Banks and investors are evaluating AI-driven startups for long-term growth opportunities.
“Investors are keeping close tabs on AI-related innovation,” Isaiah Payne, managing director at investment banking firm Jackson Payne Investments, told Bank Automation News at Finovate Fall 2024.
Global AI funding hit a record high in the second quarter with a 59% increase quarter over quarter to $23.2 billion, according to a July 30 report by business analytics provider CB Insights.
Major banking execs from Citi Ventures and Silicon Valley Bank also told BAN at Finovate Fall 2024 this week in New York that their investor arms are evaluating AI-driven startups for growth opportunities.
More than 65 global fintechs demonstrated their products at the conference. Here are five AI-driven fintechs to watch:
1. GetAIreport
Founded: 2021
Total raised: $1.3 million
GetAIreport, by Stock Unlock, helps financial institutions automate report generation on specific companies from complex financial data using AI, Jake Ruth, co-founder and chief executive officer, told BAN.
The company works with investment banks, private equity firms and asset managers to generate reports quickly and make research on companies easier, Ruth said.
The model is built on top of existing AI service providers like OpenAI and Anthropic’s Claude, Ruth said, adding that the company switches its base model depending on what is the best model on the market.
2. Tifin AG
Founded: 2023
Total raised: $9 million
Tifin AG delivers actionable insights, helping financial advisers make data-driven decisions, Jeff Koeneman, chief experience officer, said during the company’s presentation at Finovate Fall.
“Think about Netflix and Spotify. These firms use AI to analyze the movies, TV shows and music that you engage with most and make recommendations specific to your profile,” Koeneman said. Tifin AG also recommends assets classes that bankers engage with the most to build a portfolio according to their preferences and risk tolerance.
Royal Bank of Canada and JPMorgan are the investors in the company.
3. SoLo Funds
Founded: 2018
Total raised: $13 million
The person-to-person lending platform uses AI and machine learning to create a SoLo score, an alternative credit score that uses other financial metrics, for borrowers, co-founder and President Rodney Williams told BAN.
4. Zingly.ai
Founded: 2021
Total raised: $15.5 million
Zingly.ai is a generative AI and digital-first contact center and relationship management tool, Chief Revenue Officer Gary Chan said during Finovate Fall.
Associates can send customer queries to the Zingly.AI chatbot, named AI Buddy, to get responses on questions such as the cost of a kitchen remodel and whether the customer qualifies for a loan, Chan said. The chatbot can be customized according to the FI’s rules and regulations.
5. Illuma Labs
Founded: 2016
Total raised: $11.5 million
Illuma Labs provides real-time voice authentication and fraud prevention solutions for financial services organizations.
The solutions can stop fraud attempts made by people over the phone, Chief Executive Milind Borkar said during the event.
Investors in Illuma include New York Credit Union Association, Curlq and LiveOak Ventures, according to Crunchbase.
Register for the complimentary webinar presented by Bank Automation News: “The future of open banking: Payments meet data,” on Tuesday, Sept. 17, at 11 a.m. ET. Register for the webinar here.
