Fintech companies can now test and deploy decision-making models with $20 million raised by Taktile
Many fintech companies’ automated judgments, such as granting a credit line, are hard-coded into the backend of their software. To alter lending criteria, a head of credit, for example, must initiate a ticket with IT.
Taktile was founded in 2020 to make automated logic changes self-service. They met at Harvard and collaborated at QuantCo, which creates AI-powered solutions for businesses. Many automated decisions were poorly planned, seldom tested, and required extensive engineering, resulting in guesswork.
Wehmeyer declined to comment on Taktile’s clients or financial situation, citing competition concerns. Investors expect further growth. Taktile has raised $20 million in a Series A round led by Index Ventures and Tiger Global. Tiger’s engagement is intriguing since the venture capital company recently reduced its investments, aiming for $6 billion for its next fund, which will be half the size of its last investment vehicle.
“The round was preempted by Tiger Global and Index Ventures as they saw strong indications of product-market fit and believed that the time was right to start scaling the business,” Wehmeyer said.
Taktile provides a no-code interface for creating, modifying, and analyzing decision processes. Wehmeyer elaborated. Assume a bank wants to reduce the minimum account opening age from 25 to 21. Taktile would backtest the adjustment with the bank’s credit head before implementing it.
Taktile users may also experiment with off-the-shelf data connections and evaluate predictive model performance in decision-making processes, according to Wehmeyer. Branch, Moss, Rhino, Novo, and Vivid Money, he claims, utilize the platform to make 280,000 daily decisions.
Our technology has been used by advanced lenders that host machine learning models on our platform to assess the creditworthiness of potential borrowers, according to Wehmeyer.
Taktile deals with sensitive information. Taktile created technology that enables corporations to host decision processes in their preferred country and handle data locally, easing the concerns of privacy advocates, customers, and regulators.
This will not address the underlying problem of algorithmic transparency. According to a recent New York Times article, some lenders are using out-of-the-box data sources to assess creditworthiness, giving customers who were previously denied access to certain financial products a second chance while raising the risk of perpetuating prejudices or generating false forecasts.
Taktile’s fintech customers are required to provide the data and models that they store and deploy on the platform.
Before the IT recession, consumer growth encouraged fintechs. Investors now seek a clear path to profitability, making risk decisions tougher, according to Wehmeyer. Customers rely on Taktile to swiftly react to a turbulent market since building a complicated decision system takes years and costs millions of dollars. Taktile employs 45 people in New York, London, and Berlin. By 2023, Wehmeyer anticipates 70 workers.