Breaking Banks

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

In This Episode This week on Breaking Banks, we feature an episode from sister podcast EMERGE Everywhere. Is artificial intelligence the key to providing personalized financial advice for all? While companies like Credit Karma are tapping into AI’s vast potential to help customers manage their money, the technology also raises weighty questions about how to use it responsibly. In this episode, Jennifer Tescher, host of EMERGE Everywhere speaks with Credit Karma CEO Ken Lin about how the company has embedded AI into its solutions, the biggest opportunities and challenges right now, and what an AI-enabled future might look like. Read the entire transcript here. Podcast Content: Chapter 1: [00:00] Introduction: AI in Financial Services The hosts introduce the episode, highlighting discussions with Ken Lin, CEO of Credit Karma, about the transformative impact of AI on financial advice. Chapter 2: [05:10] Credit Karma’s Journey and AI Evolution Ken Lin shares the origins of Credit Karma, its integration into Intuit, and the company’s innovative approach to leveraging AI for personalized financial tools. Chapter 3: [14:20] Generative AI vs. Machine Learning Exploration of the differences between machine learning and generative AI, emphasizing AI's ability to deliver tailored, conversational financial advice. Chapter 4: [22:50] Real-World Applications of Generative AI Ken Lin discusses the top use cases of generative AI on the Credit Karma platform, focusing on addressing consumers' top financial questions with tailored insights. Chapter 5: [33:15] The Promise of AI-Driven Financial Assistance Discussion on AI’s potential to transform financial advice into actionable steps, aiming to reduce tedium and empower financial mobility for users. Chapter 6: [42:00] Tackling Trust and AI Hallucinations Addressing concerns around AI accuracy, bias, and "hallucinations" in financial advice, and the steps Credit Karma takes to ensure reliable guidance. Chapter 7: [50:30] The Bottom 20%: Addressing Financial Exclusion Ken Lin reflects on how AI can benefit underserved populations by increasing financial inclusion and providing equitable access to services. Chapter 8: [58:00] Governance and the Future of AI The episode explores the importance of AI governance, ethical considerations, and the long-term impact of AI on financial systems and societal equity. Related Content: FinTech Opening Investment Space Will Financial Advisers Be Replaced By Crowd, How Does Tech Change GenYs Plan Investment & Saving? Episode 189: Disruption Stories: Generative AI for Investments AI is coming to help! A.I.- Ally Or Foe

In this Episode This week, Jason Henrich connects with Mary Wisniewski to talk about her new podcast, Money Isn't Everything, which will explore unconventional ideas and strategies within the financial services sector.  In her biweekly podcast Mary will tap into her passion for uncovering counterintuitive concepts, sharing stories and looking at complexities, gaps and opportunities in our market with focus on the role banks and credit unions play in driving and improving outcomes, The first episode of Money Isn't Everything airs 4/18, catch it on Apple, Spotify or the Cornerstone Advisors website. Read the entire transcript here. Podcast Content: Chapter 1: [00:00] Introduction and Welcome The hosts introduce the episode, highlighting the theme of money's role beyond financial value. Special guest Mary Wisniewski previews her new podcast, Money Isn't Everything. Chapter 2: [03:50] The Philosophy Behind "Money Isn't Everything" Mary Wisniewski shares the inspiration and objectives for her new podcast, emphasizing how financial institutions can address broader human needs. Chapter 3: [10:20] Challenges in Financial Literacy and Behavior Change Discussion about the failures of traditional financial literacy efforts and how understanding erratic cash flow can improve outcomes for underserved populations. Chapter 4: [18:30] Gamification and Nudges in Financial Services Exploration of gamification and behavioral nudges, their effectiveness, and ethical considerations for banks and fintechs aiming to improve financial habits. Chapter 5: [26:40] Aligning Incentives in Banking and Startups Jason Henricks reflects on the challenges of creating consumer-aligned incentives in financial products, sharing insights from his experience with Perk Street. Chapter 6: [35:15] Addressing Mental Health and Financial Stress Highlighting the intersection of mental health and money, the hosts discuss the emotional toll of financial stress and its implications for financial services. Chapter 7: [43:00] The Role of Creativity and Innovation in Finance Mary shares personal anecdotes and ideas for fostering innovation in financial services, particularly for addressing volatile incomes and debt reduction. Chapter 8: [50:25] Looking Ahead: Themes for "Money Isn't Everything" Preview of topics Mary plans to explore on her podcast, including AI, bold experiments in finance, and revisiting lessons from past economic cycles. Chapter 9: [57:00] Closing Thoughts and Call to Action Final reflections on the episode's themes, the significance of money in our lives, and details on how to follow Money Isn't Everything when it launches. Related Content: Episode 127 - Unconventional Saving Products Special Episode: Digital Love in the Time of COVID Episode 93: Talent Infrastructure Episode 170: MONEY UNDER 20 - “SM” in the new “FS” Episode 551: This Spot Looks Soft https://youtu.be/3PsqPUDBmO8

In This Episode Giving credit when credit is due is always appreciated and a good thing to do. In this case, it is also a solid base for a fintech, one that is socially responsible and financially inclusive. Meet Kashable's Co-Founder and CEO, Einat Steklov, as she speaks with host Brett King about Kashable making its mark in financial services with low cost loans for employees, those with low or no credit scores. With its data models and ability to create new risk profiles and open up access to credit, Kashable underwrites consumers for unsecured loans based to a large extent on employment information. With Kashable's ability to offer access to low cost credit, economic mobility, as an employee benefit with easy repayment -- embedded financing -- everyone benefits. Then, Breaking Banks is delighted to introduce Social Currency, Provoke.fm's latest podcast powered by Sunrise Banks that will introduce you to some of the most innovative changemakers in finance, tech and ESG, and how they are dismantling barriers and reshaping their industries for a more inclusive, equitable and sustainable future. Spotlighting those at the forefront of positive change through social entrepreneurship, Social Currency unveils the stories behind the revolution that is propelling us toward a world where everyone has equitable access to opportunities. In the first episode, Ahead of the Curve, Strategic Foresight, Tyler Seydel, Chief FinTech Officer at Sunrise Banks and co-host Eric Schurr, Chief Strategy Officer, Sunrise Banks and certified practitioner in strategic foresight, get into just that, Strategic Foresight, how organization can solve market opportunity challenges using provocative questions to look at future challenges in new ways, reimaging opportunities. A planning oriented discipline related to futures studies, you'll be surprised as new tools and this new way of future thinking begins to infiltrate projects and everyday work. Read the entire transcript here. Podcast Content: Chapter 1: [00:00] Introduction and Purpose The hosts introduce the episode, exploring themes of socially responsible credit and the role of social currency in fostering equitable financial systems. Chapter 2: [03:40] Cashable: Redefining Credit with Employment Data Interview with Inet Steklov, founder of Cashable, discussing their innovative approach to using employment data for credit underwriting and financial inclusion. Chapter 3: [15:20] The Flaws of Traditional Credit Scoring The conversation dives into the limitations of traditional credit scores and how alternative credit models can expand financial access for underserved populations. Chapter 4: [23:50] Embedded Financing in the Workplace Insights into Cashable’s partnerships with employers to offer low-cost credit as an employee benefit, promoting financial wellness and reducing stress. Chapter 5: [32:30] Regulating Fintech and Alternative Lending Discussion on navigating the regulatory landscape for fintechs and how Cashable collaborates with state and federal regulators to ensure compliance. Chapter 6: [40:45] Social Currency Podcast: Exploring ESG and Equity Introduction of the new Social Currency Podcast, focusing on ESG principles, diversity, and the intersection of technology and social equity. Chapter 7: [48:15] The Role of Foresight in Financial Innovation Eric Schorr, a certified foresight practitioner, shares insights on trendspotting, strategic planning, and creating a more inclusive financial future. Chapter 8: [57:30] Closing Reflections and Future Vision Final thoughts on the importance of financial inclusion, the value of foresight in planning, and actionable steps for building a better financial system. Related Content: Social Means Global Episode 161: Breaking Carbon - Impact as an Economic Driver Episode 15: Can we trust banks to use AI responsibly? Making Financial Engagement Social: Frank Eliason

In This Episode SXSW is a safari to the future according to Todder Moning, Lead Futurist at U.S. Bank. But, as Mike Bechtell, Chief Futurist at Deloitte, pointed out in his Fintech House fireside last year: futurists are always wrong. Why attempt to predict the future if you are likely to be wrong? This year Todder and Eric Schurr, Chief Strategy Officer at Sunrise Banks and host of the Social Currency podcast at Provoke.fm, have a fireside chat with Dara Tarkowski, Founder of Actuate Law and host of the Tech on Reg podcast, about which rules to break and which to keep when thinking about the future. From large bank to small, both use the tools of Foresight to gain a competitive advantage when thinking about a future, even when it is likely wrong. Listen in to learn how to break out of your current mindset and preconceptions, including Todder's favorite: Future Safaris. Read the entire transcript here. Podcast Content: Chapter 1: [00:00] Introduction and Live from South by Southwest The hosts set the stage for this live recording at the Alloy Labs Fintech House, introducing foresight as a critical tool for navigating the future. Chapter 2: [03:50] What is Foresight? Guests Tod Moning and Eric Scherr explain the practice of foresight, its methodologies, and its role in helping organizations navigate uncertainty and plan for multiple futures. Chapter 3: [12:30] Applying Foresight in Financial Services Discussion on how foresight is implemented within financial institutions, balancing innovation with the industry's focus on safety, risk management, and compliance. Chapter 4: [21:40] The Role of Regulators in Foresight Exploration of whether regulators can or should engage in foresight, and how proactive planning could help address systemic risks and foster innovation. Chapter 5: [30:20] Signals and Trends Shaping the Future Guests highlight key signals and trends in technology, ESG, and societal changes, with a focus on how these factors impact financial services. Chapter 6: [41:15] AI and the Future of Decision-Making Discussion on the role of generative AI in foresight, its potential to support scenario building, and its limitations in predicting the unknown. Chapter 7: [50:40] Crafting Preferred Futures Eric and Tod emphasize the human-centric nature of foresight and the importance of defining and striving for preferred futures through deliberate actions. Chapter 8: [59:30] Closing Reflections on Foresight's Value Final thoughts on why foresight is essential for financial institutions and individuals, encouraging proactive engagement with the forces shaping our world. Related Content: Tech On Reg Episode 559: Hot Take: Brokered Deposits Join the Eras Tour Episode 241: The Bankers' Bookshelf - Why Machines Will Never Rule the World: Artificial Intelligence without Fear Home Episode 538: Money Isn't Everything https://youtu.be/VJ5OvH-f-00

In This Episode What happens when two financial futurists get together? They chat about money of the future and related topics worthy of debate. This week, host Brett King connects with Chris Skinner, author, influencer, The Finanser blogger, and advisor to leading organizations, governments and firms across the world to talk about Chris' new book, Intelligent Money, due out this summer. Lots of great banter and thought provoking discussion as they look at cross border payments, smart wallets / super wallets that act as an agent on your behalf, embedded intelligent financial services and payments, and of course AI, to name just a few of the topics they get into. What's your vision for Main Street 2034? Is the need for growth at the heart of some of our problems? Enjoy the debate! Read the entire transcript here. Podcast Content: Chapter 1: [00:00] Welcome to Breaking Banks Hosts Brett King and Jason Henricks introduce the show and discuss its mission to explore innovations in financial services. They welcome regular guest Chris Skinner, a leading fintech thinker. Chapter 2: [04:30] The Evolution of Payments Chris Skinner and Brett King discuss the future of payments, predicting the rise of AI-driven "super wallets" and the eventual obsolescence of traditional financial tools like credit cards and cash. Chapter 3: [12:45] Centralized vs. Decentralized Systems A deep dive into centralized and decentralized finance structures, touching on the friction between cryptocurrencies, stablecoins, and central bank digital currencies. Chapter 4: [20:15] The Future of Identity and Security The conversation turns to digital identities and their role in payments, healthcare, and government services. The hosts debate the feasibility of self-sovereign identity models. Chapter 5: [30:00] Borderless Finance and Migration Chris Skinner examines the intersection of global finance, migration, and technology, highlighting how digital wallets empower displaced populations and digital nomads alike. Chapter 6: [40:10] AI and the Changing Face of Banking The discussion shifts to how AI reshapes banking, turning institutions into algorithmic entities. Trust, the role of branches, and the generational shift in financial behavior are analyzed. Chapter 7: [50:00] The Ethics and Economics of AI A philosophical debate on AI's impact on jobs, universal basic income (UBI), and the potential for capitalism to adapt to a world dominated by automation. Chapter 8: [01:00:15] Reimagining Money and Society Brett and Chris speculate about new economic systems and the role of technology in creating equitable and sustainable societies, touching on ideas like techno-socialism. Chapter 9: [01:10:00] Preview of Chris Skinner's New Book Chris shares insights from his upcoming book Intelligent Money, which explores embedded AI in finance and its transformative potential. Chapter 10: [01:15:30] Closing Thoughts and Future Episodes The hosts wrap up with reflections on the discussion and preview future episodes of Breaking Banks and their collaborative podcast Beyond Banking. Related Content: Episode 238: The Bankers' Bookshelf: Intelligent Money Digital Wallets: Exploding Or Blowing Up? Bitcoin: Hope or Hype? Are Mobile Wallets On The Horizon Or Somewhere Over The Rainbow? Episode 560: Killing It: Ohad Samet on Reimagining Debt Collection https://youtu.be/DC03x1pySWg