conversation. The second is providing a means to intervene. While they're in that maybe application process, they're in their account trying to do something, how do we proactively target and trigger those interactions? Again, identifying where there's value to do so and then third is actually showing a seamless interaction experience from maybe starting in chat, upgrading that to voice video and collaborating with the customer through whatever it is that they're trying to solve.

(12:48):

So I'm going to hop in here and imagine that this on the left side is your banking website and someone's looking to apply for a business line of credit. So a couple of things that I'll point out here is that we can dynamically trigger the Glia interaction bubble to display or to change how it presents a nudge to the customer based on how they're navigating the property and things that they're interacting with. So for example, if I change this loan calculator to a million dollars, you'll see that we've presented this offer to have a premier lending banker engage with them through that lending application. At this point, I can still self-serve. I want to continue to go through the process again at different interject points. We can add value to the customer as they engage with that digital property to again support them through a potential need.

(13:40):

So again, I've started the application, Hey, there's someone here who can help guide you through the application. At this point, I'm still not ready. I'm pretty self-sufficient. I want to go through this, but perhaps I get further through the process and I want to just understand the product better that I'm applying for as well as maybe some of the nuances of going through the approval process for my loan. So at this point we've actually triggered a rule here that to proactively reach out to the customer, this can be based on a number of different things that happen within the web experience. So again, hey, it looks like you ran into a problem. This was based on a technical issue, but this could be based on a piece of data I supplied or on something I'm interacting with. I'm going to go ahead and let's just decide to chat. I missed the window for that. But you'll see now that chat engagement's coming into the agent or the banker on the Glia platform. And the first thing you'll notice is that we're presenting what we call live observation, the digital context of where the customer is on screen so that we can immediately respond to their need as they're going through this application. So I'm going to just send a predefined message that we have.

(15:03):

Thank you for reaching out is there's something specific I can help you with regarding this quote. Now we can suggest responses to the agent as well based on what we call our AI assist for operators so that we can create some efficiencies in that conversation. But now you'll see we're just in a live chat interaction. The customer is still on the digital property and as they navigate or they're filling out that application, the banker can see exactly where they are, maybe answer some quick questions that allow them to continue on or the conversation might get more complex. As we know with small business commercial products, there's often unanswered questions that the customer wants to understand better before they complete this process. We can now seamlessly move this conversation from the chat experience into an audio or video conversation without disconnecting that banker or the customer in this experience. So I'm going to go ahead and offer to upgrade to audio. So you have a choice of phone or audio here, I'm just going to choose digital audio.

(16:11):

I'm going to mute myself so we don't hear horrible feedback, but now we've taken that chat conversation. We understand where the customer is in the application process, perhaps there's some clarifying questions about their loan amounts or documentation that they need to provide, and we're able again to seamlessly move them through that medium of choice as they go through this application process. You'll see we're still seeing a live observation view, but perhaps they need a little more guidance and handholding. Now at this point, we can just offer while we're on that audio conversation to co-browse with them and now the banker or the agent can actually take control of what needs to happen throughout this application process. So you'll see on the right side here, I'm actually navigating on behalf of the customer. Let's go ahead and click next. Perhaps there's some documents that need to be uploaded.

(17:04):

Now you'll see I've actually, I'm clicking next here. We have a lot of compliance and security features built in where you can restrict what your bankers and your agents can do on behalf of the customer. Things like data that they can see data entry as well as that actual submission action that takes place. If I wanted to take this a step further. Now there's obviously a great need for that human touch as we heard in the last panel, but people still might start this process through digital means. We can also decide to upgrade this to video. So let's do a one way video. We have one way or two way, and you'll see here that the customer who's in the chat can have video with the banker. Again, we can add that personal touch while we're going through what originated as a digital process. We can also share a screen to other offline documents.

(17:59):

Perhaps we need to go through some type of disclosure statements, e-sign or something that's off of your digital property. We're able to do that in the same singular interaction as well as do things like document upload and we can share secure documentation. Maybe we need to provide a income statement things as we go through this process that traditionally may have been a follow-up that happened in the process. Hey, we got your application, but I need these two or three pieces of proof of documentation to submit this for loan approval. That all gets appended to the interaction history as well. So if it needs to go into a decisioning LOS system, CRM, everything that happens during this interaction that we're in the chat, the audio recording, any documents shared, again, we can export that to whatever system of record that you might need to have that stored in.

(18:57):

Now the last thing that we can do is we can toggle customers between the co-browsing and the communication medium as we go through that process. But what we're seeing a lot of customers use this in typically is where there's points of abandonment, there's friction through the process. It's again really bringing together that digital self-service starting point with, hey, when I raise my hand and I have a need to talk to somebody and I don't want to call the one 800 number, I want to have visual context with the agent. We're able to bring that together in whatever digital platforms or properties that you're using with your consumers. So embedded in online banking, in your lending application process, really whatever your business goals are for how you're redefining your own customer service experience. We'd love an opportunity to talk with you here this week about some of the ways that you're serving your customers. So we have a table out at the exhibit hall at one 17. You can come find us for a much more complete demo and talk about specific areas of impact that we're seeing not only for small business, but other lines of business that we work with from the largest top tier banks to credit unions and community banks as well. So thank you all for taking the time to see the demo here. Let us know if you have any questions. Thank you.

Tom Baran (20:24):

Good morning. In today's to thrive in today's world, small businesses need access to capital. We all know this, whether it's a line of credit or a loan, but most struggle with the financial literacy to truly understand what of those products that they need and where to get them. But it's really not honestly for a lack of options. We all know that whether it's your bank, third party lenders, apple X, formerly known as Twitter, now Walmart, they're all jumping in to vie for the small business customer and the consumer's attention, which is essentially fragmenting the entire wallet. We here at Nine Spokes, we are a FinTech, but we are built on the principle that we truly believe that everything can be done within the walls of the bank. So we've created a product here called Track, which I will take you through in a moment as an opportunity for banks to white label our solution and elevate their business banking channels to truly understand everything that SMB would need right at their fingertips.

(21:20):

The cool part about it is, is that they don't have to develop or maintain the software. We will do that for you. To introduce myself, my name's Tom Baran and I'm the Head of Partnerships and Strategy at Nine Spokes, and I'm going to give you a brief demonstration on track to show you how our visibility platform and its data will help a small business customer integrate all aspects of their wallet into one place. So let's look at track. So there's a few different elements to track. There's home board banking and credit, which will allow the user to see their current cash position and cashflow so they will be able to see their future cash position. Now, when a user first gets into home board, it's, think of it as almost like a command center. There's a lot of different areas that the user is now going to start connecting into one place, and this is almost like an executive summary for them.

(22:06):

The user will be able to see key insights from the last time that they logged in. So they'll be able to see things like your current month's balance is 10% higher than compared to last month, or if you connected Shopify, your monthly payment received from Shopify has increased 5% from last month. Really key insights for the small business customer to understand what's happening with their business. Now, as the user connects more and more pieces of data, which I'm going to take you through in the demo, they'll be able to put all of that into their home board. So things like their cashflow, their debit card spend, or even square, they'll be able to see all of that at their fingertips. More importantly, when they gain those insights, they'll be able to then think about all of those different products up there that we can embed your products or third party products, and then they can make the financial decision to apply for a loan or an extension of credit.

(22:53):

So let's dive a little bit deeper so you can see how it really works. So if I go into banking, I can pull in the private or the public APIs that the banks offer and I can then offer banking. But as you see here, really cool visualizations, really simple, easy UI, UX, nothing too crazy. But you'll see here that all of the different tiles have one bank account, this fictitious bank of nine spokes. We are not a bank, and you can see here that all of that information is then at the user's fingertips. But let's say that I'm a small business customer, but I have a personal bank account at another bank. Well, with the power of open banking buzzword API, you have to connect a bank. We'll pick an arbitrary one. It'll prompt me to say that I'm going to be leaving this platform because I'm going to connect this particular financial institution.

(23:42):

I'll say yes, I will then go to that OLB, put in my username and passcode. It'll say it's connected successfully. And then as you can see here, all of our selected accounts for demonstration purposes, I added a few other ones. So you can see that now your personal accounts, your business accounts, and your credit card information can all be toggled within one with one board. And I'll just show you here how it all works. So then you can see here, all of the tiles will update themselves. They'll update with all of the different financial institutions. You can then filter by payee, by category, by type, and most importantly, you can export. So at the end of the year when you need tax purposes, you can put all that information in one place and that provides you your current cash position, but your current cash position with your bank, we all know that we need lines of credit to continue to run our businesses.

(24:28):

So if you go to credit card, we've now already connected a few different financial institutions. So I'm going to move forward from that, say select accounts, we've already done that, and I'm going to populate the credit card board. Now again, this is all within my command center, so now I can see all of my lines of credit and my current cash position in one place. The cool part about the credit card board is that we also made it really, really simple, not tons of information. The opportunity for the user to toggle between four different credit cards or three different credit cards here, I'll show you in a second. You can see your credit card balances, your minimum card payments, which will then notify you when your upcoming card payment. Really, really important. And you'll see transaction level data not from also the existing bank, which was Fictitiously nine spokes, but then also from the third party wallets as well. Now, if you wanted to make the financial decision from all this information to extend your credit line, you could do that by embedding products in our platform as well. That gives you a good indication of our current cash position. Now, the users would want to understand the future, right? They want to understand cashflow. So again, with our cashflow tool, you have the opportunity to take your private and your public APIs and be able to offer cashflow as a value add for your small business customer.

(25:46):

The really cool part about here and what Javelin Research just mentioned us in one of their upcoming reports is that we have the opportunity now to connect also general ledger data. So our cashflow tool can take in the bank account, private API can also take the third party wallets and in some sort of magic that the head of product has designed, they can also bring in all of the different general ledgers. We know that small business customers use, 50% of them use a general ledger to run their business. So you'll go ahead and you can click through a same similar journey to connect all of that different data and populate it here. When you see QuickBooks here, as you know, it's inevitable that you might see a duplicate, our platform will read all of that data and then serve that up to the small business customer, letting them know that there's a duplicate, which they can then take off at their cashflow.

(26:33):

We pull in about 24 months of data, and then happily, we can provide a forecast of 10 to 12 months out. Again, really simple UI-UX to provide the user all of the information that they need. So now let's go back to home board. Now, home board makes a little bit more sense, right? So I have all of the insights from when I last logged into the platform. I'll be able to see my balance summary, and now I can all put all of the disparate pieces of my wallet in one place, and now I can make as a small business customer the financial decision if I want to take out a further loan, if I want to extend my credit. And you can do all that just at the fingertips. This was a very quick speed date, but I did it in just enough time.

(27:17):

My colleagues and I will be in the exhibit hall next door. I'm happy to give you guys a deeper dive into the demonstration, but track just some parting words. White label solution can be embedded directly into your business banking channels and can integrate with any core processor. I know that that question comes up a lot. To that end, we're really proud to say that we work with some of the top 20 banks in the United States, and I'm going to leave you with a stat because it's the status filled in this conference. So Barlow's research report 2022 annual payment study highlighted that when asked if SMBs were open to utilizing their bank's digital tools and services over a third party provider, 67% confirmed that they did up 8% from last year. So we know that the SMBs are hungry for this information. Thank you so much. Now we get to network. Have a good day.