Generative AI, deposit gathering are hot topics at Finovate Fall

The Finovate Fall conference in New York City served as a barometer of the topics dominating the financial services conversation, with 66 seven-minute demonstrations addressing top-of-mind challenges and opportunities energizing financial services leaders.

The semi-annual conference offers a concentrated view over three days demoing the latest financial technology advancements for investors, potential partners, and financial institutions.

It’s no surprise that solutions leveraging generative artificial intelligence (AI) and ChatGPT played an outsized role. Nearly as visible, however, were products geared toward solving a classic and more pressing near-term issue—deposit acquisition and retention.

Six Best of Show winners, determined by the audience of 1,400 attendees, provide a solid overview of the diversity of solutions on display.

• Wysh generated the greatest amount of hallway conversation from my vantage point. The startup unit within Northwestern Mutual offers a term life form of “micro-insurance,” a benefit provided by the financial institution that accrues based on savings balances. In the event of a primary account holder’s death, an additional amount (typically 5% to10%) becomes payable in addition to the existing deposit balance. This white-labeled “life benefit” can serve as a differentiator to attract new accounts, while encouraging savings and incenting members to tap other sources of funds when making withdrawals. According to Wysh, this benefit can be implemented without underwriting or opt-in.
• eSelf received the sole Best of Show nod among the 13 generative AI entries. Its founders, who sold a prior virtual assistant venture to SnapChat, looks to put a human face on generative AI—rather literally. Through the eSelf Studio, customers can create their own life-like avatars. “Customers still want to speak to a human; you can’t give them a machine” is the stated value proposition. By delivering AI-generated outputs with a human veneer, eSelf aims to split the difference.
• Chimney looks to deliver Zillow-like information through financial institutions’ home banking interfaces, better positioning an incumbent to provide mortgage or related financing services when needed. According to Chimney’s founders, its information drives app and website traffic even when a member isn’t in the market for a new home. The financial institution receives competitive intelligence and inputs for portfolio modeling, while the member receives a monthly home value report via email.
• Mahalo Banking champions features making mobile banking accessible for neurodivergent populations. An “open dyslexic font” makes mobile banking apps more navigable for dyslexic users. Animations can be disabled to prevent epilepsy triggers, and options are available to simplify left-handed navigation. Features can be easily turned on or off by the member in the settings. Mahalo’s leaders acknowledge such enhancements can only deliver impact if its base product is competitive, and the team points to market traction on that front as well.
• Trust & Will sees estates as the next frontier in financial literacy. Research by Caring.com found that 60% of families lack an estate plan, and Trust & Will aims to be “the TurboTax for wills.” The platform includes a financial advisor tool and a probate offering with self-guided and attorney-assisted options. Trust & Will has established integrations with some bank service providers and lists two credit union partnerships on its website.
• Debbie was a repeat winner, having earned a Best of Show nod at its debut last fall. This year’s demo featured its co-branded offering with Michigan State University Federal Credit Union (MSUFCU). Debbie co-founder Rachel Lauren notes that she’s found credit unions the most motivated to bring their debt reduction model to market, adding that 40% of its members have paid down some level of debt. New features include a behavioral change curriculum and a Rate Crusher Marketplace, which serves up debt reduction offers in real time. Debbie also noted that less debt can equate to deposit retention.

Credit union collaborations were featured in several on-stage demos, and for the first time a credit union-specific roundtable featured tailored use cases from seven of the presenting firms.

Another standout was Illuma Labs, which presented in tandem with six-time Best of Show winner Glia. The pair demonstrated how the Illuma Shield voice authentication technology has been integrated into Glia’s contact center software to create a seamless member experience. This solution is already in place at $370 million asset WyHy Federal Credit Union in Cheyenne, Wyo., and $1 billion asset SCE Federal Credit Union in Irwindale, Calif.

Cashy’s Gen Z engagement/financial education game platform, in which making sound financial decisions increases happiness, was shared via its in-production instance at $2.6 billion asset Altra Federal Credit Union in Onalaska, Wis. Cashy recently was selected as a provider of choice for financial education by CUNA.

GLEN SARVADY is managing principal at 154 Advisors.