YC-backed Cambio puts AI bots on the phone to negotiate debt, talk to bank’s customers
2 mins
Published by: Markus Ivakha
16 February 2024, 02:06PM
Cambio, a Y Combinator-backed startup, is revolutionizing banking by introducing AI bots for phone interactions with both companies and consumers.
Initially, Cambio offered AI-powered debt collection negotiation services for consumers, but it has expanded its technology to banks and credit unions, providing an API for sales calls.
Founded by Blesson Abraham, Cambio was inspired by his personal debt struggles. Originally conceived as a neobank in 2021, it shifted focus to help consumers manage debt after joining Y Combinator in 2022.
Cambio's service has grown to nearly 90,000 users, transitioning from a freemium to a paid model. It offers AI bots to assist users in resolving collections debt, with a significant impact on credit scores.
AviaryAI, Cambio's AI bot, is now available to banks and credit unions for sales and outreach calls, aiming to enhance cross-selling efforts. Legal counsel ensures compliance with laws regarding AI-initiated robocalls.
A startup named Cambio, backed by Y Combinator, is introducing AI to banking by deploying AI bots to interact with companies and consumers over the phone. Initially offering AI-powered debt collection negotiation services for consumers, Cambio has now extended its technology to banks and credit unions as an API for sales calls.
Founded by Blesson Abraham, who has a banking background, Cambio was inspired by his personal struggles with debt. Originally envisioned as a neobank in 2021, Cambio pivoted to focus on helping consumers manage debt after being accepted into Y Combinator in 2022.
Cambio's service, reaching nearly 90,000 users, transitioned from freemium to paid over the past year. One feature allows users to engage AI bots to assist in resolving collections debt, leveraging the popularity of ChatGPT for real-time coaching during calls with debt collectors.
Customers then requested Cambio to handle calls on their behalf, leading to the development of AI bots that negotiate debt down, with seven out of ten customers improving their credit scores within 60 days after the AI call.
Cambio's AI bots, known as AviaryAI, are now offered to banks and credit unions for sales and outreach calls, aiming to assist with cross-selling products. The company consults legal counsel to ensure compliance with laws governing AI-initiated robocalls.
If you were to compare it to a human being, we’re actually matching that or, if not, in certain use cases, even better
The technology involves three different bots: one that places the call, another observing for escalation, and a third that monitors the call's effectiveness for quality control.
Early adopters of Cambio's B2B offering include Envisant, Encurage Financial Network, Agenium, and Skyla Credit Union. Despite the move to B2B, Cambio's consumer app will remain, potentially focusing on API monetization.
Cambio recently raised a $3 million seed round from various investors, including DVC, Envisant, Encurage Financial Network, and Y Combinator, among others, to support its growth in introducing technology into consumer financial products.
We at DVC are excited to back Cambio’s team on their mission to introduce much-needed technology into consumer financial products, aiming to create transparency and empower individuals to better manage debt and rebuild their credit score. They demonstrate not only a clear vision but also the ability to relentlessly execute on it, building user-friendly solutions powered by sophisticated AI.
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