A sign of the increasing significance of artificial intelligence (AI) in the banking industry is the acquisition of San Francisco-based startup Hyperplane by Brazilian digital banking behemoth Nubank. The deal, which was revealed on June 26, 2024, combines Hyperplane’s foundation model development experience with Nubank’s vast client base and data repository.
Hyperplane: Building a Personalized Banking Experience
Hyperplane, which was founded in 2022 by a group with extensive experience in data science, came out of stealth mode last year with the audacious objective of enabling banks all over the world by constructing a data intelligence layer. With the help of this layer, banks would effectively be able to harness the power of their own client data and provide individualized banking services.
In other words, if banks all over the world have a ton of first-party data, what does it take to construct a data intelligence layer so that banks can plug in their data and use it effectively? This is the issue that Hyperplane is trying to answer, as co-founder Rohan Ramanath put it.
With the help of Hyperplane’s technology, banks can now train their own AI models to support a range of functions, including marketing campaigns, loan collections, and risk assessment. This method gave banks a great deal of flexibility and control over their AI-powered products.
Joining Forces with Nubank: A Match Made in AI
Hyperplane’s innovative approach has now landed them squarely within the walls of Nubank, the world’s largest digital banking platform outside of Asia. With over $2.7 billion in revenue reported last quarter and a customer base exceeding 100 million across Brazil, Mexico, and Colombia, Nubank boasts a significant advantage: a massive amount of banking data.
This data is the lifeblood of AI-powered financial services. By acquiring Hyperplane, Nubank gains access to cutting-edge technology that will allow them to transform this data into personalized financial experiences for their customers.
“Nubank’s mission since its founding is to fight complexity and empower fanatical customers,” said Nubank CEO and founder David Velez. “Our early investments in AI, coupled with the impressive infrastructure and talent that Hyperplane team has been able to put together, will accelerate our mission.”
Velez’s statement underscores Nubank’s commitment to using AI to revolutionize banking. The acquisition of Hyperplane follows a series of tech-focused acquisitions by Nubank in recent years. These include Clojure consultancy Cognitect (2020), digital broker Easynvest (2020), and AI-powered financial management startup Olivia (2021).
The Future of AI-powered Banking
The advancements at Nubank will probably be widely watched by financial institutions worldwide as they incorporate Hyperplane’s technology. A new age of AI-driven banking with an emphasis on hyper-personalized services and empowered customers may be possible if this integration is successful.
Disruption on the Horizon
While the financial terms of the acquisition were not disclosed, Hyperplane’s $6 million seed funding round included backing from prominent venture capital firms. This indicates the strong investor confidence in the company’s vision of a data-driven future for banking.
The Nubank-Hyperplane deal is a clear signal that AI is no longer a futuristic concept in banking; it’s the present. With this acquisition, Nubank has positioned itself at the forefront of this technological revolution, promising to reshape the way millions of customers experience banking services. As Nubank integrates Hyperplane’s technology, we can expect to see even more innovation and disruption in the banking sector in the years to come.
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