Breaking Banks

In This Episode We kick off with a crossover segment featuring Fintech Takes host and fintech insider Alex Johnson, who joins Jason to break down major themes from Money20/20 2024. Together, they explore the hot topics shaping fintech right now: bank-fintech partnerships, Banking-as-a-Service (BaaS), open banking (1033), and the evolving role of AI. Alex shares highlights from his on-stage interview with CFPB Director Rohit Chopra, where they discussed the finalized 1033 rule, the ongoing legal pushback from big banks, third-party risk management, and new BaaS standards aimed at creating more balanced partnerships. The duo also dives into the rapid-fire world of AI. Is it all just hype, or are we approaching real innovation? With regulation on the rise, there’s a lot for the industry to figure out—standards, safeguards, and perhaps even a looming digital divide. Finally, Jason wraps things up with a lively chat with Mary Wisniewski, Editor-at-Large for Cornerstone Advisors. They discuss financial therapy, Mary’s perspective on the latest 1033 updates, and even squeeze in a bit of Texas Hill Country fun. Hit play and join us for a packed episode! Read the entire transcript here. Podcast Content: Chapter 1: 00:00 - Welcome and Overview of Money 2020 Brett King introduces the episode, discussing highlights from Money 2020, including insights into fintech trends and key partnerships. Chapter 2: 04:30 - Money 2020 Recap: Open Banking and 1033 Drama A reflection on the regulatory and industry conversations around open banking and the CFPB's finalized 1033 rule. Chapter 3: 12:15 - Bank-Fintech Partnerships: Collaboration and Challenges Insights into third-party risk management, standard-setting challenges, and the evolving dynamics of bank-fintech partnerships. Chapter 4: 20:45 - The AI Hype Cycle: Balancing Reality and Expectations Exploring the current state of AI in financial services, separating meaningful use cases from overhyped promises. Chapter 5: 29:00 - The Role of Regulators in Banking Innovation A deep dive into regulatory implications for open banking, AI, and fintech partnerships, featuring insights from Director Chopra of the CFPB. Chapter 6: 36:45 - The Digital Divide: Small vs. Large Banks Analyzing how smaller banks face challenges in adopting open banking and AI, and the competitive advantages of larger institutions. Chapter 7: 45:30 - Financial Therapy: Behavioral Insights and Spending Habits A discussion on the emerging field of financial therapy and its applications for understanding consumer behavior. Chapter 8: 52:00 - Platform vs. Point Solutions in AI Examining the pros and cons of platforms versus point solutions in banking, with examples from the Glia conference. Chapter 9: 59:30 - Looking Ahead: Open Banking as a Competitive Opportunity Final thoughts on how banks can leverage open banking proactively rather than just complying with regulations. Related Content: Shopify Finance: Fueling Merchant and Small Business Growth Banks and Fintechs: Tips for Partnership Episode 465: Balancing Friction and Fraud in the Global Economy Episode 517: Expectations vs. Reality: Latest Global Findings for Financial Services & Digital Identity Special Episode - Finovate: Financial Insights & Breaking Banks Anniversary Trailer https://youtu.be/ZPQWCMOHOWI

In This Episode How can merchants take control of their finances and fuel growth directly through their commerce platform? This week, Shopify unveils Shopify Finance, a powerful new hub that unifies financial tools for merchants directly within the Shopify admin and mobile app. In this episode of Breaking Banks, Brett King sits down with Vikram Anreddy, Head of Product, Financial Services for Shopify, to break down how Shopify Finance empowers merchants to manage their business, cash flow, and make strategic decisions on-the-go. From Shopify Capital, offering flexible growth loans for merchants and lower costs for faster repayment, to Shopify Balance and Bill Pay for better cash management, Shopify Finance brings a comprehensive suite of tools to merchants. With Shopify Credit—a Visa card with 3% cashback on business purchases—and Shopify Tax for simplified tax compliance, this hub offers a complete view of financial health anytime, anywhere. Good things in store! ********Define your career in fintech with a Masters of Science in Fintech, NYU SternTo learn more stern.nyu.edu/MSFT-BreakingBanks Read the entire transcript here. Podcast Content: Chapter 1: 00:00 - Welcome and Introduction Brett King and Jason Henricks introduce the episode, highlighting the intersection of fintech and e-commerce with Shopify as the centerpiece. Chapter 2: 03:15 - Meet Vikram Anredi: From Consulting to E-commerce Innovation Vikram Anredi, Head of Product for Financial Services at Shopify, shares his career journey from engineering to building products that empower entrepreneurs and small business owners. Chapter 3: 10:00 - Shopify’s Role in the Creator Economy Discussion on how Shopify supports creators and influencers with easy-to-use tools for setting up merchandising stores and monetizing their online presence. Chapter 4: 15:30 - Launch of Shopify Finance Vikram explains Shopify Finance, a suite of financial services integrated within the Shopify platform, designed to simplify money management for merchants. Chapter 5: 22:45 - Financial Barriers for SMBs and Shopify’s Solutions An exploration of the difficulties small businesses face in accessing banking services and how Shopify Finance is addressing these challenges through tailored offerings like Shopify Balance and Shopify Capital. Chapter 6: 30:20 - Embedded Finance: Credit and Risk Management How Shopify uses its data and technology to offer customized credit solutions and manage risk, with examples of merchants scaling their businesses with Shopify Capital. Chapter 7: 37:00 - Automating Complexity: Sales Tax and Bill Payments Details on Shopify’s tools for automating complex tasks like sales tax management and bill payments, making operations seamless for merchants. Chapter 8: 44:10 - AI and the Future of Shopify Finance Discussion about the potential of AI to enhance financial services and support for merchants, including current tools like Sidekick and future plans for more AI-driven insights. Chapter 9: 50:30 - The Platform Advantage in SME Banking A reflection on the growing importance of platforms like Shopify in the SME banking space, where embedded finance offers a seamless experience compared to traditional banks. Chapter 10: 58:00 - Closing Thoughts and Future Outlook Final reflections on Shopify’s mission to empower merchants and the broader implications for the fintech and e-commerce ecosystem. Related Content: Episode 451: AWS Bets Big on Black and Women Founders & Harmonizing Taxes Episode 555: Killing It... Again. With Bill Harris Bill Bynum: HOPE for All Tech Tools To Assist In Making Life's Big Purchases! FinTech tackling Investment Management https://www.youtube.com/watch?v=Ap3B6S1m0Gs

In This Episode This week, we’re shining a spotlight on our sister podcast, Breaking Banks Europe, as they celebrate their 250th episode! Host Matteo Rizzi marks the milestone by reflecting on five incredible years and 500 unique guests. He’s joined by six of the show’s hosts for an engaging conversation on what fintech means to them, each summing up the past 15 years with a single word. From culture (which shapes fintech’s future) to strategy (the key to success), and foresight (looking ahead at how fintech is evolving), these hosts dive deep into the industry. They also explore the possibilities found in challenges, the rollercoaster ride that is fintech, inclusion in emerging markets, and the crucial role of talent and upskilling.Join us as we celebrate the show’s favorite moments and raise a toast to five more years of exploring what fintech means. Don’t miss out! Podcast Chapters: Chapter 1: 0:00 - Celebrating the Journey A retrospective on Breaking Banks Europe’s journey to 250 episodes, highlighting key milestones such as 500 unique guests over five years and the evolution of fintech. Chapter 2: 5:30 - The Role of Corporate Culture Matteo and Matthias Krohner discuss the critical impact of corporate culture in fintech, reflecting on its evolution since 2019 and changes prompted by the pandemic Chapter 3: 15:20 - Strategy in Fintech Paolo delves into the importance of strategy in the fintech world, exploring themes from the platform economy to AI advancements, and shares insights from his segment, The Banker's Bookshelf. Chapter 4: 26:45 - The Future is Fintech Roberto offers a perspective on the innovative potential of fintech, emphasizing blockchain, decentralized systems, and the evolving role of banks as software houses. Chapter 5: 35:10 - Fintech for Good Liz champions the social impact of fintech, focusing on its ability to create opportunities for the unbanked and its transformative potential in underserved markets. Chapter 6: 44:00 - A Rollercoaster of Innovation Don reflects on the ups and downs of the fintech industry, touching on rapid changes in payment systems and digital identities, and shares his optimism for future developments. Chapter 7: 52:35 - Inclusion in Fintech Francesca highlights inclusion as a core value of fintech, discussing ongoing initiatives to tackle financial exclusion and plans for the Inclusive Fintech Forum in Africa. Chapter 8: 1:02:00 - Talent as a Catalyst Matteo closes by emphasizing the importance of nurturing talent, particularly in emerging markets, and celebrates the team that brought Breaking Banks Europe to its milestone 250 episodes. Read the entire transcript here. Related Content: Episode 564: AI Baseball Episode 440: Innovation To Be Celebrated: No Slaps Allowed Fintech Awards! Episode 200: Celebrating 4 Years of Breaking Banks Europe Episode 354: Talents and Rebels Episode 141: From Corporate to Entrepreneurship Life https://www.youtube.com/watch?v=Bfu10WzZsx4

In This Episode This week cohosts Brett King and Jason Henrichs have a far reaching conversation, tapping into guest expertise on all things open banking and digital finance. John Pitts, Global Head of Policy at Plaid, Christy Sunquist, Head of Open Finance at Plaid, and Cameron Taylor, Chief Product Officer at Ninth Wave join Jason and Brett as they dive into topics from international open banking and the standards that we can expect out of open banking in the U.S., to how Plaid and Ninth Wave are partnering to assist financial institutions ahead of the rulemaking here in the States. Plaid recently announced their Gateway Partner Program, which gives financial institutions a way to streamline their integrations ahead of open banking requirements, to make it easier for financial institutions to choose an approach that works for their unique needs as they enable open banking. Ninth Wave is Plaid’s inaugural partner for the Gateway Program, and will support financial institutions who want to simplify their API integrations while ensuring their customers have access to the thousands of apps and services in the Plaid network. Together, Plaid and Ninth Wave are solving open banking requirements for financial institutions who may be at varying stages of preparedness. Hear about this and much more on this episode of Breaking Banks. Podcast Chapters: Chapter 1: 0:00 - Introduction Title: Welcome to Gateway for Open BankingBrett King and Jason Henricks introduce the episode, highlighting the topic of open banking and featuring experts from Plaid and Ninth Wave. Chapter 2: 2:15 - Lessons from Europe's Open Banking Journey Title: What Six Years of Open Banking in Europe Taught UsA discussion of Europe’s open banking progress, challenges, and the implications for U.S. implementation, including lessons from the UK and EU. Chapter 3: 10:45 - Industry-Led vs. Regulatory-Driven Models Title: How the U.S. Open Banking Model Differs from EuropeExploration of how the U.S. approach, driven by industry collaboration, contrasts with the more prescriptive regulatory frameworks in Europe. Chapter 4: 17:30 - Compliance Challenges for U.S. Financial Institutions Title: The Road to Open Banking ComplianceInsights into how financial institutions in the U.S. are preparing for compliance, with a focus on challenges faced by smaller banks and credit unions. Chapter 5: 26:15 - Strategic Benefits Beyond Compliance Title: From Compliance to Competitive AdvantageDiscussion on how open banking can enhance customer experiences, reduce fraud, and position banks as digital leaders, rather than just meeting regulatory mandates. Chapter 6: 35:40 - Partnerships Between Banks and Fintechs Title: Building Bridges: Banks and Fintech CollaborationsHow partnerships like those between Plaid, Ninth Wave, and financial institutions are driving innovation and supporting open banking transitions. Chapter 7: 44:25 - Data Control and Consumer Trust Title: Consumer Data Rights and the Future of Open FinanceExploration of consumer data control, privacy, and the shift toward trust-driven ecosystems, emphasizing transparency and security. Chapter 8: 52:10 - The Future of Open Banking Title: What Open Banking Will Look Like in 10 YearsPredictions on the evolution of open banking into a seamless, integrated part of financial services, fostering trust and innovation across sectors. Chapter 9: 1:00:45 - Closing Thoughts and Call to Action Title: Get Ready for Open BankingFinal reflections from the hosts and guests, including advice for financial institutions on preparing for compliance and leveraging open banking for strategic growth. Read the entire transcript here. Related Content: Episode 567: What Fintech Means To Us: Celebrating 250 Episodes of Breaking Banks Europe Episode 564: AI Baseball Episode 129: Breaking Payments: Open Banking Evolution Episode 53: PensionTech,

In This Episode The Fed just cut rates. The 50-basis point cut was welcome news for many financial institutions, but the pressures the industry faces are not going away. In fact, rate cuts may mask the underlying changes going on. In our first segment, Jason Henrichs connects with Lake Michigan Credit Union's EVP, Chief Lending and Experience Officer, Eric Burgoon and James White, General Manager, Banking at Total Expert talk about the future of banking. Customers are always in search of highest yield and the best terms. It's easier than ever to move money and customers have options. Institutions need to be reliable, relatable and credible. To do that institutions need an overarching organizational strategy and data to drive personalized products. Where can you find everyone from the collective world of money? Vegas of course, October 27-30! To provide insight into Money 20/20 2024 and this year's money and fintech story, Chief Strategy Officer Scarlett Sieber and Zach Anderson Pettet, VP of Global Fintech Strategy, connect with Brett King to talk about the conference and the dynamics as they see it shaping financial services. Keynotes from industry experts and rising stars lead the agenda with sessions on open banking, AI, borderless payments, embedded finance, fraud, policy & regulation and of course, they've built in lots of fun...no spoiler alerts here! If you are headed to Vegas, join us for the Fintech Luminaires reception. You can apply for an invitation with this link: https://lu.ma/p0zcx7ki See you in Vegas!! Podcast Chapters: Chapter 1: 0:00 - Opening Thoughts – The Fed’s Impact and Financial Pressures Brett King introduces the episode, discussing the recent Federal Reserve rate cuts and their implications on the financial industry. The conversation highlights challenges like deposit pressures and the need for financial institutions to adapt to consumer behavior changes. Chapter 2: 5:15 - Competitive Pressures in Banking Eric Burgoon and James White explore how banks and credit unions face growing competition for deposits. They discuss the shift toward high-yield savings products, consumer behavior, and how institutions can leverage technology to remain competitive. Chapter 3: 18:45 - The Role of Relationship Banking in the Digital Age The focus shifts to the importance of relationship banking. The discussion emphasizes balancing personal relationships with technological advancements to provide value to customers at scale. Chapter 4: 29:10 - Leveraging AI and Data for Strategic Advantage James White and Eric Burgoon discuss the integration of AI and data strategies in financial services. They highlight the necessity of reliable, relatable, and credible interactions and how AI can help scale personalized services. Chapter 5: 40:35 - Culture and Organizational Strategy in Financial Institutions The panel underscores the importance of strong organizational culture and disciplined technological adoption. They explore how credit unions like Lake Michigan Credit Union differentiate themselves by focusing on member-first principles. Chapter 6: 52:00 - Money 2020 and the Evolution of Fintech Events Scarlett Sieber and Zach Anderson-Pettett join to preview the Money 2020 conference in Las Vegas. They discuss the event’s focus on AI, embedded finance, and cross-border collaboration, as well as efforts to promote health and wellness during the event. Chapter 7: 1:07:25 - Building a Global Fintech Community The conversation expands on how Money 2020 fosters global collaboration and community. Scarlett and Zach share insights into agenda planning, content curation, and the broader impact of the conference on the fintech ecosystem. Chapter 8: 1:20:00 - Closing Remarks – Future Trends and Takeaways Brett wraps up the episode with final thoughts on the importance of forward-looking strategies in financial services and a preview of breaking news expected from Money 2020. ...

In This Episode AI is simultaneously taking over the world and disappointing in it’s ability to take over the world depending on the publication you read. No doubt we are in the first innings. Today Derek Higginbotham, CEO of First Electronic Bank, Matt Bochenek CEO of Avant and John Sun, CEO of Spring Labs, and Jason Henrichs talk about why everyone needs to be getting up to bat with AI, no matter the size of institution you work for. Spring Labs AI Native Banking and Fintech conference is next week and has a powerhouse lineup. Register at conferences.springlabs.com and use code SpringLabsXBreakingBanks for a discount. Podcast Chapters: Chapter 1: 0:00 - Opening Pitch – AI and Its Hype Cycle Brett King and Jason Henricks introduce the episode, framing AI as both transformative and overhyped. Guests discuss how AI adoption mirrors the rise of past technologies. Chapter 2: 5:30 - Narrowing the Field – Strategic AI Use Cases Derek Higginbotham, Matt Bocinek, and John Sun explore how financial institutions are narrowing down AI use cases, emphasizing incremental steps over broad adoption. Chapter 3: 17:10 - Building Organizational AI Muscles The discussion highlights how organizations can develop "AI muscles" by starting with small projects, learning from them, and ensuring flexibility for future applications. Chapter 4: 27:45 - Data as the Foundation of AI Success Panelists delve into the importance of robust data infrastructure, the challenges of siloed data in financial services, and how AI reshapes data-driven decision-making. Chapter 5: 39:20 - Cultural Shifts and AI Adoption The conversation shifts to cultural challenges in financial services, exploring how to transition from report-driven approaches to hypothesis-driven and data-informed decision-making. Chapter 6: 50:05 - AI and Regulatory Compliance The group discusses how AI is being integrated into regulatory compliance, emphasizing augmenting human capabilities rather than replacing them outright. Chapter 7: 1:02:15 - Rethinking Processes with AI A discussion on how AI compels institutions to rethink legacy processes, addressing “process debt” and identifying opportunities for deeper insights and efficiency. Chapter 8: 1:15:30 - The Divide in AI Adoption Panelists explore the implications of early vs. late AI adoption in financial services, predicting winners, losers, and the creation of an AI digital divide. Chapter 9: 1:25:10 - Lessons for Financial AI Development The episode concludes with key takeaways about the unique challenges of deploying AI in financial services and the need for specialized knowledge in regulated industries. Read the entire transcript here. Related Content Big And Small Preparing For Shifting Generational Expectations Episode 434: Rethink What You Deliver: SX Roundup & Wild Ride in WA AI is coming to help! A.I.- Ally Or Foe Bioplausible Artificial Intelligence https://www.youtube.com/watch?v=untcDneZ6Rw

In This Episode Globetrotter and Host Brett King shares banking news and investment conversations from around the world We start today's podcast on banking with Brett's one on one discussion on tech in Thailand with Dr. Supachai Kid Parchariyanon. Dr. Kid is CEO and Co-Founder of consulting company Rise, and managing partner for SeaX Ventures, a Thai venture capital firm with presence in Silicon Valley. Rise’s company goal is to drive 1% of the GDP in Thailand as well as reduce 1% of carbon emissions in all of Southeast Asia. Earlier in his career, Dr. Kid was a key figure responsible for bringing the social media app Twitter (now known as X) to Thailand, it was a technical challenge, and one that had legal barriers as well. Later, he and his team were also able to code software for the Nokia phone, creating in his words a “Robin Hood-like app” for Thailand. He speaks to us today about the Thai tech scene, what's happening in fintech and the VC world, and specifically what's helping drive the Thai economy -- from fintech to health tourism to the Thai lifestyle movement and digital nomad visas, the conversation is wide-ranging as this small country slowly recovers from covid and faces demographic headwinds. With an aging society they are looking to attract new talent and people to the country, collaborate not compete and expand investment in deep tech, AI, agritech, medical, and tourism tech. Then, from the 24 Fintech Conference in Saudi Arabia, Brett introduces us to Saudi Arabia's Barq, making headlines around the region and other parts of the world, as he sits down with its Chief Business Officer, Saad Almuhana. Barq is the newest and fastest growing private wallet and challenger bank in Saudi Arabia, the Middle East and potentially the world, having garnered 1.5M customers in 35 days -- having hit the amazing milestone of 1M customers in 21 days. In Saudi Arabia, younger people represent 70% of the population, tech savvy, mobile banking is very successful in the Kingdom with mobile penetration off the charts. Consumer appetite is high for help with finances in a quick manner. Remittance is a big part of Barq's offering, assuring customers that the optimal rail is selected at the right time for payment transactions. The journey started August 2024 with an EMI license (e-money), expansion plans are already in the works. In their second month, Barq is enhancing service offerings through multiple partnerships and hoping to hit 2M customers. If the evolution of the fintech is such, they have the option to upgrade to a full bank. It's an interesting and unique journey, one of incredible growth. But......one last thing before you listen to the latest episode of our financial podcast,,,,you know what season it is? Not just pumpkin spice, it's conference season and there is a new show to add to your list. The AI-Native Banking & Fintech Conference is happening October 7 in Salt Lake City and Breaking Banks is proud to be a media partner. Our listeners get a 20% discount when they register at conference.springlabs.com and use the code SpringLabsXBreakingBanks. They have an outstanding set of speakers and this is not to be missed. Once again, you have the link http://conference.springlabs.com and the code is: SpringLabsXBreakingBanks, don't forget to claim your discount! Podcast Chapters: Chapter 1: 0:00 - Introduction – Exploring Thai Tech and Saudi Fintech Brett King introduces the dual focus of this episode: the evolving Thai tech ecosystem and the rapid rise of Saudi Arabia's Barq. Chapter 2: 3:15 - Thailand’s Economy and Demographic Challenges Kid Pacharianon discusses Thailand's economic position in Southeast Asia, its aging population, and its recovery post-COVID. Chapter 3: 12:40 - Thai Tech and Startup Landscape The growth of Thai startups, the impact of corporate venture capital, and the success of initiatives like PromptPay and e-commerce.

In This Episode Warning: Extra spice added -- new sauces and participants! The stream of consent orders against banks that offer BaaS continues. Fintech partner banks drew 1/3 of all formal enforcement orders by federal banking agencies in the 4th quarter of 2023, that's quite a bit when you consider that fintech partner banks only account for roughly 3% of all U.S. banks. BaaS is here to stay -- it's a great way for community banks to grow, big banks are already on board and will do more, and entrepreneurs will want to continue to create better banking experiences which means they'll need to partner with banks. Jason Henrichs brings you our latest Hot Takes with regulars Kiah Haslett, Bank Director; Alex Johnson, Fintech Takes; and Jason Mikula, Fintech Business Weekly, as they are joined by Barb MacLean, SVP, Head of Tech Operations & Implementation, Coastal Community Bank and Allen Denson, Partner, Litigation, Morgan, Lewis & Bockius, LLP.  The flaming hot panel discusses why BaaS is facing regulatory headwinds, what banks should do, and how the North Star needs to be a BaaS solution that provides the optimal blend of technology and compliance, all while having some fun. From the stage of FinovateFall we bring you this episode of Breaking Banks. Read the full transcript here. Podcast Content: Chapter 1: 00:00 - Welcome and Episode Overview Hosts Brett King, Jason Henricks, and JP Nichols introduce this episode, recorded live at Finnovate, featuring hot takes on banking as a service (BaaS) and the regulatory challenges surrounding it. Chapter 2: 03:45 - Turbulent 2024: What’s Burning? The panel dives into the year's most challenging issues in banking and fintech, including broker deposit reclassification and cybersecurity breaches, setting the stage for a fiery discussion. Chapter 3: 12:30 - Consumer Awareness: FDIC and Fintech Misunderstandings Exploring whether consumers truly understand the risks when engaging with fintechs labeled as FDIC-insured and why traditional disclosures fail to inform effectively. Chapter 4: 22:10 - Responsibility and Accountability in BaaS Panelists debate how responsibility is allocated between banks and fintech program managers when issues arise, with differing views on splitting regulatory versus economic liability. Chapter 5: 32:40 - Regulators and the Banking as a Service Landscape A discussion of the evolving role of regulators in BaaS, from non-objection policies to potential frameworks for managing risk in fintech partnerships. Chapter 6: 43:15 - Deposit Treatment: Old Rules, New Challenges A deep dive into whether current deposit classification rules are fit for purpose in today’s fintech-driven banking environment, including the implications of reclassifying fintech deposits as brokered. Chapter 7: 55:00 - FBO Accounts: An Aging Framework The inefficiencies of the "for benefit of" (FBO) account structure and its limitations in a modern fintech ecosystem are dissected, with calls for innovation in banking frameworks. Chapter 8: 01:05:30 - Banking Partner Standards: Who Should Participate? Examining whether all banks should be allowed to partner with fintechs, considering the technical, regulatory, and operational complexities involved. Chapter 9: 01:14:45 - Closing Thoughts and Audience Engagement Final reflections on BaaS accountability and the role of regulators, along with opportunities for audience interaction and some lighthearted hot sauce giveaways. Chapter 10: 01:18:00 - Outro and Credits A wrap-up of the episode with producer credits, reminders to subscribe, and details on how to share and support Breaking Banks. Related Content: Episode 464: Second Wave BaaS & “Deep Tech” Huawei Does Gen-Fi Bank-Fintech Partnerships, Open Banking and AI...oh my! A Digital Banking Revolution in SEA: GXBank and Mastercard Shopify Finance: Fueling Merchant and Small Business Growth

In This Episode It's a mashup between Breaking Banks and Dave and Dharm Demystify, a podcast that takes you on a journey through the ever evolving world of fintech and digital finance. In this episode triple hosts, Brett King, Dave Wallace and Dharmesh Mistry offer thought provoking discussion and insights, covering off the fintech movement and relevancy in this new state of banking. Integration is key in the new world order. Special shout out to JPMorgan Chase for all they are doing. What will the banking experience look like in the future? When Q-Day comes there will be radical transparency, get those strategies in place. Join the discussion, weigh in, share your thoughts and feedback! Read the entire transcript here. Podcast Content: Chapter 1: 00:00 - Welcome and Introductions Brett King and Jason Henricks welcome Dave Wallace and Darmish Mystery of the Dave and Darm Demystify podcast for a special mashup episode. Chapter 2: 03:30 - Defining Fintech: A Movement or a Moment? The panel discusses the origins and evolving definition of fintech, debating whether it's a movement driven by technology or a transformative moment. Chapter 3: 12:00 - The Future of Banking: AI-Driven Smart Economies Exploring AI's potential to transform financial services, from agency-based payments to smart contracts, and what a "smart bank" might look like. Chapter 4: 21:45 - Fintech Evolution: From Startups to Smart Banks A deep dive into how fintech companies are reshaping the financial landscape and how traditional banks can adapt to compete in a tech-first world. Chapter 5: 34:15 - The Impact of AI and Quantum on Financial Systems Discussing the game-changing potential of quantum computing and AI in finance, including radical transparency and the looming "Q-Day." Chapter 6: 45:40 - The Demise of Traditional Banking Products How AI, cashlessness, and data-driven solutions are reshaping core banking products like credit cards and SME lending, with insights from global trends. Chapter 7: 57:20 - Challenges for Legacy Banks: Innovate or Perish Examining whether traditional banks can transition to a digital-first model, and the role of cloud, AI, and quantum in staying relevant. Chapter 8: 01:06:00 - The Ethical and Existential Implications of AI The group reflects on how AI will redefine humanity, consciousness, and what it means to be human in a rapidly changing world. Chapter 9: 01:15:30 - Outro and Closing Thoughts Final reflections from both podcasts, with insights into the future of banking, fintech, and technology, and a thank you to listeners. Related Content: Bank-Fintech Partnerships, Open Banking and AI...oh my! Huawei Does Gen-Fi Episode 562: Hot Takes: Regulatory Headwinds for BaaS Removing Mystery of Money Movement A Digital Banking Revolution in SEA: GXBank and Mastercard https://youtu.be/CxtFxiEE27Y

In This Episode In this week's episode of Breaking Banks we bring you the next feature in our Killing It series as host Jason Henrichs connects with Ohad Samet, Co-Founder and CEO of TrueAccord. Several calls from unknown numbers and one unpleasant conversation about a forgotten credit card with a relatively small balance was the impetus for Ohad to reimagine the debt collection process and the genesis of TrueAccord. Prior experience as the Chief Risk Officer of Klarna, a European payments company, and experience with other start-ups in the area of risk and analytics served him well. Development is an upward spiral and founding a company (companies actually) involves a lot of self-expression and is often less about the money and more about what you want to do. At some point, though, you may need to fire yourself. Another candid and enlightening conversation in the series with relevance for all. Read the entire transcript here. Podcast Content: Chapter 1: 00:00 - Welcome and Episode Overview The Breaking Banks team introduces the episode, diving into the journey of starting, scaling, and transforming companies with the founder of TrueML. Chapter 2: 02:50 - From Klarna to TrueML: A Founder's Motivation The guest recounts his early career successes, his departure from Klarna, and the personal and professional motivations behind starting TrueML. Chapter 3: 08:20 - A Personal Problem Sparks Innovation A forgotten credit card bill becomes the inspiration to reinvent debt collection, blending personal experience with professional insight. Chapter 4: 13:45 - Building a Resilient Structure: Two Businesses in One Insights into creating a dual-entity business structure for scalability, regulatory compliance, and innovation within TrueML. Chapter 5: 20:10 - Letting Go: Redefining Leadership Roles Exploring the challenges and personal growth required to delegate responsibilities and allow a company to grow beyond its founder's direct control. Chapter 6: 27:30 - Reinvention and Identity in Leadership The guest reflects on balancing personal identity with professional roles, highlighting lessons learned from multiple startup journeys. Chapter 7: 33:50 - The Art of Firing Yourself When and how to step back as a leader, with practical advice on hiring executives and knowing when it’s time to delegate or move on. Chapter 8: 41:10 - The Evolution of TrueML: Reinventing Debt Collection TrueML's role in transforming the debt collection industry, emphasizing technology, strategy, and long-term vision for impactful innovation. Chapter 9: 47:15 - Final Thoughts: Leadership Lessons from the Journey Key takeaways on leadership, scaling businesses, and staying grounded as a founder, with a look toward the future of TrueML. Chapter 10: 50:00 - Outro and Credits The Breaking Banks team wraps up the episode, thanking the guest and reminding listeners to engage with the show and share their thoughts. Related Content: Episode 102: The Debt Collection Process Episode 561: Demystifying Fintech: Insights on Banking's Future Huawei Does Gen-Fi Bank-Fintech Partnerships, Open Banking and AI...oh my! Episode 562: Hot Takes: Regulatory Headwinds for BaaS https://youtu.be/Ev2DwaPJh-o

In This Episode The FDIC recently issued a proposed rule change on how brokered deposits are treated. This isn't so much a proposed change but a rollback. A roll way back. Way back to 1989 when the original brokered deposit rule was written. As Jason Mikula points out, that's when Taylor Swift was born. Jason M, Alex Johnson, Kiah Haslett and Alex Barrage of Troutman Pepper have some hot takes with Jason Henrichs on how the business of banking has changed through the eras and the implications for the future. Also, the views expressed are those of the individuals and not their respective employers - the lawyers made us add that. Read the entire transcript here. Podcast Content: Chapter 1: 00:00 - Welcome and Introduction Brett King and Jason Henricks introduce the episode, featuring a panel discussion on the FDIC's proposed changes to broker deposit rules. Chapter 2: 03:20 - Rolling Back to 1989: What’s Changing? The panel explains the proposed rule changes, comparing them to the original 1989 statute and analyzing their relevance in today’s banking landscape. Chapter 3: 09:50 - The Problem with Blanket Rules A debate over whether the FDIC’s rollback is a necessary step or an overreaction, with a focus on the lack of modern data to support the changes. Chapter 4: 17:35 - Are All Deposits Becoming Hot Money? Discussing the impact of technology, consumer behavior, and open banking on the stickiness of deposits, making the case for nuanced regulation. Chapter 5: 27:10 - Self-Brokered Deposits: A New Paradigm Exploring the idea that modern consumers act as their own deposit brokers, reshaping how banks should approach liquidity and risk. Chapter 6: 36:45 - Liquidity, Portability, and the Future of Deposits Analyzing how innovations like FedNow and open banking could transform deposit flows, amplifying risks in ways the proposed rule doesn't address. Chapter 7: 46:20 - The Regulatory Disconnect Panelists highlight how regulators’ legacy frameworks may fail to capture emerging risks, from fintech partnerships to instantaneous deposit movement. Chapter 8: 55:30 - Unintended Consequences of the Rule The potential fallout of the rule for fintech partnerships, community banks, and consumer access to innovative banking solutions. Chapter 9: 01:05:00 - Closing Thoughts and Calls to Action The episode wraps up with reflections on the importance of public comments and industry collaboration to guide smarter regulatory decisions. Related Content: Episode 488: Deposits: Hot or Not Episode 562: Hot Takes: Regulatory Headwinds for BaaS Huawei Does Gen-Fi Episode 560: Killing It: Ohad Samet on Reimagining Debt Collection Bank-Fintech Partnerships, Open Banking and AI...oh my! https://youtu.be/yW6m7yCif-A

In This Episode Opening doors to high-potential fintech startups that share a mission to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible has been a goal of Mastercard's with the founding of Start Path in 2014. Since its inception the program has helped over 430 startups in 57 countries. With partnership in its DNA, Start Path is helping define how the company innovates for the future and creates meaningful, sustainable impact for society. Working with players large and small, Mastercard is helping fintechs push the boundaries of what's possible, to foster innovation, expand access and ensure trust. This symbiotic relationship helps the partners innovate at scale and, together, change the game for the wider commerce ecosystem. In this episode, Brett King connects with Sabrina Tharani, SVP, Global Fintech Programs at Mastercard and Jordan Wright, Co-Founder & CEO of Atomic Financial, a leader in payroll and merchant connectivity solutions, and a member of the Mastercard Start Path Open Banking program. Listen as they discuss Start Path and how their commercial partnership is enabling consumers to automatically switch their direct deposits and update recurring bill payments. A secure, seamless online banking experience through Mastercard Open Banking, solutions delivered in partnership with Atomic, ultimately helping drive account primacy for financial institutions. As fintechs look to build, launch and grow their business, Mastercard is helping drive smarter decisions for better outcomes across the payments ecosystem. Interested in joining Mastercard Start Path? Click here to learn more about the programs and apply online. Read the entire transcript here. Podcast Content: Chapter 1: 00:00 - Welcome and Introduction Brett King introduces this MasterCard-supported episode, highlighting fintech innovation and partnerships reshaping financial services. Chapter 2: 03:15 - The Global Pulse of Fintech Innovation MasterCard's Sabrina Tarani discusses emerging fintech trends, the role of AI, data technology, and how consumer expectations are driving innovation. Chapter 3: 08:30 - Meet Atomic Financial Jordan Wright, CEO of Atomic Financial, shares insights on the company's mission to transform deposit switching, payments, and financial access. Chapter 4: 15:40 - AI Agents and Radical Personalization The panel explores the role of AI in finance, highlighting wallet-based approaches, smart agents, and real-world applications for personalized banking. Chapter 5: 22:20 - Inside MasterCard's StartPath Program Sabrina details the StartPath program’s mission, its global impact, and how it supports fintechs like Atomic to scale through partnerships and innovation. Chapter 6: 30:10 - The Case for Bank-Fintech Collaboration Why banks need fintech partnerships to stay competitive, including insights into how StartPath accelerates collaboration with speed and agility. Chapter 7: 38:00 - Challenges and Opportunities in Fintech Partnerships A candid discussion on overcoming hurdles in bank-fintech collaborations and the importance of aligning incentives for success. Chapter 8: 45:30 - Scaling Success: Lessons from StartPath Celebrating the achievements of StartPath, its impact on over 450 fintechs in 57 countries, and its contributions to global financial innovation. Chapter 9: 52:00 - The Future of Finance Closing reflections on the role of AI, open banking, and subscription management in shaping the next generation of financial services. Chapter 10: 57:15 - Outro and Closing Thoughts Final takeaways on fintech’s transformative potential, with resources to explore Atomic Financial and MasterCard’s StartPath program further. Related Content: A Digital Banking Revolution in SEA: GXBank and Mastercard Fintech Visionaries and Revolutionaries & What's Up With Bitcoin? ...

In This Episode Consent orders are dropping with increasing frequency. Historically consent orders were viewed as failing grades. It's no surprise that bankers are a breed that don’t respond well to failing grades, it is the credit mentality around loss avoidance that leads to an overly developed risk-mitigation culture. Doing new things, by definition, requires taking on risk at some level. In this episode, Jason Henrichs is joined by guests Gilles Gade, Founder & CEO, Cross River Bank, Phil Goldfeder, CEO, American Fintech Council, Clayton Mitchell, Managing Principal, Fintech, and Mandi Simpson, Partner, Accounting Advisory & Finance Transformation Leader at Crowe as they dive into the critical topic of organizational resilience for banks in the wake of receiving a regulatory consent order. Together they explore how financial institutions can not only comply with regulatory requirements but also use this challenge as an opportunity to strengthen their operations and culture. Read the entire transcript here. Podcast Content: Chapter 1: 00:00 - Introduction: Setting the Stage for Resilience The episode opens with an overview of resilience in the financial world. Hosts introduce key topics, such as navigating regulatory pressures, innovation amid challenges, and how resilience shapes the future of financial services. Chapter 2: 05:30 - Building Technology to Challenge the Status Quo Gils Gade from CrossRiver Bank explains how outdated technology in banking inspired his vision for a tech-forward bank. The discussion dives into how CrossRiver built innovative solutions to replace legacy systems, ultimately serving fintech ecosystems better. Chapter 3: 15:45 - Turning Challenges into Stepping Stones The conversation explores CrossRiver’s encounters with regulatory consent orders and how they used these challenges as opportunities to strengthen compliance and innovate further. Gade emphasizes a philosophy of viewing stumbling blocks as stepping stones. Chapter 4: 28:20 - Minimal Maturity Models for Risk and Compliance Crow’s Mandy Simpson and Clayton Mitchell discuss strategies for balancing growth and risk in banking. They highlight the importance of incremental risk management and dialogue with regulators to build resilience. Chapter 5: 38:15 - Resilience Through Consumer-Centric Design The episode underscores how keeping customers at the center of decision-making helps banks build trust and resilience. CrossRiver’s efforts to address customer pain points through innovative tech and services are highlighted as a model. Chapter 6: 47:10 - Collaboration: Banks, Fintechs, and Regulators Phil Goldfeder from the American FinTech Council shares insights on collaboration between banks, fintechs, and regulators. The focus shifts to aligning regulatory practices with the fast-paced innovation demanded by customers. Chapter 7: 57:45 - Overcoming Regulatory PTSD A candid discussion on how consent orders can lead to "regulatory PTSD" within organizations. The panel explores strategies for fostering innovation while maintaining compliance. Chapter 8: 1:08:30 - Preparing for the Future of Banking The panel reflects on how banks can leverage their experiences to remain competitive and resilient. They emphasize the importance of innovation, risk management, and customer focus as the pillars of a sustainable banking model. Chapter 9: 1:19:00 - Closing Thoughts: Resilience as a Journey The episode concludes with a discussion on how resilience is not just about weathering challenges but thriving through them. The hosts summarize key takeaways and look ahead to the future of resilient banking. Related Content: Episode 562: Hot Takes: Regulatory Headwinds for BaaS Episode 471: Can You Hear Me Now? Regulators Speak Up Episode 560: Killing It: Ohad Samet on Reimagining Debt Collection Bank-Fintech Partnerships, Open Banking and AI...oh my!

In This Episode Digital banking is reshaping market share. All the fastest growing banks these days are fintechs.  After a three year battle, fintech challenger Revolut has provisionally secured a UK Banking License. With this, Revolut can now represent themselves as a bank, having the rights and obligations of a chartered financial institution in the UK. Revolut already had a license in the EU but the UK license could help with entry into the US. With 45M customers, revenue over $2B and profitable, they are making a mark for themselves. Listen as hosts Brett King and JP Nicols share their take on the news and implications for the industry. Then, it's Tyme....TymeBank, South Africa's (and the African continent's) most successful challenger bank aimed at the lower income market. Listen as Co-Founder, Coen Jonker, speaks with Brett to share Tyme's origin story and progress. Tyme is challenging the notion of how neos might work in this space. It began with BaaS and several years later, 2019, TymeBank launched in South Africa (SA). Launching during CoVid taught Tyme (Take Your Money Everywhere) to build an anti-fragile business.One of three banks since 2000 to have been granted a SA banking license, TymeBank uses a phygital operating model to work towards it's goal of financial inclusion and democratizing access to banking. In 2022 they expanded to the Philippines, GoTyme, and now, Vietnam. Via digital kiosks for onboarding in physical retail stores -- you can open an account in 3 - 5 minutes and be issued a debit card -- they are building trust and educating customers, integrating banking into the shopping proposition. TymeBank is in it for the long game. Read the entire transcript here. Podcast Content: Chapter 1: 00:00 - Introduction: Breaking News in Fintech The hosts introduce the episode with key updates: Revolut's provisional UK banking license and an exploration of TimeBank’s rapid growth. Chapter 2: 03:15 - Revolut’s UK Banking License: A Game Changer Revolut’s recent milestone is discussed, highlighting how the license impacts its global expansion strategy and positions it as a competitive force. Chapter 3: 12:40 - Scaling Success: How Digital Banks are Outpacing Incumbents An analysis of digital banks like Revolut and NewBank, comparing their customer acquisition strategies, scalability, and profitability to traditional banks. Chapter 4: 24:30 - SME Banking and the Future of Commercial Services The hosts discuss how digital banks are entering the SME sector, leveraging data to provide tailored services and disrupting traditional commercial banking. Chapter 5: 33:45 - TimeBank’s Story: Building Financial Inclusion in Africa TimeBank’s co-founder, Kuhn Yonker, shares the bank’s origin story, its mission to democratize access to banking, and its impressive growth in South Africa. Chapter 6: 45:10 - The Hybrid Strategy: Digital Meets Physical TimeBank’s unique approach of combining digital services with in-store kiosks is examined, showing how this model fosters trust and reduces acquisition costs. Chapter 7: 55:20 - Expansion into Southeast Asia: TimeBank Goes Global TimeBank’s entry into the Philippines and Vietnam is discussed, focusing on its strategy to replicate its African success in new, emerging markets. Chapter 8: 1:05:30 - AI and the Next Frontier for Digital Banks The role of AI in enhancing productivity, customer service, and personalized banking experiences at TimeBank is explored. Chapter 9: 1:16:45 - Looking Ahead: What’s Next for Revolut and TimeBank? The episode concludes with reflections on the future of digital banking, from Revolut’s growth trajectory to TimeBank’s upcoming capital raise and global aspirations. Related Content: Fintech Visionaries and Revolutionaries & What's Up With Bitcoin? UK is "All In" for FinTech Episode 124: Cross Border Payments: Revolut, Visa & Currencycloud Huawei Does Gen-Fi

In This Episode Another thrilling episode of Breaking Banks' special series Killing It!. Host Jason Henrichs connects with fintech superstar, dare we say fintech Olympian (Paris 2024!), Bill Harris, industry veteran, founder of 10+ tech and fintech companies, author, and current Founder & CEO of Evergreen Money. Together Jason and Bill look back at Bill's career to date, the different companies, the lessons learned and the tough calls made. Among those hard decisions, the need, at times, to avoid prolonging a failing venture and the need to conserve resources. It's a race to the finish where Bill shares details about his latest endeavor. https://youtu.be/zh-rAm6t_DY