FINTECHTALK

Hi FINTECHTALKERS, (follow me on Twitter (X)) for lively discussions on these topics @PADDYRAMANATHAN),

I sat down with Ram Palaniappan, CEO of Earnin, a company that allows workers to access their pay instantly. Lot of folks in the industry like to talk about financial inclusion as it is good for the brand, Palaniappan and Earnin are the real deal.

Palaniappan has built a very sucessfull main street fintech and raised around $200 million from prominent VCs like Andreessen Horowitz, Matrix Partners, Ribbit Capital. He talks passionately about how how his company’s product have impacted real customers. Seems like a simple concept but a huge deal for someone who lives paycheck to paycheck.

We cover a wide variety of topics including solving for medical debt, overdraft fees or its avoidnance, increasing savings and overall improving the financial health. Can Earnin be the financial AI co-pilot - the killer GenAI app in consumer finance? Tune in to find out.

Enjoy and always be in the know,

Paddy Ramanathan

Follow me on the new Twitter (X) @PaddyRamanathanFounder of iValley (www.ivalley.co) andHost of the FINTECHTALK™ Show (on Substack, Apple Podcast, and Spotify)

(Violin piece in podcast, courtesy of my daughter Ilina)

HI FINTECHTALKERS, (follow me on Twitter (X) for lively discussions on these topics @PADDYRAMANATHAN),

Happy New Year! I sat down with Zor Gorelov, CEO of Kasisto, a pioneer in AI. We cover a lot of topics from Artificial Financial Intelligence (AFI before AGI) that Zor passionately talks about, how domain-specific models can win over general-purpose LLMs, and how those capabilities will provide a competitive advantage for future enterprises.

Here is the table of timestamps for easy navigation of the conversation

0.-4.40 - Intro of the episode, Zor’s background, and what got him to build Kasisto

4.41- 8.04 - Kasisto’s history, how it came to be from SRI, democratize and everyone to have a digital advisor

8.05-13.36 - Banking-specific model KAI-GPT and how will AI can be a differentiation in FS

13.37 -18.57 - AGI, AFI et al - AI-based financial advisor that is like human advisors

18.58- 23.33 - How should FI’s adopt LLMs - Augment LLMs, domain-specific model or build from the ground up

23.34 -26.0 - The design principle or pillars for Kasisto and KAI-GPT

26.01-27.46 - AI becoming the Enterprise Information and Intelligence (Human + Machine)

27.46- 33.30 AI Middleware or Middle GPT Ware and AI for structured Data

33.30-36.50 - Closing - how to connect with Gor

Enjoy and always be in the know,

Paddy Ramanathan Follow me on the new Twitter (X) @PaddyRamanathanFounder of iValley (www.ivalley.co) andHost of the FINTECHTALK™ Show (on Substack, Apple Podcast, and Spotify)

(Violin piece in podcast, courtesy of my daughter Ilina)

HI FINTECHTALKERS, (follow me on Twitter (X) for lively discussions on these topics @PADDYRAMANATHAN),

I sat down with David Nohe, CEO of Fingoal, a Fintel Startup creating hyperpersonalization, and Leslie Gillin, Chief Growth Officer at Pagaya another innovative company applying AI in financial services in credit decisions and financial inclusion.

Subscribe to tune into my conversation with Zor Gorelov, CEO of Kasisto, and Deep Varma CTO of Alkami coming up next.

Enjoy and always be in the know,

Paddy Ramanathan Follow me on the new X @PaddyRamanathanFounder of iValley (www.ivalley.co) andHost of the FINTECHTALK™ Show (on Substack, Apple Podcast, and Spotify)

(Violin piece in podcast, courtesy of my daughter Ilina)

HI FINTECHTALKERS, (follow me on Twitter (X) for lively discussions on these topics @PADDYRAMANATHAN),

I sat down with Ian Horne, author of Why DeFI Matters to discuss his book. This was recorded on the sidelines of Money2020.

We talk about how DeFI changes to the financial system factor whereas fintech is essentially a distribution innovation, and how Web3 fundamentally changes the business model of the internet. Ian talks about successful projects in DefI/Crypto that don’t get much attention and what he is most excited about.

Enjoy and always be in the know,

Paddy Ramanathan Follow me on the new Twitter (X) @PaddyRamanathanFounder of iValley (www.ivalley.co) andHost of the FINTECHTALK™ Show (on Substack, Apple Podcast, and Spotify)

(Violin piece in podcast, courtesy of my daughter Ilina)

HI FINTECHTALKERS, (follow me on Twitter (X) for lively discussions on these topics @PADDYRAMANATHAN),

I sat down with William Capuzzi, CEO of Apex Fintech Solutions (also a board member at DTCC and a prolific investor) on the sidelines of the Money20/20 show this week in Las Vegas. We covered a lot of topics including why Bill challenges himself to run triathlons, what is his mission at Apex, and how he and his team are enabling average retail investors to invest like hedge fund managers; Apex’s new fractional fixed income product; the transformative role that AI and generative AI will play in the wealth management business and in closing how he follows key advice from Greg McKeown’s Essentialism - the disciplined pursuit of less.

I have included a table of timestamps for easy navigation:

0.-3.21 - Intro of the episode, Bill’s background, and what got him to build Apex

3.22- 5.19 Apex’s mission and purpose

5.20-7.39 Running, Triathlon, Iron Man and what does running help

7.40-11.35 What does Apex do and who do they serve?

11.36-15.05 Embedded Finance - the future of digital distribution of financial services including wealth

15.06-17.50 How is Apex different from the traditional players

17.51-22.35 The democratization, making every retail investor invest like a hedge fund manager

22.36-26.40 The New fractional fixed income and doing it right

26.51-35.54 The future of Wealth mgmt with AI, Gen AI - Autonomous Wealth Mgmt, Advisor Co-Pilot

35.55-40.30 Philosophical alignment with Steve Jobs, and George Mckeown’s Essentialism (The disciplined pursuit of less) and type of companies Apex is looking to partner.

Enjoy and always be in the know,

Paddy Ramanathan Follow me on the new Twitter @PaddyRamanathanFounder of iValley (www.ivalley.co) andHost of the FINTECHTALK™ Show (on Substack, Apple Podcast, and Spotify)

(Violin piece in podcast, courtesy of my daughter Ilina)

FINTECHTALK™ Sculpting the future of fintech, AI, & Crypto is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.

HI FINTECHTALKERS, ( follow me on Twitter for lively discussions on these topics @PADDYRAMANATHAN)

Three years ago, in January 2020, we published our top 10 predictions for the decade below. So we wanted to follow up to see where the puck has been and where it will be.

Multi-modal AI, which includes text-to-image and text-to-audio capabilities, has arrived, as has quantum computing for cyber-security. TwitterFiles demonstrate that Twitter is more than a social media platform, but a critical transmission network that shaped public opinion, much like a power grid is for electricity.

When we consider the reach and attention of a platform like Twitter2.0 and the AI-generated content (narratives, texts, images, and videos), we are headed for a new level of hyper-personalized and augmented reality.

This is why - I decided to bring in some experts and talk about what is in store for 2023 and beyond and what we make of all the Generative AI and AGI (Artificial General Intelligence) talk.

I saw down with Jags Kandaswamy (CEO and Founder of Latent.AI), Lewis Liu (CEO of EigenTech), Sean Austin (CEO of Helios Life Enterprises), Ahon Sarkar (GM of Helix from Q2), Riad Hartani (Managing partner at Xonapartners) and Steven Ramirez (CEO at BeyondtheArc) to talk about all things technology, consumer behavior, and societal trend. The podcast and editorial infograph is included in this edition along with the link to the Generative Elder’s recap.

Artificial General Intelligence (AGI), a theoretical concept of human-like AI has been a topic of discussion lately. I asked ChatGPT about AGI and whether it was AGI, and here is what I got:

“No, I am not an AGI. I am a language model…Yes, as an AI language model, I am a small step towards AGI. AGI is a hypothetical concept that aims to create machines that possess general intelligence, and while we are not yet close to achieving AGI, language models like me represent a significant advance in artificial intelligence.” ChatGPT Feb 2023

We are at a pivotal moment in history, where the capabilities of artificial intelligence (AI) are expanding rapidly. The infograph above is an attempt to roadmap AI into horizons of increasing sophistication and use.

With generative capabilities in text, audio, video, code, and 3-D, AI is no longer just a decision support engine but is now able to augment and will soon replace several knowledge worker functions.

The implications of further advancements in generative models are significant and could change functions such as sales and marketing, design, and programming, and have a transformative effect in the fields of life sciences, medicine, financial services and even manufacturing. Imagine the possibilities if we were to connect AI to the cerebral cortex, which could unlock human potential in new and creative ways. For now, with embedded AI and AI on the edge, we are expanding human potential and creating new applications and value in areas such as warfare, terrestrial and space exploration, and other verticals.

Businesses beware! The biggest potential disruptor to your competitive advantage is the emergence of a competitor or upstart capable of doing what your best human resources can do, but on a much larger scale, with greater efficiency and effectiveness, thanks to AI. Therefore, investing in AI readiness for your core team is paramount for long-term success. Despite the deep technology behind AI, its value ultimately lies in its creative usage by humans. AI can augment and amplify human capabilities, but the critical decision-making, innovation, and creativity that drive the business forward are distinctly human traits. By embracing AI and preparing your team to integrate it into your operations, you can unleash your full potential and stay ahead of the competition. Don't miss out on this opportunity - invest in AI readiness today and prepare for a brighter, more innovative future.

Paddy RamanathanFounder of iValley (www.ivalley.co) andHost of the FINTECHTALK™ Show

(Violin piece in podcast courtesy of my daughter Ilina, thanks also to chatgpt for suggestions)

The Generative Elder recap of the FINTECHTALK show - The Cambrian Explosion in AI: A blast like never before

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iValley Innovation Center11040 Bollinger Canyon Rd, E-909San Ramon, CA 94582,The United States.

HI FINTECHTALKERS,

This is one of the recordings from the sidelines of Money 2020 earlier this fall in Vegas. It was great to be back at this high energy show sometime back when FTX was just a TLA known to a few.

There were several broad themes at the show. Here are my top takeaways.

* Modernization of Infrastructure - Digital platforms like Smart Card, BaaS/Embedded Finance, neoCore platforms, and Enterprise DeFI

* Fintech explosion in the South - LATAM and beyond (I talk to Jean Mies of PPRO in this edition)

* We are just not ready for Web 3 or at least no clear owner of Web 3’s marketing push (probably will happen over time like Bitcoin) and why i disagree with prognosticators that FTX debacle is bad for Crypto (it would be akin to saying the end of derivatives after Lehman collapse - but more on this in a separate edition)

Latin American market presents an interesting dynamic as one of the fasted growing market for eCommerce and presents a great opportunity for fintechs and as my guest Jean Mies, General Manager at PPRO, explains the market is unique and to be successful offerings have to be hyper-localized to consumer preferences.

Paddy Ramanathan Follow me on the new Twitter @PaddyRamanathanFounder of iValley (www.ivalley.co) andHost of the FINTECHTALK™ Show (on Substack, Apple Podcast and Spotify)

(Violin piece in podcast courtesy of my daughter Ilina)

HI FINTECHTALKERS,

I was at Money 2020 in Vegas. It was great to be back at this high energy show, antithetical in some sense to the Vegas cliché - what happens in Money 2020 is talked about all over the fintech world.

There were several broad themes at the show. Here are my top takeaways.

* Modernization of Infrastructure - Digital platforms like Smart Card, BaaS/Embedded Finance, neoCore platforms, and Enterprise DeFI - succinctly captured in our editorial info graph at the end.

* Fintech explosion in the South - LATAM and beyond (don’t miss our upcoming podcast on this)

* We are just not ready for Web3 or at least no clear owner of Web3’s marketing push (probably will happen over time like Bitcoin).

I recorded a couple of podcast and one of them is featured in this episode on Embedded Finance and neoCore. I sat down with Luvleen Sidhu (CEO at BMTX formerly BankMobile), Jamie Donahue (CTO of BMTX), and Ahon Sarkar (General Manager at Helix by Q2) to talk about all things BaaS, Embedded Finance and the recently announced partnership between BMTX and Helix.

These pages have written and prognosticated about this space as early as 2014 - more recently last year I wrote about the virtualization of Banking and how it is easier to embed a Bank in any workflow with a fintech than to open a Bank account with a traditional bank [Do you want to Embed a Bank in your Business - the future of Baas and platformization of Banking]. My guests are pioneers and leaders in this space and they are changing the distribution of financial services. Let me explain with some historical context.

In the 1980s the growth catalyst and differentiator for financial institutions was having more branches and banking locations at retailers and educational institutions and the likes followed by mergers and acquisition in the 90s to expand that footprint. The Fintech generation and Digital Banking (the last 20 years) was all about removing friction and enhancing the customer journey and efficiency.

Now, the key differentiation in financial services is the combination of digital and distribution: digital distribution through embedded finance into the workflows at retail stores, doctors offices, colleges and SMEs at large. Banking products will be available through ERP, CRM, Digital and fulfillment systems.

A digital Banking product is or will get embedded in every vertical workflow. It’s truly outside in banking not only in experience but in economics. The vertical business could also becomes a mini-bank for its customers potentially deploying its balance sheet. These business microcosms are connected, and symbiotic. Put the ecosystem in blockchain and there is more efficiency and possibilities to manage risk and programmatic controls.The combination of enterprise Defi and embedded banking will be the next wave. Watch this space for more on that!

Enjoy and always Be in the Know!

On a separate and not so upbeat note: Very disheartening to hear about layoffs in tech esp. in the bay area including in bellwether fintechs like Stripe. I found this compilation useful if you are looking to hire. Under the List of Employees tab, there are lists of the impacted individuals.

If any FINTECHTALKERS that are reading are impacted, please let me know and I am happy to make some connections

https://layoffs.fyi/

Paddy RamanathanFounder of iValley (www.ivalley.co) andHost of the FINTECHTALK™ Show (www.fintechtalk.co)

(Violin piece in podcast courtesy of my daughter Ilina)

Substack has a new chat feature. Do let me know what you think about this edition on chat

EPILOGUE

Connect with us!

iValley Innovation Center11040 Bollinger Canyon Rd, E-909San Ramon, CA 94582,The United States.

HI FINTECHTALKERS,

It has been a while. I had some personal situations over summer and beyond for an extended time. Just getting back into rhythm.

I sat down a few weeks back with Devon Kinkead (CEO of Micronotes), Patrick Reilly (CEO of Verde International), Naushad Contractor (CEO of Fable Fintech) to talk all things about data, AI/ML in financial services and the still evolving space of cross-border payments.

AI is not going to just drive our cars, but manage our finances and will augment the enterprise’s decision making and processes. We are in early stages of the Autonomous enterprise which will eventually lead to hyper-personalized consumer interactions and AI based decision support across the enterprise. Startups like Micronotes and Verde are not only solving problems in areas like sales and marketing and credit underwriting but also developing the foundation for the autonomous enterprise. On the other hand, Fable Fintech is enabling financial institutions to adopt payment innovations like using new blockchain rails seamlessly and transparently for more efficient cross-border payments.

Stay tuned for more podcasts on the autonomous Bank and emerging payments.

Enjoy and always Be in the Know!

Paddy RamanathanFounder of iValley (www.ivalley.co) andHost of the FINTECHTALK™ Show (www.fintechtalk.co)

(Violin piece in podcast courtesy of my daughter Ilina)

EPILOGUE

The Roadmap to the Autonomous Financial Institution

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iValley Innovation Center11040 Bollinger Canyon Rd, E-909San Ramon, CA 94582,The United States.

HI FINTECHTALKERS,

I sat down with Shamir Karkal (CEO of SilaMoney), Brion Bonkowski (CEO & Founder at Tern) to talk about Fintech, the Equity/Crypto market correction, and the future.

We covered a lot of ground and in order to make it easy to navigate the podcast, I have included a table of timestamps and our infographic view of the Payment value chain along with Fintech Elder recap of the podcast.

0.10-7.05 - Introduction

7.05-16.00 Challenger Bank evolution - segment-specific lifestyle applications

16.00-16.50 Inclusion - Kilimanjaro initiative

16.50- 27.00 Equity Markets and Crypto markets - is there a correlation?

27.00- 37.00 what my guests are building - Programming with money, Democratizing fintech, and more

37.00-39.06 Advice from Shamir on perspective to take on downturn (before he runs to catch his flight)

39.06-52.28 - Future of BaaS, Banking as a utility, Cross-border payments future

Enjoy and always Be in the Know!

Paddy RamanathanFounder of iValley (www.ivalley.co) andHost of the FINTECHTALK™ Show (www.fintechtalk.co)

(Violin piece in podcast courtesy of my daughter Ilina)

EPILOGUE

There is a continued focus on digital payments innovation. iValley sees disruptors across the value chain as shown in the infographics below.

A Silent Banking Tsunami That Just Happened

By the Fintech Elder

I chanced upon this charming haiku about tsunamis by Carole Dwinell:

A towering wave

Eats small islands and is gone

A butterfly bows

Many things just creep up while you’re looking elsewhere. Something is so incomprehensible, such an outlier in the grand scheme of things, that it doesn’t seem to merit any attention.

And then, you’re swept away.

That’s what is happening in banking today. It’s all very well to talk about removing friction and moving money faster and so on, but it takes a real visionary to make things truly happen.

So when I heard that the highly-connected Paddy Ramanathan from iValley was planning to host a Fintechtalk panel discussion with two individuals who are blazing their own trails in banking, I decided to drop in and see what was going on.

I wasn’t disappointed.

On the hot seats were Shamir Karkal from SilaMoney and Brion Bonkowski from Tern. Both have done some ground-breaking work on enabling Banking as a Service and creating a new paradigm for payments and micro-segmentation.

First, the harsh truth. Despite the hysteria about challenger banks and how everything has changed, the fact remains that less than 10% of accounts are with these new kids on the block. The majority of people prefer to bank with names they recognize. 

On the other hand, this is going to rapidly change as technology and fresh ideas reimagine banking.

Anyone wishing to start a bank in the traditional way has several hurdles to clear: regulatory, technical, manpower and more. It can take months or even years to put together the building blocks. It's not for the weak or impatient.

But it's significantly easier now than before. Silamoney, for instance, has been hard at work making things easier with Banking, Digital Wallet & ACH Payments APIs.  All you need to do is plug in the right API and some aspect of banking happens!

What has been discovered (late perhaps?) is that community banking has very interesting little niches. Golfers, immigrant groups, and other demographic groups – all have very specific characteristics and if you think about what they specifically need, then the cost of acquisition becomes lower. That means community banks could easily become effective by deploying these APIs instead of spinning wheels and wasting time and money trying to do it from scratch. Think about it! You get a lock-in and have a better understanding of the Lifetime Value of such customers.

Likewise, there are segments that need help with cross-border payments, which is both expensive and vexing. Other communities have traditions of pooling resources and being comfortable with inter-community lending. Opening such banks that provide these niche services only helps!

Faster end-user verification, ACH integration, providing ways to work with cryptocurrencies, and practically instantaneous money transfers – these are some of the new demands people have, and banks that respond will benefit. And new banks can now go live in about 8 weeks!

Tern has, in turn, been working on helping banks create highly tuned credit cards. The limits could be as low as $50 or it could be valid at only certain businesses. There are options to auto-invest in crypto too! The specificity of such offerings is quite mindboggling!

What you’re reading about is fundamentally a democratizing of the entire banking process!

After all, what do early-stage challenger banks need? They don’t want to program, or do KYC, and such important but distracting activities. They need to concentrate on establishing their product fit. Silamoney and Tern help them do that!

Did I say tsunami?

I slowly shut my laptop, trying to absorb all this. I could quite see that the silent tsunami has crept through banking, changing everything. For everyone.

The Fintech Elder plans to start a bank.

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iValley Innovation Center11040 Bollinger Canyon Rd, E-909San Ramon, CA 94582,The United States.