Deborah Kovacs: Pioneering Change in Fintech
Deborah Kovacs has dedicated an impressive 35 years to the financial services industry, primarily focusing on product management that addresses the unique challenges faced by financial institutions. Her extensive experience has positioned her as a key player in the fintech landscape, where she continues to innovate and lead.
Co-founding Finxact
In 2016, Kovacs co-founded Finxact, a Jacksonville, Florida-based banking software company. This venture marked a significant milestone in her career, allowing her to leverage her expertise in product management to create solutions that meet the evolving needs of banks and financial institutions. Before launching Finxact, she held pivotal roles, including four years as vice president of product management at Ardmore Banking Advisors, and similar positions at Akcelerant Software, CashEdge, and InvestorForce.
Current Role and Company Evolution
As the chief product officer at Finxact, Kovacs plays a crucial role in shaping the company’s product offerings. In a recent interview with FinLedger, she discussed how Finxact has adapted its strategies in response to the COVID-19 pandemic. The crisis prompted a shift in focus, accelerating the development of products that support both retail and business deposit and loan accounts. Kovacs emphasized the importance of core banking systems, describing them as the "engine" that ensures real-time accounting for deposits and loans.
Innovative Product Offerings
Finxact has rolled out several innovative products designed to benefit financial institutions. One notable feature is the ability for banks to transition from consumer to small business lending seamlessly. This flexibility allows institutions to diversify their offerings and adapt to changing market demands. Additionally, Kovacs highlighted the growing consumer interest in digital wallets, which enable users to allocate funds for specific savings goals. This feature is particularly appealing to both consumers and small businesses, providing them with greater control over their finances.
The company has also introduced real-time payment solutions, addressing the delays often associated with traditional ACH transactions. Kovacs noted that Finxact’s core banking system is entirely API-driven, allowing third-party access to its features. This unique approach enables rapid product development and helps avoid the pitfalls of outdated offerings.
Navigating the Pandemic
The COVID-19 pandemic significantly impacted Finxact’s product strategy. Initially, the company planned to focus on business lending later in the year, but the urgent need for financial support led them to pivot quickly. Kovacs explained how Finxact collaborated with several banks to facilitate the Payroll Protection Program (PPP), integrating their core banking system with online lending software in a matter of weeks—a process that typically takes months. This agility allowed banks to serve both new and existing customers effectively.
Live Oak Bank, a digital FDIC-insured bank, is one of the institutions now utilizing Finxact’s core banking platform. With $8 billion in assets, Live Oak Bank has successfully launched business savings and CDs on the Finxact platform, helping over 10,000 small businesses through the PPP loan portfolio.
Challenges for Women in Fintech
Kovacs also addressed the challenges women face in the fintech industry. Reflecting on her 35-year career, she acknowledged that while progress has been made, there is still work to be done to achieve a more equitable playing field. She encouraged women to embrace opportunities and create their own paths while supporting one another in their professional journeys.
Despite the increasing presence of women in fintech, Kovacs noted that certain areas remain predominantly male. However, she highlighted the significant advancements women have made in securing executive roles and driving technological development within companies.
Advancing Gender Equity
Kovacs emphasized the importance of supporting other women in the industry and advocating for changes that promote gender equity. She pointed out that gender bias still exists, particularly in how management styles are assessed. By fostering a culture of support and collaboration, women can help each other succeed and contribute to a more balanced representation in fintech.
In her view, the future of fintech is bright, especially as more women step into leadership roles and drive innovation. The ongoing efforts to level the playing field will not only benefit women but will also enhance the industry as a whole.