Revolutionizing Financial Data Collection - Our investment in Rightfoot
Today, we are excited to announce our investment in Rightfoot and their Connect Magic product which is transforming consumer data collection for financial institutions. We are co-leading Rightfoot’s Series A round alongside Blue Lion Global and existing investor, Bain Capital Ventures. Renata Quintini will be joining the Board as an Observer.
The last two decades have seen immense value creation through more seamless financial data connectivity and integration across platforms. Despite this progress, financial institutions have lagged behind and still use antiquated ways to collect their most critical consumer data. Take lending as an example. For a financial institution to issue a loan, the status quo is for the customer to manually upload financial statements and log in with usernames and passwords to multiple bank accounts. The financial institution needs this data to qualify the borrower, but the increased friction leads to an average 40% dropoff rate at the point of collection, significantly decreasing conversion and ultimately revenue.
Dani and Deirdre, the co-founders of Rightfoot, impressed us with their ambitious vision to tackle this problem and broaden financial access through a standard API to share consumer permissioned data. For financial institutions, easier access to data means better risk assessment, improved fraud detection, and personalized product offerings. For consumers, this means greater ease of use, and access to financial products that reflect their true credit worthiness
At Renegade, we invest in companies that we believe can become movements. Usually, we say that movements are companies that can become verbs. There are 3 hallmarks that movements possess:
Attacking a market at a tipping point. The consumer credit market today is simultaneously seeing a decline in applications for credit and historically high rejection rates. These trends are symptoms of a larger information asymmetry between lenders and borrowers. Rightfoot’s Connect Magic can already cover 270M+ customer accounts, and is righting a massive market inefficiency.
Building a compounding advantage. Rightfoot is building an API for consumer permissioned data that has the opportunity to become the standard for embedding credit data into any application. Rightfoot can be to credit data what Stripe is to payments, Twilio is to SMS, or what Daily is to video.
Purpose-driven. Dani and Deirdre started Rightfoot as students where they experienced first-hand how painful and complicated student loans can be. While their product has undergone iterations since their days as students, their vision has been unwavering and focused on unlocking greater financial access for every person in the US.
We’re thrilled to partner with Rightfoot through the next phase of their journey and are excited to support them in building the standard API connection for consumer permissioned data and payment.
Are you a renegade founder of a company that is at the supercritical stage? Let’s talk! hi@renegadepartners.com