Extra Crunch Friday: AI fintech products are operating at scale and investor interest is maturing

Extra Crunch Newsletter

Friday, March 19, 2021 • By Walter Thompson and Annie Siebert

Welcome to Extra Crunch Friday Image Credits: Nigel Sussman Most American retail banks are designed the same way: customers must pass several desks set aside for loan and mortgage officers before they can talk to a customer representative. I only step inside a bank a few times each year, but I can’t remember the last time I saw someone sitting at one of those desks. Everyone I know who’s obtained a home or business loan in the recent past started with an online application process. For this morning’s column, Alex Wilhelm interviewed Dave Girouard, CEO of Upstart, an AI-powered fintech lender that expects to see growth increase 114% this year. A forecast like that suggests that retail banks have gotten comfortable with using automated tools to calculate risk, which may help explain all the empty desks at my local branch. “If Upstart hits its 2021 numbers, we will be able to read into them broader adoption of AI among old-guard firms,” says Alex. According to PitchBook, investors are also more bullish on AI: Q4 2020 saw record funding for AI and ML startups, and exit totals are increasing as well. I wouldn’t mind adding a gently-used desk to my home office: perhaps I should call my bank and see if they have one to spare. Thanks very much for reading Extra Crunch. Have a great weekend! Walter Thompson Senior Editor, TechCrunch @yourprotagonist Read more

A crypto company's journey to Data 3.0 Image Credits: Getty Images Data is a gold mine for a company. If managed well, it provides the clarity and insights that lead to better decision-making at scale, in addition to an important tool to hold everyone accountable. However, most companies are stuck in Data 1.0. Read more

Survey: Share feedback on Extra Crunch Sponsored by TechCrunch We're always looking to improve: if you have a few minutes, please let us know how we're doing. Read more

Dear Sophie: What type of visa should we get to fundraise in Silicon Valley? Image Credits: Bryce Durbin/TechCrunch Dear Sophie: A friend and I founded a tech startup last year. Like a lot of other startups, we're looking for funding. Should we come to Silicon Valley to meet with venture capitalists? How should we begin that process? What type of visa should we get and how easy is it to get? —Logical in Lagos Read more

To solve all the small things, look to everyday Little AI Image Credits: Yuichiro Chino / Getty Images Why are developers still solving everyday pain points with manual, archaic processes, as opposed to employing "Little AI"? There are millions of everyday use cases for AI, where technology is empowered to learn and decide on a course of action that offers the best outcome for consumers and companies alike. Read more

How to recruit data scientists without paying top dollar Image Credits: Thomas Barwick / Getty Images The increasing demand for AI and data science experts, driven in part by the pandemic's economic impact, is showing no sign of abating. Many employers are failing to identify viable job candidates, much less interviewing or hiring them. What's holding them back? Often, it’s a poorly drafted job posting. Read more

3 steps to aid the transition to becoming a no-code company Image Credits: Korrawin / Getty Images No-code is changing how organizations build and maintain applications. It democratizes application development by creating "citizen developers" who can quickly build out apps that meet their business-facing needs in real time, realigning IT and business objectives by bringing them closer together. How can your company get ahead of the trend? Read more

No taxation without innovation: The rise of tax startups Image Credits: jokerpro / Getty Images The idiosyncrasies of sales taxes are a burden on small- and medium-sized businesses, but a new legion of startups is emerging to help companies manage the intricacies of cross-jurisdictional taxes. Read more

Snowflake gave up its dual-class shares; should you? Image Credits: VectorInspiration / Getty Images Some founders and investors argue that these preferred shares protect them from the whims of the market, but the perspective isn't universally accepted. Dual-class shares are a controversial governance structure, and some wonder if they are setting up an unfair playing field by allowing a cabal to wield outsized power. So why would Snowflake give up such a powerful tool? Read more

MaaS transit: The business of Mobility-as-a-Service Image Credits: Bryce Durbin As transit agencies seek to win back riders, a flurry of platforms — some backed by giants like Uber, Intel and BMW — are offering new technology partnerships. Whether it's bundling bookings, payments or just trip planning, startups are selling these mobility-as-a-service (MaaS) offerings as a lifeline to make transit agencies the backbone of urban mobility. Read more

What eToro's investor presentation and $10B valuation tells us about Robinhood Image Credits: Nigel Sussman Israeli consumer stock-trading service eToro is going public in the United States via a SPAC. One thing that points to? Trading platforms are being valued like high-margin video games. Read more

Read more stories on TechCrunch.com

View this email online in your browser Privacy Policy | Terms of Service | Unsubscribe © 2021 Verizon Media. All rights reserved. 110 5th St, San Francisco, CA 94103