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Finovate Blog
Tracking fintech, banking & financial services innovations since 1994
As we pass the halfway mark through 2023, embedded finance still reigns as one of the biggest talking points across financial services sector. I recently had the opportunity to interview Sam Kilmer, Managing Director at Cornerstone Advisors, to ask him about where the industry stands with embedded finance, and what we can expect next. Among the topics Kilmer addresses are:
What does embedded finance mean, and how does it differ from embedded banking?
How can banks leveraging third party technologies maintain control of the customer experience?
How should firms prioritize spending on embedded technologies?
Will leveraging embedded finance become tablestakes?
What is the future of embedded finance?
Embedded finance maintains applications across the fintech sector, and Sam Kilmer has a unique perspective on the topic. He also offers up his favorite embedded finance success story. Check out the full interview below.
The road to recovery for crypto may be long. And making meaningful headway may require more than a few instances of taking one step back in order to take two steps forward.
Case in point is the latest hurdle faced by BlackRock as the company seeks to launch a spot bitcoin ETF. On Monday, we learned that the Nasdaq refiled the ETF application with the U.S. Securities and Exchange Commission (SEC) after the regulator highlighted a number of concerns with regard to the original petition. Among the chief concerns was the fact that the Nasdaq did not indicate which crypto trading platforms would participate in “surveillance-sharing” to help combat fraud in the underlying bitcoin markets.
BlackRock was not the only asset manager to hit this regulatory snag en route to the launch of its bitcoin ETF. The SEC also criticized filings from the Chicago Board Options Exchange (CBOE) with regards to a handful of bitcoin ETF petitions from the likes of Fidelity, WisdomTree, VanEck, and a joint project from Invesco and Galaxy – based on similar grounds.
The beneficiary of this hiccup, ironically, appears to be Coinbase, the SEC’s crypto bête noire. In response to the regulator’s concerns, both the Nasdaq and the CBOE indicated in their refilings that they would rely on Coinbase to serve as their “surveillance-sharing” partner. This move both answers one of the primary regulatory concerns vis-a-vis bitcoin ETFs and puts the cryptocurrency innovator back at the center of crypto’s comeback – all this despite the SEC’s antagonistic attitude toward the fintech it filed a lawsuit against in June.
Revolut announced this week that its customers in the U.S. will no longer be able to trade three tokens – Solana (SOL), Cardano (ADA), and Polygon (MATIC). The decision stems from the SEC’s categorization of the three tokens as unregistered securities and the subsequent move by Revolut’s provider, digital asset platform Bakkt, to delist the assets. The delisting will be effective as of September 18th.
Revolut is not the only platform to announced an end to the availability of these tokens for U.S. crypto traders and investors. Both Robinhood and eToro also have either delisted or restricted access to SOL, ADA, and MATIC for U.S. customers. In the case of eToro, tokens such as Algorand (ALGO), Decentraland (MANA), Filecoin (FIL), and Sandbox (SAND) have also been made off-limits for U.S. customers.
Holders of SOL, ADA, and/or MATIC outside the jurisdiction of the SEC will continue to have access to the tokens.
Speaking of “outside the jurisdiction of the SEC,” the Monetary Authority of Singapore (MAS) announced a new set of guidelines designed to help cryptocurrency companies separate customer crypto assets from their own. The new rules insist that digital asset companies that are licensed in Singapore separate customer crypto assets from their own, as well as maintain a separate set of blockchain addresses for customer assets. Companies in the digital payment token business additionally will be required to do daily reconciliation of customers’ digital assets, and maintain accurate records of those assets, as well as access and operational control of customer’s DPTs in Singapore.
The move comes as regulators have become increasingly concerned that cryptocurrency firms have not done enough to “ring-fence” customer crypto assets and keep them segregated from company assets. This problem can be especially acute in the event that a cryptocurrency firm becomes insolvent, making it harder to recover customer funds. The new regulations require cryptocurrency firms to hold customer crypto in trust – though the relative lack of independent, third-party custodians has forced the MAS to offer crypto firms some leniency when it comes to relying on independent custodians at this time. To this end, firms are only required to ensure that crypto custody functions are independent from the firms’ other business operations and divisions.
The new regulations are expected to come online later this year.
A study from Juniper Research from earlier this year indicated that the value of all payment transactions made via stablecoins will top $187 billion by 2028. This represents nearly a 3x gain from 2023 levels. The report, titled CBDCs & Stablecoins: Key Opportunities, Regional Analysis & Market Forecasts 2023-2030, notes the growing use of stablecoins in cross-border transactions, the benefits in terms of speed and traceability that stablecoins offer relative to existing, cross-border rails, and the nature of the competition between stablecoins and central bank digital currencies (CBDCs).
Stablecoins are cryptocurrencies that derive their value from a given fiat currency or commodity. CBDCs are actual digital currencies issued by central banks.
What will it take for stablecoins to reach the transaction levels suggested in the Juniper Research study? Report author Nick Maynard underscored the role of payment platforms and money transfer operators in supporting broader adoption of these digital assets.
“Stablecoins have vast potential to unlock the flow of money across borders, but payment platforms need to roll out acceptance strategies for this to progress,” Maynard observed. “MTOs (Money Transfer Operators) can leverage stablecoins in a wholesale manner, but this will need networks to be built across wide geographic footprints.”
Our last 5 Tales from the Crypto column looked at reasons why the so-called “crypto winter” could see a thaw sooner than many observers think. In a recent column, fintech thought leader and author Chris Skinner shared his thoughts on the resurgent mainstream interest in digital assets.
“Something has changed,” Skinner wrote this week at The Finanser, “and maybe the biggest change is that treasury managers want to use cryptocurrencies. If the customer wants it, then the big banks have to service it and there’s the rub. The big banks have stirred and incorporated digital assets, and specifically cryptocurrencies, into their remit.”
Skinner cited an article at Decrypt.co – Wall Street is coming for crypto, whether early believers like it or not – as well as a June report from S&P Global Ratings titled How DeFi’s Operational Risks Could Influence Credit Quality, that have contributed to his thinking on the topic of late.
“You know that cryptocurrencies are going mainstream when Standard and Poor’s (S&P) start to rate them,” Skinner noted. “They don’t do that today, but they are moving that way.”
Check out the full conversation – as well as the Decrypt.co article and S&P Global Ratings report.
State Employees Credit Union (State ECU) has teamed up with digital banking solutions provider Apiture.
State ECU will leverage Apiture’s Digital Banking Platform to offer its members an enhanced online and mobile banking experience.
Wilmington, North Carolina-based Apiture made its Finovate debut last year at FinovateFall.
New Mexico-based State Employees Credit Union (State ECU) announced a partnership with digital banking solutions provider Apiture. The 65-year old financial institution will leverage the Apiture Digital Banking Platform to offer its members an enhanced online and mobile banking experience.
Headquartered in Wilmington, North Carolina, Apiture offers technology that helps smaller banks and credit unions compete with their larger rivals – as well as launch their own digital-only brands. State ECU will take advantage of both Apiture’s Consumer Banking and Business Banking solutions, as well as the fintech’s Data Intelligence technology. This latter solution is designed to promote digital engagement with both consumers and businesses using highly personalized offers.
“By providing a modern, fully featured consumer and business banking experience, State ECU is poised to deepen member engagement and drive significant growth,” Apiture CEO Chris Babcock said.
Apiture made its Finovate debut at FinovateFall in 2022. At the event, the company demoed an embedded finance solution that enabled users to conduct basic banking tasks from within third-party software. Whether the goal is to open an account, view balances, or transfer funds, Apiture’s embedded finance technology empowers customers without requiring them to visit their bank’s website. The technology gives financial institutions a new revenue stream, and provides customers with greater convenience and an enhanced user experience.
Apiture has more than 300 community and regional financial institution clients. The firm also has partnered with 200+ fintechs. Formed as a joint venture between First Data Corporation and Live Oak Bank in 2017, Apiture has earned recognition from Celent, Javelin, and Juniper for its small business and consumer banking solutions. The company’s API-first strategy gives smaller financial institutions extensive control over the UI, as well as the ability to create unique customer experiences via Apiture’s developer portal.
With more than $1 billion in assets, State ECU is New Mexico’s fifth largest credit union. Founded in 1958, State ECU boasts more than 52,000 members.
Daon is launching a new technology, AI.X, to combat new threats posed by generative AI.
AI.X will be added to Daon’s IdentityX identity management platform and its TrustX identity continuity platform.
In a recent survey of IT leaders in the U.S., 56% of respondents said that they recognize AI as a potential security threat.
Biometrics solutions company Daonunveiled its newest technology last week. The company’s new release of AI.X expands on its existing identity management platform IdentityX and identity continuity platform TrustX.
Currently, IdentityX and TrustX leverage a set of algorithms and techniques to detect fake and altered documents. Daon is adding AI.X to these products to help combat new threats posed by generative AI. Specifically, the new technology protects against deepfakes that mimic voice, face, and documents.
“These newly patented technologies deliver more sophisticated verification for businesses worldwide by improving their ability to proof, verify, authenticate, and secure customer identities across all trust points including the contact center environments,” said Daon CEO Tom Grissen. “The Artificial Intelligence revolution is in full swing, driven by the widespread availability of data, powerful GPU computing, popular Machine Learning software, and deep neural networks (DNNs).”
The demand for solutions that combat nefarious uses of AI is likely to skyrocket. Daon reported that, in a survey of IT leaders in the U.S., 56% of respondents recognized AI as a potential security threat due to recently raised concerns over the issue. In the same survey, 69% of IT leaders said their companies are getting questions or concerns about AI from enterprise customers.
“In the battle to determine what is real, we have leveraged these advances to radically improve the accuracy of proofing and authentication solutions and create new groundbreaking algorithms that ensure the security and integrity of online transactions involving individuals and documents,” added Grissen.
Daon’s identity authentication technology uses a range of biometrics, including fingerprint, face, voice, iris, keystroke, palm, or a combination. In addition to its IdentityX and TrustX products, the company also offers xAuth multifactor authentication, xFace facial authentication, xProof identity proofing, xVoice voice authentication, and VeriFLY travel document validation. Founded in 2002, Daon is headquartered in Reston, Virginia.
The new capability will complement Revolut’s other wealth management options, including savings and stock trading.
The automated investing tool will charge a 0.25% annual fee with a monthly minimum of $0.25.
Global financial services innovator Revolut has launched a roboadvisor in the U.S. The new automated investing tool manages users’ investment portfolios, and is therefore able to charge lower fees than traditional wealth management firms.
Revolut users can invest in one of five diversified portfolios based on their risk tolerance. After the client deposits funds into their portfolio, Revolut’s roboadvisor will automatically invest the money and then monitor and manage the portfolio. When necessary, the roboadvisor will automatically rebalance the portfolio to stay in-tune with the user’s risk tolerance. Revolut roboadvisor will charge a 0.25% annual fee with a monthly minimum of $0.25.
“We are excited to add a Robo-advisor to our superapp’s suite of wealth and investment products and services,” said Revolut U.S. Head of Wealth and Trading Jack Callahan. “We know that many of our customers do not have the time to manage a portfolio or invest in individual securities. Built to make investing more accessible, we want to give our customers the ability to make their money work for them in what we believe will be a tailored and stress-free way.”
Originally founded as a mobile banking and international card payments company, Revolut has recently set its sights on becoming a super app. Since it launched in 2015, Revolut has added business cards and spend mangement tools, as well as a range of solutions to fit its users’ personal financial needs.
Today’s roboadvisor launch will push Revolut further towards super app status. Additionally, the new capability will complement the company’s other wealth management tools, including its savings account, savings goals, and stock trading.
While the launch of Revolut’s roboadvisor will be a value-added product, the company may be a bit late to the game. The roboadvisor boom in fintech took place about eight years ago and it is unlikely Revolut’s roboadvisor will be the determining factor for a user to make the jump to Revolut. The new product will, however, be attractive to existing Revolut clients and may help draw in Gen Z users as they look to begin their investing journeys.
Revolut has raised around $2 billion. While the company was once considered one of Europe’s most valuable fintechs, Revolut took a hit earlier this spring when company shareholder Schroders Capital Global Innovation Trust disclosed a $5.8 million (£4.7 million) writedown, shaking the value of its stake from $12.6 million (£10.1 million) in 2021 to $6.7 million (£5.4 million) in 2022.
Marqeta released its 2023 State of Payments report this month. The firm surveyed 4,000 consumers across the U.S., Australia, and the U.K. to gain an understanding of how consumer behavior is shifting and how financial decisions are made.
The data paints a picture of how consumers interact with new and old payment methods. Here are the three main takeaways we gathered.
Consumer adoption of embedded finance is growing… slowly
It’s no secret that embedded finance is one of the biggest trends in the financial services space at the moment. Consumers, however, aren’t ready to race in on this trend. Of the consumers surveyed, less than half (47%) said that they would consider using financial services from a non-financial services provider.
The growth here has been slow. The percentage of people who said they would consider using financial services from a non-financial services provider last year was 45%, only down 2% from those who shared the sentiment this year.
Mobile wallets become less intimidating
One fintech concept consumers are more positive about is mobile wallets. The concept has been around for more than a decade, and mobile wallets and other non-traditional payment methods have finally found a sweet spot with consumers.
In the past year, 80% of survey respondents said they had made a contactless payment, 77% said that they had made a mobile payment, 67% said they had paid using a mobile wallet, and 50% said that they used BNPL to make a payment.
Of the 67% who had used a mobile wallet to make a transaction in the past year, 93% said that it was convenient to use their mobile device to make a payment. This is up from 87% last year, which indicates that either consumers are becoming more savvy, mobile wallets are more user-friendly, or a combination of the two.
Incumbents maintain their footing
With all of this technology, where do banks stand? It turns out, consumers still rely on traditional banks quite a bit. Of those surveyed, 81% said they still use traditional banks. More than half, 56%, have never changed their primary banking provider and 72% said that they are satisfied with their current provider.
This indicates that traditional banks have been able to keep up with consumer expectations, even as society begins to age into the digital era.
PayPal is launching Tap to Pay on Android for U.S. Venmo and Zettle business users.
The new capability will enable merchants to accept contactless payments without additional hardware.
All Venmo business users will have access to Tap to Pay in the coming months.
PayPal has been on a quest to improve the checkout experience since its launch in 1998. The California-based company is continuing that journey today by rolling out Tap to Pay on Android for the U.S. business users of two of its subsidiaries– Venmo and Zettle.
The new capability enables merchants to accept contactless payments on their Android mobile devices without additional hardware. After a short onboarding process, Venmo business users can use the Venmo app to manage funds received via both Venmo and card. Regardless of the transaction type, all funds will settle into the business’ Venmo account to facilitate cash flow management.
“Tap to Pay is the last milestone in the democratization of in-person card payments, where users can start taking card payments with no setup cost in a matter of minutes,” said PayPal Head of Product, Microbusiness Ed Hallett. “We’re unlocking access to this capability for the millions of businesses using Venmo and PayPal Zettle, helping them drive sales with frictionless payment options.”
All Venmo business users will have access to Tap to Pay in the coming months, but the new capability is also currently available by request.
PayPal-owned Zettle first launched Tap to Pay on Android for Zettle users in the U.K., Sweden, and the Netherlands last May, and has since rolled out the technology for Zettle users in more regions– including in the U.S.
While Apple unveiled Tap to Pay on iPhone last April, Stripe was the first company to bring the technology to merchants with Android devices. The payment service provider launched Tap to Pay in February of this year for merchants in the U.S., Canada, the U.K., New Zealand, Australia, and Singapore.
Socure is acquiring automated identity verification solution provider Berbix for $70 million.
Socure has used Berbix’s technology to launch its Predictive Document Verification (DocV) 3.0 solution.
The new acquisition will also help Socure accelerate its international expansion.
Digital identity verification company Socure has acquired automated identity verification solution Berbix for $70 million. The deal marks the first-ever acquisition for Nevada-based Socure.
Founded in 2018, Berbix launched a document verification solution with a forensics engine that detects spoofed IDs – including AI-generated fake IDs. Socure will leverage this technology to accelerate its international expansion by providing global coverage of ICAO-compliant travel documents, passports, and national ID cards.
“I’m extremely proud of what we built at Berbix to advance state-of-the-art document verification,” said Berbix CEO and co-founder Eric Levine. “Moving forward with Socure, we are able to multiply our impact on day one by leveraging our technology with Socure’s substantial customer base, reach, and reputation. Combining our independent investments in document verification is yielding stunning results – and we’re just getting started.”
Socure has already integrated Berbix’s technology into its own to launch its Predictive Document Verification (DocV) 3.0 solution. The new tool combines Berbix’s forensics engine and data extraction with Socure’s image capture app. The company has found that DocV 3.0 has been able to increase first-attempt auto approvals of good consumers by 26% and increase fraudulent document capture by 27%.
While DocV 3.0 is used within Socure’s integrated identity platform, it is also available as a standalone solution.
“DocV 3.0 represents a significant departure from legacy providers whose document verification models rely on simple template checks and rules to determine if a document is legitimate,” said Socure Founder and CEO Johnny Ayers. “Without running sophisticated fraud models on related personally identifiable information (PII), or pairing the documentary check with rich device, phone ownership, geolocation, and behavioral data, customers see far less accurate decisions, resulting in higher fraud and lower customer acceptance. This prohibits companies from using document verification solutions for high-risk onboarding, authentication, or transactions. It’s a real gap in how ID document verification can be used.”
Socure has more than 1,800+ customers across a range of industries. The company serves four of the top five banks, 13 of the top 15 card issuers, over 400 of the largest fintechs, and more. Among Socure’s customers are Chime, SoFi, Robinhood, Gusto, Poshmark, and the State of California. Since it was founded in 2012, the company has raised $742 million from the likes of Citi Ventures, Wells Fargo Strategic Capital, Capital One Ventures, Synchrony, and others.
Feedzai has partnered with Novobanco to offer the bank’s clients protection from financial crime.
Novobanco wil leverage the Digital Trust (DT) and Transaction Fraud for Banking (TFB) solutions within Feedzai’s Risk-Ops.
Novobanco anticipates the new technology will enhance trust, optimize customer engagement, and ultimately boost customer satisfaction.
Feedzaiinked a partnership with Portuguese bank Novobanco this week. The risk management and fraud prevention company has agreed to protect the bank’s clients from financial crimes while not detracting from the customer experience.
Specifically, Novobanco will leverage the Digital Trust (DT) and Transaction Fraud for Banking (TFB) solutions within Feedzai’s Risk-Ops, a platform that helps firms protect users from financial crime. The tool is embedded into firms’ existing workflows to help uncover hidden criminal activity while not disrupting the customer experience.
“The Digital Trust and Transaction Fraud for Banking solutions which are part of our RiskOps platform will empower Novobanco to further enhance its fantastic service whilst providing the highest level of financial security for its customers,” said Feedzai Global Head of Sales Nuno Pires.
With 1.5 million clients and $47.8 billion (€43.8 billion) in assets, Novobank is the 4th largest bank in its domestic market. The bank maintains a customer-centric culture by offering an omnichannel customer experience and transparent, simple products.
Novobanco anticipates that DT and TFB will enhance trust, optimize customer engagement, and ultimately boost customer satisfaction. Combined, the two solutions will help Novobank analyze and understand customer behavior, flag security threats, and block fraud attempts in real time.
Also based in Portugal, Feedzai was founded in 2011. The company’s solutions help fight fraud in more than 190 countries. In 2021, Feedzai was valued at more than one billion dollars after receiving a $200 million funding round that boosted its total funding to $277 million. There is no word on an updated valuation.
Point-of-sale (POS) and restaurant management platform Toast unveiled recently that it is rolling out a new fee. At only $0.99, the new fee doesn’t sound particularly problematic initially. Many of the technology provider’s customers, however, are not happy. And looking deeper into the issue, it’s easy to see why.
The fee
Toast is imposing the new fee to the end customers who make purchases of $10 or more on online Toast POS systems. The charge will appear under the “taxes and fees” line item. According to the Boston Globe, if a consumer clicks to see more information, they will see the charge listed as an “order processing fee” that Toast explains is “Set by Toast to help provide affordable digital ordering services for local restaurants.”
Circumventing their merchant client and charging the end consumer directly not only places strain on a restaurant’s business relationship with Toast, but it is also likely to strain the end customer’s relationship with the restaurant. Many have had to increase menu prices over the past few years because of inflation, and they have had to work hard to pay their workforce a competitive wage while not driving away customers with higher meal prices. Toast’s move is certain to exacerbate this.
There has already been much insight into why publicly listed Toast is doing this from a business perspective. The company has yet to become profitable and it’s stock price is down 61% since its 2021 IPO. With 85,000 merchants, Toast is sure to benefit financially from the new fee. Whether it will be enough to turn the company profitable is yet to be seen.
The fee doesn’t take effect nationwide until July 10, so the fallout is yet to be seen. So what can banks learn from this?
The lesson
Banks need to maintain tight control of the customer experience. With the “as-a-service” model taking off in banking, it makes sense that banks are leveraging third party technologies to create efficiencies and focus on their core product. There’s nothing wrong with using third party providers to help create a better user experience, build out a product set, or create a more secure environment. However, if there is a flaw that is the fault of the third party provider, it is ultimately the bank’s reputation that is on the line– not that of the third party.
Prevention
Preventing the fallout of a rogue fintech partnership comes down to vetting the third party. It’s important that banks do their research by talking with other customers of the third party to garner feedback or run through customer scenarios to ensure optimal outcomes in all cases. Banks should also protect themselves by not locking themselves into a rigorous or limited contract.
Ultimately, banks are in business to serve the customer, and if a third party is ruining that relationship, it’s time for the bank to look elsewhere to suit their needs instead of sacrificing the customer experience.
Looking at Toast’s move, it’s difficult to say how (or if) the move will impact user behavior. When asked about potential customer reactions, Dustin Magaziner, CEO of PayBright, said, “I actually don’t think this will impact sales or customer relationships much. Many customers are accustomed to paying additional fees these days. However, I do think the angle to review this from is the lost revenue for the business owner. If a merchant runs 1000 online sales per month, it’s $1,000 the merchant is essentially not earning.”
Robinhood has acquired credit card company X1 for $95 million.
X1 launched an in-app stock purchasing capability late last year.
Robinhood CEO and co-founder Vlad Tenev said that the acquisition will bring his company closer to serving the entirety of customers’ critical financial needs.
Stock brokerage app Robinhood signed an agreement this week to acquire six-year-old credit card startup X1. The deal is expected to close in the third quarter of this year for $95 million in cash.
Prior to the acquisition, X1 had raised $62 million. The company, which was founded in 2017 by Deepak Rao and Siddharth Batra, refers to its credit card as “the smartest card ever made.” The no-fee Visa credit card has many features that customers have come to expect of a modern card. It offers competitive rewards, instant payment notifications via a tandem mobile app, a virtual card number, and it allows customers to turn the card on and off within the app.
There are a handful of features that set the card apart, however. The first is the physical card itself– it is made of 17 grams of stainless steel. The card also allows users to create a single-use card number that is automatically cancelled after one use, which can come in handy for subscriptions users don’t want to forget to cancel. Users can also create a card number for free trials that is cancelled after 24 hours.
Robinhood CEO and co-founder Vlad Tenev explained the reasoning behind today’s buy. “This acquisition will bring us closer towards our goal of serving the entirety of our customers’ critical financial needs. Together with X1, Robinhood will now be able to offer our customers access to credit,” he said.
The acquisition aligns with X1’s direction, as well. The company launched an in-app stock purchasing capability that enables cardholders to buy stocks in the X1 app using their rewards points. X1 guides investors by recommending stocks based on the cardholder’s spending habits, risk preferences, investment goals, income, and time horizon.
Logistically the X1 team will join the Robinhood team. Rao and Batra will oversee Robinhood’s new card business. Rao will serve as GM of Credit Cards and will report to Tenev.
At FinovateSpring last month, Moov CEO Wade Arnold talked to us about how and why he built his company, what his greatest hurdles have been, and what he is looking forward to next.
For those unfamiliar with Moov, it is a fintech that provides a payment orchestration API that allows customers to accept, store, send, and spend money. The all-in-one experience offers customers direct connection with card brands, The Clearing House, and the Federal Reserve.
And if you’re unfamiliar with Wade Arnold, you’re missing out! He’s always the smartest guy in the room, and he’s humble enough to share his knowledge with anyone who will listen. Here are the highlights of our conversation with him at FinovateSpring.
What was the impetus to build Moov?
I was inspired to build Moov because, through three different startup companies inside of the financial service space, we spent a lot of time dealing with legacy infrastructure rather than building the product that we wanted to take to market. And so, rather than building another abstraction, I decided to take on the job of building straight to the payment that works.
How many times did you pivot?
I think [we’re] pivoting daily, but for us the biggest pivot was doing payment rails linearly. I definitely wanted to go do everything all at once but thankful that we started with ACH, started with our wallets, then to card acquiring, and just building out each component as our customers needed.
What were the biggest hurdles you faced early on?
The biggest challenge for Moov was getting the Federal Reserve, the Clearing House, and four card brands to say, “yes” to a brand new startup wanting to build directly onto the backbone of their payment infrastructure. So once we were able to overcome that, we were able to start writing code and developing the platform.
If you could repeat the process and start over, what would you do differently?
I’d slow down on sales, and focus on customers. So there’s always a drive to create revenue faster and faster, and that’s an area that I think you have to wait until the company’s ready to go very fast and invest into that opportunity to grow your market.
What’s the biggest lesson you’ve learned from VCs during the funding process?
Interacting with VCs is kind of funny for me. I didn’t really do a market analysis. I just said, “This is broken, I’ve dealt with this my entire life, and want to go build something to fix it.” It was fascinating interacting with VCs, but coming from the opposite angle. As a builder, that’s kind of a bottoms up approach. And they were coming from a market dynamics [perspective]. Both of us landed in the same place.
Where do you see Moov in 10 years?
The vision for the business in 10 years is to really just keep on focusing on customers. You know, a delighted customer is the best reference possible. So we’ll keep on doing that. My long-term aspirations are that we’re a legacy incumbent someday, which just means that, for a period of time, we were the best thing that people could build on top of and that would be an incredible privilege.
