“We don’t use the word ‘disrupt’”: The future of financial services, starting with distribution

I’m thrilled to bring you a special episode today. After doing this for over 10 years, it’s not often I’m on the other side of the mic, being interviewed. But that’s exactly what we have in store for you.

What you’re about to hear is a recording from my recent appearance on Gusto’s SMB Tech Innovators Podcast, hosted by Brian Busch. In this conversation, Brian and I explore the intriguing intersections of traditional financial institutions, technology, and innovation.

Throughout our discussion, I share insights drawn from over 15 years of experience in the industry, including my role in reporting financial services news and producing over 650 podcast episodes. Together, we unravel the complexities of the financial services landscape and shed light on the evolving role of technology in shaping its future.

Join us as we delve into key themes such as:

• Tearsheet’s journey and our focus on incumbent innovation.
• The importance of partnerships between traditional finance and fintech.
• Regulatory challenges faced by fintech entrepreneurs.
• The transformative impact of embedded tools on SMB technology.
• Success stories like Intuit and QuickBooks’ ecosystem.
• My insights on AI, quantum computing, and crypto in finance.
• How banks are adapting to embrace new technologies.
• The evolving landscape of fintech acquisitions.

This recording captures an interesting dialogue that I’m quite proud to share with you. So without further ado, let’s dive into the conversation and explore the fascinating evolution of the financial services industry.

Here’s my conversation with Gusto’s Brian Busch.

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Unveiling the Intersection of Finance and Technology

“Intersections are Interesting”: Chronicling the Evolution of Financial Services Technology

“In finance, it’s the intersection of incumbents with fintech innovation and technology.” — Zack Miller

Tearsheet is dedicated to exploring the evolving relationship between traditional financial institutions and fintech innovation. Zack Miller, founder of Tearsheet, emphasizes the significance of these intersections, highlighting the intricate dynamics shaping the future of financial services.

The Challenges of Integrating Innovation

“They Need Fintechs”: Lessons from the Intersection of Traditional Financial Services and Fintech

“A fintech or a technology company doesn’t have an innovation group. They just are innovative.” — Zack Miller

Zack delves into the concept of “innovation theater,” shedding light on the challenges faced by established banks in integrating innovation into their culture. Despite progress, many institutions struggle to fully embrace innovation as an integral part of their operations.

The Impact of Industry Consolidation

“Neverland”: The Consequences of Multi-Decade Consolidation on SMB’s Finance Options

“There’s a lot of intransigence, a lot of inertia within financial services.” — Zack Miller

Zack examines the implications of industry consolidation on SMBs’ financial options, highlighting the challenges posed by reduced banking options. Despite feeling underserved, SMBs face hurdles in transitioning to alternative financial providers, reinforcing the inertia within the segment.

The Rise of Embedded Finance

“The Future is Embedded”: The Role of Neobanks, Fintechs, and Vertical SaaS in Small Business Finance

“Banking is not somewhere I need to go. It’s something I do.” — Zack Miller

Zack explores the emergence of embedded finance within vertical SaaS platforms, revolutionizing SMB tech by seamlessly integrating banking functionalities. Despite the rise of neobanks and fintech disruptors, traditional institutions remain essential, driving the need for collaboration and deep partnerships.

Navigating the Landscape of Emerging Technologies

“Decoding the Hype”: AI’s Position Among Other Technologies

“Helping differentiate the wheat from the chaff, the sizzle from the steak.” — Zack Miller

Zack provides insights into the practical impact of emerging technologies, including AI, quantum computing, and crypto, on the financial industry. Despite their disruptive potential, cautious implementation remains crucial to maintaining stability and trust within the sector.

The Future Lies in Partnership

“Learning How to Partner At Speed and At Depth”: How Banks and Fintechs Innovate Together

“People will bank with the brands they love.” — Zack Miller

Zack emphasizes the importance of partnership in driving innovation within the financial services landscape. Collaboration between technology companies and incumbents is vital in navigating industry shifts and addressing the evolving needs of customers