Leaders in Lending
Leaders in Lending

Episode · 3 months ago

The Rise of Cloud Core Banking Systems

ABOUT THIS EPISODE

In a digital world, legacy core banking systems just aren’t allowing banks to meet the demands of the modern customer. With the rise of digital banking, cloud core banking systems are entering the picture.


Tyler Craft, SVP, Head of VirtualBank & Fintech at First Horizon Bank, shares why his team decided to transition the VirtualBank brand to a cloud core system and how the lessons from that experiment are transferred across the larger First Horizon ecosystem.

Tyler heads VirtualBank, a digital-only division of First Horizon Bank. First Horizon Bank has been around since 1864 and its mission is to provide the best service to its customers, one opportunity at a time.

We discuss:

- The process of transitioning VirtualBank to cloud core

- Why VirtualBank remained a separate brand

- The thought process behind new products to VirtualBank

- Insight into a bank’s fintech strategy

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Getting more smart people engaged inthe process that are going to care a lot about the well being of our clientsand in the industry, and that kind of thing: that's, that's really, guy you are listening to leaders andlending from upstart a podcast dedicated to helping consumer lenders,grow their programs and improve their product of francs e, hear decisionmakers and the fines and to straight offer insights into the future of thelending industry, Best Practices around digital transformation. Let's get into the show, welcome to leaders in lending I'm yourhost Jeff Kellner this week, we're featuring my conversation with tylercraft, who leads the virtual bank and Fintech at first Horizon Bank. I thinkit's a really interesting conversation. We talk through some of our first rises,doing and standing up virtual bank, which is an all digital bank, reallyactually not standing up as much as growing that brand, and I think it's afastning discussion of how they're doing that why they choose to go downthat path and some lessons you can learn also a little bit about some ofwhat tyler seeing in Fintech and the way they approach that space, which isa pretty unique approach and finally, some career and my man, I say lifeadvice from from Tyler- that I think, is something I'll be taking to hard andhoping to do a little bit better job of in the future. So a lot of greattidbits for you. I hope you enjoy the conversation, hey tyler thanks so muchfor joining us to stay on the podcast awesome. I'm excited to be here. Youknow I was really interested in this conversation. I know we've had it onthe books for a while, but you guys have taken an interesting approach tothe digital transition. In terms of, I think what you're calling virtual bankI'd love to hear a little bit about the story of what you guys are doing inthat vein, and why? Because I think it's quite different than what othersin the space are doing, and I think it's a really fascinating approach.Yeah, I'm happy to talk about that and if you're right, it is an excitingthing that we're doing it's a little bit different if an approach and it'ssomething that we're pumped about where it's going to take us as a company,potentially so virtual bank, just to sort of set a little bit of ground workhere now is a brand. It's a division of First Horizon Bank early part of thebank, just a separate brand designed to be an online only brand virtual Bancois the website for that, and it's actually a brand that has been aroundfor over two decades, and so it started as its own independent bank calledVirtual Bank and through a series of murders and all sorts of things along.The way eventually landed with a Beria Bank which is merging the first ride.In is leg legally merged, with first cries in two thousand and twenty andtwo thousand and twenty one work doing the conversion of that mode. So westarted off with this opportunity by virtue of America and in two thousandand twenty around the time that we were finishing up our legal murder ingetting ready for the new organization to kick off. We looked at virtual bank.I knew that we had some ideas on our road maps at first horizon and theIberia Bank was also Anitoo. These things for long term around looking innew course, looking at new capabilities, moving things into the cloud riding ona piver than rails versus more etl like what is that? What is thatmodernization? Dont look like over time and we kind of had the realization.Well, we can convert virtual bank to the same cores. Everything else or wecan take advantage of the opportunity- is a narrower scope of product specificset has to want, expect to interact with US digitally a pretty much only wedon't have branches reversal banks with the digital ecosystem. So let's takeadvantage of that opportunity and the necessity of a conversion and go lookat doing some. Some modernization there now rappid and what we did in thatprocess is assessed the field of players andtalked to a lot different people and then did a conversion of virtual bankthat we successfully did in July, W Thad and twenty one in Very Gorful Bankto a Cloud Corp. I, which is insect, which may people are probably a...

Pilas Service layer called Savannah,which really integrates well with insect and then new online bankingonline account opening website tool called Akato, which also has interactedwith that that ecosystem in path and converted our clients on to it. There'sa litany of other pieces to the puzzle. A there are also parts of this. Theyare helping with every different item processing to ach money, movement todeposit capture and all all of those things are acted with other tools andkind of building out the ecosystem. But those were our three corporate ponentand we partnered with whip row and the help we actually one of my favoriteparts of this that the reflecting back on just truly something else. We wentthree hundred and seventy days from the first meeting with Venza to go, live two hundred and twenty seven days fromcontract signatures to go alone. We obviously put as team to her peoplewere really focused on. We were able to do some of the between day three D:Seventy and two twentee. We did a lot of planning, obviously, but really moved fast and efficiently andstate very focus on that. Our two objectives were in saying the firststeps of what could be a bigger modernization opportunity for firstcrime. How do you think you were able to move? I mean I typically see a lotof institutions in the financial services space that have goals to movequickly. I've had many, a bank Tommy will be the fastest you've worked with,and then you know, internal processes set in committees get involved and theyend up being typically slower. Execute than most of the business leaders want.Due to just internal structures, committees, approval processes, etc,how do you think you guys were able to kind of be faster? I think you told methat you were you signed with fins act later than a couple of companies, butone lie before some of them because you were go faster through the pipes andI'm curious. What, if there's any advice you have or things you felthelped make you more effective at driving that process more quickly yeah.This is something we've talked a lot about, internally talked with withothers about, but we knew er going through some other journeys as well andfor us there were a few facts of one and he can't be overshaded as we knewwe had a Narost and we offer consumer money, market and C products. We didn'ttry to bite off every product of the bank for the first rain. This we knewwhere we were starting and we really focused on it, so that that doesclarify things of that. The other reality is. We have a conversion in twothousand and twenty one. So there was a little bit of necessity as the motherof invention or in the spot of this, as was the mother of you, know gettingthis done on time and on Spedale, so that that helped day focus in reallyall that do just provide planty along the way. When you need to make adecision of what can help you make de sains. I then. Lastly, we had somereally good principles that we set out back in two thousand and twenty, whenwe were planning all this that we stuck to, and we came back to you when youcome to a fork in the road think about simplification right. So don't don'tover engineer something because the odds are we're going to learn. A lot oflessons in the fertit ration and we're going to need to improve over time aregoing to need to add new capabilities. If we're going to one line, let's notover engineer our first processes so that we have to go on do that later,when we want to change our approach. O E, a e N, a let's focus on take a simplificationprocess of O K. I obviously do it correctly first, but were possible, so so we really stuck to that, and we triedto model that when we made decision so one of the things that we would makedecisions for our project team as a team andmeetings together, I be very transparent about what we're thinkingthrough and sometimes it means okay, we're not going to roll out with thiscapability when we go live or we we're going to wait and that's going to be aas one, not one or one, not five versus one dia, because that is going to addrisk to the testing process. And why...

...would we want to do that when we don'thave to Dan risk our gissing buses? We re have more retesting and testingswell versus less regular to test em board, so we did that over and over andover again, and we had a really good line of communication, also withexecutive manage. I think this is the last factor that helped. The Lot is:We've structure Virtual Bank under it's reviewed by an overside board that hasse CFO head of business transformation, who's, my boss, chief digital officerand head of original bank strategy, but liberally, so you've got people fromall different aspects of the bank kind of keep on Iltis a. We also workedreally closely with our merger project office, because this is part of themurder. You've got another set of folks and there chiefs officer your beorhsides of the bank sitting. Now that your getting perspective from a lot ofdifferent people being very transparent, everybody's aligned of what we'retrying to accomplish. So you get those questions out early or through them,give clear answers and and keep pushing forward so o play virus. We Ave thelast thing to- and this is problem- is important. OILEAN. We were very foe.The people that we've had working on this project we've had a mix of legacy,Iberia, Bank Legacy, first dries and bank. Obviously the whip pro team hasbeen phenomenal and then our vendor team also has come to the table androll of their sleeve. In departeth first meeting we had, we said we wantto build something that we can all be proud of, and that goes for. I hear thevictor as well as for the bank. It's not just about the vendors, are kind ofyou know, giving us a service that we pay for enough thing. The computationthat we want to all be problem is in and by the end of the Privet, you sortof hear people talk about like virtual bank as their baby and they're so proudof Ed and their people that don't work brother, that in so braining theprocess and and teaking through questions and helping solve problemsthat they feel connected to it. I think that attitude that everybody bought inon d made a big difference when you had to make tough decisions or when you hadto work extra or whatever to me like. I, like that strong team keep the scopesimple and iterate, and I think and support from the top. I think it'scritical, because it is it's different having the cf or the chiefer scoffs areinvolved that in a risk committee. That's you know a layer, but the otherthing I like about this, I'm curious that this was internal or external, isa kind of a forcing fuck. He said we knew we had a two thousand and twentyone conversion, and sometimes like a brick wall, is a pretty useful. Pretty useful. Forcing function wasthat something you had decided internally. was there a reason that youhad that I'm kind of care, because I've seen both real, forcing foxes like withmarket external reality, and sometimes you just kind of create them out ofwhole cloth, because you know the team needs a deadline with some sort of sortof rigidity to it to run towards, and I'm curious that was like more of anartificial thing. You guys created it to drive, motivation or just a reality,O we're dealing with it's the bigger DU conversion, bride bank in Fortran yea,because this is coming over from Iberian Ban. That conversion is in twothousand and twenty one and we wanted that's got to go somewhere. We wantedfor o exactly on a virtual bank to go first, but ahead of the rest echometer,you didn't have those like the legal events where you're converting virtualbank. In the same time, everything else is converting and you're just sort oftaking your resources and spreading them more thinly. You wanted to be ableto have so that was our. That was the wall. That was the forcing function wasthat we had beforn function, yeah yeah. They are they're usefulthough, and I have seen them artificially created for these purposes,which is Wicasa. It was yeah, it's Nice if you don't have to make it up, but itcan be valuable as a tool because it is very useful. I want to ask a little bitabout you've kept virtual bank as a separate brand, and one strategy youcould have taken at point of conversion was- and I see many banks most NASright- go this way where you end up wanting to have a singular brand andobviously I think you're doing that on...

...the Iberia First Rise Inside, but youleft Virtual Bank as a digital bank on its own, and I'm curious to rationalfor that, because I think many people go hey, we need to make our coreofferings more digitally enabled, but we don't want to have a different thing.That's digital lonely on the side that it's not integrated and you guys didnot choose that pan. We talked a little bit about the practicality of gettingthere and in the integration of conversion, but strategically. Why wasthat the path you guys thought was was useful like? Why did you go down thepath of keeping virtual back a separate thing, a separate brand, a differentcore than what your? What you're doing for the larger bank? I mean the way Ithink about it in is probably just a function of my own background andbanking and things I've done pass. I sort of think about. It is a regressionof how many variables can I control the I and by Goming all of this together.I've got I'm introducing new, independent Vigal and I don't knowwhat's causing what always and so a virtual ban, because we really areabout ninety five plus percent on different tech than than the rest ofthe like Bang and Lit. Obviously, we've got into General Ledger integrated andsome of the risk in broad finds we are communicated with tightly because thoseyou need an enterprise scale for an eighty, seven billion dollar bank.That's it. Those are very critical, but but within the ecosystem, we're reallystall contained there, and so that gives his clarity into what we'relearning and what is related to. So we're not ever confused on Oernen,because this client interacts with the branches over here and then they usethis digital fanel and we put it into the new APP also we're learning thingsthat are specific to Mora Bank and, as I mentioned earlier, because hisoversand that includes leadership from a regional bank includes our chiefdigital officer, and it is interacting with leadership of falt debate, we'reable to find ways to learn lessons that are let the work o the rest in to we'relearning to core less and try were learning the back podcasting. Twentyfour seven courts: We're learning about new servicing systems, we're learningabout new Olanda. Obviously we're also learning about doing business on thosethings. We're learning about immigrating new tools and to have tenand some of those tools, may have an immediate use cases in other businesslines and we can learn the narrower scope at smaller scale and then sayyeah. You should go. Do that big project around this at least based onwhat we've seen so far. It makes sense, or you know what actually just made usbless efficient and it was a little bit harder to do than we thought it wasgoing to be. We might want to keep looking for a better solution. We couldlearn it in a more marriage got there and that keeping that open conversationgoing with leadership across the bank is just as critical as having Berfieldtown in into box to learn H. I really like that idea of you knowlimiting your scope, so you can move more quickly because I do see one ofthe things that large banks as they go throughtransition to digital. It's like there's so many things you have to doit's Hardr to learn and control and move quickly, because you just you, gotso many products to bring. So I think that's a really interesting approachthat that would probably allow you ussome much more quickly. So I've kindof curious two things on that front. The first is: What's the vision for youknow bringing new products into virtual bank. You talked about mostlydepository accounts, being kind of the core history of of the virtual bankcustomer base and the current product offering. Where are you going in termsof what you want to make available through that offering and the timeframe for expanding into you as it could be we're going to be everything abank could be as quickly as possible, or is it going to be a more you know,tempered approach to to rolling out over time, so I'll start with hat, andI got other ones, but I'm kind of carious, where, where are you goingwhen down with that ran in lending, I guess is where you're trying to get toget well, it didn't have to be but yeah. I am curious, like what's your strategyis to move beyond, because I don't think you would stand this up just tojust to keep a bunch of DDA counts around and maybe try and grab some moremore deposits you're going to do something bigger. So I'm just kind ofcurious how you think about what that is and what the kind of road map is formoving into more products yeah. So...

...there's three big strategic bucketsPoverta Bank one- is that it's an old line liquidity to right. That's whatit's been for the last time on you, and so we have that we d give any of thatcapability up. You know, as with most things, thatbanks have want to look good at e these days, so that's less urgent of astrategic thing, but but the tools, still there we didn't reduce our cool-was that out. The second piece is what we just talk to your love, which issort of his opportunity for us to develop the infrastructure of thefuture for the rest of the day or parts of the bank or specific usin. The thirdpiece is building a true digital only vertical, and there are a segment ofclimates who expect to interact with a digital thing. We don't go intobranches anymore or who have a different expectation for what theirinteractions are with the bank, and we want to think about what it might meanto deliver services to that we're doing a lot of work in the second half of theyear in two thousand and twenty one on different versions of how that can playout and in different road mats or procs. So we've got kind of a green field here,where you now do have doing it any of the products set, and you needparticular direction to a line with specific niche audiences. How broad dowe want to appeal out of the gate and what kind of God an episode a lie forthe six month, eighteen month, five year, horizon on what we can do andwe're actually doing a lot of work around that right now. So I beingsomewhat circumspect because e, because whatever I say now, will be Robin sixmonths on a certainly. Instead, I want to have to refer for Ye Suista. Thatthird bucket is really thinking about pop right. Now we're already working onde capabilities being introduced into verfurth year that were not therepreviously, that don't currently exist a scale across the first horizon thatwill be introducing later in the year that give us this kind of first poensisof really doing some unique things becausewe're digital first, because we have a real time cloud core, because we'reable to integrate so tightly through Apis a cause, our own line servicing incore platforms, we're looking at introducing some things that will willlook like that, and now I probably services but also product yeah. I, like your your focus on speedand keeping your optional Ity Open. I was reminded the old sang was that nobattle plan survives first contact with the enemy. Whatever you say is, I think,maybe we did E provised no go to market plant survives first. Contact with thecustomer. Maybe is, I don't want to call custom or the enemy, but it istrue that you, you have your planet, then you go to market and I that Harphra a we back gettingpunched. When you get in the ring, that's right! It's there. I thinkthey're all kind of saying the same thing, but you know once you get outthere, you got it. You got to react what you see and it's interestingstrategy. How much do you think of your learnings and how intentional is itthat the learnings you have in the context of virtual bank have an impacton the strategy or decisions it would be made for first horizon moregenerally, because I imagine you you can be a separate thing, that is avirtual bank. That's not all digital, but not not sharing its insides andthen there's a model of this where your kind of sharp into the spear for thingsthat may be the broader first rise and bank wants to take advantage of andlearn from, and I'm curious, if that's strategically, where you're going andif so, how you think about facilitating the learnings from one to the other. Very much is about sharing Lorita port.What we're doing the thing I should say is: We are a sharp end of this. Bearnot D sharpit, because you look at our products at being era. We can't covereverything in Bertal Bank. That's not a struble whole second tank within theday. I so pretty strong function set there, butyou don't have everything. We've got teams that are doing things on theTreasury management of Front with API banking. There you've got. Our mortgageteam has done some really front fully...

...things in digital interaction.Obviously Air, a digital team really cross the bank that are are doingthings that are very funky as well. They don't or don't always have overliewhat we're doing. So. I want to say that, because this is a company ethosthing of how we call each other and stay in contact with each other as muchas it is a ortons. The answering question is it's very much about thatcommunication back and forth? We when we went live, you know Shocker, we've had not ze Vo complainlike some people, don't like that is probably least surprising dance thatthe, and so you know you get an email so much, and I like the way this usedto be in online bank very common thing. So one of the emails that we got, I cantell the way it was written. We haven't got no wronging number, but we have weperceived some. I was reading them and one was reale. I was like, I think thisperson works in Soper Velo they're using wordee developed, so I justcalled her and we had a really interesting conversation about Herseyexperience and I kind of told her like there's what we're working on here's.What the future looks like over to bank in your account is basically in changeit. Let's talk about where we're headed, I we love to include Yuns on C X, lapsto Wube, so she had was really a positive conversation and she was farfecial reach down to me, intreat of CX right after that for first rise, aninstead o Jeff. You know I would love to make sure that we had this on theroad map and let's include this piet in this conversations, and so jeff is likeyeah here's a set of ideas. I have that we've learned from other areas aboutdoing CX labs, a doing it monitoring or whatever else, and we can apply this tovirtual may, because we've already learned to lessons and also by the wayI've been really thinking about this. Can we tan to like look at some of thatVirtual Bank for the first time at Steven applies by the parts of the Pemn,so that was a really good microcosm of yeah. We had a customer that hadquestioned O. I want to loopin CX. We got learning from CX CX some ideas thatthey want to target with Bertalda on and that's the kind of model that willhave. I think there are others that are more technical, other systems that awell yeah do you have a more like astructured or formal way to share that feedback through regular sets of meexact. I always wonder if you know it's great when you have a relationship withJeff, not me job with the other jeff all right and you can give a phone calland you think to do that. But it's also easy to, for you know, as you as a asorganization grows, that that customer idea comes in it gets lost, it doesn'tget shared a having the pipes kind of built. That facilitates that asimportant. Have you thought about ways or do you have structures for kind ofensuring that that ongoing dialogue, it stays healthy and steady yeah? The first one is our over Sykar andwho's on a ee, but again because you have Assuntina people there, a lot of what that group does is hey.Have you talked to this person about this, this person about that, and andthen it's also that next round right outside the Board of state holders thatI just stay in regular contact, the other half of my job. I livevirtual bank, but also we couldn't take traitin the company, and so thathappened had job is really about having those conversations with leeters andleaders and executives across the company to know where our opportunitiesare no, where we want to look for tinte solutions that we don't have today andspending time there. And so you know that's a lot of time with our CRO or co,those types of people, Jeffer C or MC other teams like that from theCommercial Day, especially to bank. Whatever the case may be, those conversations also lead toContrainte Bat, the first a Pang, so there's a little bit of NatalConfession, but because of the role both that I sit in and the way ourboard of structure, it's opening those doors in a very like formal way of youneed to talk to the CEO about this, and you guys were together and on how youmight both try some new market things...

...and think about the niche targetingrevertar bank a long term as you new product development and also are thethings that market in he wants to learn from fertile a doing a test of whatwe're doing with digital marketing first orison and then do a before theywant to apitae there there a lot, so you open the door to a whole notherarea of conversation Tyler, which I Lukan at time. But he said you had aFintech strategy as well as running virtual bank. So talk me a little bitabout from a Fen Tex strategy. Point of view like what are the big areas?You're focused on problem. You know challenge the thank you key to addressor opportunities. You See, I feel like it's there's a lot of stuff going on inFintech, even today, there's Le Some adoracus ition going on in the fin texspace. So I'm just curious, like what do you see is the big opportunitieswhen you look out strategically? What are the kind of categories of stuff?Your focus on is the big opportunities for the bank yeah. So I did a couplethings on this. First of all, the way we approached this beckon is yeah. True,the re ride back its around intactone is venture, and so we're one of likeventures alliance as well as doing some venture investment of our own. Thatwe've done. I some one off capes. We also look at FINTAC partnerships as atool for solving problems, and so I always tell them my thesis here isprobably we're not encountering problems for the first time and I'll goto step further and say probably somebody built a company around solvingthis problem. Let's go find, and so we have a sin that we're workingon, whether it's infrastructure, lent experience or anything in between isthere. Somebody that's built a company around this, and the best cases issomebody that were invested in or thinking about, investing in or may notbe making that investment, and we said at the table from that point of view wesit at the table from we need your services and would love to have acontract and oh by the way we love to sit down, Wi you and think about howyou're developing your Roma- and I spend time talking, but ye we try toget that ligate value the last pieces. We do a little bit of banking as aservice as well, and so we have some bankers to really specialized in thatand been able to have a few e fintac ans that need that, and so we also havethat as a preto. That's three Buston, three broad buckets of stuff that youdo really the third one, the third buck there. We had this banker team. Thatreally focuses on that. So that's that's certain, like or outside of myscope, the second one we really have a group of people across the bank thatare working together and looking at the technology side, the CX, the customSalsie, whatever the case may be, and talking about like what we need fromtintack and then the first one we have. We stood up a venture subsidiary and aninvestment board in that kind of thing as well. So it's you know acollaborative process with a lot of people yea your initial question oflike the big trends yeah. For me, it's sort of taking the nextstep on what we get from a lot of things. So the last few years has beena lot of work. Around data. There's been a lot of work around insights. Now I think we're getting increasingly-and maybe this is happening faster than I realized in some cases to action. Iinsides taking that data to now models that people we put in place, whetherit's citizen, scientists or products that are really built out with a reallysharp a eye, but then turning that into actionable things on the ground,whether it's for bankers, meetin with clients or Ancore, in the back on asknowing where their energy reviews or for clients actually and I've seenseveral companies come up lately, they're doing a lot of work around thisdriving in sides to clients that that I apply in action. An can help a clientreally do what they're trying to do, which is have better management oftheir money and understand their financial situation foundational, but because we have thesedata layers now that a lot of people are getting place or the last severalyears and understanding around the model and that data you're now gettinginto this next base. The other space that I think is isreally interesting in a there's some couple of companies, I'm really tiredabout that. We're doing great things...

...here and it's o risk space. I thinkthere's a lot of opportunity there. What we all know is every time we getsmarter, the bad guys also get smarter and they think about ways or or do something. Negat talk, financeor debent or whatever, and there's so much opportunity there for companies tohelp solve that problem, identify issues before their issues. Cole,clients, I kind of goes into the action of woman site phase a little bit ableunderstand what happening and what matters the most, but really focusingon bringing data together from outside sources that can be used to make betterdecisions on the front end or identifying. There are a couple ofcompanies there doing smart things that excited about, but I think we going tobe a lot more in the last one is broadly in thecommercial space of really solving for big commercial relationship type thingsthere's some I started. I have metal boss used tosay that if you look at art companies, they tend to start building the youknow the e class or the seven series first, and they get everything work outthere like. Okay, we can scale this part up and owl eventually make its waydown to the C clat o e three scares, Oh tess right started with the roadstarter, went to the e like start at the high end, work its way down thevision of them free men, then, like the picture going to matter, and so we'rejust going to build it and then we're going to we're going to push it downand in some ways, if you think about it in Tex in is the opposite, beenattacking a lot of places to start out just like ear with basic mass marketthings that they're sort of the simple use cases and we're not going to reallyget into when somebody has a really complex treasure managementrelationship and participation Lone in those continuesyou're starting to see more companies. Think about that. The more thin textthing about that. Obviously, thanks that are in the space were looking fortechnology opportunities I mentioned earlier. Our Treasury Management Teamis doing some really cool things with their technologies back. I think we'regoing to continue to see more of that. As we sort of see people saw problemsonce a problem and solve once we understand how to create better toolswithin text largo and trader management type companies you're going to see back.You push the market quickly, the huge value that from and so that may takethe form of process, automation and orchestration all the way through thelending process. All the way through to out people actually handle the cash Li,which is which is really interesting. So I think that's one that we're notquite really in yet, but I've seen some really early state companies doing somecool stuff there on the money movement from for large to help things up formoney movement to a big intendere strange of having the money where theywant and integrating that all together to really tight solutions. I think iswe're getting into that. That's us. I certainly hear a lot about data andinsides and I think that's like a common theme, for my conversations werejust the large commercial relationships is a different one. Ask You one morequestion this space. Then we should let you get on with your day, but you knowthe of your three modes of interacting with fintac right, the the venture Iget, the the bankes a service makes sense. The partnership is makes a lotof sense, but I'm curious how you think about that as different from in someways, I feel like everything old is new again like Fin Tex, that arepartnership. Opportunities are kind of like like old school, not that o oldschool, but there the relationship can be either more of a partnership or moreof a traditional FIS fi serve Jack. I mean it's like they're, a technologyprovider in many ways to a bank, I'm curious to be think of managing thoserelationships. Final, the partners substantially differently than moreestablished technology players, because I, I think I think some of the guys goe p set like fintech sexy. Let we Ben Fintech for thirty years. Fifty years,weepe in Fintac, do you think of that kind of newer company Fintechpartnership model where you're talking about bringing something in to solve aproblem inside the institution or take advantage of an opportunity, that'sharder for you to do internally as substantially different than your moreestablished technology player relationships, important ways, becausethey are in some ways very similar...

...right to how you would just buy alegacy core system and partner with that individual s, just kind of curioushow you think about the difference between Fintech partnerships and moreestablished technology, vendor type relationships yeah. So I'm going to pull a weirdanalogy for this, but it's I like it to. I were analogia. The timing is funnytalking to somebody the other day that didn't realize. Then no Martella billwas a song they set was a restaurant and so explaining that the idea,Margarita bills, a state of mind more than anything, is a day of monk, yeahand so partnership. Is the state of mind that's right on to that, like it's,not there's not like a magic sauce in talking to January. If I as or properfor Stato or you know, FINTAC or Apatura Bana, or anybody specific, thatthere isn't just a magic to the fact that their you know, by virtue of theirperson as to start there, it's an attitude in the mindset to chap to be-and I have in the past, work very closely with with FIS first day of Jackand remotis companies on projects and done some cool things there. I think,when we look at our partnership, loll o part of intentive were saying. We seethat there de capabilities emerging we see people getting to market reallyquickly. With things we see that customers are very delighted by some ofthe new things that come to more and what should we be learning from that?What should we be taken back into the bank that we need to be able to providethis reliable long term where a hundred and sixty year old company I giveretain so we need to help e y? U N W very long term type way about wereproviding you stability and security and structure, and also want you to behappy about what you're being provided and their companies. That seem to bevery good at that, and they seem to typically be companies that are more inthe fintech bucket of more merging than Ye than may be established in text. Andso is there a mindset there that we can work with them both to internalizemindset in our own company and also to take some of those capabilities tomarket to both solve our problems internally, whether it s just makingsomething run more smoothly or a more Odera or be up twenty four seven,because it's not an act process or whatever and then also take the F andgive them the advantage of it and thinking new ways. On behalf of ourclient and in partnership with our Clint, I think it's a mindset that ithas to start the. I think in some ways there's a reality that a company thatis five years old has a different set priorities, that a company that youknow is eight hundred million dollars in revenue or something like that andthey're going to just approve things differently, and so, when you say hey,we love to be in your next CAP table in your next round and we'd also beinterested in like taking your product and solving this specific problem.Would you sit down with us for the next three months? I think about what thearchitecture of that would be yeah, there's a different idea of what thatcan look like with with companies that are a little bit younger yeah. I thinkI particularly domine a ventured investment, but ye there are it's thesethings that it's you know getting more smart, peoplee engaged in the processthere. I care a lot about the well being of our clients and in theindustry, and that kind of thing that's that's, really got excellent. Well,this has been a fascinating conversation I feel like we could keepgoing for ever. We have even gotten to like Memphis, which is where you areand where I grew up, so I mean your Rali, but the bank is is in Memphisright bank is in emphase Bantilan Memphis we've got were Memphis, Iberiawas Lafia Louisiana and we on an so there's a lot of people. Still therelaw around us. I Florida so we're Nice. How are you guys doing the virtual? Imean not that we I do want to get to the the last Requestin, but how haveyou guys managed the transition to virtual world or Ovid go back to office?I feel like it, particularly in the context of virtual banks, is probablyan interesting conversation, because you don't have to go back in thebranches, which is certainly a forcing function for for many institutions togo back. But where are you guys at some thing? You get a very distributed teamfor what I'm used to in many financial...

...institutions. Yeah absolutely I mean Ithink we were somewhat set up successfully for that, because we werebringing a companies together where people were distributing. I very bankis a long condition of you know, bringing banks together and havingpeople all over the place, so that was was helpful and then PPP speaking offorcing functions, the PPP process, where we were all working from home. Iwent a lot on that and we had a lot of people that really put a lot of effortinto solving problems really quickly and thinking well about technology andvirtual solutions, a people worry from home and then just interacting like wewere sitting next to each other for a few weeks, especially early on the inthe PVP process. So that was a great example of how people were like okay.Well, this is how we're going to work now and let's do it. Yes, it was a it'sdeep in the learning curve. I imagine PPP, but also it's somewhat of apositive way because yeah to forcing faces, you had to figure out how tomake it work, and then you, you kind of probably built some processes andmuscles of Er yeah were good in a longer term. So I typically in this podcast with thesame three questions. So I'M gonna I'm on throw a match. You now will be rapidfire hope you read the men advance. You know it's con, but number one was whatwhat's the best piece of career advice: You've ever gotten, so I'm going to break the rules hereand give you two answers. No rules, no rules here, one one. The first one ismy great aunt. When I was nine years old one time I was nervousabout talking to someone that that we saw on a museum and she got down like Ilevel with me and said, tyler, everyone puts on their pants the same way. Everymorning you and the queen of even- and I took away from that like tree peoplealways no matter what they're doing as important by virtue of being a personand their individuality matters, and they are important as a human first informa and that's that's really where it stops and you treat everybody at thesame. Based on that reality. That's been really important to me in mycareer because I try to that out. The seven piece is my mom. When she dropped me off atschool every single day that she dropped me off to school, because I'm abit of a Talker as we've gathered in me every single day, when my mom got meoff at school, she would look at me in the eye and kind of like begging memore than telling me should say: Please be a listener today be a. She still said that to you when we hangup the phone, but I think being a listener is another one, because youlearn a lot more when your mouth shut, your ears right yeah. So it's too good.I like that. That's that's the second person this week. That's given me thatpiece of visa to listen more so that's a targeted to me or just general, likeI'm not supposed to talk on the podcast, is about about your perspectives, notmy so my second question: What's the best piece of advice about consumerlending or consumer banking, you've gotten since you've been in theindustry yeah, I think it's a great that's anactually a harder Bitin, because I don't have like it. This is a hardquestion. I kind of think think I don't know what I would say if I were asked,so I feel bad for asking I but a good answer so yeah. I think it it kind of goes back.This is so fundamental that it's borderline ly she, but it's listen toyour customer and there's two implications that I'vealways taken away with that. I worked a lot on strategy plans in the past andwhere you often have to start with the strategy plan is know what you need foryour customers to be, and so, if you're hearing from people and your productsdon't make sense to them or it's not align me then like are you even talkingto the people? You meant to talk to. Have you built products for a wholedifferent set of customers than the customers you have, and you really needto understand who your customers are. You want to be when we grow up, if youwill and what they're telling you about that and be open to that, and so thatapplies at being consumed, lending and deposits in any kind of consumerinteraction, especially because you know in somers are not monolithic.There is a whole,...

...a different sens to me, their segmentson segments on second year of how people expect to interact with theirbank what they're looking for what problems they're trying to solve, andyou have to really present hail what we all and here's, what we're? Not In awhat we're trying to do, set the right expectations to deliver on that andwhen you learn a lesson, learn it and go flyes. So it's problem much muchmore wronging, festina lending for sure, but yeah. I think very pressure from somebodycoming from strategy because strategies in my experience, where that often goesupside down, where you say this is what we would like everyone to want, becausethis is what strategically would fit in the banks long plan, and then it turnsout. Maybe your customers, don't don't want that. Don't need that and soflipping that around I think, is really important good coming from a strategy guy,because I think often strategies where you go. No, no! This is whar. We wantthe world to fit versus what the world we actually have. Do we in, like, Ithink, delivering a vision. Yeah market plays is important because that's howyou can really tell people about something and they have never imaginedor clearly some money may look at it say you know what this isn't for me.It's for somebody else solving somebody else and that's okay to because ifthere you don't want them trying to solve problems that that you can'tsolve with your yeah, so I think it's really understanding that Dino yeah all right. My last question:What's a bold prediction for the future? HMM, this is my favorite, because yeahso at this one o this, but I think that a bold rcton,the future of consumer lending a startling just consume lending, is thata consigning will be even more point of stable Orie into the future. So on youknow, the long term bet on this would be that that you know a few decades, people bytheir house by standing a Qr Code and everything else take care of itself andjust shortening the time lines significantly, which problem w and theother may part of the bull prediction is. I don't think it goes to peoplejust going willingly. So My relabel prediction for consumer products ingeneral is that actually people don't want all the speed that we give themsometimes, and we give me because we can, because we can press the petal tothe metal we do, but sometimes people want a little friction, but people justdon't want to friction wore it is today they don't want the friction of theapproval process, which means somebody else goes and pays all cash for theHouse and then lose out on it. What they do is a process that helps themmake them know when they go to buy the house, it's the House that they wanted,and so how do you introduce time that versus time into getting through theprocess of a Morgeson? Or you know? How do you introduce time into playing foryour future and what you want to do where you want to go on vacation nextyear and building the the financial plan around that versus having to spenda bunch of time moving money back and forth and looking for like er depositsand all those little things that are just the tactical people or we can seetactical great, but it's so that we can add time into the strategic in thecustomers in line with the customers goes shift the time from the tacticalto the strategic. I love it. That's that's beautiful. It's a great way toend the the discussion so I'll just say thanks so much for joying me today.This was a fascinating discussion and I appreciate your taking the time yeah jeI enjoyed it. Upstart partners with thanks and creditunions to help grow their consumer Longport aliers and deliver a modernall digital lending experience. As the average consumer becomes more digitallysavvy. It only makes sense that their bank does to upstarts a island inplatform, uses sophisticated machine learning models to more accuratelyidentify risk and approve more applicants than traditional Credimi,which broad rates your round up starts. All digital experience produces manualprocessing for thanks and offers a simple and convenient experience forconters, whether you're looking to grow and enhance your using personal andautoing programs, or you just getting...

...started up. STAROSTA offers an into insolution that can help you find more credit where the borrowers within yourwrist profile, with all digital underwriting on boarding, lung closingand servicing. It's all possible upstart in your quarter, learn moreabout finding you borrowers, enhancing your credit decision and process andgrowing your business by visiting upstarts La for dash back, that'supstart s for aspects, use been listening to leaders and lending fromupstars make sure you have an missin episode subscribe to leaders andlending in your favorite podcast player, using apple podcast Levas, a Quicrating by tapping the number of stars. Do you think the show deserves thanksfor listening the next time the views and opinions expressed by thehost and guests on the leaders and lending podcast are their own, andtheir participation in this podcast does not imply an endorsement of suchviews by their organization or themselves. The content provided as forinformational purposes only and the discussion between the host and guestsshould not be taken as financial advice by companies or individuals.

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