Flagstar Bank exec spurs innovation with fintech accelerator program

Smith became president of mortgage just under two years ago and served previously as Flagstar’s EVP and chief operating officer for about seven and a half years. During that period, the bank’s IT department reported to him, so he’s been involved with shaping the company’s use of technology for some time.

Accelerator

Smith launched the accelerator program, he said, to help give Flagstar a competitive edge.

“When you look at the competition, the big mega-banks spend billions of dollars a year on technology. We don’t have those resources, so the mortgage fintech accelerator [program is] a bit like the Moneyball effect,” Smith said, referring to the use of advanced statistics and analytics to drive decision making within teams.

The program incubates mortgage fintech start-ups, and Flagstar claims it is the first and only accelerator of its kind in the US focused on mortgage technology. Winners also work with Flagstar mentors to learn about industry fundamentals.

For the third accelerator program cohort, Flagstar sorted through 33 applications, assessed 14 demos, and then whittled that number down to four finalists who will become technology partners. Partnership efforts will also continue with previous winners, Smith said, with both sides benefiting. (All winners also build their customer base and raise venture capital independent of Flagstar.)