Welcome back to the Power of Payments podcast. I’m your host Ismail Umar, and in today’s episode, we take a look at how digital wallets have performed in the US over the past year, and why credit cards are struggling to fight off competitors like BNPL and debit cards. We also discuss Visa’s latest move indicating its growing interest in the global creator economy.

Power of Payments Ep. 16: Digital wallets, credit cards vs competitors, and Visa targets creators

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On today's episode, we're going behind the scenes at one of the most successful money apps out there - Cash App. Our special guest is Ryan Budd, the head of financial products at Cash App, and he's giving us an inside look at Cash App's evolution into a financial powerhouse.

Cash App started as a simple way to send money to friends, but as Ryan explains, it has become so much more. We're talking full-service banking, investing, crypto trading, tax services - the works! Ryan opens up about Cash App's bold vision to be a "one-stop shop" for all your money needs.

But how has this ambitious fintech company maintained its startup hustle and breakneck innovation pace even as it has exploded to over 57 million monthly users? Ryan pulls back the curtain on Cash App's unique team structure filled with "mini CEOs" laser-focused on different product verticals.

He also shares insights into Cash App's drive to bank the underbanked and economically empower communities that have been overlooked by traditional finance. From automated money management to increasing access to credit, Cash App wants to be the #1 choice for how people take control of their financial lives.

Ryan maps out their goal to create the "next gen community bank" by intelligently merging banking, commerce, and that powerful network effect. It's a candid conversation that you won't want to miss!

The big ideas

Cash App as a Comprehensive Financial Platform

Ryan highlights Cash App's evolution from a money transfer service to a comprehensive financial platform: "Everyone knows Cash App has this place to send money to their friends and their families. But a lot of them don't really realise that we've become so much more than that."

Focus on Banking the Base

Cash App aims to deepen its user engagement by becoming the primary banking service for its users: "When we think about banking the base, it's how do we get more customers to actually use us as their primary banking utility?"

Automation and Financial Health

The platform's automation features aim to simplify financial management for users: "You can deposit your paycheck and then we rolled out this auto allocation feature a few months back automatically set a percentage of it to savings, automatically set a percent to investing into Bitcoin."

Incentives to Retain User Funds

Cash App provides significant incentives for users to keep their money within the app, such as high savings yields and overdraft features: "If you deposit your paycheck to Cash App, you get 4.5% savings yield, you get this incredible overdraft feature that allows you to go negative without any interest or fees or anything of the sort."

Synergy Between Cash App and Square

Integrating Cash App with Square's merchant services enhances user experience and creates a seamless ecosystem: "I'm sure you've probably seen at Square point of sale systems, there's oftentimes a little Cash App barcode that's there that you can scan and use Cash App Pay."

Innovative Team Structure and Culture

Cash App's success is driven by a lean, autonomous team structure that empowers employees to innovate: "Every single person knows that they're supposed to own that vertical and they look at name X competitor in that space, and they say we're going to beat them... And they're really incentivized and empowered to kind of really think outside the box and push things."

Inside Cash App's approach to banking its base: A conversation with Ryan Budd

Welcome to the Tearsheet Podcast, where we explore financial services together with an eye on technology, innovation, emerging models, and changing expectations. I’m Tearsheet’s editor in chief, Zack Miller.

Today I'm joined by Luke Voiles, CEO of Pipe, a high profile revenue-based lender that’s evolving into a platform – we’ll talk a lot about this evolution.
Luke has had an extensive career journey that has prepared him for his role at Pipe. After starting in private equity, he joined Intuit where he helped build and lead the QuickBooks Capital team, providing capital to small businesses during the PPP loan program. He then went to Square to run their banking division before being recruited to join Pipe as CEO. I’ve actually interviewed Luke in each one of these roles and it’s been fascinating for me to watch his own growth as a product-driven leader.

In our conversation, Luke shares insights from his experience at companies like Intuit and Square that have shaped his leadership approach and methodology for building products. We discuss how he has applied lessons around having a clear mission, focusing on the customer experience, and balancing speed with compliance in regulated industries like fintech.

Luke provides a look inside Pipe's evolution from its original vision to the newly launched "Capital as a Service" offering. He explains the strategic prioritization that enabled them to build a scalable product quickly. We also get a preview into Pipe's future plans, including AI-powered tools to streamline operations for small business owners.

Whether you're an entrepreneur, operator at a startup, or just interested in financial technology and product development, I think you'll find Luke's perspectives insightful. So enjoy my conversation with Luke Voiles of Pipe.

From direct lending to embedded finance: Luke Voiles on Pipe's evolving value proposition

Welcome to another episode of The Tearsheet Podcast, where we explore financial services together with an eye on technology, innovation, emerging models, and changing expectations. I’m Tearsheet’s editor in chief, Zack Miller

Banks and other FIs continue to look for higher engagement with their customers. Logging into an account and refreshing a balance doesn’t create relationships. So, what’s an FI to do to drive real engagement. Michigan State University Federal Credit Union has rolled out a loyalty program that delivers gift cards directly to customers inside their accounts by merchants trying to acquire new customers. The program uses customer data to target offers that matter. And this is just the beginning as banks and credit unions find ways to extend their value proposition, building and strengthening relationships with their customers. 

I’m joined by Ben Maxim, Chief Innovation Officer at Michigan State University Federal Credit Union, and Brendan Grove, CTO of PrizeOut, who are to share their insights on how financial institutions are looking to provide more value to their customers, extended beyond that tried and true toaster.

We’ll discuss the power of partnerships between credit unions and fintech companies, and explore topics like the evolution of loyalty solutions, the challenges of integrating new technologies into existing credit union infrastructures, and the exciting possibilities for enhancing member engagement through personalized data-driven experiences. 

So, whether you're a bank or credit union product person, a fintech aficionado, or just curious about the future of banking, you're in for a treat. Let's get started!

How MSU Federal Credit Union uses incentives to get customers to move beyond just checking balances

We recently held a LinkedIn Live event, entitled "Card Launch 101," where we dove deep into the strategies, insights, and best practices for launching and growing successful card products in the fintech and banking industries.

Featuring industry experts:

Scott Johnson, Vice President of Revenue at Galileo Financial Technologies
Marc Butterfield, SVP of Innovation and Disruption at FNBO 
Jack Rubin, SVP of Consumer Financial Solutions at DailyPay

Listen is as these professionals share their wealth of knowledge and experience in scaling partnerships, driving innovation, and navigating the complexities of launching card products in today's dynamic landscape.

Here's what we discussed:

Understanding Card Launches: Gain insights into the key components of a successful card launch strategy, including strategic planning, market research, and product development.

Identifying Your Audience: Learn how to identify and understand your target audience through effective market research and data analysis.

Creating Your Card: Explore the process of designing and developing card products, from features and branding to user experience and regulatory compliance.

Partnerships and Business Development: Discover the role of partnerships in scaling card programs and expanding market reach, with real-world examples of successful partnership strategies.

Marketing and Promotion: Get insider tips on marketing and promoting your card product effectively, including targeted messaging, branding, and customer acquisition tactics.

Case Studies and Success Stories: Hear real-world examples of successful card launches and gain valuable insights and lessons learned from industry leaders.

To download Tearsheet's Card Guide 101, from ideating, partnering, building, launching and optimizing a card program, go to http://tearsheet.co/cardguide

Card Launch 101  The ultimate guide to build and launch a successful card

Welcome to another episode of The Tearsheet Podcast, where we explore financial services together with an eye on technology, innovation, emerging models, and changing expectations. I’m Tearsheet’s editor in chief, Zack Miller.

In this episode, we'll be diving deep into the world of customer experience (CX) transformation with Vanguard, one of the leading names in investment management. Joining us are Aaron Taylor, Chief Information Officer, and Marco De Freitas, Head of CX and Digital, two seasoned professionals who have been instrumental in Vanguard's CX modernization journey.

Throughout our conversation, we'll explore Vanguard's approach to modernizing its digital channels, client journeys, and service platforms. From laying down the foundational pillars to unlocking the potential of ‘CX Alpha’, Aaron and Marco share invaluable insights into how Vanguard is improving the way clients interact with their services.

We'll delve into the parallel advancements made by Vanguard, the impact of fintech innovations on their CX strategy, and how they measure the success of their initiatives both internally and with clients.

Stay tuned as we uncover the seminal steps behind Vanguard's CX transformation, explore the significance of data accessibility and personalized interventions, and discover what lies ahead in their journey towards even greater CX innovation.

So sit back, relax, and get ready to embark on an insightful episode into Vanguard’s CX modernization journey. Let's dive in!

Power of Payments Ep. 16: Digital wallets, credit cards vs competitors, and Visa targets creators

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