Revolutionizing Banking with AI The Cambio Approach

Cambio, a startup backed by Y Combinator, is reshaping the banking landscape by integrating AI into customer interactions through phone calls. Founded by Blesson Abraham, a banking industry veteran, Cambio initially focused on negotiating debt collections for consumers using AI-powered services. This innovative approach not only assisted consumers in resolving collections but also led to significant credit score improvements for 70% of its customers.

From Neobank to Debt Solution Provider

Originally conceived as a neobank targeting underserved markets, Cambio underwent a strategic shift following its acceptance into Y Combinator in 2022. Recognizing the demand for debt management tools among its user base, the startup pivoted its business model to prioritize aiding consumers in debt resolution. This transition proved successful, with Cambio’s user base growing to nearly 90,000 and a shift towards a paid business model.

Harnessing the Power of AI in Customer Interactions

Cambio’s innovative use of AI extends beyond debt negotiation to encompass customer outreach for banks and credit unions. Through its AI bot, AviaryAI, Cambio offers financial institutions the ability to automate sales and outreach calls, facilitating cross-selling efforts and product promotions. The AI-driven calls, which adhere to legal regulations, ensure transparency by notifying customers that they are interacting with a virtual assistant.

Ensuring Compliance and Effectiveness

Despite operating in heavily regulated industries, such as banking and insurance, Cambio navigates legal complexities by consulting with legal experts and proactively engaging with regulators. The company maintains transparency in its AI-driven calls and emphasizes quality control through the deployment of multiple bots to monitor and analyze call effectiveness. Early trials with partners like Envisant and Skyla Credit Union have demonstrated promising results, with AI-driven calls rivaling the success rates of human-initiated calls.

Securing Growth and Investment

To fuel its expansion efforts, Cambio secured a $3 million seed round of funding from prominent investors, including Builders, DVC, Goodwater Capital, and Y Combinator. Marina Davidova, Managing Partner at DVC, expressed enthusiasm for Cambio’s mission to revolutionize consumer financial products through innovative AI-driven solutions. With a focus on empowering individuals to manage debt and rebuild credit scores, Cambio is poised to drive meaningful change in the banking industry.