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FinTECHTalents 2021
March 24, 2021, Online, USA
FinTECHTalents 2021
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Fintech Talents North America - Inclusive finance: A case study in PPP lending
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  • Description
  • Transcript
  • Discussion

About the talk

Topic: FinTech

01:02 Introduction

03:42 Hassan about brown community

08:04 About Karen

10:14 From partially digital to completely digital

13:34 Stronger capacity

18:40 Venture capital goals

21:30 Capital banking services

25:17 What's changes make thinking about this second round up to better serve your business

31:39 How innovation increases access facilitates access

43:18 Wish list for the second half of the year

About speakers

Michael Pugh
President, Chief Executive Officer, and Board Member at Carver Federal Savings Bank
Hassan Miah
CEO and Founder at Paybby
Keren Moynihan
CEO & Co-Founder at Boss Insights
Lisa Moyle
Director of Strategy/Co-founder at VC Innovations

A banking veteran of more than 27 years and qualified as a financial expert with significant public company Board of Directors experience in internal controls and leadership influence for Audit and Compliance, Nominating and Governance, Credit, and Institutional Strategy Committees. Leadership experience with teams of 1200 associates in retail, business banking, commercial and residential lending, and call center operations. Proven leader in bank technology integrations, launched new lines of business and executed growth strategies.

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Hassan is passionate about financial innovation, big data, machine learning, and artificial intelligence. He has spent the last several years working with the world’s greatest thinkers on potential applications.

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Keren Moynihan is co-founder and CEO of Boss Insights, a data platform that digitizes access to business customer information accelerating all parts of the lending cycle (acquisition, lending decisions, onboarding, portfolio monitoring, cross selling) to deepen relationships and grow revenues. In 2020, a key focus for lenders is the prospect of looming defaults. Boss Insights analytics detect early warning signals, allowing lenders to take manual or automated, rules based action, to counter these risks.

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Accelerated Marketing for Innovation Industries. VC INNOVATIONS is a marketing services, digital media and events business that designs and builds communities, content and experiences for innovation industries, as well as optimising marketing infrastructure and creating demand generation campaigns.

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Hello everyone, and welcome back to the impact stage at fintech talents. North America. I'm really excited for this next,. We've got a fantastic line-up in a fantastic topic to cover. We're going to be looking at PPP inclusive finance, a case study in in PP lending and it's an incredible topic and we're going to be exploring a really interesting partnership between three organizations. So today, we're joined by Michael Pugh, CEO of Carver Federal Savings Bank, Hassan Mia, who's the founder of pay baby and Karen Moynihan, CEO and co-founder

of Boston pipe. Hello, everyone. I would like to start with the panel telling us a little bit about them, and their institution. So if we could start with you, Michael. I sure am happy to be a part of this important panel. Thank you for sending the wonderful invitation and good morning to everyone. So again, Michael to present CDL for Carver Federal Savings Bank. In Carver Bancorp, was founded in 1948, by a group of civic-minded community leaders that are comprised of small

business, entrepreneurs face base leaders, All-Seeing and important need for a financial institution to support people color during that time. If you were a person of the afternoon, Eric instead, you had very limited choices Financial standpoint and often with the largest financial institutions who aren't allowed to Bank in our country. So this group of leaders Pioneers decided to get together and form their own bank. The apply for Charter in the state of New York. They were denied. Apply for federal Charters and were granted the opportunity.

So out of that, Carver Federal Savings Bank was born a 72 years or more later. I'm Mission continues to be the same with you really uplifting communities with emphasis on communities, that are often times are forgotten about under Stars. The typically minority communities are women entrepreneurs in terms of having access to Capital. And so our Focus continues to make sure that we are delivering excellence in honoring. All of our customers within our very diverse

Community, but certainly providing and I'm do it for economic empowerment with those focus groups that mention. I just another quick wine is that we have seven branch locations that are hyper local with that. Boroughs of New York City and from a digital standpoint. We're now in nine States from Massachusetts to Virginia, and our decision to expand our reach on a digital side, is because we truly believe that our mission in terms of what we do is something that many I can get behind

and support us especially given the car environment that we're all faced with. So, thank you. Thank you. And I feel like we could spend the entire session talking about the history of Carver. That's, that's fascinating. Over to you. Have fun. Hello, so shortly after the what happened with George, Floyd last year. I started researching what was going on and you know, there's some profound statistics in the black and brown Community Health appear to be persistent one, you know. Blackwelder is only 10% of white

wealth and brown. Wealth is only 12 per cent. And when it comes to income is only half and so that, you know, what, you're pretty startling statistics. But also notice that this has persisted since 1968. So, while the country is move forward in many ways, after medium-level, it has not and and so further research and looking at the banking industry, you know, they are approximately 20 trillion-dollar is a banking assets of which only about five billion dollars is Hell by black Banks. So that's led me to think about what could we do in order to start to close

the wealth and income gap and that led to the coming from a technology background us the most time. One time. I was at Intel, you know, Capital One, that type of thing. I said, how can we apply technology to help solve this problem? And I until we started as a baby as a meal bank, with a focus on becoming the Neil bank. And if you're a needle bank, that means it automatically through your mobile phone. You have you can have access to banking services starting with checking in and savings account to anyone in the US. So we that was the whole idea.

And with that we can we can start to change the the access to banking. Enough, you know what? Just pointed out going digital actually expanded and our case, you know, it creates the ability to make a nationwide and so I'll call Focus getting up in the morning. How do we help solve this Gap from your problems? So first we looked at how to beat. How do we start a new? Your bank and be enough. Check person? I looked at hiring engineers and everything. But make a long story short. We eventually acquired Emil banks that will fully operating called wicked by pay

baby. You can download and both and both IOS and Android. You can get a checking and savings account reset on top of a s t, i c bank for those most of the people in this audience understand things. You asked you sit on top of a regular charterbank. We sit on top of radius bank, now Lending Club bank. So that was part of it. The other car Bank in ultimately involves lending. And so we also looked at, okay, how can we help solve the issues of lending in this market and looking at? The PPP program, it was clear from the, the data that

black businesses were receiving PPP loans at a far lower rate than than than the businesses and the gambian in the technology business. I said there must be ways in which we can improve that. So, we did research and then we fought about Boston sites, that have a technology platform that could significantly improve the ability to both process loans. And the connect to data in such a way that that should improve the ability for accept the PPP loan PPP loans in this community and eventually getting together with Carver with the

whole goal of, how do we improve access to lineage and tell her? I hope you hear. Hey baby, I call it the Amazon moment because just like, you know, 25 years ago, you had, you know, still grow box and all that and an Amazon came along with a. Digital solution, it pretty much changed the game and then change access and everything. We believe that now digital can change the game of access to banking which is still up a large problem in this country. Thanks for that Hassan. And that also provides a great moment to hand over to Karen

to talk. Tell us a little bit about herself and both inside and then I'm sure we'll get more into detail about this. Really interesting collaboration between your three organizations. 300 /. See you. Thank you, Lisa. I'm really excited to be here chatting with these two incredible leaders in business. And I'm always inspired to hear about the vision behind Carver Bank, giving $0.80 of all deposits, back into the community and Hassan has achieved so much. And shut with a baby has achieved so much in such a short amount of time. Boston

place was created by a former Amazon employee and somebody who worked in banking as a commercial lender and we just saw that banking in general did not make much sense. It is just too challenging for businesses to get access to Capital. And today we're going to talk about a subsection of that. We're if it's challenging for all businesses, credibly challenging for certain businesses who quite frankly do not have the same access as others do, so it is by virtue of what Michael and Carver Bancorp. Hey, baby are doing that. This problem is being

addressed and we're just very lucky to be part of the solution here. When what we did was we created a platform. So we traded Boston sights and we set out to build a platform that would make it possible. For all things lenders to have access to their business, customers financial data in minutes. And we do it with a portal that's accessible to the businesses and the lenders alike. It creates a transparent process for Lending. It creates something that you can look in and see where information is missing. It's a single connection to

customers accounting Banking and commerce data on demand and by switching the conversation from asking people for details that they have to give over and over and over again to just asking them for their consent, to share their details. You speed things up five times when you're deciding on loan and servicing. Those loans, that was us before PPT. But last March, there was a world-changing event where everybody was put, most of the kobold community was put into isolation and quite suddenly things have to go from partially

digital to completely did it all. In order to keep this is happening and at that time, since I saw offered free technology and we were featured in Forbes, as a result of it. What we were saying to lenders was if you're going to support new businesses, at this time. We're going to provide our technology to you for free. It was at that time that I was on a panel where somebody said to me. You're a diverse founder. What are you doing to help other diverse businesses? I know you're selling your technology to Banks and credit unions in private lenders, who are servicing businesses, but what

specifically are you doing to get capital in the hands of people who don't have the same access? And when we did our research. Only 14% of Round 1, a p p, p recorded their demographic information, but the numbers are very shocking. 18% of loans were declared for Visible minorities. 16% were declared by FEMA loan companies. That is not the statistics that we would like to see. And what hey, baby did for Boston size by introducing us to Carver Bank was give us the ability

to make it possible to process loans faster. During this experience, we learn from Carver Bank. That in the first round. They were on the phones. They were working till 3 or 4 or 2 or 3 in the morning. That nobody was exempt for making client calls. Michael was on the phone with client. I've seen pay baby in action, as well, and they are working tirelessly to make sure that businesses who require funds businesses that are often ignored by other lenders, to find their way to Carver Bank. And we're just really humbled to be part of the process.

Thanks, Karen. That was a fantastic introduction and you really gave us a sense of the purpose behind, you know, the three organizations involved in this in this collaboration. Before I go on to my first question for the panel. I just wanted to remind everyone. He's watching. If you have any questions or comments, please post them in the chat. You can also send a direct message. If we don't get to it to our speakers in the people's have and I'm sure they will endeavor to get back to you. Please also answer our question. We're really interested in hearing. We've got loads of Community

Bank, Credit Union, saw the flat form today and we're really Keen to hear your response is around how that financial institution fintech collaboration plays out and, and helps your address some of the key challenges you're facing. So with that mind, I'd like to start with Michael and pose the same question to all of you. What do you think are some of the biggest challenges that business lenders face when trying to serve their customers and let's start with you on that one of Michael. Sure. Thank you. So I think there's a number of things. I think,

the first one for small business, entrepreneurs are often challenged with access to capital capital, certainly helps to build stronger capacity as you think about reaching customers out. Whether it's through a number of different channels, small business, entrepreneur words and particularly women and minority small business entrepreneurs. I think it's important to learn that Brad Pitt have generally been the target group, for the focus, focus groups that have had the least amount of capital available. What we know as an

example here in this country. Women entrepreneurship has been growing at an accelerated Pace, that is much larger than any other segment. I'm specifically, did that you think about what example, women of color in the end black women entrepreneurs? And then the second fastest, growing segment out of all of our women entrepreneurs, but they're the last in terms of income generated from their business. If you didn't take into consideration, the important factor about wealth

and how well did the Austin? Transfer is generally transfer through a right. And so that could be there for them and the ownership that you have in your home in your savings that all of your Investments excetra. Then it's also the ownership, the equity stake that exists within a business and I'm in general. Is that women in minority entrepreneurs. Have not had that will transfer the same way in order to be a launch pad for them. For foundation to support tough, economic conditions. We saw during the 2007, 2008, economic recession

that has the same segment of entrepreneurs were largely. Of the full recovery during the 2013 window. And I anticipate that as we navigate through this challenging time, the same segment mail are sleepy and packed it and still slower recovery as well. So Capital One of the most important components. I think. The second part is this the same one, we talked about Capital relationship. Capital is equally as important because many of these entrepreneurs and small businesses. They are now going to have to think about how to reimagine their businesses and the successful

implementation of that will largely depend on relationship relationship with financial institutions to help. Think about the business plan instructure. The capitals as needed relationships. With fintech Partners to help. Think about how to reimagine the business. I just, as an example. I was watching a very Innovative commercial where a Microsoft teams was highlighting the importance. Now of doing virtual shopping for items for customers set on. So if you are a small business, that owns the retail brick-and-mortar,

perhaps through the Microsoft teams component, you can do virtual shopping. It doesn't allow you to enter into the store, but you can tell the the salesperson there. I'd like these items please, you know, shift until you've got the best best Innovative in my from my perspective checklist. You start to think about ways to help small business entrepreneur words that have less than 50 employees, but extremely important to the overall ecosystem and sustainability of our nation's economy. So I can summarize my points again

with this thing. There's many more issues, it certainly capital and then the technical support to help reimagine the business. From a future stamp very, very much Essential 220 process of our nation as small businesses. That's fascinating. Thank you, Michael. So it's really about understanding the customer's that you serve and how to support them through these challenging times and an even using like you said the idea of small businesses selling over something. As you know, I will say simple is probably not

the right word, but it's, you know, ubiquitous almost now as, as Microsoft teams over see you, cuz I imagine a lot of what Michael said will resonate with you and and the communities that you aim to serve. Oh, yes. I'm in just a minute. I Michael said access to Capital has been a huge. Just do not mean the world to me. Anyways, I come from and venture-capital less than 1% of all venture-capital. Goes the black entrepreneurs and then we talked about the size of the in the banking industry. So unfortunately and particularly in the US banking skews

toward the welfare, customer black businesses tend to be smaller. The larger Banks, tend to want to go with the larger customers which would automatically not just because they're black men in general. Not go as much to the smaller ones because I'll see you in comfort and told that Mrs out a lot of opportunities that exist, right? So that's, that's one thing that that we need to talk related to that is the whole idea of as Michael pointed up, the idea of technology and Technology starts have a lot of levels, one area of

Technology. Start learning from PPP loan is, you know, you need to have internet. If you have everything in a greater than the QuickBooks and everything else. It's easier because your documentation is, there are many startups. They have a great idea, but they may not necessarily have all these tools in the beginning. So, that's an impediment. And so the idea now is, how do we move from these barriers to access and make it much easier? So that any great small business can get whatever they need to be on equal footing for these more established

companies. And so that that that's what that's what we're about. And I see now that we're at the technology is moving to the point where it is and this is where the pandemic has helped a lot where it is. Starting to make a lot of these technical barriers disappear. For example of right now, you can get a bank account by just clicking on Google Play app store, then boom. You click a few buttons, and you have it, and reverses needing to go into a branch and fill it out. So, that is a small example. But example of a technical barrier, you know, there are other ways

in which all of a sudden technology is becoming more accessible. Which will allow these, you know, these underserved businesses to get a greater access and I think we're at a, at a moment in time where that would start to really start to increase. Thanks for that has salon and Karen thinking about some of the barriers technical barriers that Hassan has just Illustrated. So so strong, how can Boston sites? Help address, some of those barriers and take them down and increase access to the capital and other

banking services to currently underserved community. Thanks Lisa. It's a great question. I think the first thing that has to happen is syntax. Our technology providers just have to listen in to listen here, the challenges and then take those challenges on. So, every time I'm in a room with Carver Bank and pay baby, we learn more. Now, the challenge that was presented right now is that not all businesses necessarily have QuickBooks QuickBooks cost money. We're talking about a community that is underserved. That's one of

the reasons box in size has Integrations to 10 accounting providers. And we usually suggest ways is the one to go with first. Why? Because wave is free. So that addresses should somebody want a cloud-based technology to they can use wave and they don't have to have any outlay of cost. So that solves it, but only part of it, some businesses, depending on who they are, might not be comfortable with cloud-based technology. And so is all well and good for people who have been in certain environments to understand that you should do all your Bookkeeping on QuickBooks, but not,

everybody is coming from the same place. That's why Boston sites has the capability and are prepared to accept desktop reports from both QuickBooks and Sage, but also to have an Excel file that's acceptable to anybody. So if you are literally using a shoebox and it doesn't just have to be for people who are excluded from the conversation a few weeks ago. I heard about a business with 10 million dollars in Revenue. Annually, that was using receipt in a shoe box and all they had was their tax return form. The the point is that even for that type of business, this

platform will support that. We're in short. We're not really expecting a business to come to us the way. We need them to come. We're doing the opposite. We're listening. Where are you at this point in time? We know that capital is one of your top three priorities. We know that you have been excluded from the conversation in and it can be excluded because of your gender. It can be excluded because you're a visible minority, but we know that you don't have the same access. What we're going to do is come to you. However, you are ready to accept your information and then look at you on

your merits and then show you what that looks like so that we can help and support you. That's the idea behind all of it. The larger conversation comes when there are Economic opportunities, PPT was an opportunity for businesses to get funded on the basis of how many employees they had, or is there a sole proprietor? Even that to get find it? So, here's an opportunity for a business who might have been excluded to get access to Capital and the SBA made it possible for a week in the second round of pp for only those types of businesses to get access

to Capital. So if we're all working collaboratively to present these opportunities and then make it easier for you to send in your information. That's what we hope will. Make the difference is it still doesn't wear always asking people what will make the difference. Tell us about the reality of your business and tell us how to make this better for you? Thanks, Karen. That is where some absolutely fantastic examples of the importance of listening, understanding that not all businesses come out of the box. Exactly the same as what. The

second round of PPP lending offered in an opportunity to support. Be more inclusive and supporting business. Michael. What's your what changes did you make thinking about this second round of pee pee pee to better serve your business clients. What changes did you make us an organization? Sure, what I think in order to answer the question, just probably a little bit of background information that we we have to be able to share the first launch of the PPT program. When it was rolled out. We saw that a sizable number of small business

entrepreneurs were ultimately left out and the reasons that they were primarily left out needing support to better understand the application process, what it meant to have a forgivable loan, how the Forgiveness process was going to work. Then there was also the sheer scale in competition with much larger than a much larger businesses to apply for the same funding secured courses. Keep in mind, the small business administration considers small businesses to be

500 or less employees the businesses that way. And did not have scale an opportunity for those that were much smaller than that. Now, 500 number. So, there was that. We also thought that the nonprofit's, historically nonprofit, organizations of, historically not qualify for small business loans, and this program was designed to support these nonprofit organizations in the session communities that we serve are, there are sizable number of nonprofits that employ considerable number of

the people within the community and Social Service work that they do has a significant impact to their overall, strength of the communities again that we serve do, do do small nonprofit, organizations were told, they were eligible to apply but then when started their application ran into technical problem, It's important to note that the small business administration and works very closely to try and address this issue. I testified in front of Congress, and they were a number of

important steps taken at the state and federal level to ultimately, address the issues getting through the application process, but it didn't happen without the pain and heartache. And a number of small businesses Franklin. Franklin left in a very uncertain state. By the time that things had ultimately been re-engineered to work to work. We were able to generate more the 200 applications that were proven process through the first and provide access to

Capital to more than more than 35 million dollars. The most is that we participated in the preservation of more than $34. Jobs in the communities that we serve. What we also learned is that in order for that for us to be able to support the Community and Technical partner was going to be Mission critical. And so, for example, in the first first couple of rounds of the TPP initiative, we launched a partnership with equitrust which is owned by one of the principal owners is Magic Johnson. Just another firm MBE, capital and Carver and we provide it more than

16,000 loan nationally through that partnership. And they were using, send text solutions to ultimately help them a scale and reach more customers. So we learned that g with the 200 applications. We originated within Arlo. And that was all hands on deck, calling customers including myself and physically helping them get the application through the process because they too many of these businesses didn't have accountants attorneys bookkeepers, someone to help them. And the amount of Sweat Equity said, it took to do that. Just from the

200 that were originated at the Roof. Inn Tech partner over 16,000 application nationally or processed and approved. It didn't take rocket science for us to know that in order to improve. Our efficiency is have a greater impact as next. Trough with rolled out. We wanted to engage a spintech partner to help us with every step of of the solution. It made it even more special to be able to work very closely with Boston size a Renew work that cares about the work is being done

and uplifting entrepreneurship at a national level. And of course, I'm assigned a person of color that it's very much interested in the economic empowerment of our communities of color, until the Mexicans are aligned, and the lesson then learn align ignition with technology platforms to ultimately help you be able to deliver. And we seen how much more fluid process were trying to reach customers today, especially with a focus on a hyper local communities in Greater New York City. And

that's been done cuz of his partnership. So key lessons that were large and has been transferred into this next stage of the journey. Great. Well, that's super example of having an impact but also a lesson in having a lined objectives in finding the right Partners to collaborate with the song. This seems like an ideal moment to pass over to you, maybe to pick up on some of what Michael said and and talk a little bit more about how Innovation increases access facilitate that sure. I thought you know, when when obviously of these platforms that can increase processing speed

and other types of thing, but beyond that we were talking earlier about, you know, the lack of capital and they're in this one reason is the lack of, cuz many of the practice is used for Lindy. One of the biggest being skull is something that is a lot to a large extent based on Legacy. The other one in banking, a call at kyc, or know your customer and the tools they used to approve someone and since we work and Stewart platform. We're looking at some of these newer Technologies using artificial intelligence and machine learning

with their alternative ways in which you can look at someone score and you'll find a lot of these businesses and a lot of people individually who predeceased appear like they may not qualify that they were difficult to qualify actually are very good customers. It was just a matter of how the methodologies were being used for this. This problem of access is, is is multi-tiered and but we are, and we need to stall somebody. Since first, we need to recognize definition and enter that area by what we do at a Babe, Ruth actually looked at other parts of the world,

like, an African India, what are going from? Hundreds of millions are unbanked and they're discovering alternative ways to do scoring and and they're accelerating the number of loans. And how many people can qualify? So, that's a huge part. And I would say there you there. What I call artificial intelligence and machine learning to come up with, better ways to assess a customer. And that, that needs to be added and this where in this area. Thanks for that Hassan and Michael. I believe you want to come back on on some of what

his son just said. Yes, thank you. So it's not a point about finding solutions that don't rely on the traditional scoring process. I think it's extremely important that we look at the future state of supporting small businesses. Some of the data just to tell us that 40 million Americans do not have a traditional credit score and or that score considerably longer because there is relatively low activity there. Many Americans can't really articulate. How their credit score

is created driving factors there. But yet what we know is that the credit score speaks to only a part of the person's commitment to retain their debt and overall credit character. If you will, there are a number of other elements that have to be content. Play it until I think we look at the future state of the supporting businesses and Entrepreneurship. We do have to look Beyond some of those traditional scoring mechanisms and the square send text to Lucia plays. A

very important role in helping community development financial institutions, like Harvard reimagine, the way we measure and monitor risk associated with credit character, but still at the same time, focus on supporting small businesses that very much will not be able to grow and survive. If they don't have access to Capital. Yeah, that's a great Point. Jimena's Hassam said, it's it's recognizing all the tears in this process has gone back to you, cuz I think there's something you want to add to that and then

to you there. Yeah. Yeah. Yeah, I just quickly on that area. So, one thing that we're working on, Is It Michael mention? Some very important credit scores are one of the most wins in any buns life, hardly, anyone knows what's behind it. So, we're actually working with one of our team and apartments on on. And how do we, how do we get rid of the Black Box while preserving privacy so to speak? So well, in the key area of technology is being used right now that I called digital Ledger, techno also known as blockchain with people know since and how you can

you can create a flow of trusted information that be can be more transparent while preserving will let you know Pi or personally identifiable information. And so there's a lot of exciting Happening that can considerably transform credit and how people can get access to it. That just yet. We're just touching the surface. We made it to that is is the other thing that particular in a lot of new people speak in terms of Education, financial literacy, and those kind of things that's which is good. The more, you know, hopefully, your manager better. You'll

be a better person better consumer. A lot of things that are happening like for example, and I could bite a baby banking app. It automatically care, it automatically categorizes all your spending so you can immediately know that hey I spent $100 on Starbucks. Maybe I should have been a little lesson, put that money and doing in our groceries and said. So these types of the changes are are, are are exciting and they used to do a lot to help both businesses and consumers, do much better with our financial management management and get access to credit. Thanks the song. I

mean, you're at the right conference to be mentioning. You've been text Alicia and send blockchain over to you. I read a lot of what we're discussing here really has to do with data, right? And this is your area of expertise. You want to speak to some of the challenges that both Michael and Hassan have laid out and left her just break down what it takes to get a loan for a company. I think each of us have experienced it. And the thing that's most important at first is to take a look at that company. So you need to understand their financial statements are the banking

statement depending on how much Capital they're asking for if it's a small amount. Usually it's a banking statements that's enough and if it's enough of them to see their financial statement, only after that, when you have the ratios that the bank will calculate on behalf of the business. Provolone. And before it's done. You have to do something called a credit check. And that's just a tick box. If they have a good credit score is great and it's not their problem. So what we've been chatting about is that credit box in Boston sights has

reached out to each of the credit bureaus to say will happily provide our technology to you to make the credit process address. Some of the issues that Michael and his son are so lightly stating, which is it does not look at a business and measure them on their marriage. It is very hidden and okay, what goes on in that credit score, right? So the business is judged on it. But they don't really know why or how that's the problem. It's a problem that happened later in the lending division. The first problem is, I didn't even get a read on the business things are happening so

quickly, it used to be that companies would have financial statement and they have an accountant review them once a year and I could give you a good sense of how healthy a business was for the next year. That's a lot harder to do now. So Boston sites has already accelerated that an automated. You can get access to the account, the accountant prepared numbers, you can get access to the company numbers in the middle, but we're adding to the mix. How blenders out is adding real-time Revenue, generation numbers and by doing that, A lender can see how healthy

a business is, and how much they're growing. The revenue in certain ways during the course of the year. All this has to happen before a credit score is even really pulled. And what we want to continue to do is make it very easy for lenders, to get access to the company information. It can be verified. It can be shown and not let you know how healthy the business is. The the last one I wanted to take was on something called the character of credit. So for all the letters out there, I know that you've all had the 5 C's of credit and their ingrained in your mind. And with all of this

technology, people are afraid, because we're not meeting isn't owners or doing everything virtually. It's really hard to assess character. But technology makes it easier to, you can trade references, you can pull supplier references. You can see if a business is making their payments on time. You can dig into instances where that's not possible. All of this is much more indicative of whether a business will work to make sure they meet their commitments than no pics for. But I will tell you that some of the credit bureaus that we are in discussions with partners

are looking to address this as well, adopting things like business credit scores, instead of just personal credit scores. So business is judged on how healthy the business is looking at new forms of technology to adopt. So there are a lot of people in this industry for trying to make it possible for a business to see what is happening when they're applying for a loan in real time to make it clear. That's what's most important here as we move forward. In 2021. We have to make Happen more efficiently. We have to make them more transparent and we all have to be working together,

collaboratively to make that happen. The Boston Place platform, especially the PPP platform gets updated regularly and it's because we get feedback from lenders like Carver and Brokers like, hey, baby, I'll even give a specific example. Not all businesses for sole Proprietors are going to know that they have 100% of the shares. This is something that the FDA requires reporting on. So we changed our technology to autofill that in. We also changed our calculator to suggest areas where businesses could apply for more loans. This is all based on feedback we get in

market and we're just if we're greedy for anything. It's for more insight into what businesses need to see. So that they can provide the information. They need to provide to the lenders to get the deal done. So we're always on the lookout and if any of you out there have any suggestions on what we should be collecting. Please let us know. Thanks, Karen. That was really interesting. Speaking to the importance of the data, and in, for an institution to have confidence in it, but also to be fundamentally more forward-looking and Progressive. So, thanks for those insights. We only have

a few minutes. If I can't believe how quickly this conversation has gone because I could, I feel like we could go on for ages. But Michael, I'm going to go to you first for some closing were thinking about, I mean, this has been a uniquely challenging year, particularly for communities that were inadequate and serve before the crisis. And as you mentioned, perhaps have the stocks of wealth to fall back on without access to Capital. So what's on your wish list for the second half of the year, in terms of what you'd like to see happen. And what's most important figure in serving your

customers. Stirrup. So I think on the wish list that that's a great question for us. It is to continue to develop defend our Partnerships with potential Partners to think about how to reach small business entrepreneur and help them navigate through this very difficult time. It's important to note that eighty cents of every dollar that Carver has on deposit. Just be invested in that we starve over the past few years. We've invested more than 23 million dollars in access to Capital to small business entrepreneurs to public and private

program separate from the PPT initiative. And these programs have been designed to healthy small businesses grow. We've seen amazing success stories of small businesses, that have moves from one or two employees to having north of 20. 25 employees. So and continue to thrive. We've also continue to focus on financial education and we think that this will need to be something to reimagine from a technical standpoint, how we deliver it. But we have to educate more

than 16,000 people attendees of the past. Couple years in terms of financial education program. This has been especially important for small business entrepreneurs. Because when you think about understanding debt, income taxes and insurance, all of those key factors are extremely important to the young to the growth and sustainability of the small businesses. So looking ahead for us, our mission will continue to be the same economic empowerment after all. We are a US Treasury designated a c t. I v e, which is a community

development financial institution. But that mission for us will have to include fantech Partnerships to help. Reach our small businesses in a very different way and will focus on access the capital and Technical Solutions. One key thing that I was just able working on now, is that we've been to a couple of corporate Partners. We've been able to raise additional Capital that will be used to develop a micro small business loan program. And that law program will be designed to support small businesses without

using traditional credit scoring as part of it, as we continue to focus on our relationship with boss and a baby will be giving it some thought in terms of how do we take this program and apply the same? Fantastic partners and Lessons? Learned through this paycheck protection. Try to help us with Now the new Loan Fund that will be coming up. So thank you for that some great things on your wishlist, Jen and passing over to you, Hassan. What's on your to-do or wish list for the rest of

2021? Sure, so I am taking off with Michael said that's fantastic. The micro lending program and I will come by in a couple comments. He made it a really, really good. So he he mentioned that, you know, we went from a world that everyone would meet and then thinks that the pandemic now, we're all meeting virtually all over the world and it's accelerating the power of digital technology. So, you know, now they're looking at Nine States, now, you're looking at the country. So what were, what we're seeing is that we're at a point between the fact that we can read. Learn how to

collaborate virtually with learning how to get data for real-time. And we're learning how to gain more, trust to data and collaboration. So what I see is that the next step is combining us to bring it to these two, these parts of the market that were previously on serve even at the, at the, at the most far-reaching parts of our world out there. Nnn almost, everyone has gotten to the point where they can start using these Technologies and they're getting comfortable with it. So, what I see over the next year is that we start really

expanding you type of effort where we can reach these people, we can use alternative scoring methods. We can use alternative ways of doing lending and then, having the date of the connected to and that radically changed the access to Capital and the success of these businesses, and people that have previously under the pre-pandemic and no one wanted a pandemic, but there's a silver lining part of it. We're now we have this massive Junior everywhere, where people have gotten comfortable using this type of Technology. Thanks for the song and

Karen. The final word is with you, you know, whether you want to expand on your 2021 which wish list or do you want to give us one final reflection on the power of what seems to have been an incredibly impactful and effective collaboration? Sure, hard to follow up Michaels mic, drop moment of more funds available for people who need it. Most, we will attempt to come in closely behind that. It's been really inspiring and we were talking on a panel today and the people who are listening to their, their coming from check lenders and private lenders

and Banks and credit unions and it's hard. It's going to be hard to summarize this for people who didn't live it in 2020 and 2021, it really the shift lending models are shifting. That's what have fun. Just spoke about. We're going to shift the way we evaluate. And I think there are three individuals here who are incredibly motivated to create sustainable businesses out of supporting companies that in the past were excluded. We're all focusing in that area. So the question before us is working to sell a checking account and a savings account or do we want to

be working together, the best in class? Parrot with a banking partner who understands regulation, who understands longevity, who can actually serve the community in a full-fledged way. And then Gathering send text with all ten point challenges, Falls data. There are a lot of other challenges before us and we need to be able to collaborate in order to serve the businesses of today. And tomorrow. That's really our deepest, Hope For What 2021 will bring. Thanks for that. And that really was a fantastic closing note Karen. And this was a fantastic session

on which to close the impact stage because it brought together so many of the teams that we've been discussing across the day and I wish I could bottle up the sense of purpose that you guys all have and, you know, push it out across every financial institution across North America. So thank you so much again for your expertise, you're inside for sharing on the power of collaboration. So Michael has son. Karen, thank you again. And for everyone this way, don't forget to post your comments or questions in the shop or message, any of these guys directly cuz I'm sure they'd be

happy to carry on telling you about all the work. They've done over the past year. Thanks, everyone. Okay. Thank you. Bye.

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May 25 - 27, 2021
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