Jeff Gapusan, Head of Strategic Partnerships and Corporate Development at Prime Revenue joins Qazi Haq a college senior from Georgia State Robinson School of Business who just found out yesterday his commencement is cancelled due to the coronavirus. Both talk with Tommy Marshall, Executive Director of the Georgia Fintech Academy about the coronavirus crisis and its impacts on financial markets and the fintech industry.
Jeff Gapusan, Head of Strategic Partnerships and Corporate Development at Prime Revenue joins Qazi Haq a college senior from Georgia State Robinson School of Business who just found out yesterday his commencement is cancelled due to the coronavirus. Both talk with Tommy Marshall, Executive Director of the Georgia Fintech Academy about the coronavirus crisis and its impacts on financial markets and the fintech industry.
spk_0: 0:06
Welcome to the Georgia Fintech Academy podcast. The Georgia Fintech Academy is a co operation between Georgia's FINTECH industry and the University System of Georgia. This talent development initiative addresses a massive demand for fintech professionals and gives learners The specialized education experience is needed to enter the fin tech sector.
spk_1: 0:27
Hello, everyone. And welcome to the third episode of the Georgia Fintech Academy podcast. This is Tommy Marshall, the executive director of the Georgia Fintech Academy. Andi, welcome back. And we're welcome you back into, um, a very difficult time. The world has changed in dramatic ways since we talked to you last in in early early February, where we've had the onslaught set now of the Corona virus in a significant way here into the United States. Um, we've, you know, I think all been watching this evolve since the outbreak first started in. We want China in December. So now it's very much upon us. Um, we are in today's. This recording is on marks the 19th. Ah, Thursday. I can tell you personally, um, I then in my home haven't been really out in any way for almost, uh, this is my sixth day. Um, and uh, we're just grateful that we're able to take advantage of ah, virtual WebEx channel today to be able to create the podcast. I'm also grateful that I got two wonderful guests. Tell him with us today. Jeff got Hassan. Primer of the new is our fintech executive guest and then cosy hop from who is a student with Georgia State. He's in school. And, um, yes and cosy. Welcome. Thanks for being with us.
spk_2: 2:16
Thank you, Tommy. Thank you for having us
spk_1: 2:19
in listeners. You'll remember that our format for our podcast is that I moderate, and then we bring in a fintech executive office today. That's Jeff and one of our fantastic students that are involved with the worth of Fintech Academy. And today that is cosy. So I want to take some time to let Jeff and Cosy introduce themselves before we get into a further discussion about this corona virus crisis impacts on the financial services industry. And, um, how fintech is being impacted? An elfin tech is responding in the midst of this change. So, Jeff, let me turn it over to you. Um, tell us about you.
spk_2: 3:02
Yeah, great. That Tommy. Thank you for having me today. It's always a pleasure to ah, join AA. You know, all the efforts that are happening at Fintech Academy, So appreciate that, um I started, uh, met. I actually lead strategic partnership efforts, um, and work on the corporate development team and Prime Revenue. Prime revenue is in Atlanta Base, Fintech company that focuses and specializes on working capital financial technology solutions. We work with a constellation of about 100 funding institutions or financial institutions that help us to work with. Over. There were thousands of companies and 70 plus countries on. We help them to optimize cash flow. This cash flow where optimization of the cash flow allows them to spawn strategic initiatives. Whether it's m in a plant build outs, what have you, um you know, like I said, we're headquartered in Atlanta. We have offices in London, Prague, Frankfurt, Uncle Hong kong. Um, so we're global. Ah, and proud to be here in Atlanta. Part of the powder, The Atlanta Fintech ecosystem. Prior to joining ah, prime revenue, I actually led the stint Tech accelerator program at the A. T. D. C. Across town at Georgia Tech. Um, they're headed portfolio about 35 early stage companies that were in the fintech space and anything from a peer to peer lending processing insurance Certain Sure, tech real estate ah, wide range of of verticals within the Fintech institution have been tech. Vertical was at a start up of my own. Um prior to that and really what brought me to fintech was I had been in the financial service is financial markets capital markets for several years Prior to that started that Salomon Brothers and what was happening in the capital markets about 2014 waas that trading revenue trading volume started this slow and started really focusing on technology and the way that technology could be used to make smarter decisions, whether it was to lend money to get capital into the hands of those that needed it. Um, you know, that was really my first entree into it. And, you know, since that time Fintech has gone from, you know, one or a couple of different verticals and into a number of different areas in which you know, we have a lot of smart people that are looking at how they can leverage technology to make those processes run more efficiently.
spk_1: 5:56
Um, yeah. On prime, right? New, um I mean, it's one of the kind of to me one of the kind of key fintech companies that have here in Atlanta, and and it's it's a company that no say over 10 years old. Right about that. How I'll remind me the age of prime rib.
spk_2: 6:22
Yeah, that's that's exactly right. We started in 2002 so really 17 years old town, um and, you know, like, cos er that, you know, start from startups to you know, where we are from. As a growth equity company. There's an evolution process that happens, and it's interesting to watch on DSI having come from big organizations, big financialservices organizations to a start up, working with a start up and starting to, you know, move back into that growth equity. Kind of. I won't say mature, but mature and company, um, type of phase.
spk_1: 7:03
Um, fantastic. So cosy. L s about you, little
spk_0: 7:10
fool. Personal. Thank you, Tommy. In jail for having me on and allowing me to share my soon perspective, especially in these crazy times in the world. So I'm currently a graduating senior. Well, most people will say graduated at this point from the Robinson College of Business, a Jordan university. So I
spk_1: 7:26
don't get that Causey, Why are we saying that?
spk_0: 7:29
We're saying that because, you know, commencement has officially been canceled as of yesterday, right yesterday. So I'm enjoying my free time as transitioning professional right now, but we have some classes to go, but I'm double majoring in finance and accounting on. My first experience was back in 2018 when I interned with First Data Corporation before they were acquired by Pfizer last year during my internship by in tracking with different teams worked on multiple projects. But most importantly, I engaged with senior leadership and executive leadership. So I entered the internship, but no idea about Fintech had no idea what Fintech was and left the whole experience with a renewed interest in industry and want to figure out what Fintech really is and the different sectors and lying wasn't intact. Yeah, when the French Academy was born, it was a perfect opportunity get involved and learned more. So I decided to join and become part of the advisory council where our primary goal is to help defend academy with all. If it's operational and strategic efforts be also provide hours to in perspective to help the academy.
spk_1: 8:36
And I'm grateful for you more bent than been apart. That is, you being modest. You have. Bean really helped and took the leadership that brought the other students together. And I really, deeply appreciate that because the student Advisory Council for the Intact Academy I thinks critical. I mean, the students, of course, are primary clients and customers of the scent academy. And having your voice and the voice of ah students really well represented a cz we do planning work on other programs is just critical s Oh, it's I just feel very fortunate, particularly to have you helping us on that on that effort. I didn't want to ask you. So when you were due here, your internship with first data. Now, Fi. Sir, um, tell us a little bit. Like what? What were some of the things that you were doing? Just different types of activities or you know, anything that you could concerto, help us get a feel for what that internship was like.
spk_0: 9:42
So how the program was set up was you realign to specific department or a team In addition, you have to work on other internship program related projects with other entrance. So I was part of the global compensation team. So more of an HR function. Um, for me, I always try to use internships to explore different avenues and to see what I like and don't like. And I never had exposure to each are So I thought I'd test that out. And primary function was helping with a corporate restructuring process. At the time, the company was changing how people, managers and individual contributors worked within the organization. So I helped the VP with that transition as well. Moreover, from ah, internship program perspective, we worked on a design thinking project where entering teens were assigned a specific problem. I mean, do create an innovative solution that we've done presented to the CTO and other senior of vice president of the company. Oh, that was my first taste of fintech, and it made me realize just how innovative intake is having interns, you know, trying to solve these problems for them that could potentially become actual products in the future. That was very everything to me now,
spk_1: 10:52
did you? In terms of executives, you interacted with. Did you have a chance to meet, um, very McCarthy or
spk_0: 11:02
hear him? Yes. Oh, they are
spk_1: 11:05
a great friend of the Georgia Fintech Academy. Of course, he's now the CEO of the Lux Corporation. Um and, uh, it was, you know, is a remarkable leader and was a remarkably leader at first Data. Yeah, don't. Melissa. So you had a chance to meet Barry and tell us about that
spk_0: 11:26
s o s part of the program we heard from every chief ex officer of the company. I'm given that we were in Atlanta. I was based out of Atlanta on first. It was headquarter Atlanta. I had two other option meat Berry Carthy as well as a chief human resources officer at that time. No, it was great. Um, at the company. People had great things to say other than your ship. How especially for Berry McCarthy's case. He was brought up within the company and he rose through the ranks and took on, and he was well reputed and really respected company.
spk_1: 12:02
Yeah, that's cool. That's great. You got to him. Um, well, let's Let's dive into things. E think. Certainly we've got to start with a bit of reflection of the last, I guess 10 days in the United States of America and financial service is in the United States of America. Of course, we're in the middle of a public health crisis emergency, which is now as a result of, um the best measure, as we all know to to try to address this crisis is for us to separate from each other and stay in our homes. And, of course, that is having a significant impact on our economy. And it is creating a, uh, a no additional financial crisis. Um, so, Jeff, I know just with your background and depth of the expertise in financial service is I was I was just curious to kind of hear from you on what your reactions have been over the last 10 days or so.
spk_2: 13:14
Yeah, Tommy, I think that you and I, we had a conversation, Um, last Monday's not not the 15th but the
spk_0: 13:25
sevens and making about Sunday
spk_1: 13:28
night. What news that come out that on top of all this horrible stuff it's having for public health standpoint, the Saudi, Saudi Arabia and Russia decided to get into a price ward downward from an oil standpoint. And then I know you stayed up very late that Sunday night watching the right
spk_2: 13:51
right? And it was interesting because the market started really going through fluctuation at that point. And this is before we even started hearing anything about sheltered in place and the speed at which it was really starting to spread in Europe, whether it's Italy, Spain and really how it would affect the West. You fast forward. I think it was seven days after that, six days after that. And you had the Fed on Sunday night really talking about these monumental programs that were really bathing the financial markets and liquidity. Um, you know, you just bring up the toe totals and you're talking about, you know, well, over a trillion dollars in terms of liquidity, whether it was through repurchase markets. Um, there, you know, we start, of course, bringing quantitative easing, you know, purchasing assets, ensuring that the financial institutions really stayed liquid because the worst thing that I think could have happened or could happen and we saw this in a way we saw it in 2001 is that liquidity needs to be there for a functioning or fully functioning financial system to remain working. It's important to remember this is not a financial crisis or didn't start of the financial crisis. It started with a health care issue, Um, or a health issue the pandemic. Covad, maintain what we know now today. So it's been fascinating to see how the interplay of the health or the pandemic and what it's done to the global population and what the policy responses have been thus far. And really to see how the markets react to everything you know, in the old days, they used to be
spk_0: 15:44
that,
spk_2: 15:45
you know, you get some good news out of the Fed, the market reacts and kind. Now you get, you know, bad news. The market tanks, you get good news. The market tanks. Um you know, yesterday I think was the first time that I had seen in quite a while you saw, you know, the equity markets really started to sell off, and then you also saw the bond market selling off meaning interest rates were higher for the first time in, you know, probably a week, seven days, 10 days. So I asked him, like friends from the trading world What was happening? And so all the financial markets, while they're really focused on cove it and what's happening from a slowdown perspective, they started to worry about inflation. They started. Count up How much of this, uh, monetary policy was really going to affect companies going forward. So, as an example, somebody had mentioned to me that, you know, if you look at just the quote unquote bailout efforts in the UK, that's 15% of GDP, 15% of GDP, right in the U. S. I think that that's closer to 6%.
spk_1: 16:52
Yeah, it's our GDP is like, I want to say, 13 trillion. So if it's 13 trillion, this one trillion would be seven, roughly 78%.
spk_2: 17:08
Yeah. So? So the net effect is that people are worried about so many different things. Um, and you know, the beauty, the irony, the the whatever you wanna call about the markets is you know, they're going to react together, and they're going to again react based on what different actions there are better there. So, to me, that's the That's the interesting part. Um, it might not be pretty from a personal asset perspective, But, you know, it's still a fascinating drama to watch unfold.
spk_1: 17:44
I was, you know, with this, I guess two things will think I got you know, I was just take back in the morning after the Fed made such a dramatic move on the Fed funds rate basically dropping into zero, which I don't think we've ever seen. Um, and announcing the quantitative easing plan and then to see the markets negatively react to that was just very unsettling. Um, yeah,
spk_2: 18:17
I think I think you know what you just said. Is that what the market's really felt? I think that the market's really had this this feeling of Oh, no, what? What do they know that we don't? And why is the stimulus so large? And to that extent, so what was meant to calm the markets spooked them. Um, and and now all the type of the interesting thing is all these moves are meant to stimulate growth or stimulate, you know, kind of this feeling of they're there to prevent contraction. Let's
spk_0: 18:50
let's put it
spk_2: 18:50
that way first off. But all of the things that will will solve or heal the health crisis are things that will actually, you know that that actually won't promote growth. They'll actually lead to contraction. So So you've got this push and pull of of forces that's out there, right? We need thio. We need thio. Get ahead of the you need to get out of the virus. We need to flatten the curves. And the financial markets were saying, Well, what are we gonna do about the financial markets?
spk_1: 19:21
Thea Other thing in terms of perspective, waas when we look at the trillion dollar proposal for fiscal stimulus that the White House ask of Congress against 48 hours ago, um, it reminded me it immediately of the troubled asset relief program of 2008 which was similar. Not so similar, but not the right word. But it was similar in the sense that it was again a fiscal stimulus that was offered by Congress. Thio really deal with emergency economic stabilization is that I'm looking at a website. I don't know all of this self start my head. Ah, the emergency Economic Stable eight Stabilization Act 2008 was what tarp was part of. And that was 700 billion 700 billion. So we are. We're 300 billion on top of the size of tarp. Um, and then you know what tarp? You know, just thinking about this now. The tar remember a lot of a fair enough amount of tarp, I think got paid back because that money went to What was it? Chrysler? Um, right. And then maybe Fannie Mae. Some of these different entities that needed the money and the bank so that that was the biggest part of it, right? I mean, the bank's each agreed to take on multiple billions of that money was equally then, you know, all the bases paid it back. I think the auto industry paid back what they borrowed. Plus with interest, um, et cetera. Um, but you know what they're issuing. I know not all the trillion dollars being paid out to individuals, but, um, let's I haven't seen that number, but I know it's in the hundreds of billions, but we're not gonna We're not gonna pay him back with with interest. Um, I don't know. What do you think about that?
spk_2: 21:30
Yeah, I think that, you know, if you think of two things Well, I thought I thought of a lot of things that the biggest difference again between now and 2008 was, um you know, one financial institutions I believe are in a much stronger position. Um, less leopard. I think that one of the one of the hallmarks of 2008 was that financial institutions, bank and non bank were highly lovebird. That led to issues when asset values started dropped and collateral calls started being made. We don't have that same issue, Nano. However, you know, banks make loans to companies and companies their assets, you know, again go back to a week ago that had to do with oil, right? So it had to do with the oil. Um uh, oil producers And how or the asset since they were pledging against those lines of credit for being effective, affected. You know, you think about, um, our GDP, us GDP. I think a little bit under 3/4 of it has generated my small business. And so there's this very big focus on how do we keep the small businesses running? So whether it's restaurant, whether it's, you know, boutiques mom and pops, um, you know, storefronts everywhere across the U. S. You're already starting to see or we're already starting to see the growing number of unemployment claims that are coming in as hospitality, restaurant food and beds are having to lay off. Um, you know these workers the you know, when you think of it from a big company side, all you see are the names like, um, you know, Fiat. You know, the the Fords, Chryslers, the GM of the world starting to close down production on autos For every one of those you may have, you know, 10 20 100 small firms or small companies s amis that are doing the same. You just don't read about them. So all of the stimulus that's being talked about or put out there, I think it's very well intended to help the small business. You know, like anything like any good plan. The question will come in the execution.
spk_1: 23:47
Um, cause he jump in here like, what's what's been your just as, ah, you know, a senior in college. You know, that's financially astute. And you know gonna be joining this industry, and to some degree or in some way, um, what what's been your would have been your thoughts or questions as you've been watching this unfold in the last
spk_0: 24:10
two weeks. I mean, I had a tragedy in collection. I have a ton of questions, but based on promises so far, I do have one pressing question. So Tommy broke 2008 and all the stimulus that was done back then. And if you also brought up, you know, the pull and push forces that are currently occurring. So my question is, you know, as defiance and when we're in the classrooms, we hear about 2008 and we hear about the horror stories. Do you think the detrimental impacts from this crisis will be as long term or will be short term? Given that the cause is unnecessarily a financial because but more for health concern?
spk_2: 24:51
Um, that's a great question. Cosy. I I don't know. I don't know the answer to that per se, but I do think that I do think that if we're able to get out in front of, um, you know the financial issues now that a V shaped recovery or a strong rebound could happen. But there are so many changing and moving parts that that happened, you know, if I think back to when Time and I talked a week in a week and change ago. Every day since then has been a different or, you know, very different type of landscape. So one of the things that will affect that recovery or that ability to recover, is the volatilities doing through that volatility or of volatility. Um, you know, smooths out, and not just financial market volatility, but everything else. If the volatilities smoothed out, then people are apt to make decisions. It's very difficult to make a decision that has lasting consequences when you don't know what's going to happen from the next day from one day to the next.
spk_0: 25:59
I think that's very concerning for students is, well, not knowing what's going to happen. And you brought up that point of unemployment. So for students looking to start their careers Oh, the point in time for many who haven't, you know, received offers dead or haven't re solidified anything. Do you think for those individuals will be a tough time? Or do you think that if we get on top of this and we work through this and create a state where it's more stable? That there will be more opportunities that will arise.
spk_2: 26:30
Yeah, I think that I think that the interesting thing between now and 2008 is that your generation is much more entrepreneurial. Um, you know, the I would say that Millennials and Jen Jen Zy get a get a hard knock in terms of they just don't work is hard. But every generation before you have said that about generations that come after them, What I will tell you is that the entrepreneurial spirit that that you and your generation have, um it's something that I know that I didn't see, uh, when I was, uh, your age and I would say that even 2008 we didn't have that because the trend at that point in time was to gravitate towards large employers the option of, you know, Well, what I'm gonna do it on my own or, you know, really contract out or, you know, do something that's more entrepreneurial minded or even in a smaller unit. It didn't really didn't really have much legs or as many legs. It does now, So I think that, you know, from an opportunity standpoint that there are a number of different opportunities that exists to overcome that. Um, now, I don't think that the keys to success have changed all that drastically. I think that, you know, it still takes a lot of hard work. It still takes a lot of hustle, Still takes you met working with people like Tommy and and leveraging their network. And their, um their resource is in order to find the opportunities. Because in the end of the day, it's it is finding those opportunities and leveraging them appropriately.
spk_1: 28:07
Tommy, I think, Um, okay, here's a few thoughts on the employment question for graduate. I do think it will be difficult to get a job. Um, for the rest of this calendar year in a larger corporation. Um, I think most off the larger corporations are gonna probably need to let some people go. Um, and they're not gonna be. And then, obviously, if they're having to contract and let post go, uh, help manage their financial circumstance, they're not, of course, going to be hiring. Um, and they're gonna They're probably people sitting right now. And every major corporations finance department running those scenarios right now, off. Like what? They're gonna need to do in terms of head count reduction in order to keep some modicum of profitability for their companies. And we're seeing that immediately in the hospitality industry and airline industry. I haven't read all the headlines this morning, but I know yesterday Marriott was announcing really substantial furloughs, like tens of thousands of people. Um, so I think the large for look large court that's going to the answer now, too, I guess. Echo your point, Jeff. I think this stimulus is gonna continue to provide some amazing opportunities for individuals to start businesses. Um, and these will, of course, be small businesses. And then there's Father er, great capabilities that exist help entrepreneurs start businesses. And you know, everything from cloud service is to incubators like the one that Georgia Tech that Jeff and I have been involved with, two just really substantial resource is that exist in all of our communities across America to help people start businesses and have a good opportunity to be successful. So I think my advice to a student that doesn't have a job that's got it. Any degree of entrepreneurial interest would be to say, you know, see what sort of capital you could get. That's gonna be maybe more really available through this stimulus and use that to employ yourself and creating a company, um, and and that those could be more easier or more clear near term opportunities. Um, life. Yeah. Then it's obviously a lot, lots of uncertainties. But I think it is gonna be tough from unemployment standpoint in the next 12 months.
spk_0: 31:22
There's a very good point. Yeah, yes,
spk_2: 31:28
it and not. Not not to beat a dead horse, but Tommy's, you know, to read every Tommy's point. If you think about the innovation that happened in intact, um you know, over the past since 2014 a lot of that innovation was born out of the challenges that that the financial crisis really brought to bear. As an example, lending club, uh, vanilla plot, he thought of Why is my credit card costing me 20%? Whatever the number ones and I only get 0% on savings. And that turned into why is there a whole swath of, um, people that don't have access to lower costs capital or lower cost buns? But you know, the net metrics margin that the banks were making and credit card products was 14 points, right or 20 points. So So the you know, there are opportunities that are out there and, you know, we talk a lot about focused. It cost a lot about looking at, you know, problems, problem solving. You know, it was that environment, that challenging environment that's really, um, prompted. You know what some of the creative thought that went into creating these new businesses?
spk_1: 32:41
Um, it's probably is we mentioned the word syntax again. It's probably a good time Thio pivot Theo conversation of it in that direction. So let's talk about what do we think will be the kind of impacts and engagement within tech? Um, in the midst of this substance of public health crisis, Um, the first. And I guess I'll get the ball rolling. Yeah, the one idea I mean, something that jumped in my mind is a soon as I heard Secretary munition talking about this, you know, we're gonna write checks to individual Americans. Thea. Other night, I was like, Holy cow. Um, but I was like, Okay, well, how we gonna get that money to those Americans and it's certainly writing a check is not the best answer me in a big way is a biased fintech professional. I think we'd all agree to that. So, um, but I could immediately begin to problem solve different ideas. I mean, we could, um you could approach our local company income, which has an entire payment dispersement network. Every retailer, they have an ability to create virtual prepaid gift cards. So could the government just fun gift cards and then pump him out virtually on the people's mobile phones. Um, could we, uh, have a way to engage been mope a powe Zell in Material Ways toe offer? A similar functionality were like pushing money directly from the from the treasury into individuals of bank accounts. So that was an immediate. And I know there's a lot of other great kind of payment deployment vehicles that we talk about under the topic. Kind of a financial inclusion. Right now, there's a local company instant immediate down, and I think Alabama that have capabilities of this nature that we've been talking to recently. Um, that was kind of one of the first ideas that popped into my head.
spk_2: 35:05
No, zey like I was thinking the same thing because immediately it's about the execution. Right? Um, and if I think about the consumer checks is one way. But how many? How many? You know, people actually have been to a physical bank branch to cash a paper check. Certainly there are mobile transmission methods as well. Or you can take a picture of the check and deposit it. The other thing was, you know, I thought about was, you know, we have, you know, people like income or companies like income, you know, the processors, the networks. But really, Then you started
spk_0: 35:39
to think
spk_2: 35:39
About what? What percentage of Americans has a credit card, and that's really, you know, probably a little over half, 50%. Take the survey that said, 183 million Americans have credit cards. So, you know, again, how do you hit that whole population of people that would that would benefit from the from the stimulus? The other thing. Then you start thinking about Okay, that's consumers. Now, what about you? No business is small. Business is how you get that money into
spk_1: 36:12
a small
spk_2: 36:13
business owners hand. And who is that small business Saturday? How did they qualify as a small business, right? Because the the number and types of different small businesses that are out there, um, they vary widely. And, you know, people have different ways of making their money, right? Um, you know, whether it's a consulting gig, whether it's, you know, there there may be, you know, temporary kind ofwork gig, economy, type of work that that happens. They're just a number of ways of transmission. And then also validation of, you know, is the right person getting the getting the access to this phone.
spk_1: 36:50
Glad you bought up all business because that just reminding me of a series of e mails I've seen from cabbage in the last 24 hours. So, um, so cabbage yesterday watched www dot helps small help small business dot com with the intention of supporting small businesses that have been financially impacted. And and I know Sam Toxic, who's runs all the global government relations for for Savage. He's, he's working and propose, have several proposals that he put put forward to Congress. Um, I think that could some more specifics around how the stimulus could be steered towards business, but it's ah, I think it's what's important it's important. Call out and you know it's there. A proud member of our technique, a system cabbage being headquartered here. So I'm really interested to see how cabbage efforts efforts evolved in that regard.
spk_2: 38:01
Yeah, I think Robin Katherine do some great things when it comes Thio just thinking outside the box and really hitting, cutting edge innovation and again, their commitment to community Is its corn on?
spk_1: 38:16
Um,
spk_2: 38:18
yeah, you know, going back to kind of that innovative type of thought or innovative thinking. There was a There is a small business that's in New York, a company called Sauce Pizzeria and one of the one of the gentleman that's very heavily involved there. Perry Ray Bar. He's founder and seal Devia one. Um, Perry was a commercial mortgage backed securities traders Bear Stearns. We've got to know him through several different people. And one of the neat thing that he did as well is that day. The small business sauce pizzeria is actually donating pizzas. The hospital ers um, it's fascinating because if you think about, you know, this is a small business in an industry that's likely to get, you know, hit pretty hard. There actually doing something really positive and helping, you know, those first responders that are out there. And so they set up, um, you know, an option or a way for people to actually donate, Um, you know, to then turn that into, you know, meals that could be served to the first responders that are being inundated, you know, at places like, you know, Cedar, Sinai and New York. While so you know that alone, like, goes back to the innovative thought. You know, that's there. Nothing complicated, nothing complex, really simple. But it's, you know, helping a community
spk_1: 39:41
cosy. One of you's got some as we based on, based on kind of how you view comtech in your in your studies or personal experiences. You
spk_0: 39:54
know, as a broke college in, we would love those $1000 checks, especially Ben. No, because you can just send to people and pay the expenses. But, you know, given that we are disappointed and have a lot of free time right now, many of us find ourselves on Amazon or on other online shopping channels, you know, buying things you don't need just to kill time with the other individuals right now. we're going to the same thing. Even groceries. We started order groceries online because it's easier than going stores and dealing with that. My question is, with this influx of transactions online, do you think the fintech company payments company specifically, we have a handle that attraction. Moreover, you know, are there any risk factors associated with this increased engagement online?
spk_1: 40:43
Um, I'm not worried at all. And the ability, um, off the payments coming is to handle the volume. Um, you got to remember, you know, on on on every year on on Thanksgiving. Sorry, black. Whatever we call that black Friday, um, those networks and capabilities go upto like massive scale. I mean, handle the volume of ah of, ah, you know, the huge amount of spin that occurs on a day like that every year in the U. S. And and? And they and those networks are configured to be able to run it scale, plus another 15 50 plus maybe even 100%. I'll be on the on that level. So I think they'll really we won't have any trouble from that regard. The other thing. I was just trying to see if I could pull it up with is like, I've lost track a little bit. Of what? Percentage of payment transactions, Our e commerce versus brick and mortar and stored. Um, I don't think like on a normal day. Um, I think that in in instant or brick and mortar, what is still well above the majority of the payment transactions? Um, versus he calm. And so, you know, we know that the of course, because less people are going out. Really? No one's going out. No one's, you know, swiping swiping cards at stores right now. Um, and so that transaction volumes going down while he come? What, we coming up a little bit? Yeah, well, I'm not worried about that.
spk_2: 42:43
Yeah, Tommy, I was just kind of looking at that up. I was acting as your color commentator here. E commerce to brick and mortar is roughly, you know, 1/10 of, um in terms of sales volume. Um, you know, from 16 17 I think that e commerce sales waas roughly 453 billion vs 1,000,003,000. 33.43 billion are 3043 billion in 17. So? So from a magnitude perspective of order, of magnitude. Perspective, brick and mortars way out, ways it and then from a transactions. Um, you know, Visa. One of the things that they point to is that they can actually cross the 1700 transactions per second. All right,
spk_1: 43:29
so yeah. So
spk_2: 43:32
from a jail facility, 10 point a big making handle, the transactions, and from a violent perspective, I think that the potential is there that they're actually facing lower volumes.
spk_1: 43:43
I'm glad you're spending across you and your friends. Uh, and I was thinking the same thing, like back when we were talking about GDP, like 70% of the GDP is consumer spending in the United States. And, I mean, which is a stat. That's amazing. But it also scares the hell out of me right now, knowing that the heat GDP is so heavily dependent on consumer spending. So in some ways, like, what's the most patriotic thing to do right now, it's to get on Amazon. It's your credit card, out and Beiste. Some some can say,
spk_2: 44:20
What are they? One of the things that I think that payment companies are trying to figure out is, you know, again, whether it's e commerce or different ways. I think that, you know, one of the most interesting evolution that have come out and we haven't seen it as much in the U. S. Is contact with payments. Um, you know, one of the one of my co workers was saying that, you know, there was a one of the restaurants or one of the stores in the area. They weren't taking swipes or chip and pin right now, what they were doing was it was all contact with payments just to avoid the spread, Uh, from having to touch, you know, the different point of sale systems that was there. I thought
spk_1: 44:56
that was fascinating. Yeah, there was. I saw something with similar that where it was like, Could Corona virus get transmitted on a credit card piece of plastic? Coming part of me was like, Give me a break. I mean, this is you know, you need turkey. Okay, maybe, but, you know, that's gonna be the if someone, you're you shouldn't be close to people. That's the big Yeah,
spk_2: 45:23
I wouldn't worry so much about the credit card, but I would, you know, think about that point of sale
spk_1: 45:32
Oh, well, um, we should probably start wrapping up. Although I know we could sit here and come up with some great additional ideas. Um, e um you know, a few thoughts as well as we're closing out on one thing was that despite all of this, well, that's been happening in the midst of a crisis over the last several weeks, we've seems pretty remarkable news from the fin tech sector in terms of major deal announcements the most the biggest, most remarkable to me that really caught me a bit by surprise was backed B A Take a T, which is a local Atlanta company. Um, announced a series B round of $300 million. Um, they if you're not familiar with that, they launched about six months ago a a capital markets trading exchange where whole whole Bitcoin is traded between institutions and one of the principal investors and backed and really kind of execution. Partner to bat is the Intercontinental Exchange, which also owns the New York Stock Exchange, part of a key part of our Atlanta financialservices technology community. So, um, 300 billion is a big Siri's be raise huge. Their series a was done in December of 2018. So not that long ago. A year on a corner ago, Uh, that that Siri's a was a 182 million. And they've got, um, BCG, um our box, I think, Um, I her soft, huh? Boston Boston goes through. I mentioned the empty digital patera Capital Goldfinch Partners and kind of final exchange all women on this most recent Syrians be round. So, um, that was huge news in his own right. But they also announced to two days ago that they were doing their launching a direct payment business with Starbucks, which I've been waiting Thio kind of here a little bit more about Starbucks was one of the initial investors in the series around. So there was always the speculation that there was going to be some payment related, um, use case or capability. That fact was gonna create beyond their institutional trading platform for Bitcoin. So I don't know much more about that, except that its payments related and involve Starbucks, which, which many many will remember was it was her boxes, uh, smart car program. What we call that the smart, the wallet, this Starbucks wallet they really helped put it Jump start on mobile payments at point of sale. Um, I guess over 10 years ago. Now, Um, so that was pretty amazing news. Um, and I know you saw some news that struck you, Jeff? Yeah,
spk_2: 48:55
this morning or last night. One of the Georgia Fintech communities. Hugest supporters. Nandan, Chef, Over, uh, Fiserv. He announced that they actually close the transaction where Fiserv acquired an early stage company. Um, hold on one second. Sorry about that. Headed on, all keyed up, but by serve, they actually closed an early stage round with a mobile payments company called Bypassed. Um, and I thought that there were a couple of interesting aspect to that one. You know, for the acquisition to close in the face of, um, you know, a challenging market. I think it says a lot about, you know, the company's commitment to innovation. Commitment to, um, been thinking too. Kept their words right. It would be really easy. We've seen stories in the last, um, you know, a few days of deals that were, you know, signed previously, and you know investors backing away. If you think about Softbank and we work you think about a lot of different spaces? The fact that if I serve actually closed in the middle of everything that's happening, I think it just takes a lot of courage and commitment. So kudos Thio Landon to Pfizer than congratulations to bypass.
spk_1: 50:17
Yeah. Yeah. Cool. Yeah, and, yeah, go ahead.
spk_2: 50:23
I was just gonna say, And prior to that, right before all this happened, there was a UK based company called Rebel Oot. They had announced a $500 million around. And I guess you know, the big takeaway is, you know, as I was talking to one of our early stage founders, fintech founders in our ecosystem. You know, we had this discussion about, you know, the market and what's happening. And you can't control a lot of that. However, you know, some of the luck in the timing, you know, having been able to close some of these grounds. I think it's fortuitous one, and secondly, it kind of highlights. Hey, you know, if you can keep your capital picture your liquidity, um, you know, pick your clear. I think it gives a lot of these companies a lot of options. So I think that you know, Providence pay plays a big part that prepared this place. The other.
spk_1: 51:17
Yeah, well, I want to thank you both for joining me today for our third episode of the Georgia Think Academy podcast. Cosy. Um, congratulations again to you. I'm sorry. Go. Well, the last days of your school year have been so, um, so dramatic. Um, you will clearly, I think, remember this always. It's you. Sorry to tell you before. And then, um you know, cosy will, of course, want you to come back on and talk to us again. Maybe in the fall is you're getting started to eat. Why? Because we want to hear more about how things were going. Um, absolutely. Things progress. And then, uh, you ask. Thank you so much for your insights and conversation today. It's great to have you engaged with the Georgia Fintech Academy to have prime revenue engaged with the Georgia 10th Academy. Um and we want youto come back on us. Well, soon.
spk_2: 52:24
Thank you for the invite, Tommy. I appreciate it. Anything that I could do, Thio, you know, help out in that effort. I love it. I love what you're doing there and cosy. Congratulations to you. And best of luck is you start your new career. Always think outside the box and innovate for him.
spk_1: 52:43
Well, do you really think you both eso se stay in tune with Georgia? Frantic Got me through our website www dot George Different Academy dot or GE and follow us on LinkedIn Georgia Fintech Academy and that most importantly, stay safe, stay healthy, practice social distancing and watch your hands take care and we'll talk to you in our next episode, which would be will be coming up soon. Thanks, bye.
spk_0: 53:13
The Georgia Fintech Academy podcasts are available on iTunes and Spotify. To obtain additional information about the Georgia Fintech Academy, please visit our website at Georgia fintech academy dot org's.