The Fintech Blueprint Lex Sokolin

Lex chats with Libor Michalek, the President of Affirm, a buy now, pay later (BNPL) company. Michalek discusses his early experiences with the internet and how it shaped his understanding of technology and its potential in the financial services industry. He explains how Affirm was founded with the goal of building honest financial products that improve people's lives, and how the convergence of e-commerce, mobile technology, machine learning, and access to consumer information enabled the company to create a credit product that aligned with consumer interests. Michalek also discusses the challenges of building a technology-driven finance company, the performance of Affirm's loans compared to credit cards and personal loans, and the company's approach to competition and future growth.

MENTIONED IN THE CONVERSATION

Affirm's Website: https://bit.ly/3Qo2DvI
Libor's LinkedIn: https://bit.ly/4bfsQVk

Topics: fintech, buy now pay later, BNPL, e-commerce, machine learning, loans, credit, credit cards, payments
Companies: Affirm, Thinking Machines Corporation, PayPal, Amazon

ABOUT THE FINTECH BLUEPRINT

🔥Subscribe to the Fintech Blueprint newsletter to stay at the forefront of Fintech and DeFi: https://bit.ly/3hyhlC2

🤝 Partner with Fintech Blueprint through sponsorships: https://bit.ly/3UZllsV

👉 Twitter: https://twitter.com/LexSokolin

TIMESTAMPS

1’00: Internet Pioneers and Business Innovation: Libor Michalek touches on Early Web Experiences

4’56: Digital Transformation and Commerce: Unpacking the Consumer Insights and Technological Advances That Fuelled the E-commerce Explosion

9’18: Beyond Traditional Finance: How Affirm's Founding Insights and Technological Integration Redefined Fintech in the 2010s

13’14: Redefining Credit: Exploring the Consumer Demand for Transparency and Fairness in Financial Products with Affirm

19’04: Integrating Innovation: How Affirm's Unique Approach to E-commerce and Payments Shaped Its Market Strategy

23’47: Machine Learning and Financial Innovation: Launching Affirm's Transaction-Specific Underwriting Models

27’56: Assessing Investment Opportunities: The Risk and Return Profile of Affirm's Customer Loans from an Institutional Perspective

32’11: Empowering Customers: Affirm's Commitment to Transparency and Support in Financial Services

37’42: Leading the Charge: Navigating Competition and Innovation in the Buy Now, Pay Later Market

41’22: Defining Innovation in FinTech: Distinguishing Between Technology-Driven and Finance-First Companies

43’29: The channels used to connect with Libor & learn more about Affirm

Lex chats with Sarah Levy, CEO of Betterment - the largest independent digital investment advisor. Levy kicks off the conversation by discussing her career journey from working in the media industry to leading a fintech company. Levy explains that she was attracted to Betterment's mission of making people's lives better and saw the potential for growth and scale in the company. She also highlights the importance of brand building and understanding the customer in creating a successful business. Levy discusses Betterment's core products, including its retail robo-advisory service and its 401(k) offering for small and medium-sized businesses. She explains that Betterment aims to be a holistic investing home for its customers, focusing on expanding access and offering more account types and asset classes. Levy also discusses the potential for Betterment to offer self-directed investing options in the future.

MENTIONED IN THE CONVERSATION

Betterment's Website: https://bit.ly/3Uq5gPK
Sarah's LinkedIn: https://bit.ly/4d5aGqJ

Topics: Fintech, embedded finance, banking, investment, RIA, Tax, roboadvisor, advisory, branding, 401k
Companies: Betterment, Nickelodeon, Disney, Viacom, Schwab, Fidelity

ABOUT THE FINTECH BLUEPRINT

🔥Subscribe to the Fintech Blueprint newsletter to stay at the forefront of Fintech and DeFi: https://bit.ly/3hyhlC2

🤝 Partner with Fintech Blueprint through sponsorships: https://bit.ly/3UZllsV

👉 Twitter: https://twitter.com/LexSokolin

TIMESTAMPS

1’10: From Nickelodeon to Betterment: Tracing Sarah Levy's Journey Through Media and FinTech

7’22: Brand Personification and Audience Engagement: Exploring Digital Transformation with a lens on the consumer

13’33: Mission and Brand Resonance: Transitioning Leadership at Betterment

16’50: Initial Impressions and Strategic Directions: Enhancing Betterment's Brand and Services

21’41: Refining FinTech: How Betterment Evolved to Meet the Needs of Modern Investors

24’58: Building Betterment's 401k Business: Strategic Growth and Market Opportunities

34’45: Revamping RIA Economics: Betterment's Innovative Approach to Advisor Services

39’41: Beyond the Super App: Betterment's Strategic Approach to FinTech Diversification

44’12: Focused Growth: Betterment's Strategic Decision to Prioritize Long-Term Investing Over Self-Directed Trading

47’09: The channels used to connect with Sarah & learn more about Betterment

Lex chats with Anthony Cimino, the head of policy at Carta - an equity management company that builds the infrastructure for innovators, supporting approximately 35,000 companies, over 2.2 million stakeholders, and more than 5,000 funds. Cimino discusses his background in government and policy in the financial services industry and how he got involved in finance and policy. He explains the role of policy in the fintech industry and the importance of engagement with policymakers. Cimino also talks about Carta's core business of cap table management and valuation services, as well as their fund administration business. He discusses the challenges and opportunities in the private markets industry, including the barriers to entry for investors and the need for more access and standardization. Cimino also mentions Carta's focus on supporting founders and their plans to expand globally. He emphasizes the role of policy in unlocking capital and creating access to private markets.

MENTIONED IN THE CONVERSATION

Carta's Website: https://bit.ly/3U92K0w
Anthony's LinkedIn: https://bit.ly/3J6u5db

Topics: fintech, regulation, policy, private markets, fund administration
Companies: Carta, SEC, Committee on Financial Services

ABOUT THE FINTECH BLUEPRINT

🔥Subscribe to the Fintech Blueprint newsletter to stay at the forefront of Fintech and DeFi: https://bit.ly/3hyhlC2

🤝 Partner with Fintech Blueprint through sponsorships: https://bit.ly/3UZllsV

👉 Twitter: https://twitter.com/LexSokolin

TIMESTAMPS

1’23: From Capitol Hill to Financial Crisis Management: Tracing Anthony's Journey through Finance and Policy

6’24: Building Trust in Turbulent Times: The Crucial Link Between Public Engagement and Policy Formation

10’50: Shaping the Future of Finance: The Essential Role of Stakeholder Engagement in Policy and Regulation

14’50: Digitizing Equity: Carta's Impact on Private Markets and the Future of Financial Infrastructure

20’07: Unlocking Private Markets: Navigating Complexity and Challenging Paternalistic Regulations

24’17: Expanding Economic Opportunity: The Imperative of Broadening Access to Private Markets

27’27: Beyond Data: Carta's Vision for Empowering Founders and Investors in the Private Market Ecosystem

31’50: Tailoring Growth: How Carta Supports Founders from Startup to Public Transition

34’39: Navigating the Terrain: The Dynamics of Private Fund Administration in Changing Economic Climates

38’56: Charting the Future: Carta's Vision for Empowering Founders, Revolutionizing Fund Administration, and Expanding Global Footprints

40’57: The channels used to connect with Anthony & learn more about Carta

Lex chats with Malcolm deMayo, Global Vice President for Financial Services at Nvidia. deMayo kicks off the discussion on how Nvidia has been working with financial services firms for over 15 years, providing accelerated compute platforms to help solve compute-intensive challenges in trading, banking, and insurance. DeMayo explains that Nvidia's hardware accelerators, such as GPUs, can execute thousands of instructions at a time, resulting in a significant speedup compared to traditional CPUs. He highlights the use of AI and machine learning in various financial services applications, including fraud detection, sentiment analysis in trading, and process automation in banking. DeMayo also discusses the emergence of Generative AI, which enables the generation of unique content and the potential for human-like engagement in customer service. He emphasizes the importance of collaboration between business and AI teams for successful AI deployment and mentions the role of open-source models and federated learning in the future of AI.

MENTIONED IN THE CONVERSATION

Nvidia's Website: https://bit.ly/3TwEDXO
Malcom's LinkedIn: https://bit.ly/3xeimqa

Topics: AI, Artificial intelligence, Machine learning, accelerated compute, compute, generative AI, genAI, financial services, Neural networks

Companies: Nvidia, OpenAI, Google, Microsoft, EvidentAI, AlexNet

ABOUT THE FINTECH BLUEPRINT

🔥Subscribe to the Fintech Blueprint newsletter to stay at the forefront of Fintech and DeFi: https://bit.ly/3hyhlC2

🤝 Partner with Fintech Blueprint through sponsorships: https://bit.ly/3UZllsV

👉 Twitter: https://twitter.com/LexSokolin

TIMESTAMPS

1’35: Beyond Moore's Law: Nvidia's Pioneering Role in Financial Services Innovation

6’56: Revolutionizing Efficiency: The Transformative Impact of GPU-Accelerated Computing in Finance

14’12: Unlocking Efficiency: How Nvidia's Accelerated Compute Platform Revolutionizes Machine Learning in Finance

19’52: Transforming Finance: The Power of Machine Learning in Fraud Detection and Market Analysis

29’15: From Data Custodianship to AI Revolution: Nvidia's Pivotal Role in Transforming Finance with Generative AI

35’03: Beyond Classification: Nvidia's Role in Fueling Generative AI's Impact on Financial Services Innovation

42’04: Shaping the AI Landscape: The Dynamic Between Open Source Innovation and Proprietary Models in Financial Services

47’01: The channels used to connect with Malcom & learn more about Nvidia

Lex chats with Nelson Chu, founder and CEO of Percent - the modern credit marketplace. Nelson kicks off the discussion b by walking through his inspiration for building the private credit marketplace and the challenges of operating in the fintech industry. He explains that Percent aims to provide a better alternative investment platform for credit investors by offering shorter durations and lower minimum investments. Nelson also discusses the importance of infrastructure in the private credit market and the need for technology to streamline processes. He highlights the different types of investors and borrowers that use Percent's platform and the challenges of building a three-sided marketplace. Nelson also touches on the impact of macroeconomic factors, such as interest rates, on the private credit market and the role of data and AI in the industry.

MENTIONED IN THE CONVERSATION

Percent's Website: https://bit.ly/3x3w8Mg
Nelson's LinkedIn: https://bit.ly/4a5Nwym

Topics: Private credit, lending, borrowers, underwriting, AI, artificial intelligence, investment, alternative investment, fintech, marketplace

Companies: Percent, Lending Club, LendIt, Prosper, Blackstone

ABOUT THE FINTECH BLUEPRINT

🔥Subscribe to the Fintech Blueprint newsletter to stay at the forefront of Fintech and DeFi: https://bit.ly/3hyhlC2

🤝 Partner with Fintech Blueprint through sponsorships: https://bit.ly/3UZllsV

👉 Twitter: https://twitter.com/LexSokolin

TIMESTAMPS

1’12: From FinTech Consulting to Revolutionizing Private Credit: The Genesis of Percent

4’33: Unveiling the Void: The Journey to Establishing Essential Infrastructure in Alternative Investments

6’55: Decoding Private Credit: Navigating Yields, Risk, and Investor Dynamics in Short-Duration Fixed Income

14’01: Investor Trends and Platform Evolution: The Shifting Terrain of Private Credit Investments

19’15: Building the Bridge: Crafting the Infrastructure to Power a Tripartite Financial Marketplace

26’15: Mastering Multi-Sided Markets: Strategies for Bootstrapping Borrowers, Investors, and Underwriters

31’26: Tech as the Catalyst: Navigating the Fusion of Traditional Finance and Innovative Infrastructure in Private Credit

36’49: Adapting to Shifts: The Impact of Changing Interest Rates on the Private Credit Landscape

40’16: Unlocking Potential with AI: How Proprietary Data Sets Are Shaping the Future of Finance

43’15: The channels used to connect with Nelson & learn more about Percent

Lex chats with Richard Ma, CEO of Quantstamp -a leading blockchain security company. Richard kicks off by discussing the origins of the company and the importance of security in the blockchain space. He explains that the idea for Quantstamp came after he invested in Ethereum and witnessed the hack of the DAO, which prompted him to focus on the security side of Ethereum. Richard describes how Quantstamp conducts audits of blockchain projects, identifying vulnerabilities and providing recommendations for improvement. He emphasizes the importance of reading audit reports and understanding the risks associated with projects. Richard also discusses different types of adversaries in the blockchain space, including nation-state actors, developers seeking recognition, and financially motivated hackers. He believes that while established projects will become more secure over time, new experimental projects will always carry some level of risk. Richard suggests that AI-based debuggers could help improve security auditing in the future. He highlights EigenLayer, ZK-rollups, and the development on Solana as exciting sectors to watch in the coming years.

MENTIONED IN THE CONVERSATION

Quantstamps's Website: https://bit.ly/3Iv6zX4
Richard's LinkedIn: https://bit.ly/3IvaxyO

Topics: blockchain, security, audit, hacking, hacks, crypto, cryptocurrency, digital assets, Web3, DeFi

Companies: Quantstamp, Ethereum, MakerDAO, Compound, EigenLayer

ABOUT THE FINTECH BLUEPRINT

🔥Subscribe to the Fintech Blueprint newsletter to stay at the forefront of Fintech and DeFi: https://bit.ly/3hyhlC2

🤝 Partner with Fintech Blueprint through sponsorships: https://bit.ly/3UZllsV

👉 Twitter: https://twitter.com/LexSokolin

TIMESTAMPS

1’30: From High-Frequency Trading to Fintech Innovator: The Journey to Creating Quantstamp

9’26: Demystifying the Audit Process: Inside Quantstamp's Approach to Securing Blockchain Projects

15’04: The Art and Challenge of Blockchain Audits: Navigating the Complex World of Code Review

19’37: The Nomad Hack: A Case Study in Preventability and the Importance of Diligence in Code Auditing

24’39: Web3's Adversarial Landscape: Unpacking the Motivations Behind Crypto Hacks and Security Breaches

29’13: The Ethical Dilemma of Crypto Hacking: Navigating the Fine Line Between Exploitation and Market Manipulation

34’59: Exploring the Frontier: Key Innovations Shaping the Future of Blockchain in 2024 and Beyond

36’34: The channels used to connect with Richard & learn more about Quantstamp