Thomas  Loverro  @tomloverro  

Trends  in  Financial  Services  

Note:  Slides  excerpted  from  a  presenta4on  to  the  Life  Insurance  industry.  Examples  are  meant  to  be  illustra4ve  not  comprehensive.  

Banking  is  Under  A7ack  

Algorithms  are  Replacing  People  Across  Financial  Services  

Financial  Product   1.0   2.0  

Banking   Teller   Algorithm  

Hedge  Funds   Trader   Algorithm  

Insurance   Underwriter   ?  

Lending   Underwriter   Algorithm  

Mutual  Funds   PM   Algorithm  

Wealth   Advisor   Algorithm  

VC  /  PE   Investor   ?  

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

% o

f Bad

s C

aptu

red

Decline Rate (% of Applicants Declined)

OnDeck  score  

FICO  

Random  

1

Algorithms  Win