Episode 9: We are all learning new fintech behaviors. Andrew Morris, former Chief Content Officer of Money2020 with Diana Conde, Kennesaw State University senior

Andrew Morris, the former Chief Content Officer of Money2020, and founder of the Fintech Agenda is joined by Diana Conde a senior at Kennesaw Sate University with a focus in Accounting and Finance. This discussion explores the new fintech behaviors we have now all learned including digital banking, contactless payments, and others. 

Georgia Fintech Academy
https://www.georgiafintechacademy.org/

LinkedIn (Georgia Fintech Academy)
https://www.linkedin.com/company/georgia-fintech-academy/

Transcript

spk_0:   0:06
Welcome to the Georgia Fintech Academy podcast. The Georgia Fintech Academy is a cooperation 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 fintech sector. Bye, everybody. This is Tommy Marshall, the executive director of the Georgia Fintech Academy. Welcome back to our frequent listeners. And if your new listener thanks for joining us, this is the new episode of the Georgia Fintech Academy podcast. We're excited to have you back. Um, we're on a weekly cadence now, and this is our ninth episode today. I have two guests with me that I'm super excited about Andrew Morris of the Fintech Agenda and Diana Conde of and it's all State University. Oh, we're going to spend some time, um, getting into some conversation today about, uh, different key fintech topics in the world today. And then we'll give you a sense of kind of big news items as well that we've heard. So in terms of introductions, Andrew Morris tell us about you. Well,

spk_1:   1:32
you know, I was born a very long time ago. Tell me um, So, first of all, thank you for having me on your podcast. I'm a big fan of everything that, uh, you're doing it the fintech academy, and we're doing some work together on the professional education aspect of that. Excited to do that, but a month background. I've been in Atlanta for a little over 20 years, which is probably how old our other guests things for about 20 years. And which means I came to Atlanta, Um, in about 1998 1999. So that is the sort of wind the Internet was maturing as a thing that was going to impact the way that we did business. And years ago, when I was an undergrad student, I was a computer science major and economics major on. I wanted to be a banker, but I had an internship at IBM and IBM was gonna pay me more than the banks we're gonna pay me And I went to work at IBM, ended up starting my career in technology, and so, um, very was just moving to Atlanta with my then fiancee, now wife. It was getting urine be day at Emory and all of her classes were talking about e commerce, and, um, I had done some marketing in my career. I had some technology in my background, and I have this thing of Hey, I think I want to be a banker Still lingering. And so I audited many of her classes and hurt the guest speakers. Business leaders in Atlanta were pioneering the Internet and so forth, uh, or businesses on top of the Internet, like Charles Brewer, MindSpring and those kind folks. And I educated myself about e commerce, and I had worked before. He came to Atlanta for an insurance company in their internal consulting room. And so my first big job in Atlanta was for another insurance company, Prudential, that actually owned bank credential. Bank and Trust is a thrift chartered bank. And what was interesting about Prudential Bank is that they didn't have any branches. Um, they were. Their distribution was through the Prudential Securities Unnatural Advisors and through the agents on some executives had come to the potential from chase and decided the issue credit cards and have banking products. And but so doesn't. It was a branch less bank, but at the time they didn't have AH website right we think of that's crazy, a bank without a website. But it was new, right? So my first job in Atlanta was the vice president of Internet development for Prudential's bank to take this branch less bank that was using phone and the agents and direct mail tea service their customers and build a website and Internet banking capability. And at the time in Atlanta, some of the first Internet banks were starting, so that was exciting. NetBank, NetBank, Security 1st 1st Network baked right? So that was so. I was in the middle of all that, and I was there for three years and built an Internet banking platform for Prudential. We were ready to start servicing customers. And why are customers onto that? And what CO. Via Securities bought Prudential Securities and we shut down the bank so like this package and had to figure out what to do next in terms of career ended up going to work in consulting for a company called Anchor Done and Company Payments, Industry still is around. Banker Done Payments Industry Consulting Management, consulting clients for MasterCard and PayPal. First Data, which is an Atlanta company, and I did work why was advising clients around, uh, online bill payments around rewards and loyalty programs? Um, some of the early Internet banking and mobile payments type work. I was there for about three years, and then I left. And, um, I started my own independent consultancy, decided to strike right, get out on my own and started Morris, uh, Morris Advisors into the same type of consulting, but did it as an independent consultant for about five years and working now a little bit more with retailers because they were trying to figure out what mobile meant for them and what mobile payments meant for them and also did some consulting work for a couple of other firms. It was management consulting about 10 years. That gets us up to about 2012. And as against something you attend a lot of conferences and, uh, to go learn and to make connections and to do business. Um, so I saw advertisement of four. This conference conference called Money 2020 and what was interesting about it is a Google was the sponsor for a payments conference, so in 2012 that was unusual. His payments meant banks his payment processors and decent MasterCard. It didn't mean Silicon Valley or start ups or investors or Google. Um, at least not yet. And so I went to that conference and thought it was really interesting. And there were a lot of great start ups there and CEOs of those companies. And it was the first place I've been where digital transformation of payments was really being explored with all of the key stakeholders that we're gonna make that happen. Um, from Silicon Valley to the big banks and start ups and everywhere in between. And so the next year, I decided I should try to speak at the conference, and I sent in a proposal and it was accepted. I moderated a panel with some of my clients talking about retail and mobile payments, and I met the founders of the event, and one thing led to another, and I ended up leaving consulting enjoining and her team as the head of content for money. 2020. So this is conference. It had hundreds of speakers and hundreds of hours of content. It takes a full year to put all that together. And I'm doing this team of 10 or 12 people and help grow This conference that went from 2000 people the first year, 4000 Next. And then there were 8000 people that came. We added events in Europe and in Asia, and my role was chief content officer. So I was exciting about that. Is, as a consultant, you, um you have to specialize in one part of the industry and deep expertise. As the head of content, you get to look at the things more broadly on, and I get to learn about a lot of new things and all the creativity. So I sort of transition from consulting into events and content and that type of thing. And I've been doing that for the last six or seven years of my career. It was at money 2020 for five years left and started my current consultancy, Uh uh about a year ago and now working with other organizations that do events. But my journey went from I want to be a banker. I think that I'm now I'm at IBM Teoh. I'm actually working at a bank to consulting and then now doing events that serve at industry.

spk_0:   9:32
I love that Thea, it's it's, you know, you think about this word Fintech? Um I mean, certainly everything you just described. Ah, kind of fits under that banner, but it's not a word that was I know wasn't part of my, uh, my diction until, you know, whatever. Four or five years ago, right, Let's go.

spk_1:   9:57
Like I got my first job after the financial bank was that were done. I didn't know that there was a payments industry. I mean, what is the payments industry? I didn't know that was an industry.

spk_0:   10:11
The other thing. I mean, you know, you'll have to excuse us here for a minute. And a the in 1998 when you were doing that Prudential Bank, um, Internet play. I was putting American Express into the Internet banking business we launched. We launched a division for them called Membership Bank in 1999. And it was you remember? It was like all the rage is kind of like the neo bank stuff now, but it was Wingspanbank was launched. I think that was being driven by case. But they were using a different brand

spk_1:   10:57
whenever one was projecting that there would be It's the death of the bank branch you're gonna have. Oh, yeah. We won't have bank branches anymore on. We're just going to do this Internet thing. Listen, 21 was tryingto make it way more complicated than it needed to be. Right. We're gonna have charts and graphs on our phones off how our bank balance fluctuates day to day and all this crazy stuff. All

spk_0:   11:24
right. Are you with us long enough? Um, how? Tell us about you. You are much more interesting.

spk_2:   11:31
Uh, thanks. Told me and thank you so much for having me. I appreciate the opportunity. Um, Diana, I'm a senior student. Old majoring in accounting and finance Canister State University. I am a senior analyst at the case used to the Managed Investment Fund, and I recently joined the Fintech Academy. It's doing Advisory council, and there are really two reasons why I got interested in Fintech. One of the reasons is because of the is because of day still managed investment fund. When I joined, I learned about all the websites and applications and ah that are available to get the company's financial information. And what he got my attention, Waas Well, that is life ideology. That able to give you part of full of recommendations based on algorithms. So that got my attention and then tell the re song is more off the online banking side because I was born and raised in Venezuela, our country that is going to a hirsche economy crisis right now. And in 2014 we had as shortish off cash in credit card machines. So I remember that a lot of times I was in a mole or at the beach and I wanted to process, uh, a product and I didn't have any cash on me. And the business didn't have a crate cash machine, so I couldn't make my precious. So I always don't die. There must be another way of making payments. And when I moved to the US five years ago, I found out about APS like Ben Mo and so and cash job and Alice, I think is so easy. So I wanted to learn more about the Fintech, and I'm actually gonna going to take commercial banking and fintech during the summer. So I'm excited to honor more. That's my story.

spk_0:   13:56
Well, it is great to have you here and appreciate looking further hearing mawr of your your perspective. Uh, I know another thing that you're being modest about is the fact that you are a remarkable student. Um, I have seen that you've got significant some of significant accomplishments on your resume in terms of Beta Gamma Sigma Business Honor Society. So just a huge congrats to you in your career at Kennesaw and thank you for joining and being part of our student advisory council. Um, it's just ah, great group and one that I rely on deeply for guidance and feedback on what we're doing with the with the Georgia Fintech Academy. Thank you. So let's see. So I had challenged you both in as we were preparing for this discussion around, like, what are the big in tech, uh, topics out in the world? And I was I was leaning hard into you in particular, Andrew, because I know you've been very busy. Um, really. I mean, you've been busy for the last, you know, 12 months on, you know, on a variety of different tin tech conferences. But just what's been remarkable in the last month or so has been the surge of virtual fintech conferences of really some significant scale. And I know you're You sit in a very unique position in the industry and really having a sense of like knowing what folks want to talk about or hear about that these conferences. So, um, you know what? What's been the kind of most remarkable topic that's caught your attention? Or that you've been reducing reducing conference material around in the last couple

spk_1:   16:08
months? Sure, sure. So I mean the you know, the elephant in the room for everyone is run a virus and covert 19 and how it's changing. You know almost everything about how we live our life, and and there's a tremendous impact there for Fintech. Um, and it's a tough economic time, and it was a financial crisis wrapped up in a public health crisis. But there's also opportunities there that fintech companies are taking advantage of them. It's helping some companies actually grow their business in the notion that I think is really interesting is how, um, been kind of think of the whole world together because we're all going through this together, forming new habits. You know about how we live our lives, the way that we bank the way that way shop the way that we make payments the way that we work and in my space that we don't go to conferences and get on planes and travel the meetings. We have to do that. Actually, now And, uh, what is that going to mean? Long term for or fintech And for fintech companies, Pretty interesting back in development. And I hope the plan this big event we called the quarantine summit recently. What we were we pulled together 75 different CEOs and founders in the fintech world beyond various virtual sessions and talk about what the impact would be. And this whole idea of the world just formed a habit was a theme that we talked a lot about. But, you know, the the other thing is, um and I'd love to get my honest thoughts on this other aspect is sometimes when we think about generations like Gen. X and Gen y and Baby Boomers and now Jin Z, that there'll be some big societal event that will define that generation. I think we're hearing a lot about how maybe over 19 is that big event for Gen Z um, that impacts the world. You and, um so I don't know. Diana, do you feel like this changes your life? It changes mine because I had to catch a wonder. How do you zoom? But

spk_0:   18:41
as its Jangers works,

spk_2:   18:43
Yes, Um, is definately going to him by my whole life. But what is no changing for me is the way I do shopping and the way I do banks. That's no attending idol. I usually being toe I have been to a bank twice. 12 innovate, counting boy. And you're waiting your whole life my whole life

spk_1:   19:12
alive twice.

spk_2:   19:14
Yes, Wakanda

spk_1:   19:16
Bank, like twice a week. Her twice a day or whatever.

spk_2:   19:21
That's because I needed to go a bank and Colin. But I usually shop on Amazon, Does my fresh Oh, does my first choice for shopping. And every time I have a check I deposited Oh, my up. Um so it doesn't really changing for me. What is really going to make a difference right now is the professional world. I can say Assad rising Senior, that I'm going to Broadway in December. A war force is going to be the friends. Um, a lot of people have. Those are job, and it's going to be more difficult to get a job when we got away. So we have to adapt and their new skills to be able to get into the forest. So does the baking part and also assess the John generations. We really may say in our friends, our families So that's it.

spk_0:   20:28
I mean one, maybe one ray of hope. We'll see how this plays out is that many of us in this fintech industry have said that the industry is largely recession proof on the reason we've said that is because the industry, by and large it remarkably well through the last recession. And even though that recession was created by is a do toe the financial services, some product issues and products services in the industry, Fintech performed quite well. Most of the companies involved with it grew some substantially. And, um, and then there's been a sense that even through previous recessions, financial services is that industry as, um relatively well, so you know, I think the early indications are that that's gonna hold true, even with this very significant recession working experience over the next probably year. So, um, I know from, ah, hiring standpoint my phone. If the Georgia Fintech Academy is ringing often and the folks that are asking for help with hiring are typically the banks. Banks are kind of we've got, We need people. We need people. Yeah, and you know, the banks all Are there an essential service? They've remained open through this thing, but there's also amazing amount of change going on in the banks that's driven by technology. It's what will call digital transformations going on. And there's a need for really smart people like yourself that understand, um, Fintech to get involved in their businesses and support them.

spk_1:   22:30
Tell me you could you could even go a step further. I mean, we talked about Finn tacked back, you know, in 1998 and 2000 with digital banks, but the sort of more modern wave of what we think of this fintech it really launched by the financial crisis in 2000 and eight. Uh, this convergence off smartphones being available, launch of the iPhone, um, technology being available to build on, and then consumers thinking maybe a little differently about traditional banks and you know where they would get their financial services. Make me more open to try some new entrance. You know, when they're doing banking doesn't have to be the big stone building on Wall Street to do to be a bank. And you can launch the whole wave of Fintech and Europe, The U. S. Um and then so that's the financial crisis part of it. But then the the quarantine part of it is, it forces everyone to do business digitally. Right? And that's what in tech is about. Um, so actually

spk_0:   23:45
these these things you call about in terms of this whole idea of were forming inhabits in the in the face of this so increased digital banking enrollments. No, no. Real impact to Diana. There she was already all over digital banking, increased adoption of contact lists and mobile payments. That's Google pay up. Okay. You know, the f I. D. I did want to ask you about this day and, like, tell it like when you pay. You had these great anecdotes you were telling us about how your experience of Venezuelan and coming at the U S. And Venmo and what not? Um, like, uh, if you're if you're going into a store and you need to pay how? Tell us how you do that. What what do you do?

spk_2:   24:36
It depends on the story. If they are, said a pope a although up obey. And if they don't always do a Derek I I can say that I don't keep Morton $20 in cash with me. So he's definitely through debit cards or Alpo paints. And that's in there. Any I just read the last week a Publix, the grocery store. They are accepting up obey right now, and that's actually the freeze grocery store to us set up obey. And what is in the thing is that that was my first choice. What I can say that I know some baby boomers, and they asked me, Oh, how do I set up a base? What is this? I don't want to give my my name. My debit and credit card information. He's a secure

spk_0:   25:36
right. Well, this this hard

spk_1:   25:39
have to touch. You don't have to touch, but I want to worry about their health. Right. So, mobile payment, the

spk_0:   25:47
contact list payments has really been increasing significantly. Um, in fact, just yesterday, Bloomberg, um, had an article talking about the rise in contact and our friend at, Ah, Richard Chrome Andrew at Chrome Consulting. Um, they, uh, they were quoting him, and he'd been pulling some stats around saying that contact less payments will likely grab another 10 to 20% of all transactions at stores and GM's don't forget the A t m's. Um, and, of course, the PayPal Venmo Zell offerings are gonna improve as well. Um, so I think there's There's also some really interesting research that's going on at the University of Georgia in Athens. Um, around contact was payments that that's been getting some attention as well. So,

spk_1:   26:51
you know, it's so interesting to hear what Diana was saying about about Venezuela. Right? And some of the basic kind of infrastructure around payments that we take for granted. Maybe an are developed U. S economy. Yeah, I don't exist everywhere in the world, and so we kind of go unnoticed. Um, but I thought that was an interesting anecdotal. You shared Diana.

spk_0:   27:20
Thank you. Yeah. And then I guess toe pull that through a little bit more. I mean, is theirs. And we talked about this on some previous episodes. Is this thing's demographic core? Thatcher in Diana which is referred to as Jim Z. So you're kind of the old, the oldest of the Gym Z or the tip of the spear for that cohort. Um, but I wanted to call out because American banker Penny Crossman, lead editor there she hosted Julia Carry on from Wells Fargo to talk about in Julia's and Gen. Z expert for Wells Fargo and fans just in the out in the in the World as well. And she was referring to stats related to Gen Z that were some new news to me. One was. Agencies now makes up 30% of the population in the United States as $3 trillion in purchasing power as, of course, influence over their parents purchasing decision making. Um, that 60% want to change the world, so there's a real focus around being socially conscious. And I'd ask Diana, I'd asked you earlier. You know, there's this resident, Does this make sense to you? And what was your answer? It

spk_2:   28:48
does make sense. Um, I do believe that we are a generation that is trying to shame the world, were more environmentally conscious about what we consume less plastic and all of that and there isn't white. We influence our friends is because some of our parents, they don't even know about Amazon. Or, for example, I was soaking to my dad about Robin Hood. So these, um these new time you the ups and in commerce that I really changing that is really are a way of doing is thes for our generation being only, um, going to mole ups as that's our normal. What we are doing also is 10. You are, baroness perspective. The way of bushes. Yeah, I name some Not is to go their way to do shopping.

spk_0:   30:04
Yes, exactly. Right. And I can I relate? I mean, we were, um, life and I were helping Are her parents learn how to order groceries on its the cart about a month ago, and now you know, they get it. That's how they're ordering the rosaries. And so I can imagine now that they could become more confident in using the mobile phone for other bombers related transactions.

spk_1:   30:33
You know, Tommy, think that we're talking a lot about careers and the good news for the Gin Z's that want to change the world is that there can do that within tech. Um, and there's a whole base that's in tech for social good, right? And it's really becoming very evident during the pandemic. Some of the things that pin text her doing the step up and support give you a couple examples from Atlanta based company. So one is a company called Study. Uh, the founder is Adam Roseman. Shaquille O Neal Is there a very high profile and very large investor and spokesperson? But Steady is a gig economy platform that allows people to find work, flexible work and then integrates all of that into a platform. The manager of payroll help the manage their finances, and they're providing jobs for people when jobs are scarce there helping with some emergency cash grants. Kind of a a little money to get you by, um, they're even doing benefits like telemedicine, support for their members and come on a really interesting things. And then another Atlanta company is cabbage. And there's been a lot of the news of all businesses are suffering through this this time, and it's been a tough time for cabbage was a business they've had going through some financial challenges of their own. But even in the midst of that are helping to step up to provide, uh, to facilitate the S B A loans that that can help employees that small businesses continue to get paid. Um, and so, you know, if it is an area where you can really make a difference in the world, Um so, Diana girl, you're in the right spot

spk_0:   32:26
has a great examples. Let's move towards talking about kind of notable news worthy, um, tidbits or items of the last week. The one that jumped out at me was Akkadian out of news in the Netherlands or the Kingdom of the Netherlands. Um, they reported their first quarter revenue of around 135 million euros, which is roughly, um, 150 million or so U S dollars, and that was a 34% increase from the same quarter of the of the previous year. Um, Audie in I know is familiar to you, Diana, as the company that supports all payments for Spotify, uh, and and eBay, uh, and many other e commerce related entities around the world. So, you know, just another testament to this kind of strong growth of um, trying payments. Um, And then what about you, Andrew? Winning news that jumped out at you in the past. Well,

spk_1:   33:46
I mean, it is the same one quick thing on a naughty and And I've got another example we can talk about, but it makes sense that, you know, things quarantine, right? That would be doing more shopping online. And maybe some consumers like to Anna. That was already shopping that way. But the interesting thing will be when this is over, as the base grown right, Is it just related to the time or end growth? Or will it? And I tend to think going back to the world just formed a habit idea. I think that our habits have changed, and they will see that the base, uh, of e commerce has taken a leap That doesn't, you know, back to the way it was before. Um, and that's pretty interesting out of that news. Tell me. I think you may have the article, Andy, but there was an interesting news about about Betterment Launch, which is a robo advisor. It's a investment plan for him. Not in the past, has not been a banking platform, but they're starting to expand what they do and get into you. Checking and savings account and all for banking services.

spk_0:   35:03
Yeah, that was cool. Um, and then, Diana, how about you? What's caught your attention in the past week?

spk_2:   35:09
Um, but we she's, uh, um up that is going to lunch in the summer. Um, they used it apart, and she will start book. So do where do are going to be able to go toe dress terrible's coffee shop and pay. We'd your fun with use and, you know, asset. I think right now they're only thinking about Bitcoin because it's the largest one. But I think this is interesting because I see a lot off people from our generation paying with Bitcoin. And the fact that such a big company as start books is allowing to is allowing thes upto to help them make payments is really interesting.

spk_0:   36:06
Yeah, it's a great call Out. Backed is super exciting company. It's was essentially born out of intercontinental exchange in Atlanta and and has major funding from inner inner continents change but has also raised additional funds. In fact, I think they just closed like 300 million plus series B round of funding recently. And you know when you think about that, together with bit pay, which is, I think, around the 10 year old company that does Merchant acquiring a Bitcoin payments and is based here in Georgia. Um, you know, we've got a long history of being the center of payments, payments, payments, processing, transaction processing, and that's going to continue. And it looks like we're getting into a dominant position as well. It lead nationally in terms of handling of digital payment digital currencies, for additionally, which I thinks really exciting. And it also reminds me that the technology Association Georgia launched yesterday there Blockchain society. So if any of you is listeners are interested in that, is it the Technology Association? Well, we have reached the limit of our time. Andrew, Thanks so much for being with us, Diana. It has just been great to have you as a guest. Thanks again for being part of the student advisory committee for the Doors of Fintech Academy. And I look forward to having you both back again soon.

spk_1:   37:50
Thank you, Tommy. Thank you. Enjoyed it. And it was great, uh, being on the blood gas with you. Thank

spk_0:   37:57
you. 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.