Hello and welcome to another—wait for it—BUSY edition of AI & Finance. This week we have a ton of headlines to deliver your way about financial artificial intelligence, but before we chat about those, we’d like to talk about some of the AI research that’s come out recently. 
No, we’re not going to dive into specific survey and polling numbers this week like we have in recent weeks past, mainly because the numbers all tell a similar, familiar story about AI adoption in businesses—there’s a lot of anxiety out there. I mean, the surveys that rolled in over the last week, and I’ve read at least ten of them, are overwhelmingly anxious and pessimistic.
Let’s roll off a few of the greatest hits without naming specific names. In a few of the surveys, there’s anxiety about the information security implications of implementing AI in businesses, something all too familiar in the financial services industry where the regulatory compliance burden is still an obstacle to tech adoption. The massive amounts of data that AI will require businesses to process, store and use is a common pain point.
In other surveys, the AI dread is more existential. AI is literally coming for our jobs and will displace all knowledge workers, the narrative goes. Or workplaces are demanding AI skills, making older workers feel obsolete or concerned that younger applicants with AI knowledge are more desirable.
AI is expensive to implement. AI is energy consuming. AI is disruptive. AI is cold and unfeeling. AI. AI. AI.
I guess it is October and these researchers might have set out to find the Boogeyman.
I know I said we wouldn’t name names, but I do have to dive briefly into one item—and famous name—that stood out this week: Scarlett Johansson.
What brought ScarJo across our radar? In a recent McAfee report, the Black Widow and Lost in Translation actress ranked as No. 1 on a list of celebrities whose names and images are most exploited by cybercriminals. So, in other words, if Scarlett Johansson out of the blue sends you any attachments in your email—be they links, pictures, documents or whatever—maybe think twice about clicking.
On to the news. This week we have a huge number of insuretech and lendtech items. This isn’t all that unusual. Sometimes we have so many that I considered doing a little gatekeeping and throttling the number of insurance and lending related items we include in AI & Finance, but I think it’s a good illustration of where AI is proliferating first and most successfully in the sector.
Amid all the insurance and lending stuff, though, I’d like to cast a little spotlight on the wealthtech item from Communify Fincentric, which announced that it is turning its market intelligence technology towards wealth management applications.
Let’s get to the headlines.
READ ON…
1. Adaptive Insurance
As climate change intensifies, businesses across the U.S. are grappling with unprecedented risks, particularly power outages, that collectively drain $150 billion from the economy each year. Adaptive Insurance, a new parametric insurance platform, launched today with a mission to change how businesses safeguard against climate risks. The company’s flagship insurance product, GridProtect, will offer immediate, technology-driven financial relief from the impacts of power grid disruptions.
Every month, 15 million businesses in the U.S. suffer from power outages, often with catastrophic financial consequences. According to the Electric Power Research Institute (EPRI), the average cost of a power outage can range from $2,108 for a 3-minute outage to over $8,000 for a one-hour outage. Studies also show that every $1 spent on resiliency results in $13 saved in cleanup and economic costs—dollars that are better reinvested into growing a business, supporting its employees, and building deeper connections with the community.
Traditional insurance has left businesses vulnerable, with coverage gaps that expose them to severe losses. GridProtect changes that. Leveraging advanced AI and climate data, Adaptive Insurance provides businesses with parametric coverage for short-duration outages, eliminating the typical 24-hour period before coverage kicks in that is found in conventional policies.
2. Agora Data
Agora Data, Inc., a leading consumer fintech company providing innovative technology, capital solutions, and advanced loan performance analytics, has announced the formation of its new Financial Institutions Group. This new division is tailored to serve finance companies that specialize in addressing the needs of the subprime to non-prime market. More specifically, the division supports independent consumer finance companies, banks, credit unions, investment firms, insurance companies, and other entities by offering these institutions the capital necessary for portfolio growth, enhanced efficiencies, and increased profitability. By integrating traditional refinancing structures with ongoing forward flow arrangements, Agora’s new group delivers seamless liquidity, enabling companies to scale their operations without having to raise additional equity or operate under restrictive financial covenants.
Agora Data offers financial institutions access to abundant and affordable capital while maintaining the full benefit of the valuable assets they originate. By offering off-balance sheet, non-recourse credit facilities without the restrictive covenants historically required, Agora facilitates businesses’ access to capital markets enabling growth and long-term financial stability.
3. Baker Tilly
Leading advisory, tax and assurance firm Baker Tilly is expanding its advanced technology capabilities with the acquisition of Alirrium, a fast-growing leader in Robotic Process Automation (RPA) advisory and implementation services. Effective Nov. 1, the move strengthens Baker Tilly’s capabilities in RPA, artificial intelligence (AI) and machine learning to better support businesses in modernizing their operations and improving their competitive edge.
Alirrium is known for its expertise in intelligent RPA integration, serving a diverse client base that includes both government and commercial enterprises. As a UiPath Gold Partner, Alirrium provides customized automation solutions that enhance operational efficiency, improve data accuracy and streamline business processes. This acquisition allows Baker Tilly to leverage Alirrium’s strengths to deliver even more advanced solutions tailored to the evolving needs of its clients.
Since 2022, Baker Tilly and Alirrium have successfully collaborated on RPA implementations through a strategic alliance. Alirrium’s integration into Baker Tilly will enable the unified team to continue delivering high-impact solutions while driving product innovation and enhancing client success.
4. BMO
BMO today announced the appointment of Kristin Milchanowski as its new Chief Artificial Intelligence and Data Officer, effective October 15, 2024.
Kristin will drive BMO’s Artificial Intelligence (AI), data, analytics, and robotics strategies and supporting technologies, championing a transformative AI roadmap that optimizes and enhances business value. Additionally, she will focus on data management and data governance across the organization, deepening the bank’s robust and established culture of innovation and accountability.
Kristin is a global AI executive with more than 20 years of experience, most of that in the financial sector. Most recently, Kristin was a Global Innovation Partner / Principal at EY, focused on AI, High Process Computing and Quantum technologies. Kristin is an Artificial Intelligence Associate Fellow of the University of Oxford, where she completed post-doctoral studies in AI and holds a PhD in Decision Sciences.
5. Communify Fincentric
Communify Fincentric, a leader in unifying market and client data through best-in-class digital solutions for the financial sector, today announces the launch of a next generation suite of sophisticated client and advisor experiences for wealth management. Born in the era of AI, and leveraging Communify Fincentric’s mature and extensive knowledge base, the flexible platform powers solutions that provide unprecedented access to information, personalization and automation for advisors – strengthening their ability to service their clients and drive growth at scale.
At the core of Communify Fincentric’s new client and advisor experiences is MINDTM– Market Intelligent News Discovery. This is a proprietary collection of smart applications that transform large data knowledge bases into intelligent insights using deterministic AI. In stark contrast to probabilistic AI, in which outcomes can vary massively and suffer from hallucinations, MIND insights are precise, accurate and therefore can be trusted by investors and advisors – and compliance. MIND delivers hyper-personalized insights in sub-seconds that contain reliable, relevant information (through video, text and more). With over 140 established event triggers based on real-time data, 1500+ models and a suite of useable apps, MIND provides advisors with the tools to deepen client relationships and streamline workflows.
Communify Fincentric’s MIND has the advantage of a proven track record – being used by many of the largest wealth management platforms in North America, for several years behind the scenes every day.
6. Guidewire
Guidewire (NYSE: GWRE) announced that Norima Consulting, a leader in technology, modernization, and client services, has joined Guidewire PartnerConnect as a Consulting alliance partner at the Select level serving insurance companies in North America.
Norima Consulting’s insurance and technical expertise includes digital transformation, cloud, and data engineering to optimize faster, more efficient business processes. The company partners with insurers to achieve business agility with Guidewire core system and cloud implementations, providing strategy and expertise in analysis, quality assurance, test automation, and data migration. With a team of professionals proficient in Guidewire products and Guidewire Marketplace integrations, Norima serves large and regional insurers.
7. Lendbuzz
Lendbuzz, an AI-based fintech company that helps consumers obtain better access to credit when purchasing a vehicle, announced today that it has closed a $262 million securitization (“LBZZ 2024-3”) collateralized by a pool of auto loans made to obligors and secured by new and used automobiles, light duty trucks, and vans.
8. Lenders Cooperative
Lenders Cooperative is proud to announce the appointment of Stephen Hayes as the new Head of Data & AI Strategy. Stephen brings over 15 years of expertise in financial services, data analytics, and artificial intelligence to Lenders Cooperative. His extensive background in transforming complex data into strategic business advantages will play a pivotal role in empowering financial institutions across the country to leverage data for sustainable growth.
Before joining Lenders Cooperative, Stephen served as Senior Vice President of Analytics at Live Oak Bank, where he developed and led a data analytics department that delivered tangible financial and business benefits. Among his notable achievements, Stephen created innovative predictive credit and financial models, including custom credit scoring and pricing models tailored for small business lending. He consolidated and transformed disparate data systems into a unified platform, enabling real-time data access across departments, while spearheading model validation initiatives on the bank’s Model Risk Management Committee.
In 2021, Stephen co-founded Lumos Data, where he developed the industry-leading PRIME+ small business credit score. This innovative solution has helped financial institutions grow and diversify their small business loan portfolios, providing enhanced insights and decision-making capabilities in small business lending.
9. Modern Treasury
Modern Treasury, the leading payment operations platform built for the Instant Economy, today introduced new features to help businesses adapt to real-time financial operations. As consumer demand for immediate access to goods and services grows, businesses need faster, more efficient systems to track payments and respond to customer needs in real-time.
Deloitte predicts as much as $37 trillion in payments can transition to real-time by 2028. These B2B payments are currently settled over ACH or check and often take days to do so. As the transition to instant payments rapidly unfolds, businesses need modern software to reap the benefits.
Instant payment rails like FedNow and RTP allow companies to send cost-efficient payments at scale, saving up to 10x on wire payments, improving customer experiences with faster payment processing, and unlocking additional float revenue.
10. New York Life
New York Life today announced that Vikas Sharma and Achuth Rao have joined the company’s Artificial Intelligence & Data (AI&D) team as chief data officer and head of AI&D product management, respectively. Both will report to Don Vu, the company’s chief data and analytics officer. They will collaborate closely with chief data science officer Alain Biem, the rest of the AI&D leadership team, and enterprise partners to deliver innovative data and AI solutions built on trustworthy data and top-tier technology.
With more than two decades of experience in data and digital transformation, Sharma joins New York Life in this new role from Farm Credit Bank of Texas. There, he served as chief data and analytics officer, spearheaded the modernization of the bank’s data ecosystem, and implemented AI-powered analytics solutions across multiple business lines. Previously, he held leadership roles at Capital One, Warner Media/HBO Max, and Walmart. Sharma holds a Bachelor of Engineering from Marathwada University in India.
As head of the newly formed AI&D product management team, Rao is responsible for driving the development and delivery of cutting-edge AI and data products, helping to provide innovative solutions to challenges, and creating value for New York Life’s customers, agents, and employees.
11. Open Lending
Open Lending Corporation (NASDAQ: LPRO) (“Open Lending” or the “Company”), an industry trailblazer in automotive lending enablement and risk analytics solutions for financial institutions, today announced a partnership with Point Predictive, experts in predictive science. Designed to bring enhanced speed, security, and performance to automotive lenders, the partnership integrates the capabilities of Point Predictive’s new IEValidate™ solution, and IncomePass™ solution into Open Lending’s Lenders Protection™ loan decisioning engine.
Unreliable applicant income information and proof of income (POI) stipulations often slow down the approval process and can lead to lower closure ratios on auto loan applications, but the Point Predictive integration now gives Open Lending customers a way to quickly validate income and employment.
IEValidate and IncomePass are built seamlessly into Open Lending’s existing loan decisioning engine enabling its lender customers to safely and securely deliver approvals in just five seconds. With reduced stipulations and increased loan capture, the integration makes it simpler to bring financing opportunities to underserved near- and non-prime borrowers.
12. Options Technology
Options Technology (Options) a trailblazer in capital markets infrastructure, today announced the opening of its new office in Sydney, Australia. This expansion is a key milestone in Options’ global growth strategy and reinforces its commitment to providing best-in-class infrastructure and support to clients across the Asia-Pacific region.
The Sydney office, strategically located in the heart of the city’s financial district, enhances Options’ ability to offer localized services, ensuring that clients benefit from on-the-ground support and tailored solutions to meet the increasing demands. The move builds on Options’ well-established presence in the region and reflects the firm’s dedication to strengthening client relationships and partnerships in Australia.
The Sydney office is part of Options’ wider global expansion, which includes recent office openings in Dubai and Toronto. Each new location strengthens the company’s ability to deliver 24/7 support and low-latency connectivity to financial institutions worldwide.
13. Socure
Socure, the leading provider of artificial intelligence for digital identity verification, sanctions screening, and fraud prevention, today announced that Josh Simpson has joined the company as Senior Vice President of Customer Success. With a proven track record in scaling global teams and driving positive customer outcomes, Simpson brings nearly two decades of experience to further strengthen Socure’s commitment to providing accurate and inclusive identity verification and fraud prevention services to government agencies and large brands across industries.
Simpson joins Socure from Forter, where he most recently served as VP of Global Delivery. In this role, he led customer success, customer support, and implementation services teams, focusing on protecting businesses from online fraud, policy abuse, and identity takeover. His responsibilities included managing critical financial metrics while simultaneously building strong customer relationships and driving positive outcomes.
Prior to Forter, Simpson held leadership positions at Snyk and Akamai Technologies. At Snyk, he led the Global Customer Success team, helping customers achieve their security goals through a developer-first platform. During his tenure at Akamai Technologies from 2007 to 2020, Simpson played a crucial role in supporting the company’s growth working with major brands across various sectors including gaming, media, high tech, and financial services.
14. Spear Technologies
Spear Technologies (“Spear”), a leading provider of property and casualty insurance software solutions, is excited to announce that George Hills Company (“George Hills”) has gone live with SpearClaims™, as part of a continuous effort to modernize their subrogation recovery processes.
Following a rigorous evaluation process, George Hills selected Spear Technologies as the ideal partner to address their evolving needs in claims management. Spear’s cutting-edge solutions, cloud native technology, and proven track record aligned seamlessly with George Hills’ vision for a more efficient and effective claims system. SpearClaims™, part of Spear’s insurance software suite, is built on the low-code Microsoft Power Platform™ and incorporates artificial intelligence (AI), intelligent automation, and tremendous flexibility.
Spear Technologies offers a comprehensive suite of features designed to optimize claims processing, improve customer experience, and increase operational efficiency. By implementing Spear Technologies’ solutions, George Hills anticipates significant advancements in claims handling, resulting in faster response times, reduced administrative burden, and enhanced data security.
15. SS&C Technologies Holdings
SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) today unveiled its latest technology and services solutions during the SS&C Deliver 2024 Conference. Nearly 1,000 leaders across various industries gathered in New Orleans for a deep dive into SS&C’s offerings in alternatives, asset management, healthcare, managed services, and more.
SS&C introduced innovations across several key areas, including Artificial Intelligence and Intelligent Automation. SS&C Intralinks showcased advancements through the DealCentre AI™ platform, simplifying deal management with advanced tools and insights. The SS&C Blue Prism Enterprise AI portfolio combines generative AI with enterprise automation to enhance user experience and operational efficiency.
SS&C also previewed several Next-Gen innovations, including a Financial Wellness AI. Enhancements for SS&C’s Financial Wellness Center engage the next generation of investors through interactive features and gamification. A Fund Services Portal includes the SS&C Portal Assist Chatbot, which provides users an interactive way to engage with funds data, enhancing operational transparency and efficiency. Finally, ARIA (algorithmics risk intelligent agent, an AI assistant embedded within SS&C Algorithmics’ solutions suite which enables risk professionals to use natural language to quickly create detailed financial reports, day-over-day change analysis for risk assessment, and what-if analyses.
16. TIFIN AG
TIFIN AG, a leading provider of artificial intelligence (AI) and machine learning (ML) solutions for the wealth management industry, is excited to announce a strategic partnership with GenWealth Financial Advisors, LLC (GenWealth), a leading wealth manager in Arkansas and Louisiana.
TIFIN AG aims to deliver AI-powered insights and intelligence to accelerate organic growth at GenWealth by equipping advisors with new opportunities integrated directly into their CRM. This collaboration will leverage TIFIN AG’s advanced AI/ML models to address the challenges of expanding existing client business, and identifying and converting new prospects into loyal clients.
Over the past 12 months, the efficacy of TIFIN AG’s models have yielded results showing that prospects scoring in the top twenty-five percent are six times more likely to convert to clients, and existing clients are 17 times more likely to consolidate assets. This showcases the strength of TIFIN AG’s data science capabilities. This partnership aims to replicate and exceed these results for GenWealth. The solutions deployed at GenWealth are some of the many personalized models that TIFIN AG offers as part of its comprehensive growth platform.
17. Upstart
MIT Federal Credit Union (MIT FCU), a full-service, Massachusetts-based credit union serving over 35,000 members, has announced a new partnership with Upstart (NASDAQ: UPST), the leading artificial intelligence (AI) lending marketplace, to provide personal loans to new and existing members.
MIT Federal Credit Union started lending as a partner on the Upstart Referral Network in March 2024. With the Upstart Referral Network, qualified personal loan applicants on Upstart.com who meet MIT FCU’s credit policies will receive tailored offers as they seamlessly transition into an MIT FCU-branded experience to complete the online member application and closing process.
