BECU Acquires GenAI Fintech to Focus on Financial Well-Being

By W.B. King

Peter Thiel, co-founder of PayPal, and a handful of other tech juggernauts, are purportedly ponying up big bucks to start a new bank that will cater to crypto startups. The proposed national bank, Erebor, a direct reference to The Lord of the Rings, is supposed to replace, in part, Silicon Valley Bank, which went bankrupt in 2023. The new bank, if approved, will offer traditional banking products, virtual currency-related products and services, and lending.

Thiel’s move is but one example of an ever-changing fintech market. In the credit union space, the $29 billion Tukwila, Wash.-based BECU, which supports more than 1.5 million members, recently announced that it acquired EarnUp. The GenAI fintech purports to help consumers easily manage money and improve their financial well-being using various financial tools.

“Artificial intelligence (AI) seems to be on everyone's minds. It's increasingly common across healthcare, education and business, where it's used to rapidly process and analyze large data sets, simplify repetitive tasks and provide guidance tailored to the user,” Katie Skipper, community content manager at BECU, stated in a recent blog entitled: AI and the Future of Personal Finance. “The personal finance world is no exception. AI is already used to help detect fraud, run chatbots and help with underwriting decisions at many financial institutions.”

In the blog, Skipper interviewed EarnUp’s former CEO Nadim Homsany who recently joined BECU as senior vice president of AI strategy and innovation. 

When asked what personal finance problems generative AI has the potential to solve for people in their daily lives, Homsany replied: “The broad answer is that AI can increase access to personalized financial products and services for more people to support them in improving their financial health. It can increase efficiency and streamline processes for employees, and that reduces costs,” he continued. “I think the more specific, narrower answer related to financial health is that if we can get people the right financial guidance when they need it, then they can make better financial decisions for themselves to improve their financial well-being.”

AI Advisor

Explaining that in 2024 EarnUp provided more than $490 million of benefits to BECU members through “great rates and low fees,” Homsany said the team of 13 technologists he brought to BECU is currently working on a new platform, AI Advisor. This tool, he noted, will give members real-time financial guidance and analytics through deeply personalized interactions.

“Let's say you're applying for a loan. You'll be able to ask what steps you need to take, and AI Advisor will talk about different factors, based on your specific financial situation, that you might need to consider,” he said. “If your credit score needs to be higher to help you get a loan, AI Advisor will suggest different ways you can manage your expenses or other debts to help you get a better credit score and set you up for success.”

The AI tool, he added, will also help members break down expenses and make recommendations for where to cut costs or suggest strategies. “People will be able to use this technology to get the help they need at that moment they need it, as if they were talking to a human financial advisor.”

It’s Expensive to be Poor

When Skipper asked what excites Homsany about the future of AI financial tools, he said it’s the concept of democratizing financial access. “People who couldn't afford financial help now have access to it. There's that old saying: ‘It's expensive to be poor.’ If we can find a way to make that access hyper personalized, which is what we're building for BECU members, then that changes the game for people.”