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Fintech and the New Financial Landscape

Fintech and the New Financial Landscape

Federal Reserve Bank of Philadelphia

November 13–14, 2018

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.

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

Fintech and the New Financial Landscape
Federal Reserve Bank of Philadelphia
November 13–14, 2018

Agenda and Bios
Summary Article
Watch videos of each conference session on our YouTube channel.
Tuesday, November 13
9:00 a.m. Registration
10:00 a.m. Opening Remarks and Introduction
Patrick T. Harker (President and CEO, FRB Philadelphia)
10:10 a.m. Opening Keynote
Lael Brainard (Governor, Board of Governors of the Federal Reserve System)
10:40 a.m. Session 1
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)
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)
11:55 a.m. Break
12:10 p.m. Session 2
Fintech CEO Perspectives: Data Aggregation and Alternative Data

Moderator: Paul Saltzman (Partner, White & Case LLP)
Paul Gu  (Cofounder, Upstart)
Sanjoy Malik (CEO, Urjanet, Inc.)
James Wu (Founder and CEO, MonJa)
1:00 p.m. Lunch
2:20 p.m. 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)
3:00 p.m. Session 3
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)
4:15 p.m. Break
4:30 p.m. Session 4
The Roles of Alternative Data in Expanding Credit Access and Bank/Fintech Partnership

Moderator: Christopher Feeney (Executive Vice President, Bank Policy Institute)
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)
5:25 p.m. Evening Keynote
Jelena McWilliams  (Chairman, Federal Deposit Insurance Corporation)
Introduced by Patrick T. Harker (President and CEO, FRB Philadelphia)
6:00 p.m. Conference Reception
Wednesday, November 14
7:45 a.m. Breakfast
8:25 a.m. Session 5
Responsible Fintech Small Business Lending

Moderator: Ami Kassar (Founder and CEO, MultiFunding LLC)
Bernardo Martinez (U.S. Managing Director, Funding Circle)
Louis Caditz-Peck (Director of Public Policy, LendingClub)
Sam Taussig (Head of Global Policy, Kabbage)
9:10 a.m. Session 6
Legal Issues Around Fintech, Alternative Data, and Fair Lending

Moderator: Aaron Klein (Policy Director, Brookings Institution)
Frank R. Borchert (General Counsel, Marlette Funding)
Cory Kampfer (COO, OnDeck)
Richard H. Neiman (Head of Regulatory and Government Affairs, LendingClub)
Jonah Crane (Regulator in Residence, FinTech Innovation Lab)
Todd H. Baker (Senior Fellow, Columbia University)
10:00 a.m. Break
10:15 a.m. Session 7: More Recent Academic Fintech Research

Moderator: Itay Goldstein (The Wharton School of the University of Pennsylvania)

Paper 1: “Fintech Borrowers: Lax-Screening or Cream-Skimming?” 
Marco Di Maggio (Harvard Business School and NBER) and
Vincent W. Yao (Georgia State University)

Paper 2: “The Real Effects of Financial Technology
Piotr Danisewicz (University of Bristol) and Illaf Elard (Shanghai University of International Business and Economics)

Paper 3: “Consumer Lending Efficiency: Commercial Banks Versus Fintech Lenders
Joseph P. Hughes (Rutgers University), Julapa Jagtiani (FRB Philadelphia), and Choon-Geol Moon (Hanyang University)

Paper 4: “Reintermediation in FinTech: Evidence from Online Lending
Tetyana Balyuk (Emory University) and Sergei Davydenko (University of Toronto)
11:45 a.m. Session 8
Looking Ahead — Artificial Intelligence and Quantum Computing in Fintech and the Future of Fintech Credit Funding

Moderator: Kevin Werbach (The Wharton School)
Michael P. Perrone (AI Partnerships Program Director, IBM Thomas J. Watson Research Center)
Mark Jackson (Scientific Lead, Cambridge Quantum Computing)
Hanna Halaburda (Visiting Scholar, NYU Stern School)
Jose N. Penabad (Cofounder and CIO, HCG Fund Management)
Edward Conrads (Cofounder and President, Colchis Capital)
12:35 p.m. Closing Remarks — William G. Spaniel (FRB Philadelphia)
Lunch (boxes available for takeaway)


Contact Us

For more information, contact:
Julapa Jagtiani
julapa.jagtiani@phil.frb.org E-Mail