Cambio: Transforming Banking with AI-Powered Solutions
Cambio, a startup backed by Y Combinator, is innovatively integrating AI into the banking sector by enabling AI bots to engage directly with consumers and businesses. Initially, Cambio launched an AI-driven service that effectively negotiated debt collections for users, reportedly helping 70% of customers improve their credit scores. The company is now expanding its offerings to banks and credit unions through an API designed to enhance sales calls.
Founded by Blesson Abraham, a seasoned entrepreneur with banking experience, Cambio evolved from Abraham’s previous journey with SavvyIntel, a SaaS analytics solution for credit unions acquired by TruStage in 2017. Following that success, Abraham sought to create a banking app aimed at aiding individuals struggling with financial issues, drawing from his personal experience of overcoming significant debt while launching his last venture.
“I emerged from that situation positively, but one in three U.S. adults experiences similar financial struggles,” Abraham shares. “This inspired the creation of Cambio.”
Originally envisioned as a neobank when it launched in 2021, Cambio quickly pivoted after realizing its users preferred tools focused on improving credit habits. Following its acceptance into the Y Combinator program in 2022, the team transformed the app to prioritize helping consumers eliminate debt.
In just a year, Cambio has gained nearly 90,000 users, shifting its business model from freemium to subscription-based services.
The introduction of a new feature was fueled by the rise of ChatGPT. Customers expressed a desire for assistance in addressing their collection debts. “With ChatGPT, we realized we could coach users in real-time during their calls with collectors,” Abraham explains. “Thus, we developed a solution in our app allowing users to call their collector while our bots listened and provided guidance in the moment.”
These interactions were permissible, as debt collectors were already recording calls. This capability led to further customer requests for Cambio to negotiate debts on their behalf. The company recognized it could facilitate this by obtaining a signed power of attorney before engaging collectors through AI.
“We cautiously began by assisting those who wanted to settle their debts fully and remove items from their credit reports,” Abraham elaborates.
This strategy proved successful, with seven out of ten clients improving their credit scores within two months of using the AI bots. During these calls, the AI identifies itself, and when verification is needed, it sends the signed power of attorney via email, keeping the discussions focused on settling debts.
Initial challenges included managing AI hallucinations, but these issues diminished as call volume increased. This success with debt collection calls inspired Cambio's next innovation: AviaryAI, designed for banks and credit unions to connect with their customers via AI. This technology streamlines sales and outreach efforts, effectively promoting new products like checking accounts, credit cards, and debt protection services.
With recent FCC rulings deeming AI-initiated robocalls illegal, Cambio is confident its AI bots will operate within legal bounds. The company maintains close consultation with legal experts to ensure compliance.
“Banks, credit unions, and our initial clients—insurance companies—represent highly regulated sectors," Abraham remarks. The firm is actively engaging with regulators to showcase its technology and clarify how its AI operates.
“When we initiate these calls, we clearly inform people they're speaking with a virtual assistant,” he explains, emphasizing that this technology transcends merely overlaying a voice on a large language model.
These AI interactions can also escalate to a human representative if necessary. Cambio reports that AI-driven calls yield a similar response rate to those made by human sales teams, achieving a pickup rate of approximately 5-10%.
“If we compare our performance to human agents, we typically match or even exceed their efficacy in certain scenarios,” Abraham notes.
The current AI experience involves a trio of bots: one initiates the call, another monitors to prevent escalation, and a third analyzes the conversation for quality control, assessing factors like tone and content.
Early adopters testing this technology include Envisant, Encurage Financial Network, Agenium, and Skyla Credit Union.
As Cambio ventures into the B2B sector, the consumer app remains a priority, though the company is shifting its monetization strategy toward its API.
To support this growth, Cambio has successfully secured $3 million in seed funding from a range of investors, including Builders, DVC, EGR Partners, and various angel backers.
“We at DVC are thrilled to support Cambio’s mission to innovate consumer financial products with much-needed technology, fostering transparency and empowering individuals in managing debt and rebuilding credit scores,” stated DVC Managing Partner Marina Davidova. “They possess a compelling vision and consistently execute their strategy, developing user-friendly, AI-powered solutions.”
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