Thought Leaders in Financial Technology: Bristol Gate Capital Partners CEO Richard Hamm (Part 4)

Sramana Mitra: Let’s switch to the other question which is open problems in FinTech using the kinds of approaches you’re talking about. Where do you see the possibilities of applying these kinds of techniques? And to do what?

Richard Hamm: In the FinTech world, which is alive and well in Toronto, my biggest concern, particularly for FinTech that sells itself into banks, is that it’s no different than a lot of technologies. They’re built to solve a particular problem. They’re not an integrated solution.

Thought Leaders in Financial Technology: Bristol Gate Capital Partners CEO Richard Hamm (Part 3)

Sramana Mitra: How is this information consumed by your customers? Is there a human in between the bank’s automated system and where the consumer touches the bank?

Richard Hamm: At the front-end, we use predictive analytics. We also add our own human influence on this to verify the accuracy of the models by good old-fashioned fundamental analysis to make sure that the 65 names that are generated are worthy of investment. We drive that number down to 22.

Thought Leaders in Financial Technology: Bristol Gate Capital Partners CEO Richard Hamm (Part 2)

Sramana Mitra: When a bank does hire you to do this kind of work, double-click down to exactly how the technology works and what it is that it’s doing on behalf of the bank.

Richard Hamm: What the banks want us to do is to satisfy their investment-oriented customers by giving them a good return.

Sramana Mitra: I’m trying to understand what’s happening in the guts.

Thought Leaders in Financial Technology: Bristol Gate Capital Partners CEO Richard Hamm (Part 1)

Richard discusses predictive AI applications in FinTech, including the state of the robo advisor industry.

Sramana Mitra: Let’s start by introducing our audience to yourself as well as to Bristol Gates.

Thought Leaders in Financial Technology: Eyal Shinar, CEO of Fundbox (Part 7)

Sramana Mitra: Does Apple need to click on your button too on the platform?

Eyal Shinar: No.

Sramana Mitra: Then you don’t need any integration with Apple.

Eyal Shinar: That’s correct. That’s what I was saying earlier. In most scenarios, we don’t need anything from the buyer side. The way to think about it is you need to integrate Fundbox Pay. The integration there is a one-click process.

Thought Leaders in Financial Technology: Eyal Shinar, CEO of Fundbox (Part 6)

Sramana Mitra: It’s not a big buyer whose problem you’re solving. You’re solving the small business’ problem of cash flow. A small business working with a large buyer with not very favorable terms puts the small business at the mercy of the buyer.

In this case, just inserting Fundbox or equivalent speeds up the working capital issue for small businesses, and the large buyer has absolutely nothing to lose by introducing that.

Thought Leaders in Financial Technology: Eyal Shinar, CEO of Fundbox (Part 5)

Sramana Mitra: Why are you not involved in transactions where it’s a large company buying from a small company?

Eyal Shinar: Because of the point you just raised. Interestingly enough, some larger companies, not as big as Apple, reach out to Fundbox as a seller. We already have agreements in place, but it’s not public yet. They’re asking us to be the provider of terms of their business buyers.

Thought Leaders in Financial Technology: Eyal Shinar, CEO of Fundbox (Part 4)

Sramana Mitra: What percentage of sellers are working with you in this mode? What is the penetration of this kind of technology in the B2B sellers’ world? What percentage of the sellers in the world are working with Fundbox or competitors today?