Fintech Firsthand

In this episode Erik welcomes Ryan Hildebrand, Executive Vice President and Chief Innovation Officer at Bankwell Bank to talk about how he got started in banking as a service, Bankwell's new AI-assisted loan origination platform, and the future of banking as a service. Listen in for his firsthand experience: - Running fintech companies - The history of innovation in banking - Leading a banking-as-a-service division at a bank - Launching an AI-based service for loan origination - What the future of BaaS looks like We're excited to bring you this interesting dialogue on this developing sector of banking that's so critical for the future of the industry.

Our guest is Itai Damti, CEO of Unit, founded in 2019. Unit now partners with about 200 customers ranging from public companies to start ups. Customers includes names like Invoice2Go (Bill.com), AngelList, Wix, Instawork, and more. In the past, banking institutions have faced an enourmous build-out in technnology and personnel in order to launch and manage an embedded finance – otherwise known as banking as a service – program. Just to build the technical foundation for tasks like reconciliation, end user indentification, compliance, statements, reporting, and fraud, an institution needed 20 or more solutions. In this episode we cover what limited the success of early fintech, why embedded finance became essential to fintech success, how innovation to serve institutions, and how fintech could redefine embedded finance's future.

Eric Sprink, Chief Executive Officer of Coastal Community Bank, joins us to share how his bank has organically grown from less than 200 million to three and a half billion since 2006. After completing its successful IPO on the NASDAQ in 2018, Eric led the bank's venture into banking as a service through its division CCBX. Coastal Community Bank now partners with well known fintechs such as Walmart's fintech, One, and Bluevine, just to name a few. Let's learn from Eric's firsthand experience. DISCLAIMER: FINTECH FIRSTHAND PODCASTS, WEBPAGES, PEER GROUPS, AND ANY RELATED CONTENT ARE SOLELY FOR INFORMATIONAL PURPOSES AND SHOULD NOT BE INTERPRETED AS BUSINESS, LEGAL, REGULATORY, OR INVESTMENT ADVICE. STATEMENTS MADE ARE SOLELY THE PERSONAL OPINIONS OF GUESTS AND THE HOST, AND ARE NOT STATEMENTS OF THEIR COMPANY OR OF FINTECH FIRSTHAND. Disclaimer from Coastal Community Bank: This presentation and oral statements made regarding the subject of this presentation contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Coastal Financial Corporation (“Coastal” or “CFC”)’s current views with respect to, among other things, future events and Coastal’s financial performance. Any statements about Coastal’s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. 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Non-GAAP Financial Measures This presentation includes non-GAAP financial measures for 2017 to exclude the impact of a deferred tax asset revaluation due to the enactment of the Tax Cuts and Jobs Act of 2017 (the “Tax Cuts and Jobs Act”) on net income. This non-GAAP financial measure and any other non-GAAP financial measures that we discuss in this presentation should not be considered in isolation, and should be considered as additions to, and not substitutes for or superior to, measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their most directly comparable GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of Coastal’s non-GAAP financial measures as tools for comparison. See the Appendix to this presentation for a reconciliation of the non-GAAP financial measures used in (or conveyed orally during) this presentation to their most directly comparable GAAP financial measures. This presentation includes non-GAAP financial measures to illustrate the impact of BaaS loan expense on net loan income and yield on CCBX loans, and net interest margin. Net BaaS loan income divided by average CCBX loans is a non-GAAP measure that includes the impact BaaS loan expense on net BaaS loan income and the yield on CCBX loans. The most directly comparable GAAP measure is yield on CCBX loans. Net interest income net of BaaS loan expense is a non-GAAP measure that includes the impact BaaS loan expense on net interest income. The most directly comparable GAAP measure is net interest income. Net interest margin, net of BaaS loan expense is a non-GAAP measure that includes the impact of BaaS loan expense on net interest margin. The most directly comparable GAAP measure is net interest margin.