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 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 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.We dont 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 Cohens VC fund), the list also includes Mastercard, Citi Ventures and Reinventure (the fund backed by Australias Westpac Banking Corporation), Portag3 Ventures, TD Bank and Information Venture Partners.
Valuation is not being disclosed, and prior to this the company had raised around $15 million.Much like another marketing tech company, Near which today announced $100 million in funding the premise that underpins Flybits technology is that there is a lot of disparate data out there that, if its treated correctly, can uncover a lot more insights about consumer behavior, and that by and large many companies are missing this opportunity because they havent found the right way of merging the data to unlock insights.While Near is applying this to location-based data and a range of different verticals, Flybits primary target has been banks and the data that they and other financial services providers already possess.Many smaller startups in the world of financial services have stolen a march on bigger incumbents by building personalization into their products from the ground up.
(Indeed, some like Step, aimed at teens, are so personalised that they will actually change their service mix as their customer base grows up and needs new products.) This is something that incumbents might have been more readily able to do in the old days, when people knew their bank managers and tellers and made daily trips into branches to transact.
In the digital age they have fallen behind and are now catching up.Flybits investors have spotted that and this in part is why they are banking on technologies like this to help bigger companies catch up, not just in financial services (although with banking alone estimated to be a 6.9 trillion industry, this is clearly a good start).Personalization is mission-critical for all D2C businesses in the digital age.
Flybits integrated platform allows financial services firms to offer contextualized experiences, driving product awareness and adding significant value to the lives of their customers, said Ramneek Gupta, managing director and co-head of Venture Investing at Citi Ventures, in a statement.
We look forward to partnering with Flybits in its next phase of growth as it continues to set the bar for hyper-personalized customer experiences.Indeed, its not just banks that are working on upselling, or that have large repositories of data that are not used as well as they could be.Mastercard and Flybits share a vision on using data driven insights to enrich consumers experiences, said Francis Hondal, president, Loyalty - Engagement at Mastercard, in a statement.
Our ultimate goal is to develop products and services that engage consumers in a highly contextual manner.
Through this collaboration with Flybits, well be able to offer rich, personalized experiences for them throughout their journeys.