Flybits nabs $35M to build consumer recommendation engines for the financial sector

TechCrunch | 7/16/2019 | Staff
abbycraig (Posted by) Level 3
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Financial service companies like banks have seen some of their business cannibalised over the years with the rise of digital-based alternatives — often in the form of apps — that provide lower fees, faster responsiveness, and more flexibility to consumers. Today, Toronto-based startup called Flybits is announcing $35 million in funding for a platform that it believes can offer these banks a way of continuing to capture their users’ attention, and to help them pivot into the next generation of services, financial or otherwise.

Today, a typical end product for a customer of Flybits’ services will use insights to upsell a customer by offering financial services, for example a bank providing an offer of a specific kind of loan or credit card that you are more likely to take; or to offer a loyalty program or rewards for usage. But the longer-term goal, said CEO and co-founder Hossein Rahnama, is to help its customers take on a bigger role as repositories that can be used for more than just money, and used beyond the walls of the bank.

Banks - Role - Money - Vaults - Data

“We don’t think banks will go away as some do, but we think that they could have a role not just as money vaults, but as data vaults: a place where you can deposit data, which you trust,” he said in an interview. Indeed, some of the funding will be used to put into action some of the AI and machine learning patents the startup has amassed, with the building of a “data” marketplace for banks, fintechs, and other data providers to partner and build more services together.

The Series C comes from an interesting group of investors that includes both strategic backers using Flybits’ services, as well as backers of the more non-strategic, financial kind. Led by Point72 Ventures (hedge fund supremo Steve Cohen’s...
(Excerpt) Read more at: TechCrunch
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