FinWise EYE ON:

Flying Drones and Fintech Data Integrity: What Do They Have in Common? - Lee Easton

Lee Easton, President of iDentify, shares his journey from the world of drones to helping financial institutions make sense of their data. He discusses the key data issues that banks are trying to solve, such as transaction monitoring and reconciliation. Lee also talks about the potential of cloud infrastructure and tools like Snowflake in improving data management in the banking industry. He envisions a future where major core providers are on Snowflake or similar platforms, enabling real-time data sharing and improving operations.

Takeaways

• iDentify helps financial institutions solve key data issues such as transaction monitoring and reconciliation.
• Cloud infrastructure and tools like Snowflake can improve data management in the banking industry.
• Real-time data sharing can enhance fraud detection and risk management in banks.
• Moving away from file-based data exchange can reduce operational failures and improve efficiency.

https://www.goidentify.com/

The Fintech Map

The Rise, Stumble, and Forward Go of Fintech - Jason Mikula

In this episode, Robert Keil and Jason Mikula discuss the state of Fintech and the impact it has had on the banking industry. They explore the successes and challenges of Fintech companies, particularly in the areas of consumer banking and lending. They also discuss the role of traditional banks in partnering with Fintechs and the potential for innovation and disruption in the industry.

The conversation highlights the need for continued improvement in areas such as regulatory compliance, customer service, and the management of complex technology ecosystems. The conversation explores the challenges and risks of new banking business models, particularly in the context of banking as a service. It discusses the metrics and behaviors that can lead to unhealthy businesses, such as focusing on top-line revenue and ignoring profitability. It also highlights the importance of clear differentiation and understanding the customer segment when entering a competitive market.

The conversation touches on the differences between European and US fintechs, including the regulatory frameworks and the benefits of starting as an e-money license before becoming a bank. It concludes with a discussion on the future of regulation in the fintech industry and the potential impact of upcoming elections.

Be the first to get your hands on Jason's new book:

Banking as a Service: Opportunities, Challenges, and Risks of New Banking Business Models - by Jason Mikula

https://fintechbusinessweekly.substack.com/

Takeaways

• Fintech has brought about significant changes in the banking industry, particularly in consumer banking and lending.
• Fintechs have addressed issues such as high fees, clunky technology, and predatory lending practices that were prevalent in traditional banks.
• Partnerships between traditional banks and Fintechs have led to innovative solutions and improved customer experiences.
• However, there are challenges in areas such as regulatory compliance, customer service, and the management of complex technology ecosystems that need to be addressed.
• The role of VCs in funding Fintechs and their influence on the success or failure of these companies is a topic of discussion. Metrics that focus solely on top-line revenue can lead to unhealthy businesses.
• Clear differentiation and understanding of the customer segment are crucial when entering a competitive market.
• Starting as an e-money license before becoming a bank can provide a clear framework for fintech operations.
• The future of regulation in the fintech industry is uncertain, with potential changes depending on upcoming elections.

Banking as a Service: Opportunities, Challenges, and Risks of New Banking Business Models - by Jason Mikula

https://fintechbusinessweekly.substack.com/

Breaking Financial Barriers: DreamFi's Innovative Approach to Empowering Futures & Transforming Lives - Glenn Murray

Glenn Murray, Chief Strategy Officer at DreamFi, joins Nick Chiappetti on the FinWise EYE ON: FINTECH podcast. They discuss the purpose and mission of DreamFi, which is to provide financial inclusion and empower underserved communities. DreamFi aims to be a super platform that meets people where they are and helps them grow their credit, learn about financial literacy, and improve their relationship with money. They want to address the root causes of financial exclusion and provide a comprehensive range of services, including banking, lending, and investing. The conversation also touches on the importance of compliance, the need for innovation in the payments landscape, and the role of education in reaching the underserved market.

Takeaways

• DreamFi aims to provide financial inclusion and empower underserved communities.
• They want to be a comprehensive super platform that meets people where they are and helps them grow their credit, learn about financial literacy, and improve their relationship with money.
• DreamFi addresses the root causes of financial exclusion and offers a range of services including banking, lending, and investing.
• Compliance and regulatory oversight are important in the financial industry to ensure consumer safety.
• Innovation in the payments landscape is necessary to provide better solutions for the underserved market.
• Education plays a crucial role in reaching and empowering underserved communities.

https://www.linkedin.com/company/dreamfinancial/

Research, Funding, and Future Fintech - Ryan Christiansen

In this episode of the EYE ON: FINTECH Podcast, Nathan Mills interviews Ryan Christiansen, the Executive Director of the Stena Center for Financial Technology at the University of Utah. They discuss Ryan's background and how he ended up in the fintech industry. They also talk about the mission of the Stena Center, which is to expand fintech and make Utah a major fintech hub globally. The center focuses on four program areas: academics, partnerships, venture funding, and an annual conference called fintechXchange. They also discuss the Xstudio incubator and the talented students involved in the program.

The conversation explores the high engagement levels of students in fintech, the growth of Utah as a fintech hub, and the collaboration between banks and fintechs. The Stena Center is focused on building excellence in four programming areas: education, conferences, degree programs, and creating a fintech hub in Utah. Utah's financial services background, technological innovation, and collaborative approach contribute to its status as a fintech hub. The conversation also touches on the challenges and opportunities in the collaboration between banks and fintechs, as well as the need for clarity from regulators.

Show links:

Stena Center for Financial Technology

fintechXstudio

Fintech xChange Conference

Stena Center on Linkedin

Takeaways

• The Stena Center for Financial Technology at the University of Utah aims to expand fintech and make Utah a major fintech hub globally.
• The center focuses on four program areas: academics, partnerships, venture funding, and an annual conference called fintechXchange. The Xstudio incubator provides office space and support for early-stage fintech companies.
• The center works closely with students, who are passionate and talented in the fintech space.
• The goal is to develop a strong fintech hub in Utah and provide students with job opportunities in the industry. Students in fintech show high levels of engagement and are eager to network and attend conferences.
• Utah is emerging as a fintech hub due to its financial services background, technological innovation, and collaborative approach.
• Collaboration between banks and fintechs is increasing, with some banks acquiring fintech companies.
• Challenges in the collaboration include compliance with bank regulations and the need for more clarity from regulators.

Strategic Partnership - Alli Nilsen

Fintech & Bank Partnerships - Swipe Left or Swipe Right?

In this podcast episode, Sarah Grotta, Deputy Chief Fintech Officer at FinWise Bank, interviews Alli Nilsen, Senior Strategic Partnerships Manager at Lithic, about creating successful working partnerships in the Fintech market. They discuss Alli's career journey, the current state of the Fintech market, the changing relationship between Fintechs and banks, and the challenges faced by Fintechs in finding balance sheet support.

The conversation explores the idea that the current market cycle is not the first of its kind and draws parallels to a previous cycle from 2008 to 2014. It discusses the importance of oversight and awareness in preventing similar issues from recurring. The conversation also highlights the need for collaboration and forward-thinking in navigating the challenges of the market. The role of regulators and compliance in shaping the marketplace is emphasized, along with the value of constructive feedback and strong relationships with regulatory counterparts.

Alli provides advice for Fintechs on how to make a good impression and find the right bank partner.

Takeaways

• Building successful partnerships in the Fintech market requires self-awareness and finding a bank partner that aligns with your goals and values.
• The current environment has placed a magnifying glass on oversight, compliance, and regulatory review, which is healthy for the industry.
• Fintechs need to invest in compliance and regulatory risk management to be successful and attract bank partners.

• The current market cycle is not the first of its kind and can be seen as an iteration of a previous cycle.

• Oversight and awareness are crucial in preventing recurring issues.

• Collaboration and forward-thinking are essential in navigating the challenges of the market.

• Regulators and compliance play a significant role in shaping the marketplace.

• Constructive feedback and strong relationships with regulatory counterparts are valuable for growth and improvement.

• The relationship between Fintechs and banks is evolving, with Fintechs now looking for banks that provide oversight and support their growth.
• Finding the right bank partner requires a good personality fit and a basis of mutual respect for a long-term successful partnership.
• Fintechs should approach bank partnerships as a two-way interview, ensuring that the bank aligns with their needs and values.

https://www.lithic.com/

Data Privacy - David Ritter

Learn how to protect your company from data privacy fines

In this episode, Sarah Grotta, Deputy Chief Fintech Officer at FinWise Bank, interviews David Ritter, CEO of Privacy Lock, about consumer data privacy and compliance with state and federal privacy laws. They discuss the role of Privacy Lock in helping businesses comply with data privacy laws like GDPR and CCPA. David shares his journey into the privacy industry and highlights the importance of privacy in the emerging technologies landscape. They also explore the trends in data privacy laws, the need for businesses to keep customer data private, and the potential fines for non-compliance. They touch on the federal open banking law and its implications for data privacy. David provides advice for businesses on implementing privacy programs and discusses lessons learned from enforcement actions in mature privacy markets like California and Europe.

Takeaways

• Privacy Lock helps businesses comply with data privacy laws like GDPR and CCPA
• There is a clear trend of more states passing broad data privacy laws
• Businesses need to track and manage their customer data across its lifecycle
• Formalized consent processes and privacy request processes are required by law
• Enforcement actions in mature privacy markets have resulted in fines for non-compliance

https://www.myprivacylock.io/

Card Production with Nathan Lemon - Head of Partnerships, IC Group

How to play your hand and have a winning card strategy

 

In this episode, Nick Chiappetti, VP Fintech Marketing & Partnerships at FinWise Bank, and Nathan Lemon, Head of Partnerships at IC Group, discuss the card manufacturing space and the considerations for fintechs when launching a card program.

 

Nathan highlights the different types of card manufacturers and their specialties, such as white glove manufacturing, domestic players, and large global players. He also emphasizes the importance of partnerships, realistic timelines, and quick decision-making in the card production process. He discusses trends in card design, including alternative materials, biometrics, and dynamic CVV codes. Additionally, he addresses the influence of international markets on US card programs and the continued relevance of physical cards in the fintech space.

 

Highlights

• Partnerships matter in the card manufacturing space and can impact the success and timeline of a fintech's card program.
• Fintechs should consider both digital and physical cards in their program strategy, as physical cards are still expected by most users.
• Quick decision-making and realistic timelines are important in the card production process to avoid design paralysis and delays.
• Trends in card design include alternative materials, biometrics, and dynamic CVV codes.
• International markets influence US card programs, and there is a growing focus on biometrics and multi-factor authentication.
• Physical cards will continue to be relevant in the fintech space, as they provide a tangible interaction with customers and establish trust.

SBA Lending with Yankie Markowitz - CEO, SBA Loan Group

What you need to know about SBA Lending from the Best in the Business

In this episode, Jim Noone, president of FinWise Bank, interviews Yankie Markowitz, founding partner of Business Funding Group, about SBA loans. Yankie shares the background of SBA Loan Group and how they help business owners navigate the SBA loan process.

They discuss the different SBA loan programs, including the 7A and 504 programs, and the eligibility criteria for each. They also highlight the importance of finding the right bank and setting realistic expectations for the loan process.

The conversation covers the pros and cons of SBA loans, including the longer processing time and the need for thorough documentation. Jim and Yankie discuss the importance of having your financial reporting house in order when seeking financing for your business. They emphasize the need to have accurate and up-to-date tax returns, profit and loss statements, and other financial documents. They also highlight the significance of having a good credit score and reducing credit card utilization.

The conversation covers various uses of funds, such as owner-occupied commercial real estate purchase, business acquisitions, and expansion funding. They also touch on the eligibility standards of the SBA and the importance of finding the right bank that understands your business and industry.

Links mentioned in this episode:

U.S. Small Business Administration. District office contact information by state:  https://www.sba.gov/about-sba/sba-locations/sba-district-offices

National Association of Government Guaranteed Lenders (NAGGL): https://www.naggl.org/