Welcome back to another episode of Fintech, What the Heck?. The best podcast for financial professionals, everything fintech, and the future of data! In this episode, we had the pleasure of interviewing Brian Mandelbaum, Chief Executive Officer of Klover. Klover’s mission is to give everyone access to modern financial services by leveraging their most valuable asset-their data.
We begin the interview with Brian sharing a little about his background and what led him to start Klover. Ironically, Brian does not have a background in the fintech industry and started out in advertising in New York, which led him to start his previous company that was successful and in 2019 saw a need to ensure consumer’s privacy and safety in their data and began Klover. Brian shares the trends he had seen years ago in Europe and later in California in their efforts to protect consumers data and thought to himself, if data is going to be at forefront of regulation- there out to be a value for that data and should be valued more importantly. If that is the case, then markets should make it more beneficial for consumers sharing their data. Klover does that by unlocking the financial ecosystem that has been charging consumers with fees and costs for centuries and uses the data that monetizes the consumer with expressed permission from the user.
Andrew poses the question, “What are the benefits of your app and what does user get in return for being honest and sharing information about themselves?” Brian responds by taking a step back and explaining why they care about financial services as it relates to data. He explains not all data is created equal and gives examples of this. Klover offers benefits such as consumer advances- consumers can receive their paycheck early for free. Klover offers traditional banking products, like checking and savings accounts, credit cards, and is getting into investing. They try and strive to give consumers these benefits 100% for free. Brian explains how Klover cares about making money is turning commercial data you are generating inside their tools as the path to economic incentive while keeping your information private.
Andrew asks Brian to share with listeners an example of a user of the Klover platform and what types of information is useful that can be monetized. Brian shares a basic example of competitive data using coffee drinkers, Starbucks vs Dunkin Donuts. Brian goes on to share a quote, “Way to access financial freedom is to create financial mobility.” At Klover, they define financial mobility as helping consumers save or make money, and Klover does both every day for its users.
Andrew and Brian talk briefly about zero-party data and what that means. Brian breaks down the distinct types of data: third party data, second party data, and zero-party data with examples and characteristics of each of these types of data. Zero-party data is clear and present value exchange of giving data and getting something for the data. Advertisers and Marketers love zero-party data because it is ethical and gives more clarity into its consumers.
Andrew and Brian close out the interview by sharing where Brian thinks this industry is going and what Klover is building next to appeal to its users? Brian shares trends he is seeing and hearing and his belief that the world is headed to zero-party data industry in the future. He also shares that the Klover team is focusing on the app’s banking elements and the benefits to banking with Klover. Brian briefly shares the gamification aspect of the Klover app and how teaching positive behavior can create financial freedom.
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