Member Exclusive, New banks

The ‘art and science’ of resilience: How FIs and fintech startups are rebuilding

  • The pandemic will likely cause lasting changes in the way FIs and startups organize themselves.
  • Participants saw resilience through the lenses of adaptability and flexibility, new product offerings and personalization opportunities for customers.
close

Email a Friend

The ‘art and science’ of resilience: How FIs and fintech startups are rebuilding

In early March, as LendUp CEO Anu Shultes returned home to the San Francisco Bay Area from a fintech conference in Seattle, she began to come to terms with the extent to which the coronavirus would impact her company’s business.

“[Seattle] was an early epicenter. It was an early window into how serious this could be,” said Shultes, at the Tearsheet Resilience Conference. “I was on the ground in Seattle one day of the conference, and by the second day, only half the people showed up. I came back home and there had been four deaths that night.”

Shultes said her team began to take stock of how her company, a lender for credit-challenged customers who typically earn between $45,000 and $50,000 a year, would need to adapt. LendUp needed to move quickly, with a shelter-in-place order being imposed in her jurisdiction. It became apparent that on top of moving the team to remote status, the company would need to consider how it could serve its financially strained customers.

“They have a bank account, but they have no access to any kind of [credit] products,” remarked Shultes. “They have zero in savings, so when they have a mild shock, we end up being the provider for them.”

 


This content is available exclusively to Tearsheet Outlier members.

Tearsheet Outlier information and signup Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — $59/mo Already an Outlier member? Sign in to your account

1 comments on “The ‘art and science’ of resilience: How FIs and fintech startups are rebuilding”

  • While its clear the coronavirus is catalyzing Open Finance, if we truly want to see mainstream adoption of fintech tools and services then we must provide consumers more data security and privacy. We need to remove login credentials from financial data sharing and ensure consumers can permission all parties with whom they want to share their data. The sooner we can adopt these as table stakes, the sooner we can enable institution-fintech collaboration that drives financial services forward. Without industry-wide adoption of common API specs, data access agreements, security assessments, and consumer-driven permissioning, there will continue to be security risks and consumer concerns that will prevent Open Finance from really taking hold.

Outlier OpinionsMakers

New banks

With OCC approval of Radius Bank, LendingClub is one step closer to becoming a marketplace bank

  • LendingClub’s merger with Radius Bank received conditional approval by the OCC.
  • The approval marks the latest stage in the acquisition which will transform LendingClub into a marketplace bank.
Rimal Farrukh | January 11, 2021
New banks

Green Dot launches Go2bank, its in-house challenger bank

  • Green Dot is best known for its prepaid cards and managed debit card programs its managed for big brands.
  • The bank has launched its own challenger bank brand to compete head on in digital banking.
Zachary Miller | January 06, 2021
New banks

Quontic is first bank to offer bitcoin rewards on debit card purchases

  • Quontic Bank released a checking account that pays rewards in bitcoin.
  • 20 percent of their consumers indicated that they would switch their checking account to one which rewards them in bitcoin
Rimal Farrukh | December 29, 2020
New banks

With PPP powering account growth, Radius Bank upgrades its business banking

  • Radius Bank launched its small business banking platform and mobile app.
  • The revamped service allows SMBs to smoothly transition across accounts as well as deposit checks, pay bills and make transactions.
Rimal Farrukh | December 28, 2020
New banks

2020 in review: The year of the pandemic as seen through Tearsheet’s top stories

  • 2020 was a massive year in the world and in financial services.
  • Through the prism of Tearsheet's reporting, we look back at the year that was.
Zachary Miller | December 28, 2020
More Articles