Finosu
Workflow automation for the credit industry
Hi - Mark and Gab here! We met while working at Alt, a marketplace for collectibles, within which we built a $200m specialty finance business line. At Alt, we were faced with the manual workflows from compliance to servicing that are needed to make and manage consumer loans. And as a result, we spent much of our time and hundreds of thousands of dollars creating robust internal tooling to ensure we were doing things the right way. However, after the pain of hunting through regulatory codes, confusion of form filling, surprise of regulatory deadlines, monotony of PDF data extraction, anxiety of brittle excel spreadsheets, the frustration of buried email threads with advisors, and the missed phone calls with borrowers to chase payments … to name a few … we knew that this experience needed to be improved. So, we started Finosu to build the tools that we wish we had. Finsou is building software to reduce the barriers to entry in lending, beginning with: outsourced state licensing, default compliant loan management systems, and automated servicing infrastructure. The operational cost of originating and servicing loans reaches into the tens of billions a year and that is money out of the pocket of lenders, borrowers, investors, and ultimately the consumers as a cost of doing business – we are changing that.
Active Founders
Mark Ricciardi, Founder
Started in finance as a special situations private credit investor and then moved to tech to build productized credit instruments.
Gabriel Vincent Kho, Founder
Stanford grad. Ex-Flexport. AI consultant (not currently because I'm working on my own start-up). I'm currently working on fixing the problems I faced in the credit space while working at Alt.
Company Launches
TL;DR: The consumer lending compliance process sucked, and so we started Finosu to build the tools we wish existed.
Hi all - we’re Gabriel and Mark. Together we built a $200m lending business within a fintech marketplace, and in doing so, spent hundreds of hours and hundreds of thousands of dollars on compliance work.
Problem:
- Regulatory compliance is mandatory to access the $5 trillion US consumer credit market
- Compliance today is expensive, relies heavily on manual processes to navigate the complicated state and federal laws, and operates reactively to audit requests
Solution:
Our software relieves the pain of hunting through regulatory codes, the confusion of form filling, the surprise of regulatory deadlines, the monotony of PDF data extraction, the anxiety of brittle Excel spreadsheets, and the frustration of buried email threads with advisors… to name a few…
We ingest lenders’ existing information (PDFs, excels, loan management systems, etc.) and:
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automate filing and maintenance of state lending licenses
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automate preparation for loan book auditing
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provide a loan management system that is natively and proactively compliant
Why now:
- The cost of compliance has skyrocketed as federal agencies such as the Federal Reserve, FDIC, and OCC have increased scrutiny on sponsor bank partnerships
The ask:
- If you work in or around all forms of lending at a fintech, investor, advisor, broker, or bank, we’d love to chat!
- Share this post! If there is anyone in your network who deals with consumer lending, we would love to learn more about their problems and see if we can be helpful!
- Copy & paste blurb: A team of ex-fintech operators created a product to automate regulatory licensing and loan book auditing for consumer lending. Contact mark@finosu.com to see a demo from the founders.