Episode 546: Are FBO’s Bad News?

In This Episode Globetrotter and Host Brett King shares banking news and investment conversations from around the world We start today's podcast on banking with Brett's one on one discussion on tech in Thailand with Dr. Supachai Kid Parchariyanon. Dr. Kid is CEO and Co-Founder of consulting company Rise, and managing partner for SeaX Ventures, a Thai venture capital firm with presence in Silicon Valley. Rise’s company goal is to drive 1% of the GDP in Thailand as well as reduce 1% of carbon emissions in all of Southeast Asia. Earlier in his career, Dr. Kid was a key figure responsible for bringing the social media app Twitter (now known as X) to Thailand, it was a technical challenge, and one that had legal barriers as well. Later, he and his team were also able to code software for the Nokia phone, creating in his words a “Robin Hood-like app” for Thailand. He speaks to us today about the Thai tech scene, what's happening in fintech and the VC world, and specifically what's helping drive the Thai economy -- from fintech to health tourism to the Thai lifestyle movement and digital nomad visas, the conversation is wide-ranging as this small country slowly recovers from covid and faces demographic headwinds. With an aging society they are looking to attract new talent and people to the country, collaborate not compete and expand investment in deep tech, AI, agritech, medical, and tourism tech. Then, from the 24 Fintech Conference in Saudi Arabia, Brett introduces us to Saudi Arabia's Barq, making headlines around the region and other parts of the world, as he sits down with its Chief Business Officer, Saad Almuhana. Barq is the newest and fastest growing private wallet and challenger bank in Saudi Arabia, the Middle East and potentially the world, having garnered 1.5M customers in 35 days -- having hit the amazing milestone of 1M customers in 21 days. In Saudi Arabia, younger people represent 70% of the population, tech savvy, mobile banking is very successful in the Kingdom with mobile penetration off the charts. Consumer appetite is high for help with finances in a quick manner. Remittance is a big part of Barq's offering, assuring customers that the optimal rail is selected at the right time for payment transactions. The journey started August 2024 with an EMI license (e-money), expansion plans are already in the works. In their second month, Barq is enhancing service offerings through multiple partnerships and hoping to hit 2M customers. If the evolution of the fintech is such, they have the option to upgrade to a full bank. It's an interesting and unique journey, one of incredible growth. But......one last thing before you listen to the latest episode of our financial podcast,,,,you know what season it is? Not just pumpkin spice, it's conference season and there is a new show to add to your list. The AI-Native Banking & Fintech Conference is happening October 7 in Salt Lake City and Breaking Banks is proud to be a media partner. Our listeners get a 20% discount when they register at conference.springlabs.com and use the code SpringLabsXBreakingBanks. They have an outstanding set of speakers and this is not to be missed. Once again, you have the link http://conference.springlabs.com and the code is: SpringLabsXBreakingBanks, don't forget to claim your discount! https://www.youtube.com/watch?v=zZNxqyOfV6M

In This Episode Warning: Extra spice added -- new sauces and participants! The stream of consent orders against banks that offer BaaS continues. Fintech partner banks drew 1/3 of all formal enforcement orders by federal banking agencies in the 4th quarter of 2023, that's quite a bit when you consider that fintech partner banks only account for roughly 3% of all U.S. banks. BaaS is here to stay -- it's a great way for community banks to grow, big banks are already on board and will do more, and entrepreneurs will want to continue to create better banking experiences which means they'll need to partner with banks. Jason Henrichs brings you our latest Hot Takes with regulars Kiah Haslett, Bank Director; Alex Johnson, Fintech Takes; and Jason Mikula, Fintech Business Weekly, as they are joined by Barb MacLean, SVP, Head of Tech Operations & Implementation, Coastal Community Bank and Allen Denson, Partner, Litigation, Morgan, Lewis & Bockius, LLP.  The flaming hot panel discusses why BaaS is facing regulatory headwinds, what banks should do, and how the North Star needs to be a BaaS solution that provides the optimal blend of technology and compliance, all while having some fun. From the stage of FinovateFall we bring you this episode of Breaking Banks. https://youtu.be/Fk01H61HlJc

In This Episode It's a mashup between Breaking Banks and Dave and Dharm Demystify, a podcast that takes you on a journey through the ever evolving world of fintech and digital finance. In this episode triple hosts, Brett King, Dave Wallace and Dharmesh Mistry offer thought provoking discussion and insights, covering off the fintech movement and relevancy in this new state of banking. Integration is key in the new world order. Special shout out to JPMorgan Chase for all they are doing. What will the banking experience look like in the future? When Q-Day comes there will be radical transparency, get those strategies in place. Join the discussion, weigh in, share your thoughts and feedback! https://youtu.be/CxtFxiEE27Y

In This Episode In this week's episode of Breaking Banks we bring you the next feature in our Killing It series as host Jason Henrichs connects with Ohad Samet, Co-Founder and CEO of TrueAccord. Several calls from unknown numbers and one unpleasant conversation about a forgotten credit card with a relatively small balance was the impetus for Ohad to reimagine the debt collection process and the genesis of TrueAccord. Prior experience as the Chief Risk Officer of Klarna, a European payments company, and experience with other start-ups in the area of risk and analytics served him well. Development is an upward spiral and founding a company (companies actually) involves a lot of self-expression and is often less about the money and more about what you want to do. At some point, though, you may need to fire yourself. Another candid and enlightening conversation in the series with relevance for all. https://youtu.be/Ev2DwaPJh-o

In This Episode The FDIC recently issued a proposed rule change on how brokered deposits are treated. This isn't so much a proposed change but a rollback. A roll way back. Way back to 1989 when the original brokered deposit rule was written. As Jason Mikula points out, that's when Taylor Swift was born. Jason M, Alex Johnson, Kiah Haslett and Alex Barrage of Troutman Pepper have some hot takes with Jason Henrichs on how the business of banking has changed through the eras and the implications for the future. Also, the views expressed are those of the individuals and not their respective employers - the lawyers made us add that. https://youtu.be/yW6m7yCif-A

In This Episode Opening doors to high-potential fintech startups that share a mission to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible has been a goal of Mastercard's with the founding of Start Path in 2014. Since its inception the program has helped over 430 startups in 57 countries. With partnership in its DNA, Start Path is helping define how the company innovates for the future and creates meaningful, sustainable impact for society. Working with players large and small, Mastercard is helping fintechs push the boundaries of what's possible, to foster innovation, expand access and ensure trust. This symbiotic relationship helps the partners innovate at scale and, together, change the game for the wider commerce ecosystem. In this episode, Brett King connects with Sabrina Tharani, SVP, Global Fintech Programs at Mastercard and Jordan Wright, Co-Founder & CEO of Atomic Financial, a leader in payroll and merchant connectivity solutions, and a member of the Mastercard Start Path Open Banking program. Listen as they discuss Start Path and how their commercial partnership is enabling consumers to automatically switch their direct deposits and update recurring bill payments. A secure, seamless online banking experience through Mastercard Open Banking, solutions delivered in partnership with Atomic, ultimately helping drive account primacy for financial institutions. As fintechs look to build, launch and grow their business, Mastercard is helping drive smarter decisions for better outcomes across the payments ecosystem. Interested in joining Mastercard Start Path? Click here to learn more about the programs and apply online. https://youtu.be/hw7GjWWjtwI

In This Episode Consent orders are dropping with increasing frequency. Historically consent orders were viewed as failing grades. It's no surprise that bankers are a breed that don’t respond well to failing grades, it is the credit mentality around loss avoidance that leads to an overly developed risk-mitigation culture. Doing new things, by definition, requires taking on risk at some level. In this episode, Jason Henrichs is joined by guests Gilles Gade, Founder & CEO, Cross River Bank, Phil Goldfeder, CEO, American Fintech Council, Clayton Mitchell, Managing Principal, Fintech, and Mandi Simpson, Partner, Accounting Advisory & Finance Transformation Leader at Crowe as they dive into the critical topic of organizational resilience for banks in the wake of receiving a regulatory consent order. Together they explore how financial institutions can not only comply with regulatory requirements but also use this challenge as an opportunity to strengthen their operations and culture. Spoiler Alert: Lots of great quotes in this episode! https://youtu.be/YJRPtez0pU0

In This Episode Digital banking is reshaping market share. All the fastest growing banks these days are fintechs.  After a three year battle, fintech challenger Revolut has provisionally secured a UK Banking License. With this, Revolut can now represent themselves as a bank, having the rights and obligations of a chartered financial institution in the UK. Revolut already had a license in the EU but the UK license could help with entry into the US. With 45M customers, revenue over $2B and profitable, they are making a mark for themselves. Listen as hosts Brett King and JP Nicols share their take on the news and implications for the industry. Then, it's Tyme....TymeBank, South Africa's (and the African continent's) most successful challenger bank aimed at the lower income market. Listen as Co-Founder, Coen Jonker, speaks with Brett to share Tyme's origin story and progress. Tyme is challenging the notion of how neos might work in this space. It began with BaaS and several years later, 2019, TymeBank launched in South Africa (SA). Launching during CoVid taught Tyme (Take Your Money Everywhere) to build an anti-fragile business.One of three banks since 2000 to have been granted a SA banking license, TymeBank uses a phygital operating model to work towards it's goal of financial inclusion and democratizing access to banking. In 2022 they expanded to the Philippines, GoTyme, and now, Vietnam. Via digital kiosks for onboarding in physical retail stores -- you can open an account in 3 - 5 minutes and be issued a debit card -- they are building trust and educating customers, integrating banking into the shopping proposition. TymeBank is in it for the long game. https://youtu.be/9tKswSs2SaY

In This Episode Another thrilling episode of Breaking Banks' special series Killing It!. Host Jason Henrichs connects with fintech superstar, dare we say fintech Olympian (Paris 2024!), Bill Harris, industry veteran, founder of 10+ tech and fintech companies, author, and current Founder & CEO of Evergreen Money. Together Jason and Bill look back at Bill's career to date, the different companies, the lessons learned and the tough calls made. Among those hard decisions, the need, at times, to avoid prolonging a failing venture and the need to conserve resources. It's a race to the finish where Bill shares details about his latest endeavor. https://youtu.be/zh-rAm6t_DY

In This Episode Integration is a team sport these days. There is a need for constant adaptation and innovation, it can be complex and expensive, a lack of standards in the U.S. has introduced a lot of competing standards and solutions challenging business and consumer adoption. Partnerships and tighter focus can be key to bringing down cost to exchange funds and complement the current payments system with $80 Trillion processed on the ACH system in 2023, $55 Trillion of it B2B payments. Listen as Brett King catches up with Dwolla's CEO, David Glaser and CTO, Skyler Nesheim. Dwolla was first featured on Breaking Banks back in 2013, they bring us up to date on the innovative interfaces that Dwolla offers to the US banking system and their ability to work with innovators of all sizes. It's an interesting discussion covering RTP payments, open banking, pay by bank, connections to the ACH Network and RTP Network for institutions of all sizes. Then Jason Henrichs chats with veteran financial services executive, founder & CEO Sanjib Kalita, about fintech events from Money 20/20 to Fintech Meetup and beyond. From best practices to the need to create the right culture and maximize the value of content and improve ROT (Return on Time), differentiation is important as is contributing to greater knowledge. Are there too many events? It's a master class in events! https://youtu.be/PaD1IcU4NxU