The Fintech Blueprint

 In this podcast, Lex interviews William (Bill) Capuzzi, CEO of APEX, a Fintech company transforming financial services. Bill talks about his journey from studying environmental science to working in the financial industry, first at the banking and trading divisions of DLJ, then at Pershing where he learned the "bowels" of the industry, and then at Convergex where he learned about the importance of disrupting the trading technology. He then talks about buying Apex from Peak6 and his understanding of what it means to custody, clear, and settle a trade. He explains that a custodian holds the assets of the end investor and provides the clearing of transactions through a central counterparty like DTCC. He also discusses the decentralized finance world and the lack of a central counterparty in the cryptocurrency world. MENTIONED IN THE CONVERSATION APEX Fintech Solutions website: https://bit.ly/3H0LgwECEO's Linkedin profile: https://bit.ly/3IIMD4k Topics: fintech, custody, clearing, settlement, trading, investment, crypto Companies: Apex, Pershing, DLJ, PEAK6, Convergex, SoFi, Stash, TD Ameritrade, Schwab, Betterment ABOUT THE FINTECH BLUEPRINT 🔥Subscribe to the Fintech Blueprint newsletter to stay at the forefront of Fintech and DeFi: https://bit.ly/3hyhlC2 🤝 Partner with Fintech Blueprint through sponsorships: https://bit.ly/3UZllsV 👉 Twitter: https://twitter.com/LexSokolin  TIMESTAMPS 1’50”: A breakdown of Bill’s foundational experiences   13’37”: Definitional breakdowns of custody, clearing, and settlement 19’19”: Unbundling custody solutions from broker-dealers and retail distribution, and the regulatory implications 27’04: The dynamic between digital wealth management platforms and either robo-advisors or traditional advisors using robo platforms that plug into their custody 31’07”: Joining Apex in 2010 - the customer profiles, tech stack, opportunities, and vision to where Apex is today 33’31”: Hyper efficiency - offering zero commission and fractional shares in 2015/16 36’52”: The current winning formula for B2C tech-enabled financial companies that Apex supports 40’27”: Channels to use to connect with Bill & learn more about Apex Fintech Solutions Disclaimer here — this newsletter does not provide investment advice and represents solely the views and opinions of FINTECH BLUEPRINT LTD.Contributors: Lex, Laurence, Matt, Farhad, Mike, DaniellaWant to discuss? Stop by our Discord and reach out here with questions.

In this conversation, our Editor-in-chief Lex Sokolin walks through how 2023 is the year for executing on raw fundamentals, which means understanding how to design a Fintech or DeFi business model and understanding the shape of demand. Companies must focus on customer centricity and use a Lean Startup methodology to validate ideas and assumptions. This is done by testing products and services with prospects, using digital landing pages, and buying Google Ads to drive people to those landing pages. MENTIONED IN THE CONVERSATIONThe Fintech Blueprint: https://www.fintechblueprint.com/ Lex Sokolin: https://www.linkedin.com/in/alexeysokolin/ and https://twitter.com/LexSokolin Topics: start-ups, fintech, DeFi, innovation, disruption, tokenomics, cryptocurrency, blockchain, DAO, Web3, roboadvisorCompanies: Google, Greensky, Facebook, Robinhood, Youtube, DriveWealth, Betterment, Coinbase, MetaMask, Cross River Bank, MoonPayABOUT THE FINTECH BLUEPRINT🔥Subscribe to the Fintech Blueprint newsletter to stay at the forefront of Fintech and DeFi: https://bit.ly/3hyhlC2🤝 Partner with Fintech Blueprint through sponsorships: https://bit.ly/3UZllsV👉 Twitter: https://twitter.com/LexSokolin TIMESTAMPS0’31”: Introduction - What the last 3 years brought to the Fintech space2’45”: How to approach 2023 from a mental model perspective7’03”: The approach to designing a Fintech or DeFi business model in 202316’27”: The Lean Start-up Methodology & how it optimises product market fit22’48”: Methods to seeking economically sufficient demand: traditional banking vs neobanking models27’45”: Automation of the CFO stack vs Decentralized Autonomous Organizations (DAOs)30’48”: Risk appetite: Betterment vs Coinbase vs MetaMask - their similarities and vastly dissimilar approaches to win consumers36’11”: Economic models attached to opportunities44’32”: Platform businesses providing an intermediating layer with repeatable demand46’29”: The nature of economic flows: Money in motion vs money at rest50’49”: Conclusion - closing remarks Disclaimer here — this newsletter does not provide investment advice and represents solely the views and opinions of FINTECH BLUEPRINT LTD.Contributors: Lex, Laurence, Matt, Farhad, Mike, DaniellaWant to discuss? Stop by our Discord and reach out here with questions.

In this conversation, we chat with Jesse Proudman, the VP of Crypto Investing at Betterment, who was also the co-founder and CEO of Makara. Proudman shares his journey of building a web-design business, which eventually morphed into a cloud computing service and was later acquired by IBM. He then explains his interest in blockchain and the business he built to manage crypto portfolios, which led to the creation of the private cloud product. He discusses the challenges of the public internet versus private internet, public cloud versus private cloud, and public blockchain versus private blockchain, and how the industry has evolved since the ICO collapse of 2018. MENTIONED IN THE CONVERSATION Betterment website: https://bit.ly/3WlCM8BCEO's Linkedin profile: https://bit.ly/3Ww8mQG Topics: fintech, roboadvisors, crypto, investment, blockchain, cloud, cloud-as-a-service, digital assets Companies: Betterment, IBM, IBM Ventures, IBM Cloud, Strix Leviathan, Makara, Plaid, Gemini ABOUT THE FINTECH BLUEPRINT 🔥Subscribe to the Fintech Blueprint newsletter to stay at the forefront of Fintech and DeFi: https://bit.ly/3hyhlC2 🤝 Partner with Fintech Blueprint through sponsorships: https://bit.ly/3UZllsV 👉 Twitter: https://twitter.com/LexSokolin TIMESTAMPS 1’28”: The entrepreneurial journey and the influences that led Jesse to becoming a founder 3’04”: Connecting the dots between designing websites for the local dentist to running cloud-as-a-service and getting acquired by IBM 7’41”: Public technology vs private technology and whether they solve for a similar answer 10’36”: Building an accelerator for IBM Ventures and how this drove the inspiration behind Strix Leviathan (a quantitative crypto hedge fund) 16’16”: Building a quantitative crypto hedge fund in the first crypto bear market and the investment strategies needed for it to work 20’32”: The trigger(s) that led to founding Makara (a cryptocurrency robo-advisor startup) 24’58”: The acquisition of Makara by Betterment, the combined offering as a result, and the psychographics of who this offering is for 30’26”: Custodial vs non-custodial holding of crypto assets, and the regulatory mine field of providing investment advice in the United States 33’53”: Betterment’s approach to modelling the full user journey/financial picture combining the traditional asset allocation with a crypto asset allocation 39’38”: The strategic vectors within the digital asset advisory business and what the future looks like for this industry 43’07”: Channels to use to connect with Jesse & learn more about Betterment Disclaimer here — this newsletter does not provide investment advice and represents solely the views and opinions of FINTECH BLUEPRINT LTD.Contributors: Lex, Laurence, Matt, Farhad, Mike, DaniellaWant to discuss? Stop by our Discord and reach out here with questions.

In this conversation, we chat with Jarred Ward, CEO and co-founder of Twisp. Ward has been tasked with building nearly every part of the modern financial ecosystem, from a greenfield core banking stack, direct integrations with Visa and the card networks for card issuing, and later, building a banking-as-a-service API on top of BBVA’s global core.Ledgers are the detailed records of transactions and money movement for every fintech, yet they are continuously reinvented for every product. The process of building and operating mission-critical ledgers to track and reconcile payments and money movement is complex.Twisp’s vision is to provide the operational and scaling guarantees of DynamoDB, the correctness guarantees of a relational database, with the ledger and accounting primitives you need to build modern financial products at any scaleTHANK YOU TO OUR SPONSORS This episode was sponsored by Twisp. We are committed to highlighting partnerships transparently, and only work with organizations that we find compelling from an editorial perspective. MENTIONED IN THE CONVERSATIONTwisp website: http://bit.ly/3BEWBzbCEO's Linkedin profile: http://bit.ly/3HAHgng  Topics: fintech, blockchain, ledgers, finance, financial infrastructure, cloud, accounting, banking-as-a-service, baas, apiCompanies: Simple, BBVA, Twisp, PacifiCorp, Stripe, Marqeta, MySQL ABOUT THE FINTECH BLUEPRINT🔥Subscribe to the Fintech Blueprint newsletter to stay at the forefront of Fintech and DeFi: https://bit.ly/3hyhlC2🤝 Partner with Fintech Blueprint through sponsorships: https://bit.ly/3UZllsV👉 Twitter: https://twitter.com/LexSokolin TIMESTAMPS1’29”: The foundational experiences in Jarred’s education and career3’39”: Identifying the ways in which computers and automation were helping people in finance solve their problems7’35”: Jarred’s experience working at B2C consumer neobank Simple and its approach to success in a highly competitive space12’58”: The approach of the financial stack in a US-based traditional bank vs. neobank like Simple16’47”: The acquisition of Simple by BBVA and their approach to remaining competitive and relevant22’29”: The evolution of banking: Is old infrastructure with a modern API-based real-time infrastructure on top the answer?25’32”: Twisp – financial ledger infrastructure: Founding the company and its core propositions to date33’08”: The fundamentals of a core ledger and how abstraction supports assets of differing types38’39”: The ways that modern stacks are able to get around the natural limitations of technologies like MySQL and Postgres43’52”: Financial workflows: Their evolution, customer adoption preferences, and the ability to package them into on-demand financial infrastructure46’50”: Channels to use to connect with Jarred & learn more about Twisp Disclaimer here — this newsletter does not provide investment advice and represents solely the views and opinions of FINTECH BLUEPRINT LTD.Contributors: Lex, Laurence, Matt, Farhad, Mike, DaniellaWant to discuss? Stop by our Discord and reach out here with questions.

In this conversation, we chat with Will Beeson, who currently works at Standard Chartered Ventures. Previously, Will was the Co-Founder & Chief Product Officer at digital bank BELLA, as well as, a Principal at Rebank, a fintech advisory firm. Will’s banking entrepreneurship streak doesn’t end there, he co-founded Allica, a digital bank for businesses in the UK. We discuss the evolution of the banking-as-a-service sector, and in particular the challenges of infrastructure providers when their fintech clients fail due to market pressure. What’s next for embedded finance? MENTIONED IN THE CONVERSATIONRebank: https://rebank.cc/Will Beeson: https://www.linkedin.com/in/willbeeson/ and https://twitter.com/will_beesonTopics: Embedded finance, fintech, neobank, banking, payments, finance, banking-as-a-service, API, RegTech, RegulationCompanies: Plaid, Onfido, Stripe, Socure, Green Dot Bank, Cross River Bank, FIS, Fiserv, BlockFi, BBVAABOUT THE FINTECH BLUEPRINT🔥Subscribe to the Fintech Blueprint newsletter to stay at the forefront of Fintech and DeFi: https://bit.ly/3hyhlC2🤝 Partner with Fintech Blueprint through sponsorships: https://bit.ly/3UZllsV👉 Twitter: https://twitter.com/LexSokolin TIMESTAMPS1’01”: Setting the scene in Fintech 2022 & what are the symptoms of things going wrong in the Banking-as-a-Service (BaaS) space10’01”: The recipe for success in the BaaS space and the opportunities over the next coming years13’19”: The dialectic between infrastructure and application and their phases of innovation19’32”: Optimising the operating model for maximum efficiency & where/how regulatory influence plays a part24’27”: The tangible impact of regulation & how this may help alleviate the current state of affairs28’04”: The cost impact of fintech solutions on the value chain & what these costs may look like31’31”: The optimal outcome for fintech infrastructure: embedded & bundled, or independent development, or acquisition of leading providers of services34’00”: The optimal outcome for fintech applications: build a full service neobank or build a revenue generating component and grow from there37’13”: Channels to use to connect with Will & Lex Disclaimer here — this newsletter does not provide investment advice and represents solely the views and opinions of FINTECH BLUEPRINT LTD.Contributors: Lex, Laurence, Matt, Farhad, Mike, DaniellaWant to discuss? Stop by our Discord and reach out here with questions.

In this conversation, we chat with David Shuttleworth, the managing director of token engineering at Binance. Prior to this, David was a Senior DeFi Economist at ConsenSys, where he focused on mechanism design, tokenomics, and protocol design. David’s experience is extensive and includes leading the development of the Medical Advanced Analytics team at GlaxoSmithKline and was a data scientist at various stage startups in FinTech and predictive analytics.  David also conducted research in behavioral economics and health outcomes at the University of Pennsylvania and has published his work in peer-reviewed scientific journals such as JAMA, the Annals of Internal Medicine, and the Lancet. ABOUT THE FINTECH BLUEPRINT🔥Subscribe to the Fintech Blueprint newsletter to stay at the forefront of Fintech and DeFi: https://bit.ly/3hyhlC2🤝 Partner with Fintech Blueprint through sponsorships: https://bit.ly/3UZllsV👉 Twitter: https://twitter.com/LexSokolin TIMESTAMPS:2’21”: A high level overview of what happened to FTX and the bizarre coverage of Sam Bankman-Fried6’56”: How BitMEX fits into the equation11’34”: Addressing the relevance of the conspiracy theories surrounding FTX16’19”: Tokenomics of FTT (FTX’s token) overview - explaining trading on the margin, how this differs from buying at spot rates, and liquidation machanics20’24”: Crypto holding attacks and why this is profitable for the attacker22’59”: FTX and Alameda Research’s Balance sheet - collateralization, strategy, and leverage27’16”: The collapse of Terra LUNA and Three Arrows Capital, how this impacted FTX, and who is likely to fall next35’02”: Remediation strategies: The Binance Billion Dollar Recovery Fund and Proof of Reserves39’12”: Channels to use to connect with David Disclaimer here — this newsletter does not provide investment advice and represents solely the views and opinions of FINTECH BLUEPRINT LTD.Contributors: Lex, Laurence, Matt, Farhad, Mike, DaniellaWant to discuss? Stop by our Discord and reach out here with questions.

In this conversation, we chat with Adam Nash, the co-founder & CEO of Daffy – a new fintech platform focused on charitable giving. Adam has served as an executive, angel investor, and advisor to some of the most successful technology companies to come out of Silicon Valley. He is currently on the Board of Directors for Acorns, the country’s fastest-growing financial wellness system, and Shift Technologies (Ticker: SFT).  Adam has previously served as President & CEO of Wealthfront. He has held executive and technical roles at Dropbox, LinkedIn, eBay, and Apple. Adam also serves as an Adjunct Lecturer at Stanford University, where he teaches “Personal Finance for Engineers.” As an angel investor, Nash is well known for being an early investor in Firebase (sold to Google), Opendoor (Ticker: OPEN), Figma, Gusto, and over 90 other startups. Adam holds BS and MS degrees in Computer Science from Stanford University, as well as an MBA from Harvard. ABOUT THE FINTECH BLUEPRINT🔥Subscribe to the Fintech Blueprint newsletter to stay at the forefront of Fintech and DeFi: https://bit.ly/3hyhlC2🤝 Partner with Fintech Blueprint through sponsorships: https://bit.ly/3UZllsV👉 Twitter: https://twitter.com/LexSokolin Timestamp1’30”: The formative experience behind Adam’s career & starting at Apple in its heyday9’59”: The building experience during the internet boom that lead to roles at eBay and other leading Web2.0 companies13’22”: The evolution of consumer sentiment towards E-commerce at eBay18’43”: Embedding software in Web1.0 to initiate the possibility for engagement & what this meant for product at LinkedIn25’21”: The Web2.0 approach to building software & the initial hypotheses around extending the Silicon Valley method to financial services32’36”: Daffy – the idea, what drove its inception, and what the future looks like37’40”: The art of giving via a Fintech app – the methodology of how to make generosity a major driver of Daffy’s user journey41’37”: Channels to use to connect with Adam and/or to learn more about Daffy Disclaimer here — this newsletter does not provide investment advice and represents solely the views and opinions of FINTECH BLUEPRINT LTD.Contributors: Lex, Laurence, Matt, Farhad, Mike, DaniellaWant to discuss? Stop by our Discord and reach out here with questions.

Timestamp1’24”: From the US Secret Service to fraud control at Visa - what kickstarted this journey?3’58”: Transitioning from the public to the private sector and building an electronic crimes task force6’15”: The goals of payment network VISA relative to the e-commerce in which it participated9’15”: Dispelling the myths around risk in e-commerce and how these narratives evolved into crypto14’15”: The definition of a security engineer and how hackathons are used to counter vulnerabilities16’16”: DocuSign and how it compares to the fundamental structure of a blockchain, as well as, how it works20’07”: Joining crypto-custodian BitGo and how that lead to joining Prime Trust21’47”: Prime Trust – what it is and how it has grown over the years24’01”: The differences between a trust company or a trust custodian versus a depository institution like a bank versus a brokerage custodian like BNY Mellon29’18”: The archetypes of the customers and clients of Prime Trust31’27”: Prime Trust’s go-to-market strategy and how APIs as a product feature and distribution mechanism are used34’53”: The vision and mechanisms for growth for Prime Trust over the next year, given the current market state38’17”: The view on where American regulation will land with regards to the crypto industry40’29”: Channels to use to connect with Tom and/or to learn more about Prime Trust Disclaimer here — this newsletter does not provide investment advice and represents solely the views and opinions of FINTECH BLUEPRINT LTD.Contributors: Lex, Laurence, Matt, Farhad, Mike, DaniellaWant to discuss? Stop by our Discord and reach out here with questions.

In this conversation, we chat with David Beiner, Co-Founder and CEO of Hume – a web3 entertainment company pioneering music in the metaverse. David’s background is in media strategy working with companies like Comcast/NBC and MGM. In 2017 he went down the Ethereum rabbit hole and never looked back. Hume’s community-building approach blends music, digital identity, and storytelling to develop virtual artists, or metastars. Hume goes beyond just the music and production of their virtual artist like ‘angelbaby’ — originally from the popular NFT collection FLUF WORLD— they thoroughly craft a rich backstory that embodies and humanizes their Metastars.Disclaimer here — this newsletter does not provide investment advice and represents solely the views and opinions of FINTECH BLUEPRINT LTD. Contributors: Lex, Laurence, Matt, Farhad, Mike, Daniella Want to discuss? Stop by our Discord and reach out here with questions.

In this conversation, we chat with David McFarland, co-founder and CEO of Coterie Insurance – a US- based insurance entity focused on making risk transfer efficient for the small commercial P&C insurance space. Coterie uses industry-leading tech, deep insurance expertise, and product innovation to embed insurance into their partners’ existing products and workflows, leveraging data from multiple sources to turn small commercial accounts from an unprofitable obligation to a profitable opportunity. Prior to founding Coterie, David served as Chief Actuary and Head of Insurance Product & Pricing at Clearcover, a personal auto insurtech. David is a Fellow in the Casualty Actuarial Society and a Member of the American Academy of Actuaries.Disclaimer here — this newsletter does not provide investment advice and represents solely the views and opinions of FINTECH BLUEPRINT LTD. Contributors: Lex, Laurence, Matt, Farhad, Mike, Daniella Want to discuss? Stop by our Discord and reach out here with questions.