Name: Insights: How Automation is Ushering in the Third Wave of Fintech
Uploaded: 2020-03-10
Duration: 2 min 43 s
Description: Jason Brown, cofounder and CEO of Tally, stops by the Fortune studios to discuss the future of financial technology. (November 2019)

 SPEAKER 1: So we're a financial automation company, which means that we are building a service that can do all of your financial thinking and your financial work. And so we started about four and 1/2 years ago building what is now the first and only automated debt manager. And it helps people get out of credit card debt faster and save money along the way. And then we recently added an automated saving service that helps people save towards a goal or build a rainy day fund. And ultimately, what we're working towards is to be able to do all of the financial thinking and work for consumers, so that they can set really big objectives, like I want to be a homeowner. And along the way, we're getting rid of their card debt, saving a down payment, improving their credit score, and then eventually financing a home. So it's about being able to really take that emotional and cognitive load off of consumer's shoulders and do that in an automated fashion with software. SPEAKER 2: So walk us through exactly how this works. SPEAKER 1: So with Tally, you just download the app, scan in your cards. And then, we actually take responsibility for paying your cards for you, and then you pay Tally. And the advantage there is anytime we detect you're getting charged interest by the cards, we actually sweep over your balances overnight, and move them over to Tally at a lower rate. And we guarantee you're not going to have any late fees. The way our algorithms manage your cards, they get you out of debt quite a bit faster. And our average customer saves over $5,000 in interest. Taking a look at Tally cards, we only can make money if we're actually saving a customer money on interest. So people were using Tally that, let's say, don't have any interest charges, they get to use Tally for free, and they get all the benefit, which we're fine with. But anytime we can see, hey we can save you money, we're going to do so. And then Tally will actually earn revenue. So I think it has to do with just the general focus around what is best for the consumer mathematically and doing that. And I think that's the power of having computers do your financial work because let's just take a real human financial advisor, right? They're supposed to be doing what's best for you, but are they getting fees and incentives from different financial products to kind of nudge you in one direction or another? Whereas Tally effectively has an auditable log. And every decision that the system made on your behalf, we can justify why mathematically that was the best thing to do at the time. And even 100 years from now when I'm dead and gone, if let's say, auditors want to come in and look at what happened, there's actual trail on every single move. So that's one of the things that I get excited about, is moving actually away from human advisors into computer systems where you have that kind of mathematical accountability. 

Insights: How Automation is Ushering in the Third Wave of Fintech

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Jason Brown, CEO of Tally, discusses the future of fin tech.

Automation is Ushering in the Third Wave of Fintech

Jason Brown, cofounder and CEO of Tally, stops by the Fortune studios to discuss the future of financial technology. (November 2019)

We're a financial automation company, which means that we are building a service that can do all of your financial thinking and your financial work. And so we started about four and 1/2 years ago, building what is now the first and only automated that manager. And it helped people get out of credit card debt faster and save money along the way. Um and then we recently added an automated saving service that helps people save towards a goal or build a rainy day fund. And ultimately, what we're working towards to be able to do all of the financial thinking and work for consumers so that they can, you know, that really big objective, like I want to be a homeowner. And along the way we're getting rid of their card, that saving it down payment, improving the credit score and then eventually financing a home. So it's about being able Thio, really? Take that that emotional and cognitive load off consumer shoulders and do that in an automated fashion with software, So walk us through exactly how this works. So with Sally, you just download the APP scan in your cards and then we actually take responsibility for paying your cards for you and then you pay tally and the advantage there is. Any time we detect, you're getting charged interest by the cards. We actually sweep over your balances overnight and move him over. Thio tally at a lower rate, and we guarantee you're not gonna have any late fees. The way our algorithms manage your cards, they get you out of that quite a bit faster. And our average customer saves over $5000 in interest. Taking a look, a tally cards we on. Lee can make money if we're actually saving a customer money on interest. So people were using tally that Let's say I don't have any interest charges. They get to use tally for free and they get all the benefit which were fine with. But any time we can see hey, we can save you money, we're going to do so and then Tally will actually earn revenue. So I think it has to do with just the general focus around what is best for the consumer mathematically and doing that. And I think that's the power of having computers to your financial workers. Let's just take a real human financial advisor, right? They're supposed to be doing what's best for you. But are they getting fees and incentives from different financial products to kind of nudge you in one direction or another? Where's tally effectively? Has an auditable log in every decision that the system made on your behalf weaken justify? Why mathematically, that was the best thing to do at the time and even 100 years from now, when I'm dead and gone. If you know, let's say auditors want to come in and look at what happened. There's actual There's actual trail on every single move. So that's one of the things that I get excited about, it moving actually away from human advisers into computer systems, where you have that kind of mathematical accountability.