Tearsheet Podcast: Exploring Financial Services Together

Is the promise of Web3 in finance finally coming to fruition, or are we still in the early stages of a long journey from Bitcoin to tokenized assets? As the cryptocurrency and Bitcoin market evolves, Bitcoin's price swings draw attention. Traditional banks explore blockchain cautiously. People are curious about the current stage of Web3 development. The question remains: where are we on the timeline? Today's episode of the Tearsheet podcast features Rumi Morales. She is a partner and board member at Outlier Ventures. She discusses the current state and future potential of Web3 in the financial sector. Morales brings extensive experience from her roles at CME Group, Digital Currency Group, and Goldman Sachs. Morales reflects on her decade-long journey in the cryptocurrency and Bitcoin space. She shares, "I would have answered this question a lot better 10 years ago when I first got into the space. I think I was full of hope and excitement and a lot of ambition." Her perspective offers a nuanced view of the industry's progress. She recognizes the progress and challenges of Web3 technologies in achieving mainstream adoption. As the discussion unfolds, Morales provides valuable insights into the current state of Web3. She discusses the role of decentralization. She elaborates on the potential for blockchain technology to reshape traditional financial services. Her position bridges traditional finance and emerging technologies. This gives readers a well-rounded view of the future of digital assets and decentralized systems. The Big Ideas Morales emphasizes the importance of data ownership and privacy in the Web3 ecosystem. She states, "I do think when it comes to data and data ownership and privacy and individual rights, this idea that humans and individuals should be owning their data. And not giving it away to centralized entities is becoming more and more and more important." There is tension between centralization and decentralization (such as with Bitcoin) in the Web3 space. Morales notes, "The question is, is that theory of decentralization ever gonna take over centralization? The jury is completely out for me on that one." This observation highlights a fundamental challenge in the Web3 ecosystem. It is balancing the ideals of decentralization with practical implementation and human nature. Web3 startups face significant hurdles when trying to collaborate with traditional financial institutions. These challenges stem from mismatches in resources, bureaucracy, and operational timelines. Morales explains, "Many times to get that contract signed, it has to go through how many layers of checks. And you're just hoping that they don't run out of money to get something done to prove that you can do this." Accelerators are essential for nurturing Web3 innovation by supporting early-stage startups. This highlights the importance of investing in startups. Morales explains the role of Outlier Ventures in this ecosystem. She says, "We've probably accelerated around over 200 companies at this point, helping them in their earliest stages of growth. So these are pre-seed or seed stage companies." Tokenization of real-world assets represents a promising area for convergence between Web3 and traditional finance. Morales states, "That is around being able to tokenize most anything. It doesn't have to be a traditional security in the stock or bond sense of things."

SMBs need more from their FIs, and data echoes this demand. 62% of SMB owners have reported feeling like their business banking options don't go any further than the services already available in their personal accounts. So banks have to find a way to not only differentiate their business banking products from fintech and platform competitors but their own personal banking products as well. One bank that is leading the way is Citizens, which has a three-pronged strategy for SMBs, according to its President & Head of Business Banking, Mark Valentino. Valentino talks about how Citizens is getting closer to the needs and wants of SMB owners by focusing on gathering feedback through surveys and its bankers.

In the latest episode of Tearsheet's newest podcast, "Compound Influence," hosts Zack Miller and Josh Liggett dive deep into the fascinating world of Wall Street Bets (WSB) and its impact on the financial landscape. This eye-opening discussion explores the intersection of social media, retail investing, and the power of online communities. The Rise of Wall Street Bets The hosts trace the origins of WSB, from its humble beginnings in 2012 with just 1,700 followers to its explosive growth to over 17 million members by 2024. This growth trajectory wasn't linear – it saw a massive spike during the GameStop saga in early 2021, catapulting the community into the mainstream spotlight. The Robinhood Connection A significant portion of the podcast focuses on the symbiotic relationship between WSB and the trading app Robinhood. The hosts discuss how Robinhood's commission-free trading model and gamified user experience aligned perfectly with WSB's high-risk, high-reward trading philosophy. This partnership inadvertently led to debugging Robinhood's platform and exposing potential exploits. Impact on the Financial Industry The discussion highlights how WSB and the GameStop event forced traditional financial institutions to take notice of retail investors' collective power. It led to the emergence of new platforms like Public.com and prompted established players to adapt their strategies. The WSB Ethos One of the most intriguing aspects of WSB, as pointed out in the podcast, is its unique culture. Unlike traditional finance forums, WSB embraces transparency about losses, often with self-deprecating humor. This openness creates a sense of community and shared experience among members. Challenges and Concerns The hosts don't shy away from addressing the potential dangers of WSB's influence. They discuss how the influx of inexperienced investors armed with partial knowledge can lead to risky behavior and significant financial losses. Lessons for Financial Institutions The episode concludes with insights on how established financial institutions might engage with communities like WSB. The hosts emphasize the importance of authentic interaction and warn against attempts to control or manipulate these organic communities.

SMBs face critical challenges such as lack of access to credit, barriers for women entrepreneurs, and lower levels of digital enablement, which have limited their growth and success globally. Salah Goss takes us through the Mastercard's SMB strategy, which through initiatives like Strive, focuses on easing credit access, providing digital tools, and building networks, with a particular emphasis on empowering women-led enterprises and fostering community-driven growth.

Welcome to the second episode of our de novo community banking series. I’m Sara Khairi, your host and reporter at Teasheet. If you tuned in a couple of weeks ago, you know we kicked things off with a deep dive into Craft Bank's journey in Atlanta, from CEO Ross Mynatt's debut leadership role to its choice of core tech partner and the strategies it used to grow $250 million in assets. This episode builds on that theme, exploring the origin, growth, and technology paths of two other community banks: RockPoint Bank in Tennessee and Moultrie Bank in Georgia. Both banks are relatively young, having been founded during the pandemic, and while they share some commonalities like limited budgets and staffing, they each have unique markets and growth strategies. The variety of perspectives on the same challenges is what makes their story interesting. Joining us are Hamp Johnston, President and CEO of RockPoint Bank, and Donna Lott, President and CEO of Moultrie Bank & Trust. We discuss the origins and development of their banks, the hurdles they’ve overcome, and why they decided on Jack Henry as the right tech partner for them.