November 14, 2024 • 25 mins
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What if you could streamline your financial transactions and cut costs at the same time? Join us as we uncover the transformative power of embedded finance and open banking, broadcasting live from Money 2020 USA in Las Vegas. With the expert insights of Tom Bianco from Fifth Third Bank's Newline and Eric Faust from Trustly, we explore how the seamless integration of payment capabilities into various platforms is reshaping the way we conduct our financial lives. Tom and Eric share the story behind their collaboration, detailing how they are pioneering innovative account-to-account payment solutions that enhance everyday transactions for businesses and consumers alike.
In our conversation, we delve into the dynamic between traditional banking and fintech agility, offering a strategic perspective on how NewLine is harnessing both worlds. We highlight how the partnership with Trustly is pushing the boundaries of what's possible in payment capabilities, while also addressing the challenges of adapting to the regulatory landscapes of different global markets. With strategic innovation at the forefront, we discuss how institutions are navigating these changes to ensure both scalability and stability in an evolving environment, emphasizing the importance of understanding core business and regulatory requirements when working with large companies.
Finally, we look to the future, examining the implications of rising consumer expectations and the growth of embedded payments. By exploring the potential of open banking as a cost-effective alternative to traditional transactions, we reveal how it enables merchants to reinvest savings into customer engagement. The conversation also touches on the challenges of re-authentication and tokenization, underscoring the necessity of education in this competitive space. With bold insights from Tom and Eric, we encourage creativity and innovation in elevating embedded financial solutions, leaving our listeners with actionable ideas to enhance their fintech offerings.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Ian Horne (00:05):
Hello and welcome to the Money Pot.
Coming in live from Las Vegasamidst the excitement of Money
2020 USA, we have an audiencehere in attendance, but we're
also recording for the folks athome and we've got a very
interesting conversation on theway.
First, some introductions.
I'm Ian Horne, european Head ofContent at Money 2020, and I'm
co-hosting this one with herylChen, our Head of Content for
(00:26):
Asia.
We're going to be talking aboutraising the standard of
embedded financial solutions.
heryl hi.
Sheryl Chen (00:32):
Hello, it's a me, mario hey.
Ian Horne (00:36):
It sure is.
I didn't expect that, am Iright?
In thinking that this is a bigtopic for our attendees in
Bangkok.
Sheryl Chen (00:43):
It is actually.
I feel like I'm having a littledeja vu moment, because when I
was in Bangkok doing our Money2020 show for Asia, I had a
podcast a live podcast withRachel Morrissey on banking as a
service with the Audax, whichis the standard charted like
basically, yeah, best right.
Ian Horne (01:06):
So we're worldwide here.
That's good, it's good.
So, absolutely, mr Worldwide,mario, whatever we're doing,
anyway, these episodes are 25minutes long, so we better
introduce our guests.
Today we're joined by TomBianco, general Manager of
Newline by Fifth Third Bank, andEric Faust, vice President of
Banking Partnerships at TrustlyGuys.
Welcome to the Money Pot.
How are you doing?
(01:26):
Thanks for having us.
Great to be here.
Eric Foust (01:28):
Yeah, great to be here, thank you.
Ian Horne (01:30):
It is great to have you here, tom.
Shame that your foot is in aboot.
We were just talking about yoursoccer incident earlier, and
how did that?
Eric Foust (01:37):
happen, just the typical playing with the kids in
the front yard.
Tom Bianco (01:45):
You make a wrong move and you break your fifth
left metatarsal.
Sheryl Chen (01:47):
It's the you know age-old story, so the story's
changed, though, from the highkarate accident to same accident
as well, same injury as davidbeckham.
Ian Horne (01:56):
So you're in.
Eric Foust (01:57):
You're in good footballing people confuse me
for david beckham all the time.
It's uh, it's the answer thatyou're doing all the time I can
imagine um, anyway.
Ian Horne (02:05):
uh, we have lots to talk about today, don't we?
And guys, actually, how about Ihand this over to you?
Give us a flavor of the Trustlyand New Line partnership.
Tom Bianco (02:13):
Eric, if I can start with you, yeah, so my role at
Trustly is I lead our bankpartnerships group and that
means that we go out andestablish and maintain
relationships with financialinstitutions to move money on
behalf of our merchants and, onthe OAuth 1033 side of the house
, working with the banks whoexpose APIs to the marketplace
to support consumer data sharing.
So it's topical that I'm herewith Tom, because Tom's one of
(02:34):
the integral partners that wehave at Fifth Third.
That's going to enable themoney movement process for us as
well as doing a partnership forembedding trustee services.
Eric Foust (02:43):
Yeah, for those who aren't aware.
Fifth Third is a $200 billioninstitution headquartered out of
Cincinnati, ohio, the Midwestof the United States.
Our new line business is ourembedded payments business,
where we have innovativetechnologies for companies like
Trustly to tap into to delivermodern capabilities like
account-to-account payments.
We also do our bin sponsorshipfor merchant acquirers and card
(03:06):
issuers, so WorldPay, brax thoseare some of our clients as well
, so it's a fun spot to be in.
Embedded finance, embeddedbanking, is definitely a global
topic and there's lots ofdifferent views across the globe
and we're happy to kind ofcarve out a leadership position
in the United States and workwith companies like Trust Leader
Power.
You know what the next phase ofthat will be.
Ian Horne (03:25):
Yeah, before I let Sheryl in, I just love.
You might not have heard of us,but we're a $200 billion
business.
That's a great line.
Sheryl, I'll let you get a wordin.
Sheryl Chen (03:35):
Oh well, wow, I thought you actually had a
question lined up.
Ian Horne (03:41):
Oh no, no, I was just observing on that wonderful
comment.
Sheryl Chen (03:49):
So actually, just to set the scene right for those
listening in who don't knowwhat are embedded payments and
deposits, maybe you could either, if you take that yeah, I can
take that one the way we defineembedded payments and deposits.
Eric Foust (03:59):
For fifth.
Third is taking our corepayment capabilities.
So think payment processing,account, account opening things
like that and having thetechnology to place them
directly at the point of needfor our clients to deliver and
power their software and theirdigital experiences.
So you think about the size,stability and strength of a $200
billion institution and thenthe modern technology of a
(04:20):
fintech that New Line represents, and we bring those to our
clients for them to build theirproprietary value propositions,
and then we work together tomake sure that we've got all the
boxes checked from tech,product compliance, risk
management, you name it.
Tom Bianco (04:33):
Yeah, and my wife and I were having a chat the
other day and she saw theembedded finance term and she
heard me saying you know what isembedded finance?
So fast forward to later on inthe evening.
We're sitting on the couch andwe have three kids, and so they
just got their yearbook picturesemailed to them, and a company
called Jostens is the one thatsent them to us.
So we sat there on the couchand we put together the package
(04:56):
that we're going to embarrassthem for the next couple of
years with right, and then, atthe very end, we had to go
through the checkout process,right.
And then, at the very end, wehad to go through the checkout
process right.
And so this was where I waslike maybe this is the embedded
finance portion of this.
So Jostens is not a paymentcompany, right, but part of
their flow is integrating a nicesmooth process in order to make
sure that we can check out.
And obviously we chose Trustly,because that's what Trustly
(05:18):
does is the open bankingpayments, and that was just a
nice little walk away from that.
I love that.
Sheryl Chen (05:23):
You know what?
Sorry just to jump in here.
It reminds me of this questionI asked when we were doing the
same thing in Asia.
So, because you were talkingabout your three children, right
?
How would you explain embeddedfinance to a five-year-old?
Eric Foust (05:36):
Oh, can I do this?
Somebody asked me this onepreviously and I have a
five-year-old daughter, so Ispend a lot of time at
five-year-old daughter.
So I spend a lot of time atfive-year-old birthday parties,
and you tell them all aboutembedded finance All the time
they love it.
They're just like.
This is amazing, but I use thecake analogy.
So if you think about a layeredcake, right, the icing is the
digital experience.
(05:56):
You have a layer of cake.
That's kind of the technology.
On the Trustly side, forexample, you have another layer
of icing.
That's the integration betweenTrustly and Fifth.
Third, and then the base of thecake is the capabilities we
have through New Line and youcan take a knife and slice it
right through, and that's reallywhat people are doing when
they're interacting with theJostens website to initiate a
(06:17):
payment and to process it.
Sheryl Chen (06:18):
So you can have your cake and eat it too.
Oh, jeez, oh.
Eric Foust (06:22):
I didn't know that it too.
That's good.
Ian Horne (06:28):
I love this idea of you at a party, tom, just
talking the kids throughembedded finance, and it's like
that's nice, tom, but next yearwe're getting an entertainer.
Anyway, embedded finance is onething, but we're strapping open
banking to that now, right, andobviously we had Rohit Chopra
at the show and reallyinteresting announcements that
is moving open banking forwardin the US.
So what does that mean for youguys?
And Eric, I assume you're theguy to go to here.
Tom Bianco (06:47):
Yeah, I mean for Trustly.
It's huge because before 1033,which is what you're referring
to with Rohit Chopra he made theannouncement last Tuesday they
dropped the 1033 rule.
Before that it was the wildwild west here in the United
States.
Right, we're years behind inthe European market with PSD,
psd2, and soon to be PSD3.
And there's been a lot ofuncertainty in the markets and
(07:13):
what that rule was going to dofor us.
And when it got ruled out thispast Tuesday from an open
banking payments and datastandpoint, it legitimized our
use case, right.
So now it's required that thebanks and financial institutions
and the data providers and thethird parties all need to play
with these new set of rules andit removes kind of the
uncertainty.
So, from our viewpoint, we'vehad merchants express interest
(07:35):
in open banking, but there was alittle bit of discomfort there
because of the wild wild westnature of it, right.
And so now when we bring inthis new legislation that
everybody has to abide by, we'vealready had phone calls.
You know they picked up thephone on Tuesday, wednesday,
thursday last week and said allright, let's proceed and let's
start integrating this into ourpayment platform because it's
not going away.
Eric Foust (07:57):
I'll share a perspective and I think you hit
it banking as a service,embedded finance, embedded
payments there's no realdefinition of what that means
that the industry can rallyaround, and I think, with what's
going on with 1033, bringingsome structure to the market and
providing clarity and thenclearly articulating who's in
control of what aspects I thinkthat's just a good thing for
(08:19):
people to get on the same pagewith regards to who's playing
what role.
How will these companiesinteract?
How will consumers be incontrol of their data?
So clarity is always a goodthing, in my opinion, and making
sure that consumers understandwhat they're doing, with whom
they're engaging, what controlsthey have.
I just think it's a good thing.
More holistically, in myopinion, is it will unlock a lot
of account to account use casesfor payment flows and types and
(08:43):
experiences that, like we mightnot have even envisioned yet.
So I'm pretty excited about it.
Ian Horne (08:47):
Yeah, I mean what's been the pushback to it?
Because obviously we're a bitfurther ahead of this in the UK
where it's been more regulatordriven.
I know in the US it's more of amarket driven approach, right,
what's been the kind ofobjection to rolling out open
banking until now?
Tom Bianco (09:00):
I don't know if it's so much an objection.
I mean, there is a cat andmouse game, right, Because in
some instances, the data holders, the data providers, the
financial institutions, they mayview some sets of data
proprietary right, so accountnumber, router number, for
example, may be something thatthey feel like they want to hold
on to.
And then, from a fintechstandpoint, we're being told by
(09:22):
consumers, right, that they wantto be able to share their
information with fintech for abroad range of use cases and we
want to be able to provide thatservice to our shared customer
right.
And so, over the last decade orso well, let me take a step
back About three years ago,before we had OAuth connections
in the US it was a totalcat-and-mouse game.
(09:43):
So the financial institutionsdid what they could to stop the
fintechs from being able tosupply the services to those
consumers.
And then the writing was on thewall, with Europe leading with
PST2, that okay, this is goingto be something that the
financial institutions are goingto have to abide by at some
point, so they better get aheadof the curve before regulation
comes out.
So we saw in 2022 in the USmarket.
(10:05):
That's when those OOFconnections started to really
pop up and it's done a lot forus to solidify just the
certainty, the stability in themarket, because without those
direct connections with thelarge financial institutions
there's a little bit ofuneasiness there for the
merchants that are relying onthe service to have their
consumers pay with.
Sheryl Chen (10:27):
So actually I just wanted to take a little pivot
and to talk aboutdifferentiation.
So how is New Line differentfrom other bank solutions?
Eric Foust (10:37):
Yeah, when we spun up the New Line business, our
goal was to build a company thatfocuses in on powering other
software companies.
And I said well, to do market,dedicated product, dedicated
(11:02):
engineering and dedicated clientsuccess.
Where we do onboarding,servicing, risk management,
oversight, program management,reviews, things like that.
That's all we do all day longwithin New Line.
And when we look at the marketand we talk to companies like
Trustly, we hear wow, you have ateam of experts, what else do
you focus on?
We're like this is it Like?
This is all we do, this is whatwe build to, this is what we
(11:23):
sell, this is what we support.
So we go into the market with avery specific purpose and a
unique set of technologycapabilities that we don't think
other people have.
And so that combination, youknow, we say you've got the
strength and stability again ofa $200 billion institution and
then the agility and speed of afintech.
So if you like Silicon Valleyand you like stable banking
(11:43):
partners, look up NewLine.
Tom Bianco (11:50):
But you guys come at it a little bit differently too
, because you're more innovativeforward than I would say some
of your competitors are, becauseyou have the platform where you
can learn fast, fail fast, butalso just throw things against
the wall.
And the way that you guysapproach it isn't no, we can't
do that, and you move on.
It's why would you want to dothat, Right?
So we've seen it firsthand fromTrustly's perspective that you
know, working with a new lineplatform, it's kind of
(12:11):
greenfield right now because wedon't know what we can do until
we actually try to do somethingwith it, and there's a lot of
different payment capabilitiesthat we have that we're willing
to explore and looking forwardto rolling out in chunks here.
Eric Foust (12:23):
Yeah, no, it's great and we look at it just to put a
finer point on it.
It's strategic productdevelopment with our partners
and for our partners.
So, yeah, it's a bit different,of like, here's our roadmap,
here's what you can have, andit's like, okay, that's an
interesting use case, let'sfigure out how to make that
happen.
And then that's where we bringour technology, product and
engineering teams together tofigure it out.
Ian Horne (12:46):
Yeah, well, let's look at your.
You've made the Silicon Valleybut also established bank kind
of blend.
We were talking about stabilityand scalability when we last
spoke about this.
How do you actually achievethat?
Eric Foust (12:54):
It's not easy, and so you have to bring in people
who understand these spaces.
So when you are providingacquiring sponsorship for a
company like WorldPay, you haveto understand WorldPay's core
business almost as well as theyunderstand it, and you have to
understand the regulatoryaspects as well what needs to be
in place and so you build itover time, you build the muscle
(13:15):
memory, you build the knowledgebase and you just continue to
invest in the talent and theteam to pull it off.
So it doesn't come easy.
It sounds like okay, you justspin up an API and get somebody
boarded to it, but then there'sa lot of other work that goes
into it, and finding partnersthat bring scale to the platform
as well is super helpful,because then we continue to
invest in the relationship andthe products and the
(13:36):
capabilities.
Tom Bianco (13:37):
I would say that the stability piece from a
technology perspective is alittle bit easier to achieve
because of where we're at intoday's marketplace with APIs
and the platforms.
The scalability piece is.
That's where, from a fintechperspective, it's a lot more
difficult to prove out,especially in the payments.
You walk around the conferencehere today and there's hundreds
of different payment companiesbeing represented.
(13:59):
It's how do you actually gaintraction and Trust has been
operating at scale now for thelast eight years and it started
off with a lot of learningsright, because when you're doing
payments and you're doing aguarantee for you know we're
protecting against ACH returns,learning what happens with
different merchants and theirconsumer base and how that
(14:19):
impacts our risk engine.
It's a process.
So we started out small andwe've grown its leaps and bounds
over the last eight years to beat scale, operating fully at
scale right now.
Not many fintechs get to dothat.
Sheryl Chen (14:34):
So I just wanted to jump in here.
So we're talking about changes,right?
So banks here they have thechallenge to constantly be on
their toes, be nimble andrespond to possibilities
provided by open banking.
So in the UK and also in Asia,where open banking is put into
action by regulators, so it'svery regulator-led, oh my.
Tom Bianco (14:57):
God Don't touch me.
Ian Horne (14:59):
Easy for you to say yeah.
Sheryl Chen (15:02):
So the US is going for a more market-driven
approach where banks have totake it upon themselves to
profit from open banking.
So my question is then what arebanks doing?
Eric Foust (15:15):
Yeah, I think you'll see, based on a bank's core
business, you'll see a differentresponse.
So where you've got companiesthat rely on interchange revenue
, either through card issuing ormerchant acquiring, they might
not jump into the open bankingaccount-to-account space as
rapidly as other players.
Our view is you want to be likewe say this at Fifth, third if
(15:40):
you're not interested in thefuture, the future's not
interested in you, and so for us, we want to be people who are
helping define what the futureis, and this is one of those
spaces.
Where you've got new paymentnetworks coming online, you've
got new use cases that are goingto be available.
We want to help define thefuture.
So we make sure that wecontinue to stay on the
(16:01):
forefront with companies likeTrustly helping bring new
solutions to market that providea lot of value for the end
users.
Ian Horne (16:04):
Yeah, and the way everyone engages in commerce and
e-commerce is so different.
Now, right, the customerexpects more.
That places greater strain onthe merchant and, eric, I think
you touched upon this earlier.
So I guess what I'd like toknow is how are the needs of
merchants evolving and how doyou kind of meet that with
embedded payments?
Tom Bianco (16:22):
Yeah.
So one of our value props tothe merchants is we provide a
payment guarantee using thebankrolls ACH, rtp and FedNow at
a much lower cost in a cardtransaction and with open
banking being legitimizedthrough Dodd-Frank 1033, that's
going to allow the merchants notto just realize a higher cost
savings right, but reinvest intohow they can acquire consumers
(16:43):
or how they can maintainconsumer loyalty.
We fully expect these guys to,you know, put some of the
savings back into what they cando to acquire those consumers
and really blow out what theyare offering to attract those
consumers.
And then the seam line, thefrictionless process of open
banking.
That's going to get refinedover the next few years, right.
So right now it's a bit of aclunky click through on a lot of
(17:07):
connections.
We want to see that at leastget slimmed down so the consumer
doesn't feel as much frictionwhen they're going through that
payment process.
Ian Horne (17:14):
Yeah, and, of course, of account to account.
You're cutting intermediariesout of the process, right?
You're cutting intermediariesout of the process, right?
In terms of that cost reductionthat you're talking about, how
much is that typically perpayment, or how much do
businesses typically save?
Do you have any data?
Tom Bianco (17:27):
So it completely depends on the merchant and the
different bank categories thatthey're in.
So nothing to share with youguys on the podcast.
Sorry not to bring the thunderhere.
Eric Foust (17:36):
Oh, come on, get a plug in.
If you want to know more, emailus.
If you want to know more, visitus over at booth1525.
Ian Horne (17:43):
Amazing, but it isn't new.
I think you can be forgiven fornot having all the data on it
at this point.
Yeah, and also I mean we havetouched upon the CFPB
announcement and it legitimizingopen banking.
What else does it mean forembedded finance?
What does it mean that you cando for payments?
I?
What else does it mean forembedded finance?
What does it mean that you cando for payments?
I'm talking about things likeloyalty rewards, cashback.
(18:03):
You can do all that stuff.
Tom Bianco (18:04):
It's going to increase competition, right.
That's what Director Chopra'sone of his North Stars was.
He wants to increasecompetition in a payment space,
and in the US we're apredominant credit card heavy
user base, right, and that'sexpensive for merchants to
accept, and so allowing paymentsinto 1033, specifically
(18:24):
allowing payments into 1033,allows for open banking to come
in and compete, and it's goingto be done at a much lower cost.
So I'm sure there's going to bea competitive battle that's
going to ensue over the next fewyears, but we're going to take
market share.
So if we have a crystal ballwhere we're looking at today, if
open banking paymentsrepresents X today, it's going
to be exponentially larger inthe next two or three years as
(18:45):
these OAuth connections arebeing released by the banks
because they're required to.
Sheryl Chen (18:51):
So to Ian's question, and also prior to that
, you also alluded to howeverything was benefiting the
consumers, right, so we want totalk about the pitfalls.
What do you see are thepotential pitfalls that's going
to happen With?
Tom Bianco (19:03):
1033?
Yeah, so there's a couple ofnuances there.
One of them is in the rule if aconsumer uses open banking, you
have to have a 12-month re-authprocess, and so if I say that I
want to pay my Verizon billwith open banking, I will need
to re-authenticate that every 12months, which is what we used
(19:25):
to see when you lost a creditcard.
Before you had to go into yourbill pay app and update all of
your credit cards.
That's since gone away, right.
So what the rule has donebasically is take us back five
more years, because consumershave to be aware that in
December, my automatic billpayment is going to need to be
reauthorized.
(19:45):
So not a massive hurdle, butcertainly something that could
have been addressed with theinitial rule release.
The rule also has some languagein there about tokenization.
I won't get into specificdetails because I don't want to
bore the audience too much maybethey do want to hear this is a
FinTech nerd podcast tokens.
(20:06):
We are trusty as protokenization for account number
and router number.
So I want to make sure that'scrystal clear.
I, as a consumer, realize thebenefit whenever something
tokenizes my account informationto something that means nothing
to someone else.
The way that it's been rolledout before 1033 was released has
(20:26):
caused a lot of issues on ourend.
On a consumer's end, consumerconfusion, because when a
consumer revokes the token,they're also revoking the
payment aspect of the token.
So if I go and share my datawith Verizon and I'm making a
payment with Verizon Mobile andthen I say you know what?
I'm going to stop sharing mydata, it also deletes the token.
My intent wasn't to delete mypayment information, it was just
(20:50):
to stop sharing the rest of mybank information.
So there has to be somestandards around tokenization so
that consumers are educatedenough that when a bank decides
to use it on their behalf, theconsumer understands and says
okay, I'm going to bifurcate,I'm going to keep sharing my
payment data but not share myactual bank data on a consistent
(21:12):
basis.
So that way the payment processof that persists.
Ian Horne (21:17):
For sure.
I think data privacy andsecurity is a huge topic moving
forward in all markets,certainly for the Europe market
and I'm sure for Asia too.
So it's interesting stuff.
I mean let's go.
We're kind of getting low ontime.
So I want to get into thepartnership angle with you two a
little bit more, because weoften only hear about kind of
bank and fintech partnershipswhen things go wrong, but
(21:37):
actually just pulling back thecurtain a bit.
What is the kind of day-to-daypartnership like?
What kind of interactions doyou have?
And again, how do you make itwork?
Tom, let's bring you in.
Eric Foust (21:45):
Yeah well, we spend a lot of time together.
We look at roadmaps, we look attiming, we look at use cases, we
look at the problems they'retrying to solve and we work
through those things together asa team.
And, you know, there'sinevitably friction points,
right, when you have a FinTechthat's looking to scale to the
moon and they want to do it in acertain way.
We need to make sure that we'reall aligned on how that's
(22:06):
taking place.
But I look at thesepartnerships as no different
than a personal relationship,right, as long as you have open
dialogue and you have alignmenton where you're going and you're
having the conversation, youcan reduce some of the future
risks around things you knowbeing in the headlines.
So it's I liken it to we'regoing to be together for like 10
(22:27):
years.
So like let's get to know eachother really early, you know,
and really like just get it.
Get it early and often becauseit's going to be a long year
relationship and we look atcompanies where we've got decade
plus partnerships it's one ofthe most important things for us
.
Tom Bianco (22:40):
And I look at it as like we're in an open
relationship.
So you, you're in an openrelationship.
Yeah, we're in an openrelationship, right?
Because, as the fintech andwe're trying to establish these
partnerships, I have a list ofthings that I need to have from
a bank partner.
I have a list of things that Iwant to have from a bank partner
.
I also understand that I'm notgoing to have a single bank
(23:01):
partner that checks off everysingle one of those things.
So the needs need to be checkedoff, the wants.
That's where we can findcompromise.
So, tom and his team, they canprovide a lot of the needs that
we want, and then the opendialogue happens there.
But there's also a sectionwhere you know, fifth, third,
can't provide some certainservices where their risk
appetite may not be where oursis at.
So we go out and we developother relationships with those
(23:23):
financial institutions willingto take on that risk, right?
So, as long as we're open aboutthis, is where we are going to
be funneling our business andthese are the transaction types
that need to be supported.
And, plus, we text and sendemojis and GIFs and stuff like
that.
So, open line of communication.
Sheryl Chen (23:40):
Cornerstone of every good working relationship.
Eric Foust (23:44):
Yeah.
Sheryl Chen (23:45):
Okay, last question .
So how do you both view yourroles in the fintech market?
Tom Bianco (23:50):
I'll take that first , if you don't mind.
When 1033, the proposed rule,was released last October,
trusty took a leadershipposition in ensuring that the
fintech's viewpoints were heardby the CFPB, so we had an
extensive comment responseletter to the CFPB.
We held several public sessionswith the CFPB to make sure that
(24:12):
the voice of the fintech, whichwe feel like is not as loud as
some of these larger financialinstitutions, is being heard,
and we're proud to stand infront with the payments use case
as well as data, because a lotof the other fintechs out there,
the aggregators, are morefocused on just the data aspect,
but payments are so much moreto us.
Payments are so much moreimportant and a bigger part of
(24:35):
the future innovation piece.
Eric Foust (24:37):
I'll be real crisp on this one.
We're an innovation partner anda scale provider for the
world's best fintechs.
Ian Horne (24:44):
Love that.
That was crisp, nicely done,and we're so close to the end of
the time.
Eric Foust (24:47):
I can see the countdown clock in your eyes.
Is it on my t-shirt?
Yeah?
Ian Horne (24:50):
you have done that so well.
Eric Foust (24:52):
When you post this on social like, just use that.
Yeah, that's the headline.
Ian Horne (24:55):
Well guys, real pleasure talking to you.
It's been a lot of fun.
And, Sheryl, can you see us out?
Sheryl Chen (25:01):
Okay, so that is all the time, unfortunately,
that we have for.
Thank you, tom and Eric, forjoining us on the Money Pot and
explaining how we can raise thestandard of embedded financial
solutions, if financialsolutions.
If you have a bright idea for apodcast, let us know.
At podcast at money2020.com, welove bold and creative ideas
and we also love geeking out andpractical discussions with
(25:24):
actionable points for ourlisteners.
Anyway, this is Sheryl Chen and.
Ian Horne (25:29):
Mario and Ian Horne signing out.
Sheryl Chen (25:34):
Thank you also to our amazing live audience in Las
Vegas and also to all of youlistening wherever you are.
Hello and welcome to the Money Pot.
Coming in live from Las Vegasamidst the excitement of Money
2020 USA, we have an audiencehere in attendance, but we're
also recording for the folks athome and we've got a very
interesting conversation on theway.
First, some introductions.
I'm Ian Horne, european Head ofContent at Money 2020, and I'm
co-hosting this one with herylChen, our Head of Content for
(00:26):
Asia.
We're going to be talking aboutraising the standard of
embedded financial solutions.
heryl hi.
Sheryl Chen (00:32):
Hello, it's a me, mario hey.
Ian Horne (00:36):
It sure is.
I didn't expect that, am Iright?
In thinking that this is a bigtopic for our attendees in
Bangkok.
Sheryl Chen (00:43):
It is actually.
I feel like I'm having a littledeja vu moment, because when I
was in Bangkok doing our Money2020 show for Asia, I had a
podcast a live podcast withRachel Morrissey on banking as a
service with the Audax, whichis the standard charted like
basically, yeah, best right.
Ian Horne (01:06):
So we're worldwide here.
That's good, it's good.
So, absolutely, mr Worldwide,mario, whatever we're doing,
anyway, these episodes are 25minutes long, so we better
introduce our guests.
Today we're joined by TomBianco, general Manager of
Newline by Fifth Third Bank, andEric Faust, vice President of
Banking Partnerships at TrustlyGuys.
Welcome to the Money Pot.
How are you doing?
(01:26):
Thanks for having us.
Great to be here.
Eric Foust (01:28):
Yeah, great to be here, thank you.
Ian Horne (01:30):
It is great to have you here, tom.
Shame that your foot is in aboot.
We were just talking about yoursoccer incident earlier, and
how did that?
Eric Foust (01:37):
happen, just the typical playing with the kids in
the front yard.
Tom Bianco (01:45):
You make a wrong move and you break your fifth
left metatarsal.
Sheryl Chen (01:47):
It's the you know age-old story, so the story's
changed, though, from the highkarate accident to same accident
as well, same injury as davidbeckham.
Ian Horne (01:56):
So you're in.
Eric Foust (01:57):
You're in good footballing people confuse me
for david beckham all the time.
It's uh, it's the answer thatyou're doing all the time I can
imagine um, anyway.
Ian Horne (02:05):
uh, we have lots to talk about today, don't we?
And guys, actually, how about Ihand this over to you?
Give us a flavor of the Trustlyand New Line partnership.
Tom Bianco (02:13):
Eric, if I can start with you, yeah, so my role at
Trustly is I lead our bankpartnerships group and that
means that we go out andestablish and maintain
relationships with financialinstitutions to move money on
behalf of our merchants and, onthe OAuth 1033 side of the house
, working with the banks whoexpose APIs to the marketplace
to support consumer data sharing.
So it's topical that I'm herewith Tom, because Tom's one of
(02:34):
the integral partners that wehave at Fifth Third.
That's going to enable themoney movement process for us as
well as doing a partnership forembedding trustee services.
Eric Foust (02:43):
Yeah, for those who aren't aware.
Fifth Third is a $200 billioninstitution headquartered out of
Cincinnati, ohio, the Midwestof the United States.
Our new line business is ourembedded payments business,
where we have innovativetechnologies for companies like
Trustly to tap into to delivermodern capabilities like
account-to-account payments.
We also do our bin sponsorshipfor merchant acquirers and card
(03:06):
issuers, so WorldPay, brax thoseare some of our clients as well
, so it's a fun spot to be in.
Embedded finance, embeddedbanking, is definitely a global
topic and there's lots ofdifferent views across the globe
and we're happy to kind ofcarve out a leadership position
in the United States and workwith companies like Trust Leader
Power.
You know what the next phase ofthat will be.
Ian Horne (03:25):
Yeah, before I let Sheryl in, I just love.
You might not have heard of us,but we're a $200 billion
business.
That's a great line.
Sheryl, I'll let you get a wordin.
Sheryl Chen (03:35):
Oh well, wow, I thought you actually had a
question lined up.
Ian Horne (03:41):
Oh no, no, I was just observing on that wonderful
comment.
Sheryl Chen (03:49):
So actually, just to set the scene right for those
listening in who don't knowwhat are embedded payments and
deposits, maybe you could either, if you take that yeah, I can
take that one the way we defineembedded payments and deposits.
Eric Foust (03:59):
For fifth.
Third is taking our corepayment capabilities.
So think payment processing,account, account opening things
like that and having thetechnology to place them
directly at the point of needfor our clients to deliver and
power their software and theirdigital experiences.
So you think about the size,stability and strength of a $200
billion institution and thenthe modern technology of a
(04:20):
fintech that New Line represents, and we bring those to our
clients for them to build theirproprietary value propositions,
and then we work together tomake sure that we've got all the
boxes checked from tech,product compliance, risk
management, you name it.
Tom Bianco (04:33):
Yeah, and my wife and I were having a chat the
other day and she saw theembedded finance term and she
heard me saying you know what isembedded finance?
So fast forward to later on inthe evening.
We're sitting on the couch andwe have three kids, and so they
just got their yearbook picturesemailed to them, and a company
called Jostens is the one thatsent them to us.
So we sat there on the couchand we put together the package
(04:56):
that we're going to embarrassthem for the next couple of
years with right, and then, atthe very end, we had to go
through the checkout process,right.
And then, at the very end, wehad to go through the checkout
process right.
And so this was where I waslike maybe this is the embedded
finance portion of this.
So Jostens is not a paymentcompany, right, but part of
their flow is integrating a nicesmooth process in order to make
sure that we can check out.
And obviously we chose Trustly,because that's what Trustly
(05:18):
does is the open bankingpayments, and that was just a
nice little walk away from that.
I love that.
Sheryl Chen (05:23):
You know what?
Sorry just to jump in here.
It reminds me of this questionI asked when we were doing the
same thing in Asia.
So, because you were talkingabout your three children, right
?
How would you explain embeddedfinance to a five-year-old?
Eric Foust (05:36):
Oh, can I do this?
Somebody asked me this onepreviously and I have a
five-year-old daughter, so Ispend a lot of time at
five-year-old daughter.
So I spend a lot of time atfive-year-old birthday parties,
and you tell them all aboutembedded finance All the time
they love it.
They're just like.
This is amazing, but I use thecake analogy.
So if you think about a layeredcake, right, the icing is the
digital experience.
(05:56):
You have a layer of cake.
That's kind of the technology.
On the Trustly side, forexample, you have another layer
of icing.
That's the integration betweenTrustly and Fifth.
Third, and then the base of thecake is the capabilities we
have through New Line and youcan take a knife and slice it
right through, and that's reallywhat people are doing when
they're interacting with theJostens website to initiate a
(06:17):
payment and to process it.
Sheryl Chen (06:18):
So you can have your cake and eat it too.
Oh, jeez, oh.
Eric Foust (06:22):
I didn't know that it too.
That's good.
Ian Horne (06:28):
I love this idea of you at a party, tom, just
talking the kids throughembedded finance, and it's like
that's nice, tom, but next yearwe're getting an entertainer.
Anyway, embedded finance is onething, but we're strapping open
banking to that now, right, andobviously we had Rohit Chopra
at the show and reallyinteresting announcements that
is moving open banking forwardin the US.
So what does that mean for youguys?
And Eric, I assume you're theguy to go to here.
Tom Bianco (06:47):
Yeah, I mean for Trustly.
It's huge because before 1033,which is what you're referring
to with Rohit Chopra he made theannouncement last Tuesday they
dropped the 1033 rule.
Before that it was the wildwild west here in the United
States.
Right, we're years behind inthe European market with PSD,
psd2, and soon to be PSD3.
And there's been a lot ofuncertainty in the markets and
(07:13):
what that rule was going to dofor us.
And when it got ruled out thispast Tuesday from an open
banking payments and datastandpoint, it legitimized our
use case, right.
So now it's required that thebanks and financial institutions
and the data providers and thethird parties all need to play
with these new set of rules andit removes kind of the
uncertainty.
So, from our viewpoint, we'vehad merchants express interest
(07:35):
in open banking, but there was alittle bit of discomfort there
because of the wild wild westnature of it, right.
And so now when we bring inthis new legislation that
everybody has to abide by, we'vealready had phone calls.
You know they picked up thephone on Tuesday, wednesday,
thursday last week and said allright, let's proceed and let's
start integrating this into ourpayment platform because it's
not going away.
Eric Foust (07:57):
I'll share a perspective and I think you hit
it banking as a service,embedded finance, embedded
payments there's no realdefinition of what that means
that the industry can rallyaround, and I think, with what's
going on with 1033, bringingsome structure to the market and
providing clarity and thenclearly articulating who's in
control of what aspects I thinkthat's just a good thing for
(08:19):
people to get on the same pagewith regards to who's playing
what role.
How will these companiesinteract?
How will consumers be incontrol of their data?
So clarity is always a goodthing, in my opinion, and making
sure that consumers understandwhat they're doing, with whom
they're engaging, what controlsthey have.
I just think it's a good thing.
More holistically, in myopinion, is it will unlock a lot
of account to account use casesfor payment flows and types and
(08:43):
experiences that, like we mightnot have even envisioned yet.
So I'm pretty excited about it.
Ian Horne (08:47):
Yeah, I mean what's been the pushback to it?
Because obviously we're a bitfurther ahead of this in the UK
where it's been more regulatordriven.
I know in the US it's more of amarket driven approach, right,
what's been the kind ofobjection to rolling out open
banking until now?
Tom Bianco (09:00):
I don't know if it's so much an objection.
I mean, there is a cat andmouse game, right, Because in
some instances, the data holders, the data providers, the
financial institutions, they mayview some sets of data
proprietary right, so accountnumber, router number, for
example, may be something thatthey feel like they want to hold
on to.
And then, from a fintechstandpoint, we're being told by
(09:22):
consumers, right, that they wantto be able to share their
information with fintech for abroad range of use cases and we
want to be able to provide thatservice to our shared customer
right.
And so, over the last decade orso well, let me take a step
back About three years ago,before we had OAuth connections
in the US it was a totalcat-and-mouse game.
(09:43):
So the financial institutionsdid what they could to stop the
fintechs from being able tosupply the services to those
consumers.
And then the writing was on thewall, with Europe leading with
PST2, that okay, this is goingto be something that the
financial institutions are goingto have to abide by at some
point, so they better get aheadof the curve before regulation
comes out.
So we saw in 2022 in the USmarket.
(10:05):
That's when those OOFconnections started to really
pop up and it's done a lot forus to solidify just the
certainty, the stability in themarket, because without those
direct connections with thelarge financial institutions
there's a little bit ofuneasiness there for the
merchants that are relying onthe service to have their
consumers pay with.
Sheryl Chen (10:27):
So actually I just wanted to take a little pivot
and to talk aboutdifferentiation.
So how is New Line differentfrom other bank solutions?
Eric Foust (10:37):
Yeah, when we spun up the New Line business, our
goal was to build a company thatfocuses in on powering other
software companies.
And I said well, to do market,dedicated product, dedicated
(11:02):
engineering and dedicated clientsuccess.
Where we do onboarding,servicing, risk management,
oversight, program management,reviews, things like that.
That's all we do all day longwithin New Line.
And when we look at the marketand we talk to companies like
Trustly, we hear wow, you have ateam of experts, what else do
you focus on?
We're like this is it Like?
This is all we do, this is whatwe build to, this is what we
(11:23):
sell, this is what we support.
So we go into the market with avery specific purpose and a
unique set of technologycapabilities that we don't think
other people have.
And so that combination, youknow, we say you've got the
strength and stability again ofa $200 billion institution and
then the agility and speed of afintech.
So if you like Silicon Valleyand you like stable banking
(11:43):
partners, look up NewLine.
Tom Bianco (11:50):
But you guys come at it a little bit differently too
, because you're more innovativeforward than I would say some
of your competitors are, becauseyou have the platform where you
can learn fast, fail fast, butalso just throw things against
the wall.
And the way that you guysapproach it isn't no, we can't
do that, and you move on.
It's why would you want to dothat, Right?
So we've seen it firsthand fromTrustly's perspective that you
know, working with a new lineplatform, it's kind of
(12:11):
greenfield right now because wedon't know what we can do until
we actually try to do somethingwith it, and there's a lot of
different payment capabilitiesthat we have that we're willing
to explore and looking forwardto rolling out in chunks here.
Eric Foust (12:23):
Yeah, no, it's great and we look at it just to put a
finer point on it.
It's strategic productdevelopment with our partners
and for our partners.
So, yeah, it's a bit different,of like, here's our roadmap,
here's what you can have, andit's like, okay, that's an
interesting use case, let'sfigure out how to make that
happen.
And then that's where we bringour technology, product and
engineering teams together tofigure it out.
Ian Horne (12:46):
Yeah, well, let's look at your.
You've made the Silicon Valleybut also established bank kind
of blend.
We were talking about stabilityand scalability when we last
spoke about this.
How do you actually achievethat?
Eric Foust (12:54):
It's not easy, and so you have to bring in people
who understand these spaces.
So when you are providingacquiring sponsorship for a
company like WorldPay, you haveto understand WorldPay's core
business almost as well as theyunderstand it, and you have to
understand the regulatoryaspects as well what needs to be
in place and so you build itover time, you build the muscle
(13:15):
memory, you build the knowledgebase and you just continue to
invest in the talent and theteam to pull it off.
So it doesn't come easy.
It sounds like okay, you justspin up an API and get somebody
boarded to it, but then there'sa lot of other work that goes
into it, and finding partnersthat bring scale to the platform
as well is super helpful,because then we continue to
invest in the relationship andthe products and the
(13:36):
capabilities.
Tom Bianco (13:37):
I would say that the stability piece from a
technology perspective is alittle bit easier to achieve
because of where we're at intoday's marketplace with APIs
and the platforms.
The scalability piece is.
That's where, from a fintechperspective, it's a lot more
difficult to prove out,especially in the payments.
You walk around the conferencehere today and there's hundreds
of different payment companiesbeing represented.
(13:59):
It's how do you actually gaintraction and Trust has been
operating at scale now for thelast eight years and it started
off with a lot of learningsright, because when you're doing
payments and you're doing aguarantee for you know we're
protecting against ACH returns,learning what happens with
different merchants and theirconsumer base and how that
(14:19):
impacts our risk engine.
It's a process.
So we started out small andwe've grown its leaps and bounds
over the last eight years to beat scale, operating fully at
scale right now.
Not many fintechs get to dothat.
Sheryl Chen (14:34):
So I just wanted to jump in here.
So we're talking about changes,right?
So banks here they have thechallenge to constantly be on
their toes, be nimble andrespond to possibilities
provided by open banking.
So in the UK and also in Asia,where open banking is put into
action by regulators, so it'svery regulator-led, oh my.
Tom Bianco (14:57):
God Don't touch me.
Ian Horne (14:59):
Easy for you to say yeah.
Sheryl Chen (15:02):
So the US is going for a more market-driven
approach where banks have totake it upon themselves to
profit from open banking.
So my question is then what arebanks doing?
Eric Foust (15:15):
Yeah, I think you'll see, based on a bank's core
business, you'll see a differentresponse.
So where you've got companiesthat rely on interchange revenue
, either through card issuing ormerchant acquiring, they might
not jump into the open bankingaccount-to-account space as
rapidly as other players.
Our view is you want to be likewe say this at Fifth, third if
(15:40):
you're not interested in thefuture, the future's not
interested in you, and so for us, we want to be people who are
helping define what the futureis, and this is one of those
spaces.
Where you've got new paymentnetworks coming online, you've
got new use cases that are goingto be available.
We want to help define thefuture.
So we make sure that wecontinue to stay on the
(16:01):
forefront with companies likeTrustly helping bring new
solutions to market that providea lot of value for the end
users.
Ian Horne (16:04):
Yeah, and the way everyone engages in commerce and
e-commerce is so different.
Now, right, the customerexpects more.
That places greater strain onthe merchant and, eric, I think
you touched upon this earlier.
So I guess what I'd like toknow is how are the needs of
merchants evolving and how doyou kind of meet that with
embedded payments?
Tom Bianco (16:22):
Yeah.
So one of our value props tothe merchants is we provide a
payment guarantee using thebankrolls ACH, rtp and FedNow at
a much lower cost in a cardtransaction and with open
banking being legitimizedthrough Dodd-Frank 1033, that's
going to allow the merchants notto just realize a higher cost
savings right, but reinvest intohow they can acquire consumers
(16:43):
or how they can maintainconsumer loyalty.
We fully expect these guys to,you know, put some of the
savings back into what they cando to acquire those consumers
and really blow out what theyare offering to attract those
consumers.
And then the seam line, thefrictionless process of open
banking.
That's going to get refinedover the next few years, right.
So right now it's a bit of aclunky click through on a lot of
(17:07):
connections.
We want to see that at leastget slimmed down so the consumer
doesn't feel as much frictionwhen they're going through that
payment process.
Ian Horne (17:14):
Yeah, and, of course, of account to account.
You're cutting intermediariesout of the process, right?
You're cutting intermediariesout of the process, right?
In terms of that cost reductionthat you're talking about, how
much is that typically perpayment, or how much do
businesses typically save?
Do you have any data?
Tom Bianco (17:27):
So it completely depends on the merchant and the
different bank categories thatthey're in.
So nothing to share with youguys on the podcast.
Sorry not to bring the thunderhere.
Eric Foust (17:36):
Oh, come on, get a plug in.
If you want to know more, emailus.
If you want to know more, visitus over at booth1525.
Ian Horne (17:43):
Amazing, but it isn't new.
I think you can be forgiven fornot having all the data on it
at this point.
Yeah, and also I mean we havetouched upon the CFPB
announcement and it legitimizingopen banking.
What else does it mean forembedded finance?
What does it mean that you cando for payments?
I?
What else does it mean forembedded finance?
What does it mean that you cando for payments?
I'm talking about things likeloyalty rewards, cashback.
(18:03):
You can do all that stuff.
Tom Bianco (18:04):
It's going to increase competition, right.
That's what Director Chopra'sone of his North Stars was.
He wants to increasecompetition in a payment space,
and in the US we're apredominant credit card heavy
user base, right, and that'sexpensive for merchants to
accept, and so allowing paymentsinto 1033, specifically
(18:24):
allowing payments into 1033,allows for open banking to come
in and compete, and it's goingto be done at a much lower cost.
So I'm sure there's going to bea competitive battle that's
going to ensue over the next fewyears, but we're going to take
market share.
So if we have a crystal ballwhere we're looking at today, if
open banking paymentsrepresents X today, it's going
to be exponentially larger inthe next two or three years as
(18:45):
these OAuth connections arebeing released by the banks
because they're required to.
Sheryl Chen (18:51):
So to Ian's question, and also prior to that
, you also alluded to howeverything was benefiting the
consumers, right, so we want totalk about the pitfalls.
What do you see are thepotential pitfalls that's going
to happen With?
Tom Bianco (19:03):
1033?
Yeah, so there's a couple ofnuances there.
One of them is in the rule if aconsumer uses open banking, you
have to have a 12-month re-authprocess, and so if I say that I
want to pay my Verizon billwith open banking, I will need
to re-authenticate that every 12months, which is what we used
(19:25):
to see when you lost a creditcard.
Before you had to go into yourbill pay app and update all of
your credit cards.
That's since gone away, right.
So what the rule has donebasically is take us back five
more years, because consumershave to be aware that in
December, my automatic billpayment is going to need to be
reauthorized.
(19:45):
So not a massive hurdle, butcertainly something that could
have been addressed with theinitial rule release.
The rule also has some languagein there about tokenization.
I won't get into specificdetails because I don't want to
bore the audience too much maybethey do want to hear this is a
FinTech nerd podcast tokens.
(20:06):
We are trusty as protokenization for account number
and router number.
So I want to make sure that'scrystal clear.
I, as a consumer, realize thebenefit whenever something
tokenizes my account informationto something that means nothing
to someone else.
The way that it's been rolledout before 1033 was released has
(20:26):
caused a lot of issues on ourend.
On a consumer's end, consumerconfusion, because when a
consumer revokes the token,they're also revoking the
payment aspect of the token.
So if I go and share my datawith Verizon and I'm making a
payment with Verizon Mobile andthen I say you know what?
I'm going to stop sharing mydata, it also deletes the token.
My intent wasn't to delete mypayment information, it was just
(20:50):
to stop sharing the rest of mybank information.
So there has to be somestandards around tokenization so
that consumers are educatedenough that when a bank decides
to use it on their behalf, theconsumer understands and says
okay, I'm going to bifurcate,I'm going to keep sharing my
payment data but not share myactual bank data on a consistent
(21:12):
basis.
So that way the payment processof that persists.
Ian Horne (21:17):
For sure.
I think data privacy andsecurity is a huge topic moving
forward in all markets,certainly for the Europe market
and I'm sure for Asia too.
So it's interesting stuff.
I mean let's go.
We're kind of getting low ontime.
So I want to get into thepartnership angle with you two a
little bit more, because weoften only hear about kind of
bank and fintech partnershipswhen things go wrong, but
(21:37):
actually just pulling back thecurtain a bit.
What is the kind of day-to-daypartnership like?
What kind of interactions doyou have?
And again, how do you make itwork?
Tom, let's bring you in.
Eric Foust (21:45):
Yeah well, we spend a lot of time together.
We look at roadmaps, we look attiming, we look at use cases, we
look at the problems they'retrying to solve and we work
through those things together asa team.
And, you know, there'sinevitably friction points,
right, when you have a FinTechthat's looking to scale to the
moon and they want to do it in acertain way.
We need to make sure that we'reall aligned on how that's
(22:06):
taking place.
But I look at thesepartnerships as no different
than a personal relationship,right, as long as you have open
dialogue and you have alignmenton where you're going and you're
having the conversation, youcan reduce some of the future
risks around things you knowbeing in the headlines.
So it's I liken it to we'regoing to be together for like 10
(22:27):
years.
So like let's get to know eachother really early, you know,
and really like just get it.
Get it early and often becauseit's going to be a long year
relationship and we look atcompanies where we've got decade
plus partnerships it's one ofthe most important things for us
.
Tom Bianco (22:40):
And I look at it as like we're in an open
relationship.
So you, you're in an openrelationship.
Yeah, we're in an openrelationship, right?
Because, as the fintech andwe're trying to establish these
partnerships, I have a list ofthings that I need to have from
a bank partner.
I have a list of things that Iwant to have from a bank partner
.
I also understand that I'm notgoing to have a single bank
(23:01):
partner that checks off everysingle one of those things.
So the needs need to be checkedoff, the wants.
That's where we can findcompromise.
So, tom and his team, they canprovide a lot of the needs that
we want, and then the opendialogue happens there.
But there's also a sectionwhere you know, fifth, third,
can't provide some certainservices where their risk
appetite may not be where oursis at.
So we go out and we developother relationships with those
(23:23):
financial institutions willingto take on that risk, right?
So, as long as we're open aboutthis, is where we are going to
be funneling our business andthese are the transaction types
that need to be supported.
And, plus, we text and sendemojis and GIFs and stuff like
that.
So, open line of communication.
Sheryl Chen (23:40):
Cornerstone of every good working relationship.
Eric Foust (23:44):
Yeah.
Sheryl Chen (23:45):
Okay, last question .
So how do you both view yourroles in the fintech market?
Tom Bianco (23:50):
I'll take that first , if you don't mind.
When 1033, the proposed rule,was released last October,
trusty took a leadershipposition in ensuring that the
fintech's viewpoints were heardby the CFPB, so we had an
extensive comment responseletter to the CFPB.
We held several public sessionswith the CFPB to make sure that
(24:12):
the voice of the fintech, whichwe feel like is not as loud as
some of these larger financialinstitutions, is being heard,
and we're proud to stand infront with the payments use case
as well as data, because a lotof the other fintechs out there,
the aggregators, are morefocused on just the data aspect,
but payments are so much moreto us.
Payments are so much moreimportant and a bigger part of
(24:35):
the future innovation piece.
Eric Foust (24:37):
I'll be real crisp on this one.
We're an innovation partner anda scale provider for the
world's best fintechs.
Ian Horne (24:44):
Love that.
That was crisp, nicely done,and we're so close to the end of
the time.
Eric Foust (24:47):
I can see the countdown clock in your eyes.
Is it on my t-shirt?
Yeah?
Ian Horne (24:50):
you have done that so well.
Eric Foust (24:52):
When you post this on social like, just use that.
Yeah, that's the headline.
Ian Horne (24:55):
Well guys, real pleasure talking to you.
It's been a lot of fun.
And, Sheryl, can you see us out?
Sheryl Chen (25:01):
Okay, so that is all the time, unfortunately,
that we have for.
Thank you, tom and Eric, forjoining us on the Money Pot and
explaining how we can raise thestandard of embedded financial
solutions, if financialsolutions.
If you have a bright idea for apodcast, let us know.
At podcast at money2020.com, welove bold and creative ideas
and we also love geeking out andpractical discussions with
(25:24):
actionable points for ourlisteners.
Anyway, this is Sheryl Chen and.
Ian Horne (25:29):
Mario and Ian Horne signing out.
Sheryl Chen (25:34):
Thank you also to our amazing live audience in Las
Vegas and also to all of youlistening wherever you are.
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