More startups should launch in bank niches like SubPrime lending

More startups should launch in the “niche” areas of banking that incumbent institutions have started avoiding, Ohad Samet, co-founder and chief executive officer for TrueAccord, told attendees of the 2018 Bank Innovation conference.

“It’s actually not very common for a startup to be started in subprime lending, debt collection—those areas that frankly require a lot of regulation and minutiae,” Samet said, during a presentation at the conference where he spoke of the increasing need and use of artificial intelligence in financial services.

Startups, said Samet, have a unique opportunity as banks and other incumbent financial services are moving out of “niche services,” leaving consumer gaps for younger players—especially those with AI and machine learning technology skills—to fill.

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