Rajashree Chakravarty
5 min read
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Amid plenty of artificial intelligence buzz, establishing a robust foundation for responsible AI innovation is essential, said Rathi Murthy, the new chief technology officer at Varo.
Implementing new technologies only where they deliver genuine value to customers is crucial in Murthy’s eyes.
“I have a strong belief that technology is not built for the sake of technology. Technology has to have a purpose,” Murthy told Banking Dive.
After joining Varo, Murthy saw the need for two critical roles within the company: a chief architect to ensure the technology architecture remains scalable and secure, and an engineering strategy and operations executive. She hired FS Nooruddin and Payal Carpenter as Varo’s chief architect and engineering strategy and operations executive, respectively. Both executives previously worked with Murthy at American Express, Gap and Yahoo and are helping her establish necessary diligence and structure at Varo.
The San Francisco-based digital bank has been using data and AI for its underwriting, fraud detection and risk compliance, while also incorporating personalization across the customer’s journey.
Responsible AI makes the “right nudges [to] this huge opportunity…to make this experience about you and me,” rather than cookie-cutter, she said. This is an area that Murthy wants to explore and closely monitor.
Still, Varo executives don’t rush into new technologies unless they provide “meaningful impact” to its customers, she added.
Murthy took the helm of the technology unit at Varo in March. She replaces Sachin Shetty, the former tech chief who left the company in August 2024.
In April, Varo’s former CEO, Colin Walsh, handed the baton to Gavin Michael.
Murthy spoke along the lines of Michael, who also emphasized the importance of AI and machine learning in underwriting for the neobank’s low-dollar loan offerings, fraud prevention and detection, and in delivering data-driven customer experiences with enhanced personalization.
“We are building out a leadership team around Gavin that can help us go faster and smarter and build a team that is bold in their thinking and responsible risk-taking, and curiosity to take advantage of innovation where it matters,” which she referred to as “a change.”
Murthy was CTO and president at Expedia for about three years before joining the bank. She’s also been CTO at Verizon Media and Gap, and chief information officer at American Express.
