Breaking Banks

In This Episode It's a Breaking Banks and Finovate collab! Fresh off of FinovateSpring hosts JP Nicols, Greg Palmer and Brett King talk trends, takeaways and best of show; bringing the best to you in this episode. If you missed FinovateSpring, enjoy the recap and themes, and some of the best fintech innovations covering artificial intelligence, open banking, future payments, CX and more. With new market entrants and the loosening of capital, creativity is coming back into the ecosystem, and the bar is being raised, pushing everyone forward. We also introduce you to one of FinovateSpring's Best of Show winners, Maya Mikhailov, SAVVI AI, Founder & CEO. Meeting users where they are, SAVVI AI offers a powerful AI tool to unlock data and make finserv and fintech goal driven AI use cases easier, distilling data natively into excel, to offer insights for institutions on new product offerings to benefit customers and business. In the coming weeks, tune into sister podcast Finovate for profiles, a deep dive and one-on-ones with all FinovateSpring 'Best of Show' winners: Bloom Credit, Remynt, Kobalt Labs, QuickFi, SAVVI AI, Cascading AI Read the entire transcript here. Podcast Content: Chapter 1: 00:00:00 - Introduction: Welcoming Greg Palmer and Finnovate Insights The hosts introduce Greg Palmer from Finnovate, discussing his observations post-Finnovate Spring and setting the stage for the episode. Chapter 2: 00:05:30 - The State of Fintech: Fresh Ideas and New Players Exploring the influx of early-stage companies, Series A fintechs, and how creativity is driving a new wave of innovation in the ecosystem. Chapter 3: 00:15:00 - The Innovation Cycle: Incumbents vs. Insurgents Discussing the classic innovation cycle, venture capital trends, and how fintechs challenge incumbents to adapt or acquire. Chapter 4: 00:24:45 - AI in Fintech: Who Will Win the Next Wave? Highlighting AI’s role in shaping financial services, the incumbents’ challenges with legacy systems, and fintechs’ AI-friendly advantages. Chapter 5: 00:35:30 - Best of Show Winners: The Highlights of Finnovate Spring A brief overview of standout winners like Bloom Credit, Remit, and Savvy AI, and their innovative, customer-centric approaches. Chapter 6: 00:45:15 - Meet Savvy AI: Democratizing AI for Banks Maya Mikhailov shares Savvy AI’s mission to bring AI capabilities to banks through Excel, empowering them to use their existing data. Chapter 7: 00:55:00 - Practical AI Use Cases: Start with What You Have Discussing how banks can begin with deposit and transaction data to solve practical challenges like deposit growth, churn, and loan delinquency. Chapter 8: Reflections on the episode’s themes: AI as a tool for efficiency, solving everyday banking problems, and meeting customers where they are. Related Content: Life Before and After Social Distancing Special Episode: Navigating the Crisis AI is coming to help! A.I.- Ally Or Foe Bioplausible Artificial Intelligence https://www.youtube.com/watch?v=LZUWot-48E8

In This Episode Jake Gibson, former investment banker, entrepreneur / co-founder NerdWallet, angel investor, now VC founder Better Tomorrow Ventures, who crossed career paths with host Jason Henrichs 10+ years ago, have an honest discussion about the twists and turns of co-founding a boot-strapping start-up particularly when you are young, on to something and quickly have to figure everything out. After years of hard work and being all-in, tough decisions needed to be made as NerdWallet continued to grow quickly. Jake knew it was time to move on, but so hard to do. The arrival of twins and focus on strengths, honesty, lessons learned, and giving advice to others in similar situations, helped Jake figure his calling and path forward, and has enabled him to keep many 'cards in his wallet'.  Read the entire transcript here. Podcast Content: Chapter 1: 00:00:00 - Introduction: Reinvention and Identity Setting the stage for Jake Gibson's journey, from Wall Street to co-founding NerdWallet, angel investing, and ultimately venture capital. Chapter 2: 00:04:30 - From Wall Street to Silicon Valley: The First Reinvention Jake shares his transition from a successful trading desk role at J.P. Morgan to joining Tim Chen on the early journey of NerdWallet. Chapter 3: 00:12:00 - Bootstrapping NerdWallet: The Rocky Early Days Insights into the early challenges of building NerdWallet, the struggles of SEO, and how Google’s algorithm updates became a turning point. Chapter 4: 00:22:45 - Growth Pains: Scaling Beyond Founders’ Capabilities The tough lessons in scaling NerdWallet, managing people, and navigating layoffs, despite the company’s upward revenue trajectory. Chapter 5: 00:35:00 - Leaving NerdWallet: Letting Go of Identity Jake opens up about the emotional difficulty of leaving NerdWallet, redefining his sense of self, and taking time to decompress. Chapter 6: 00:45:30 - Angel Investing: Paying It Forward The next phase for Jake—mentoring and investing in startups, building a network, and finding fulfillment through helping others succeed. Chapter 7: 00:52:00 - Commitment Issues: From Angel to VC with Better Tomorrow Ventures How Jake partnered with Sheel Mohnot, overcame hesitations, and co-founded Better Tomorrow Ventures (BTV) to support fintech innovation. Chapter 8: 01:05:30 - Facing Failure and Luck: Lessons for Founders Candid advice on preparing for potential failure, embracing identity shifts, and recognizing that success often requires persistence and luck. Chapter 9: 01:15:00 - Closing Reflections: The Founder’s Mentality Jake’s thoughts on unreasonable optimism, self-awareness, and how founders should approach reinvention and uncertainty. Related Content: Episode 44: Where Does The Money Go? - Angel Investing Episode 451: AWS Bets Big on Black and Women Founders & Harmonizing Taxes Episode 550: Cease and Desist Identities Merging Episode 551: This Spot Looks Soft https://youtu.be/aQnekFgirVU

In This Episode There's more to episode 543 -- Killing It: The Story Behind the Synapse Story -- right here! The Synapse saga continues but we make it easy to stay current and benefit from expert analysis as host Jason Henrichs unpacks the latest news with Jason Mikula, publisher of Fintech Business Weekly. The two are watching the topic closely, offering insight into what it all means, from a Chapter 11 Trustee, to new account and financial resilience concerns, FDIC insurance disclosure, challenges and regulation not to mention potential risks and implications for banking and fintech. A takeaway from it all, the importance of regulation in promoting responsible innovation. Read the entire transcript here. Podcast Content: Chapter 1: 00:00:00 - Introduction: A Slow-Moving Disaster Hosts Jason Henrichs and Jason Mikula set the stage for the ongoing Synapse-Evolve-Lineage saga, describing the magnitude and impact. Chapter 2: 00:05:30 - The Missing Millions: Ledger Integrity Crisis Analyzing the $50 million shortfall between Synapse and Evolve, the flawed ledger issues, and how the situation spiraled over time. Chapter 3: 00:14:00 - How Did This Happen? The Role of Boards and Fintechs Exploring Synapse’s board oversight, fintech clients’ reactions, and questions about operational resilience and business continuity. Chapter 4: 00:22:00 - The Complexity of Banking Ledgers Discussing why ledgers are so complex, how ACH and settlement flows add layers of difficulty, and why banks failed to catch the discrepancies. Chapter 5: 00:30:45 - FDIC Insurance Clarification: A Regulatory Surprise Examining the FDIC’s stance on insurance limitations and the lack of clear communication to consumers regarding fintech-held deposits. Chapter 6: 00:40:00 - Regulatory Gaps and Fintech Accountability Comparing U.S. regulatory gaps to Europe’s EMI licenses, and how the lack of supervision exacerbated fintech risks. Chapter 7: 00:50:15 - Tourists on BaaS Island: Banks and Fintech Missteps Highlighting the dangers of underprepared banks and fintech players entering the complex world of Banking-as-a-Service (BaaS). Chapter 8: 00:58:30 - The Fallout: Long-Term Implications for BaaS and Fintech Assessing how this saga will impact future bank-fintech partnerships, regulatory oversight, and the fintech innovation landscape. Chapter 9: 01:08:00 - Lessons Learned: Regulation, Boards, and Responsible Innovation Reflecting on the importance of regulation, investor accountability, and building robust systems to prevent future crises. Related Content: Episode 562: Hot Takes: Regulatory Headwinds for BaaS Episode 70: Women's Economic Empowerment TechSprint & Conference Episode 464: Second Wave BaaS & “Deep Tech” Episode 550: Cease and Desist Episode 559: Hot Take: Brokered Deposits Join the Eras Tour https://youtu.be/JrbIignFP64

In This Episode In this episode Jason Henrichs and Kiah Haslett, Bank Director's Banking and Fintech Editor riff on FBO (For Benefit Of) accounts, implications for banks, banking as a service and the future of fintech. Then, Jason connects with Paul Davis, Founder, The Bank Slate about fintech partnerships, future landscape, consent orders and AI in banking. https://youtu.be/403ajB3n9mo

In This Episode In this episode Brett King catches up with Ali Paterson, Editor-in-Chief, FF News about ... fintech and banking! Having been part of the architecture, or rather furniture, of the industry for many years, these two leaders, writers and influencers look at fintech -- through rearview mirrors and what's on the road ahead -- in a lighthearted discussion from respective vantage points. There are standout moments (does anyone remember the literal payments race?), personalities, culture, and some favorite stories. Read the entire transcript here. Podcast Content: Chapter 1: 00:00:00 - Introduction: A Decade of Fintech Chronicles Brett King and Ali Patterson introduce the episode, sharing stories about their long-standing relationship and Ali's role in fintech journalism. Chapter 2: 00:05:30 - Founding FF News: From Future Banking to Buzzword Bingo Ali discusses his early days in fintech reporting, founding FF News at Finnovate London 2015, and covering industry-shaping events. Chapter 3: 00:14:00 - Capturing History: Starling, Revolut, and the Early Challenger Banks Memorable moments with fintech pioneers like Anne Boden and Nick Storonsky, highlighting how Starling and Revolut emerged from humble beginnings. Chapter 4: 00:22:15 - Stories of Success and Collapse: Loot and Wirecard A look back at the rise and fall of standout fintechs like Loot and Wirecard, and the lessons they provide for the industry. Chapter 5: 00:30:45 - Fintech Media: The Secret to Longevity and Client Trust Ali shares how FF News thrives through resilience, client relationships, and unconventional solutions to deliver value. Chapter 6: 00:40:30 - Buzzword Bingo and the Evolving Media Landscape How fintech media has shifted to focus on targeted engagement over vanity metrics, including strategies for TikTok and content delivery. Chapter 7: 00:48:15 - Emerging Markets: The Caribbean as Fintech’s Next Wave Discussion on the Caribbean as an untapped fintech hub, with opportunities for challenger banks and financial innovation. Chapter 8: 00:55:00 - The Payments Race: Innovation, Community, and Crazy Logistics Ali recounts the entertaining and logistically challenging Payments Race events that highlighted global payments evolution. Chapter 9: 01:05:00 - Best and Worst Interviews: From Will.I.Am to Frank Abagnale Jr. Ali shares stories of his most memorable interviews, including thought-provoking conversations with fintech leaders and unexpected challenges. Chapter 10: 01:12:00 - Advice for Fintech Founders: Be Unique and Recognizable Tips for fintech entrepreneurs on creating impactful stories, standing out in media, and building a strong, unique brand presence. Related Content: Episode 144: Metaverse Deep Dive - Decoding the Buzzword Episode 561: Demystifying Fintech: Insights on Banking's Future Episode 547: The BaaS Bombs Drop + Synapse Bankruptcy Fintech Visionaries and Revolutionaries & What's Up With Bitcoin? Huawei Does Gen-Fi https://youtu.be/MEpeF1Wp2uY

In This Episode Brett King connects with industry leaders and influencers Joao Bezerra Leite, 2W Ecobank and former CTO, Banco Itau, and Bruno Diniz, fintech advisor, author, professor, speaker and top 10 influencer in Ibero America for another engaging episode of Breaking Banks about the fintech / payments boom in Brazil and Latin America. The trio focus on several success stories to include Pix pay; NuBank, the reasons NuBank has been so successful; Creditas, and other companies to watch. Can these successes be replicated elsewhere? How might the market react if / when NuBank becomes the largest market cap bank in LatAm? These are just some of the questions the industry veterans tackle in this episode. Read the entire transcript here. Podcast Content: Chapter 1: 00:00 - Introduction and Overview The hosts introduce the episode and highlight the focus on Latin America's fintech landscape, with a special emphasis on Brazil. They welcome experts Bruno Diniz and João Bezerra Letty to discuss fintech innovations, payments, and regulations shaping the region. Chapter 2: 03:45 - Nubank: The Rise of a Challenger A deep dive into Nubank's meteoric growth, achieving 100 million customers, and its strategies that revolutionized the Brazilian banking sector. Discussion includes user experience, regulatory support, and its positioning as a mobile-first digital bank. Chapter 3: 15:20 - Brazil’s Regulatory Innovation João Bezerra Letty outlines the role of Brazil’s Central Bank in creating an enabling environment for fintech innovation, including key regulations like payment institution guidelines and the success of PIX, the instant payments platform. Chapter 4: 23:30 - PIX and Payment Innovations Discussion about PIX’s massive adoption in Brazil and its role in redefining payment systems. The conversation compares PIX's success to the slow adoption of FedNow in the United States. Chapter 5: 32:10 - Beyond Nubank: Emerging Fintech Leaders Exploration of other notable fintechs in Brazil, including Creditas and Cloudwalk, highlighting their innovative approaches to digital lending, DeFi, and payment systems. Chapter 6: 40:50 - Market Challenges and Opportunities The challenges traditional banks face in adapting to a digital-first economy and the opportunities for fintechs to address underserved segments. Discussion includes embedded finance and AI’s role in the ecosystem. Chapter 7: 48:00 - The Future of Latin American Fintech The experts discuss Brazil’s leadership in fintech innovation, the potential for exportable fintech models, and the next steps in tokenized economies and AI integration. Chapter 8: 54:30 - Closing Thoughts and Resources Final reflections on the future of fintech in Latin America, how listeners can stay updated on industry trends, and expert resources shared by the guests. Related Content: Episode 126 - Breaking Payments: Keys to success in hyper-growth companies Episode 494: Regional Spotlights: South Africa & LatAm Making Strides Episode 233: The Bankers' Bookshelf - AI revolution: productivity boom and beyond Episode 210: Disruption Stories: Regenerative Finance Episode 554: Innovator's Dilemma & ROI / ROT https://youtu.be/0sMFejq_TQk

In This Episode It's another engaging episode from Breaking Banks' new series, Killing It. Host Jason Henrichs shares a candid conversation with Sankaet Pathak, Synapse CEO and Co-Founder, about Synapse's just completed, very public bankruptcy and acquisition that came with highly opinionated social media commentary. Listen as Sankaet shares his personal story as well as a behind the scenes narrative of Synapse's journey, the challenges faced, and what ultimately brought him to the decision to kill Synapse as a stand-alone entity. Sequencing is important. Read the entire transcript here. Podcast Content: Chapter 1: 00:00 - Introduction and Synapse’s Chapter 11 Journey The hosts introduce the episode, diving into Synapse’s public bankruptcy and acquisition by TabaPay. Sankat Pathak, Synapse’s founder and CEO, joins to share insights on the process and misconceptions surrounding the events. Chapter 2: 05:15 - The Misunderstood Narrative Pathak clarifies the misconceptions about Synapse's journey, emphasizing the deliberate decision for Chapter 11 to enable a strategic asset acquisition. Chapter 3: 12:30 - Missed Opportunities and Strategic Shifts Discussion on the $100 million term sheet veto and the strategic move to acquire a bank charter, highlighting the internal disagreements that sealed Synapse’s fate. Chapter 4: 20:45 - Lessons in Building and Scaling Pathak reflects on Synapse's growth journey, the challenges of creating a middleware-focused company, and lessons learned about culture, market selection, and business scaling. Chapter 5: 28:40 - Banking as a Service: Challenges and Future Directions In-depth exploration of the complexities of banking-as-a-service models, the role of FBO accounts, and predictions for the evolution of the BaaS ecosystem in the next five years. Chapter 6: 38:10 - Regulation, Culture, and Market Dynamics Discussion on the role of regulation in shaping financial services, differences between tech and bank cultures, and how these elements influence business success. Chapter 7: 47:20 - The Future of Banking and Fintech Models Speculation on the future interplay between banks and fintechs, including trends toward fintechs acquiring bank charters and banks adapting to technological DNA. Chapter 8: 55:00 - Closing Reflections and What’s Next for Pathak Pathak shares his personal takeaways, his future plans, and how the lessons from Synapse’s journey will shape his next endeavors. Related Content: Episode 474: Ringing Out 2022: What did we get right? What did we miss? Tech’s Role in the Shut In Episode 55: Jim Marous Episode 547: The BaaS Bombs Drop + Synapse Bankruptcy Episode 140: Let's Talk Culture https://youtu.be/tkIwAiaI2dA Full Show Transcription [00:00:00] Welcome to Breaking Banks. The number one. Killing it. Killing it. There's often a story behind this story. The explosion of social media, private Slack and WhatsApp groups, newsletters, make it difficult not only to decipher fact, but even put together a cohesive story. Synapse is just completing a very public bankruptcy and acquisition with highly opinionated social media commentary. Sankat Pathak, Synapse's founder and CEO, joins me on this episode to share his side of the story and the journey that brought him to the decision to kill Synapse as a standalone entity. Well, thanks for agreeing to have a difficult if not painful conversation about the last chapters of Synapse's journey as a standalone entity. [00:01:00] Building in public is hard and, you know, finding a soft landing is admirable and difficult enough without public commentary. I guess I should be thankful Twitter didn't have the reach and vitriol in 2014 when we like tried to crash land, you know, Perk Street, same maneuver. I sometimes tell people it's like, we landed the plane. People were definitely on fire. But no one died, right? Um, I'm going to start with,

In This Episode Pay by bank is gaining momentum in the U.S., it's a natural evolution of how we pay with funds from our bank accounts. What will it take to get more people to use it and what about readiness for different use cases? Listen as host Brett King, Eric Sager, Plaid's COO and Trevor Nies, Adyen's SVP, Global Head of Digital discuss the state of pay by bank, what is driving it in the U.S., the value it delivers, the next segments to adopt, and how key challenges are being overcome to make it good for consumers and for businesses. Will we start seeing pay-by-bank in everyday e-commerce experiences? Listen to our latest episode of Breaking Banks to find out! Read the entire transcript here. Podcast Content: Chapter 1: [00:00] Introduction and Global Payment Trends The hosts introduce the episode and explore the growing momentum of pay-by-bank systems worldwide, focusing on their adoption in emerging markets like Brazil and India. Chapter 2: [05:20] Meet the Guests and U.S. Market Overview Eric Sager from Plaid and Trevor Neece from Adyen discuss their roles and share insights into the complexities and opportunities in the U.S. payments ecosystem. Chapter 3: [12:40] Lessons from Emerging Markets Exploration of real-time payments systems such as PIX in Brazil and UPI in India. Insights into how these systems could shape the future of payments in the U.S. and Europe. Chapter 4: [22:15] The Growing Appeal of Pay by Bank Deep dive into the benefits of pay-by-bank for consumers and merchants, including lower costs, reduced churn, and access to underserved populations. Chapter 5: [30:50] The Partnership Between Plaid and Adyen Details on the strategic collaboration between Plaid and Adyen, its objectives, and how it simplifies merchant integration while offering value to consumers. Chapter 6: [39:30] Overcoming Adoption Barriers Discussion on the challenges of implementing pay-by-bank in the U.S., including consumer trust, branding, and incentives, and how to drive adoption across generations. Chapter 7: [48:10] AI and the Future of Payments Speculation on how AI will transform payments, from contextual credit to automated personal finance management, and its potential integration with pay-by-bank systems. Chapter 8: [55:50] Wrapping Up and Future Outlook Guests reflect on the potential for pay-by-bank to reshape the payments landscape, their plans for the partnership, and their excitement for the future. Related Content: Episode 83: The future of payments and the disappearing "point of sale" Episode 548: Killing It: And then Paying It Forward Episode 129: Breaking Payments: Open Banking Evolution Episode 562: Hot Takes: Regulatory Headwinds for BaaS Shopify Finance: Fueling Merchant and Small Business Growth https://youtu.be/HDybRTh0mmE

Booshan Rengachari, CEO of Finzly, discusses embedded banking with host Brett King. Topics include attracting corporate banking customers, handling KYC & KYCC compliance, and utilizing open APIs, virtual accounts, and ISO 20022 for success in embedded banking.

In This Episode Todays’ Breaking Banks spotlights sister podcast Finovate, featuring host Greg Palmer’s recent interviews on the Future of Real-Time Payments with The Clearing House's, Jim Colassano, SVP Product Development & Strategy and a new report on Cost of Living, Lending and Insights from Tink with Jack Spiers, Banking & Lending Director, UK & Ireland. Finovate Spring is around the corner, May 21 - 23, 2024 in San Francisco, CA. Check it out! https://www.youtube.com/watch?v=1yIeYTZbXpQ