Appetite for Disruption: The Business and Regulation of FinTech

Educating the World about Emerging Technologies.  We return with Sunayna Tuteja to hear her views on the importance of education, as firms and investors approach new financial services and emerging asset classes.  This involves learning from investors and customers to help create the tools and materials they need.  A disciplined approach to innovation can make a big difference when it comes to results and impacts.  Stay tuned at the end for Troy and Lee’s discussion.  As a reminder, nothing said in this or any other episode is investment, legal, or any other advice of any kind.  

The Pivot to Emerging Technologies in Financial Services.  We welcome Sunayna Tuteja, who heads TD Ameritrade’s digital and emerging technologies efforts.  Her vision of technology as democratizing finance and creating financial inclusion fits in with the overall founding ethos of Ameritrade.  She thinks carefully about what the problem is, why is it worth solving, and why is her team uniquely qualified to solve the problem.  Often these problems are about removing friction to allow clients to take charge of their financial future.  By breaking down all types of barriers, Sunayna and her team are innovating in ways that are core to what we hear from most FinTech entrepreneurs, even within the context of a large organization.  As a reminder, nothing said in this or any other episode is investment, legal, or any other advice of any kind.  

Special episode!  Do you know the way to Sacramento? We are joined by three people from Sacramento for a discussion about the efforts the city and the state of California are undertaking to help create economic inclusion by closing the digital divide, bridging the skills gap, and encouraging innovation in FinTech and beyond.  Barry Broome, President & CEO of the Greater Sacramento Economic Council, Commissioner Manuel Alvarez, Commissioner of the California Department of Business Oversight, and Ciaran McMullan, President & CEO of Suncrest Bank, discuss the different forces at play and programs they are developing.  There are lessons in leadership, attracting talent, and public-private partnerships in the approach they are taking, which combines practical solutions and dedication.  Troy and Lee offer some thoughts at the end. 

We continue our conversation and broaden the idea of narrative to other areas of the world, especially as impacted by the Covid-19 pandemic.  James talks about financial inclusion, big data, and regulation, all from the standpoint of delivering positive messages and then achieving that promise.  He also discusses the need for empathy and explanation throughout the hero’s journey.  Troy and Lee share their thoughts at the end.

James Robert Lay is a branding and marketing expert and author who focuses on financial services and particularly digital financial services.  James encourages his clients and the entire industry to change the story around their products and services to highlight common themes from storytelling, such as the hero’s journey, rags to riches, and failure followed by a guide bringing you to success.  Even though financial services is increasingly about technology, James emphasizes the human aspects of financial services and the importance of connecting with clients as people rather than portfolios.  You are the hero in your financial story!

Special Episode!  SEC Commissioner Hester Peirce.  Insights into a regulator's thinking.  Before she was nominated for a new term, Hester Peirce, a Commissioner of the U.S. Securities and Exchange Commission, sat down with Troy and Lee for a wide-ranging discussion.  Commissioner Peirce provided her thoughts (with the disclaimer that they are her’s alone) on topics including blockchain and cryptoassets, capital formation, the consolidated audit trail and privacy, artificial intelligence and the future of fintech, and areas she believes deserve more focus.  Her themes of humility in the regulatory process, analysis of data, and not protecting people out of opportunities provided an overlay for all her comments.  We greatly appreciate her work and public service.  Crypto Mom delivered!  We discuss our reactions at the end. 

Blockchain Entrepreneurs Roundtable, Part 2:  Tavonia Evans, Karen Hsu, and Bea O’Carroll, entrepreneurs using blockchain and cryptoassets, continue the conversation with a focus on how to create opportunities and products for underserved communities and the impact of COVID-19 on their businesses and their customer bases.  There is also a great sense of community that runs through the entire conversation.  For them, this is partially about developing an inclusive ecosystem through the democratization of economics and value.  They all seem far away from the perception that blockchain is all about scams.  Stay tuned at the end for Troy and Lee’s discussion about what they learned from these dynamic guests.  And just a reminder that nothing in this episode is investment advice or advice of any other type.

Blockchain Entrepreneurs Roundtable, Part 1:  Tavonia Evans, Karen Hsu, and Bea O’Carroll, three entrepreneurs using blockchain and cryptoassets in various ways, talk about the joys and challenges of starting a new company, especially in a nascent space.  They all have similar motivations of creating inclusion and helping different groups gain access to opportunities, such as financial services.  But each has chosen her own business path.  Tavonia is building a blockchain ecosystem to help people of color.  Karen is using blockchain’s transparency to create analytics products and services.  Bea is trading cryptoassets for clients with the goal of bringing them to many more people of all backgrounds and economic means.  A lot of what they want to accomplish is consonant with the original goals of blockchain.  And just a reminder that nothing in this episode is investment advice or advice of any other type.

Chris Giancarlo (former CFTC Chairman) and Daniel Gorfine (former Director of LabCFTC) join us to talk about making a central bank digital currency (or CBDC) version of the US dollar.  The Digital Dollar Project has carved out a large task for itself in trying to bring the dollar fully into the digital realm from the physical realm.  There are many implications, from how people will pay for things to how monetary policy in the country will work.  One key result could me more financial access and inclusion for those who are unbanked or underbanked.  There are also big design questions and issues, such as privacy, law enforcement, payment rails, and how to transition practically to a CBDC.  With the Project's recent white paper, our guests and their team tackle these core topics.  A fascinating idea and effort that we found inspirational.

As we hear from Melissa, she and her colleagues are working hard to try to get things right, balancing many interests.  LabCFTC provides an opportunity for innovators and regulators to interact.  Although the U.S. does not have a regulatory sandbox program, Melissa describes ways to work with regulators.  Melissa mentions the idea of “launch, learn, tune” several times, and that mindset seems like it can be a good approach for both innovators and regulators when done prudently.  The CFTC also has been active in responding to COVID-19, and there is information on its website to explain these initiatives.  Stick with us until the end to hear Troy and Lee chat about the regulation/innovation interface, including the case for more technologists at financial and other regulators.  COVID-19:  Our hearts go out to everyone impacted by the virus, and we applaud the workers on the front lines as they strive to bring the world through this troubling time.