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Smart Tech, Smarter Loans: Michelle Tran on fintech’s impact on student debt

fintech michelle tran

Student debt is a major financial challenge, with U.S. borrowers owing over $1.8 trillion in total. This ongoing debt burden affects millions of individuals. Traditional financial institutions are looking for ways to solve this issue. Meanwhile, fintech innovations are providing solutions. These new technologies are helping to address the problem.

Michelle Tran is the head of commercial at Summer and founder of NYC Fintech Women. She joins the Tearsheet podcast to discuss how fintech is streamlining student loan repayment. The conversation focuses on the improvements fintech brings to the process, highlighting how fintech is powering a new generation of financial wellness programs.

“For many borrowers, navigating student loan repayment is like filing taxes on their own,” Tran explains. “The process is complicated. And a simple mistake can lead to missed opportunities for debt relief.”

Tran highlights how fintech platforms like Summer act as a “TurboTax for student loans,” helping borrowers complete complex federal student loan relief applications accurately. There is a growing demand for employer-sponsored loan repayment benefits. Fintech solutions are helping connect employees with the right programs. These solutions play an essential role in meeting that demand.

Employers and Student Loan Benefits: A Growing Trend

Employers are increasingly incorporating student loan repayment programs into their benefits packages. According to Tran, over 50% of employees are asking for loan assistance. Yet, less than 10% of employers currently offer such benefits. “The trend is shifting,” Tran notes. “We’re seeing companies of all sizes. Whether a private practice with 20 employees or a large tech firm. They start offering student debt relief as a retention tool.” With fintech solutions, companies can integrate loan repayment into payroll systems. This makes it easier for employees to access benefits. Some employers now match student loan payments with contributions to retirement plans.

Role of Federal Student Loan Relief Programs

Federal programs like Public Service Loan Forgiveness (PSLF) offer relief to borrowers. These programs are specifically for those working in public service sectors. They provide significant financial help to ease the burden. But, the application process remains complex, leading to high rejection rates. “Over 92% of people who apply for PSLF on their own make errors,” Tran states. “That’s where fintech comes in—we automate the process and ensure accuracy.” Fintech platforms streamline federal student loan relief applications. They help borrowers maximize their eligibility for help. This reduces their long-term financial burden.

Fintech’s Approach to Debt Management

Beyond student loans, fintech companies are addressing broader debt management challenges. Credit card debt, for example, often accumulates due to promotional offers. These later turn into high-interest balances. “Debt is easy to accrue but hard to manage,” Tran points out. “Fintech solutions can provide tools that help borrowers track payments. They can optimize repayment strategies, and avoid unnecessary interest.” Fintech companies offer financial wellness programs to users. These programs teach effective budgeting, credit management, and long-term planning. They help users improve their financial skills.

The Big Ideas

  1. Employers Are Becoming Key Players in Student Debt Relief. “Graduates are considering job offers carefully. They are looking for companies that offer student loan repayment assistance. This benefit is becoming a key factor in their decision-making.”
  2. Federal Loan Forgiveness Programs Are Underutilized. “Many borrowers don’t realize they qualify for loan forgiveness. Fintech is helping them access these benefits more efficiently.”
  3. Technology Reduces Errors in Loan Applications. “Automation ensures borrowers submit accurate applications, increasing approval rates for federal programs.”
  4. Fintech Solutions Are Expanding Beyond Student Loans. “Managing debt holistically creates a more secure financial future. The debt includes credit cards and retirement savings.”
  5. Personal Finance Education is a Critical Component. “Helping borrowers understand their financial options leads to better decision-making and long-term stability.”

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How Lower uses technology and humans to simplify mortgage lending ft. Dan Snyder

Home Loans dan snyder

I recently sat down with Dan Snyder, CEO and co-founder of Lower, to discuss the evolving landscape of mortgage lending. Lower was founded in 2014 and has grown into one of the largest venture-backed home lenders in the United States. Dan is driven by a commitment to simplifying the home financing process through technology.

“We’re not just building a mortgage company,” says Snyder. “We’re creating a comprehensive platform. It will make homeownership more accessible, especially for younger buyers.” Fresh off its acquisition of NeatLabs, Lower’s new proprietary platform, LowerOS, promises to reduce the cost and complexity of mortgage origination. Snyder bootstrapped his startup and went on to raise Ohio’s largest Series A, showcasing resilience and vision. His journey offers valuable lessons in leadership and innovation. It also highlights how to navigate the challenges of a volatile housing market. The conversation explores key topics like the role of venture capital in professionalizing a business, the strategic importance of owning a full tech stack, and the opportunities presented by serving next-generation home buyers.

Lower’s Journey: From Bootstrapping to Venture-Backed Growth

Dan Snyder and his co-founder, Mike, launched Lower in 2014 with a focus on profitability and reinvesting earnings. But, by 2020, they recognized the need for external funding to scale their vision. “If you’re going to raise money, it’s about fueling growth and getting on the radar of other investors,” explains Snyder. Their $100 million Series A from Accel provided crucial resources and strategic guidance. The partnership fueled their growth and strengthened their vision.

The NeatLabs Acquisition: Building a Tech-Driven Future

A pivotal moment for Lower came with their acquisition of NeatLabs, a technology company specializing in mortgage solutions. “We needed a complete tech stack to control our destiny,” says Snyder. This move brought experienced engineers and a robust technology infrastructure into the company. It helped in setting the stage for the launch of LowerOS. The platform simplifies tasks like digital pre-approvals, document management, and loan pricing. Its goal is to make these processes more efficient and user-friendly.

LowerOS: Streamlining the Home Loan Process

LowerOS is designed to address the inefficiencies in the traditional mortgage process. Snyder says, “Owning our tech stack reduces costs and eliminates reliance on third-party software.” LowerOS sets Lower apart from competitors like Rocket Mortgage with their proprietary systems. It gives Lower an edge in the market.

Supporting First-Time Home Buyers

The average first-time home buyer is now 38 years old and facing affordability issues. Lower is focused on addressing these challenges. Their goal is to make homeownership more accessible to these buyers. “We think about incubating our next-gen customers,” Snyder shares. Lower uses financial education and digital tools to prepare younger buyers for homeownership by making the buying process easier and more accessible.

Balancing Technology with Human Connection

While Lower leverages technology, it also emphasizes the importance of a human touch. “It’s technology with a handshake,” says Snyder. The company’s local loan officers work closely with customers. They combine digital convenience with personalized service to create an end-to-end home loan experience.

The Big Ideas

  1. Venture Capital as a Catalyst for Growth. “Raising money allowed us to professionalize the business and access top talent,” says Snyder. He highlights the impact of Accel’s investment.
  1. The Strategic Importance of Owning Technology. “We didn’t want to rely on third-party software that didn’t align with our goals,” Snyder notes. LowerOS is the result of this strategic decision.
  1. Challenges in Serving Next-Gen Buyers. “The average income for first-time buyers is over $200,000. We’re working to bring that down by improving affordability,” Snyder explains.
  1. Adapting to Market Volatility. Snyder highlights that inventory and interest rates are major challenges. But, technology can help reduce costs and improve efficiency.
  1. Combining Tech with Human Expertise. “Even with digital tools, a 15-minute conversation can save hours of back-and-forth,” says Snyder. He emphasizes the value of human interaction.

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‘Lightning in a Bottle’: Frank Chaparro on Stablecoins and Tokenization’s Promise

Tokenization Frank Chaparro

In this episode of the Tearsheet Podcast, I sit down with Frank Chaparro, the host of The Scoop and Director of Special Products at The Block. He has years of experience at the intersection of digital assets and Wall Street. Frank offers a unique perspective on blockchain technology and tokenization, highlighting their early impact on financial markets and projecting out where Web3 may lead for financial services.

“When you’re managing trillions of dollars, offering new, innovative products isn’t just risky. It’s a massive operational challenge,” says Chaparro. His insights explain why tokenization, stablecoins, and blockchain technology are growing in popularity. These innovations overcome challenges faced by traditional financial institutions, offering new solutions and efficiencies in the financial sector. Frank explores how stablecoins bridge decentralized finance and traditional systems. For example, he explores the challenges of institutional investment in crypto ETFs. His analysis covers the complexities of this fast-evolving space.

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The Promise and Challenges of Tokenization

Frank emphasizes that tokenization is more than a buzzword: it’s a potential game-changer for financial systems. “At its core, tokenization offers efficiencies. Especially, in processes like property transactions and trading real-world assets,” he notes. But, he warns that significant hurdles remain. These include the lack of robust infrastructure and regulatory clarity.

Stablecoins as a Catalyst

Stablecoins, Frank explains, are a “lightning in a bottle” moment for crypto. “They’re effectively tokenized representations of dollars. And their ease of use has driven market growth to over $200 billion,” he says. Institutions and individuals alike are increasingly adopting stablecoins for payments and payroll. Major players like Tether and Circle are leading the way.

Institutional Adoption of Crypto ETFs

Crypto ETFs are making waves with record-breaking launches. But, Frank argues that institutional adoption of crypto is still in its early stages. He believes there’s much more progress to come. “Advisors are still figuring out how Bitcoin fits into the classic 60-40 portfolio model,” he says. Firms like Fidelity and BlackRock are exploring crypto allocations. This highlights the undeniable potential for growth.

The Role of Regulation

Frank notes that banks are often held back by internal policies, not regulatory restrictions. These policies prevent them from fully engaging with crypto. “The demand for ETF products has been phenomenal. But banks are navigating a complex regulatory landscape,” he explains. He believes regulatory clarity on stablecoins and digital assets could be a tipping point for wider adoption.

Sizzle vs. Steak: Deciphering Crypto’s Value

When asked how to separate hype from substance in crypto, Frank shares a pragmatic approach. He says, “It’s about looking beyond the present hype and assessing long-term potential. Technologies like NFTs and meme coins might seem frivolous now. But their underlying concepts, like financializing culture, hold promise.”

The Big Ideas

  1. Tokenization could revolutionize industries by making processes more efficient. Frank highlights its application in property transactions. He says, “Tokenizing deeds could bring unprecedented efficiency to a traditionally slow process.”
  2. Stablecoins are enabling seamless transactions between traditional and decentralized finance. “It’s just so damn easy to send stablecoins compared to alternatives like PayPal,” says Frank.
  3. Despite regulatory and operational hurdles, major banks are inching closer to crypto adoption. Frank predicts, “By 2025, we’ll see wealth management portals opening up to these assets.”
  4. Regulatory clarity remains a double-edged sword. Frank explains, “Banks fear the potential repercussions of engaging with digital assets. Even when there’s no explicit rule against it.”
  5. Meme coins and NFTs hint at a future where culture and finance intersect. Frank calls it “extracting value out of humor,” a concept that could reshape how we view digital assets.

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Building the bridge between crypto and coffee shops: A chat with Mesh’s Bam Azizi

crypto bam azizi

The Tearsheet podcast often explores the intersection of financial services and technology. What makes this exploration unique is its focus on emerging trends, like the connection of the Web3 technologies of crypto and blockchain with the traditional finance ecosystem. Today, Bam Azizi, the co-founder and CEO of Mesh, joins me on the podcast.

Founded in 2020, Mesh is an embedded financial platform designed to simplify crypto transactions by enabling real-time connectivity and asset transfers. Previously, Azizi co-founded the cybersecurity company, No Password. Azizi has a strong background in robotics and software engineering.

He is now leading Mesh towards a future focused on tokenized assets.“Everything will be tokenized because it’s easier to transfer and build,” says Azizi. He emphasizes the importance of addressing market gaps. Mesh integrates exchanges and enables crypto payments.

The Evolution of Crypto & Embedded Finance

Embedded finance has emerged as a pivotal market structure in fintech. It allows financial services to be seamlessly integrated into non-financial platforms. Azizi sees Mesh as a connection aggregator, not a data aggregator. This sets it apart from competitors like Plaid. “Plaid is the right solution for traditional assets,” Azizi explains. “We are the right solution for the crypto industry.” Traditional platforms focus on aggregating banking data — Mesh enables transactional capabilities. This includes transferring assets between exchanges and using crypto for payments.

Crypto Payments and Practical Use Cases

Mesh’s offerings have evolved from enabling cryptocurrency deposits to powering crypto payments. Azizi describes the creation of MeshPay, which is a comprehensive solution that addresses the unique challenges of crypto payments within a commercial setting. “Imagine paying at a coffee shop with crypto through Apple Pay,” says Azizi. This vision stems from a real-world use case where a small business embedded Mesh to accept crypto as a payment method. For regions grappling with hyperinflation, functionality like this offers real practical advantages.

Tokenized Assets: The Future of Finance

Azizi strongly advocates adopting tokenized assets. He predicts that “everything will be tokenized” in the coming decade. Tokenization can simplify asset transfers, improving accessibility and mirroring the digitization wave of the past two decades. Azizi believes traditional processes are inefficient. He points to asset transfers between brokerage accounts as an example. These processes are often cumbersome. Tokenized systems promise to end these inefficiencies. They pave the way for streamlined financial operations.

Challenges and Opportunities with Regulation

Discussing regulatory frameworks, Azizi underscores the importance of clarity. “Healthy regulation benefits everyone,” he notes. Azizi emphasizes how clear guidelines could boost cryptocurrency adoption and innovation. Mesh’s non-custodial model aligns with the crypto community’s ethos of decentralization. It resonates with users who prioritize privacy and control over their assets.

The Big Ideas

  1. Mesh bridges data aggregation with actionable connections. “We’re not just aggregating data; we’re enabling transactions,” Azizi explains. Mesh’s approach bridges the gap between traditional finance and the burgeoning crypto ecosystem.
  2. Embedded finance evolves alongside tokenized assets. Azizi predicts a shift where traditional and tokenized assets coexist. “Embedded finance must mirror this hybrid future,” he says.
  3. Mesh enables seamless crypto payments for everyday transactions. Azizi highlights MeshPay’s potential. He says, “Users can connect their Coinbase account and pay for things with crypto, just like using a credit card.”
  4. Clear regulations could unlock growth in crypto adoption. “We need clear regulations,” Azizi states. He believes that regulatory clarity will drive adoption, particularly among traditional financial institutions.
  5. Mesh focuses on privacy-focused, non-custodial solutions for crypto users. Reflecting on his experience with No Password, Azizi emphasizes, “We don’t store any user data.” This approach aligns with the decentralized ethos of crypto.

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Public Blockchain’s Promise: EY’s Paul Brody on tokenization, enterprise adoption, and privacy

Tokenization paul brody

As blockchain technology seeps slowly into the traditional financial services ecosystem, it is offering new opportunities through tokenization and decentralized finance (DeFi). Today’s episode of the Tearsheet podcast hosts Paul Brody, EY’s Global Blockchain Leader who shares his expertise on these developments. Paul is focusing on the promise of public blockchain and the challenges surrounding privacy. He is also the Chairman of the Enterprise Ethereum Alliance. Brody’s unique roles provide a distinctive perspective on blockchain adoption in enterprises.

Reflecting on his decade at EY, Brody explains, “One of the things I’m most proud of is how little our strategy has evolved. We’ve consistently believed in the value proposition of public blockchains.” EY’s blockchain initiatives center around asset tokenization. It focuses on privacy-focused solutions and enabling enterprises to scale blockchain use effectively.

Addressing misconceptions, Brody highlights a critical distinction. He says, “A lot of people don’t realize private blockchains have no privacy. They’re centralized systems without the benefits of a decentralized ledger.” This belief underpins EY’s commitment to public blockchains, which he argues are the only viable path for enterprises.  

Understanding Tokenization and Its Role in Financial Services  

As the conversion of real-world assets into digital tokens. It is emerging as a key enabler in financial services. According to Brody, “At a global level, I believe all B2B transactions are suitable for blockchains.” Tokenization allows enterprises to tokenize assets such as real estate, and bonds. It enables seamless transactions through smart contracts.

Brody identifies privacy as a major hurdle to enterprise adoption. “Enterprises need privacy technology to protect sensitive business information. This is essential for them to use public chains,” he explains. EY is investing heavily in privacy-enhancing technologies. It ensures transactions remain verifiable while safeguarding proprietary data.

The Debate: Public Blockchain vs. Private Blockchain

When discussing blockchain adoption, Brody stresses the limitations of private blockchains. He says, “Private blockchains defeat the purpose of decentralization.” He notes that private systems often lack transparency and security. These are the defining advantages of blockchain technology. Public blockchains, combined with privacy layers, offer essential infrastructure for enterprises. This enables blockchain adoption at scale. “Privacy infrastructure on a public chain allows enterprises to securely share data with partners. It retains control over what remains private while doing so,” he adds.

How Decentralized Finance and Stablecoins Are Shaping the Industry

Decentralized finance is another area undergoing significant evolution. Brody observes that lower interest rates could reignite innovation. It will make tools like yield-bearing stablecoins and staking protocols more attractive. “When interest rates drop, the extra yield offered by DeFi tools becomes much more appealing,” he notes.  

Stablecoins, especially those pegged to fiat currencies, are a cornerstone of this ecosystem. Brody envisions enterprises seamlessly integrating stablecoins into their operations. He also foresees the use of other digital assets becoming routine. This will enhance efficiency and reduce costs.

Looking Ahead: Blockchain in Financial Services  

Brody discussed how regulatory clarity could speed up blockchain adoption. This would be particularly beneficial for large financial institutions. He predicts, “The floodgates will open once clear rules are established.” Some banks have started exploring blockchain-based solutions. But, widespread adoption depends on a clear regulatory framework.

For enterprises considering blockchain, Brody emphasizes starting with customer needs. “The nightmare for banks is when their most valuable customers open accounts at crypto exchanges. This leads them to leave the bank’s ecosystem,” he warns.

The Big Ideas

1. Tokenization is transforming B2B transactions. “Every transaction comes down to tokenizing money, tokenizing the stuff. And automating the terms via smart contracts,” says Brody.

2. Public blockchains offer a compelling value proposition. “Private blockchains have no privacy,” Brody explains. He emphasizes the importance of decentralized, public systems for scalability and security.  

3. Privacy is essential for enterprise adoption. Brody highlights the need for privacy layers. He states, “Enterprises require privacy to share sensitive information securely on public blockchains.”

4. DeFi innovation is influenced by market conditions. Brody observes, “Lower interest rates make decentralized finance tools much more appealing. They do so by doubling potential returns compared to traditional options.”

5. Regulatory clarity will drive enterprise adoption. “The true race begins once the rules are clear. Until then, enterprises will hesitate to commit fully to blockchain-based solutions,” Brody asserts.  

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APIs: Building the digital financial infrastructure of tomorrow — A conversation with Plaid’s John Pitts

APIs John pitts

APIs have evolved from simple data connectors to the fundamental architecture driving financial innovation. In this episode of the Tearsheet Podcast, I speak with John Pitts. Plaid’s John Pitts reveals how they’re driving open banking and empowering consumer control. He is the Global Head of Policy at Plaid. With a career spanning regulatory and policy roles, Pitts brings a unique perspective to the table. He discusses the evolving role of APIs in financial services. From his role at the Consumer Financial Protection Bureau (CFPB) to leading policy at Plaid, Pitts shares key insights on open banking. He explores how APIs are shaping the future of consumer financial data rights and fintech innovation.

Reflecting on his journey, Pitts shares, “I didn’t realize at the time that I was stepping into this nexus of innovation.” He explains how his role at the CFPB allowed him to witness the early stages of non-bank financial services. He shares how these experiences now inform his work at Plaid. He highlights the critical role APIs play in fostering open finance and enhancing consumer control.  

Pitts explores why APIs are essential for modern financial infrastructure. He explains how Plaid is working to bridge gaps in financial data connectivity. Pitts shares his expertise on improving fraud prevention and enabling embedded finance. He emphasizes practical steps to align innovation with consumer needs. His insights highlight the evolving role of APIs in modern financial services.

The Highway Analogy: APIs as the Backbone of Financial Services

Pitts compares the role of APIs in financial services to the construction of a national highway system. “It’s like moving from dirt roads to paved highways,” he says. Pitts emphasizes the necessity of modernized data-sharing mechanisms. Screen scraping once led financial data transfers. But Pitts highlights how APIs now provide faster and safer solutions. Their reliability is transforming how financial data moves securely. “Consumers’ ability to share their data securely is fundamental to unlocking innovation,” he adds. He stresses that the adoption of APIs by financial institutions is critical for open banking.

Consumer Control and Open Banking

A core theme in Pitts’ discussion is consumer control over financial data. He explains how APIs empower consumers to move their financial data seamlessly between platforms. This fosters open banking.  

Unlike in other countries where open banking is largely regulated, Pitts notes that in the U.S., market forces have driven API adoption. “We have more open banking in the U.S. than anywhere else,” he states, citing the high number of connected accounts as evidence. Pitts also touches on the regulatory landscape. He highlights the importance of the recently introduced 1033 rule in accelerating API adoption.

Embedded Finance: Beyond Financial Institutions 

Pitts highlights how non-financial companies are using Plaid’s APIs for embedded finance. These examples show the growing demand for integrated financial solutions. Landlords are using APIs to enable digital rent payments. Tesla is streamlining car purchases with embedded finance. These examples highlight the rising demand for integrated financial services. “Businesses like John Deere and Tesla are early adopters. They’ve embedded financial tools to improve user experiences,” Pitts explains. This gradual adoption, he suggests, will soon speed up as regulatory clarity improves.

Digital Fraud and Risk Management

Digital fraud is a growing concern in the financial services industry, and APIs offer a potential solution. Pitts describes how banks and fintechs can leverage APIs to share data and build network-level defenses against fraud. “Fraud prevention is one of the biggest opportunities in open finance,” he notes. Pitts emphasizes its importance for consumer trust. Banks can also use APIs to provide consumers with tools to monitor and manage their connected accounts. Pitts argues that these innovations can strengthen relationships between banks and their customers.

The Strategic Opportunity of API Adoption 

Pitts urges financial institutions to see API adoption as both a compliance need and a strategic opportunity. It’s a chance to enhance innovation and engagement. He highlights how APIs can help banks deepen customer engagement by becoming the “home base” for financial activity. “When a consumer picks one account as their linked account, their usage of that account increases,” Pitts observes. He suggests that banks can leverage APIs to solidify their role in a consumer’s financial ecosystem.

The Big Ideas 

1. APIs Are the Backbone of Modern Financial Services. They serve as the foundation for modern financial services. This enables secure, efficient, and scalable data sharing. “It’s like moving from dirt roads to highways,” Pitts explains.  

2. Consumer Control Powers the Future of Open Banking. APIs empower consumers to access and share their financial data across platforms. This fosters innovation. “The U.S. has more connected accounts than anywhere else,” Pitts notes.  

3. Embedded Finance Is Becoming a Key Use Case for APIs. Companies outside the financial sector, such as Tesla and John Deere, are adopting APIs for integrated financial services.  

4. APIs Enable Stronger Collaboration to Prevent Digital Fraud. They facilitate data sharing among financial institutions, creating stronger defenses against digital fraud. “Greater data sharing protects consumers,” says Pitts.  

5. API Adoption Is Both a Compliance Need and a Strategic Opportunity. Financial institutions can use APIs to increase consumer engagement and maintain account primacy.  

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Can cryptocurrency and blockchain drive fintech innovation? Stanford’s Lisa Nestor weighs in

cryptocurrency lisa nestor

Could cryptocurrency be the key to bridging financial gaps? Can it create a more inclusive global economy?

Digital assets like stablecoins and blockchain technology are reshaping how we think about money. Their potential to level the financial playing field is becoming clearer. In today’s episode of the Tearsheet podcast, I sit down with Lisa Nestor, Research Director at the Stanford Future of Digital Currency Initiative to discuss how fintech innovation is paving the way for broader financial inclusion.

Lisa’s expertise spans blockchain technology, cryptocurrency, and fintech innovation. This makes her a leading voice in understanding the intersection of these fields.

Lisa’s career reflects a deep commitment to financial inclusion. 

“When I started researching Stellar,” Lisa shares. “It brought together what I had seen [and demonstrated] the power of providing open-source financial infrastructure.” This passion for creating accessible financial systems has guided her work. It also included her current research on stablecoins and digital dollar adoption.  

Lisa explains how cryptocurrency, stablecoins, and blockchain can make finance fairer. Her insights show how these innovations affect cross-border payments and financial inclusion. She also discusses their role in the evolving fintech landscape.

Cryptocurrency and Financial Inclusion  

Cryptocurrency has the potential to address the uneven access to financial services worldwide. Blockchain technology allows people in underserved regions to access digital wallets and stablecoins.

With new financial tools, more people can save, transact, and even earn. “Access to financial services is not an even playing field,” Lisa notes. “Distributed ledger technology can help level that field. It can do so by providing accessible and stable financial options.”

Stablecoins: Beyond Trading to Real-World Impact

Stablecoins are already impacting cross-border payments and savings in regions with unstable economies. Lisa highlights Argentina as a case study. She says, “Argentina’s economic situation has created a huge demand for digital dollars, with stablecoins playing a crucial role in hedging inflation and providing financial security.”

Digital Dollar Economy and Cross-Border Payments 

Lisa emphasizes how digital dollars simplify cross-border payments, especially for regions with limited traditional banking infrastructure. “Being able to hold a stablecoin in a digital wallet and earning some yield on it is a small but significant step towards democratizing finance,” she says.

Tokenization of Real-World Assets

Another emerging trend Lisa identifies is the tokenization of real-world assets (RWA). Blockchain makes traditionally illiquid assets, like real estate and art, more liquid.

This opens up global markets. “This approach improves liquidity. It makes these assets move seamlessly across the globe,” Lisa explains.

Fintech Trends in Digital Asset Adoption  

Lisa explores CBDCs (Central Bank Digital Currencies) and private stablecoins. She looks at how governments and businesses are adopting digital assets. She also discusses the opportunities and challenges they face. “Most central banks are researching how to launch CBDCs without negatively impacting their banking industry,” she says. Lisa highlights a cautious yet growing interest in these tools.

The Big Ideas

1. Open financial infrastructure creates a global ledger accessible to all. “The idea is to create a ledger that every financial institution in the world can operate on but can’t buy. It is open and available to everyone.”

2. Stablecoins provide financial security in unstable economies. “In emerging markets like Argentina, stablecoins offer a way to hedge inflation. They secure savings amidst economic instability.”

3. Tokenizing real-world assets improves liquidity and global accessibility. “Tokenizing existing assets brings improved liquidity and global accessibility to traditionally illiquid markets.”

4. Governments explore CBDCs to complement existing banking systems. “Central banks are focused on introducing CBDCs that complement. Rather than compete with, existing banking systems.”  

5. Digital dollars empower individuals in the gig economy. “More individuals are earning in digital dollars through online work. This is creating new economic opportunities without physical migration.”  

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How Shopify is simplifying financial services for entrepreneurs w/ Vikram Anreddy

shopify Vikram Anreddy

What if the financial hurdles of running an e-commerce business — like cash flow struggles, banking complexities, and sales tax headaches — could be simplified into one seamless platform? In today’s episode of the Tearsheet podcast, our guest Vikram Anreddy, head of product for financial services at Shopify, addresses just that. He discusses how the platform is addressing the financial needs of e-commerce entrepreneurs. His experience stems from roles at companies like Instagram and McKinsey. Anreddy is passionate about creating tools, especially the ones that ease the financial struggles of small business owners.  

“Entrepreneurship is such a tough game,” Anreddy says. “The odds of success are very low, and there’s so much friction.” He explains that Shopify is focused on reducing friction for e-commerce merchants. The company builds tailored solutions to help them succeed. Shopify Finance helps manage cash flow and simplify sales tax. It provides tools designed for small business owners. This lets them focus on their craft, not administrative tasks.

Anreddy details how Shopify Finance integrates deeply into the platform’s ecosystem. This allows merchants to manage their finances where they already operate their businesses. He also sheds light on innovative offerings like Shopify Capital Loans and Shopify Balance. These cater to the unique needs of small businesses. “Our goal is to stretch cash flows and end unnecessary complexities for our merchants,” Anreddy notes.

Shopify Finance: A suite of tools for e-commerce merchants

Shopify Finance addresses a critical pain point for merchants: managing their money. Traditional banking solutions often fail to cater to the unique needs of e-commerce entrepreneurs. This offers limited access to credit and complex processes. “Even opening a business bank account is hard for individual entrepreneurs,” Anreddy shares. The tech firm fills this gap with offerings like Shopify Balance, an alternative to traditional business banking. Merchants enjoy faster payouts, APY rewards, and seamless integrations.

Tackling cash flow management with Shopify Capital loans

Cash flow is a common challenge for small businesses, especially those managing inventory. Shopify Capital provides merchants with quick access to funds, enabling them to restock inventory or invest in growth opportunities. Since its launch in 2016, Shopify Capital has disbursed over $5 billion in funding. “It has become the rocket fuel for many of our merchants,” Anreddy highlights. He emphasizes the product’s impact on reducing cash flow constraints.

Automated sales tax management for entrepreneurs 

For many small business owners, managing sales tax is a daunting task, with over 11,000 tax jurisdictions in the U.S. alone. Shopify’s automated sales tax tools simplify this process by calculating taxes in real time. It allows merchants to set aside funds for remittance. “Sales tax is an enigma for entrepreneurs,” Anreddy admits. The platform’s integrated solution ensures merchants collect the right amount without extra headaches.  

Building merchant-centric financial tools

Shopify Finance products are designed with a deep understanding of merchants’ needs. They are derived from constant feedback and data insights. The platform integrates financial tools directly into its admin panel for ease. Features like APY rewards are designed to help merchants thrive. “Our merchants are incredibly driven and curious,” Anreddy says. “They adopt new tools quickly, which makes it easier to build for them.”

Future of Shopify Financial Services

Looking ahead, the platform plans to expand its financial services globally. It aims to integrate AI-driven insights to help merchants optimize their finances. “We are guided by two principles: stretch merchants’ cash flows and save them time,” Anreddy shares. The company also aims to enhance cross-product integrations. It wants to ensure seamless work management of features like Shopify Balance, credit cards, and sales tax management. This will help to reduce friction for merchants.

The Big Ideas

1. Shopify is breaking down barriers in small business banking. “Our merchants constantly tell us they’re underserved by traditional banks,” Anreddy explains. Shopify Finance bridges this gap. It does so by offering merchant-focused solutions like Shopify Balance and credit products.

2. Innovative go-to cash flow solutions. Shopify Capital loans provide quick access to working capital. This helps merchants overcome cash flow challenges. “It has become the rocket fuel for many merchants,” Anreddy notes.

3. Shopify ensures simplifying sales tax management. The platform’s automated tools take the complexity out of managing sales tax. This enables entrepreneurs to focus on their businesses. “It’s nearly impossible for small businesses to keep track of changing rules,” Anreddy says.

4. There is a deep integration of tools within the platform’s ecosystem. Financial tools like Shopify Balance and Capital Loans integrate into Shopify’s platform. This provides merchants with a one-stop solution. “This creates small moments of magic for our merchants,” Anreddy adds.

5. Shopify is looking ahead with AI and global expansion. The platform is investing in AI-driven insights. It aims to expand its financial services globally to bring more value to merchants. “We aim to make money a non-constraint for business success,” Anreddy concludes.

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Web3 companies also need payroll: Franklin’s CEO Megan Knab explores blockchain’s role in financial tools

crypto megan knab

Franklin bridges the gap between Web3 and traditional finance, rethinking how businesses manage payroll and payments. Today’s podcast features Megan Knab, Franklin’s CEO. She shares insights into the transformative role of blockchain in financial operations. She has a vision: leveraging blockchain to modernize payroll and financial tools. Megan has a rich fintech background comprised of roles at Serotonin, DriveWealth, and Veriledger.

As an accountant by trade, Megan is no stranger to navigating financial systems. She became passionate about blockchain in business school after discovering an accounting fraud at work. “Public blockchains,” she recalls, “have the power to create an open financial system.”  

Megan founded Franklin two years ago to simplify financial operations for Web3 businesses. She focuses on making finance easier and more efficient. She notes, “Anyone who’s used payroll software in the last 10 years knows it can be an antiquated experience.” Franklin integrates both fiat and on-chain payment capabilities. This strategy allows it to operate in both Web3 and traditional finance. As a result, Franklin is carving out a unique niche in both areas.

Crypto and financial tools  

Megan highlights blockchain’s potential to enhance back-office operations for B2B organizations. She notes, “Stablecoins can leapfrog current payroll technologies by facilitating faster payments.” She also explains that blockchain’s immutability ensures greater accuracy in financial reporting. This also builds trust in the data. “By using public ledgers, businesses can reduce errors and streamline audits. This creates efficiencies that traditional systems struggle to match,” Megan adds.

Blockchain’s ability to integrate with existing payment systems is driving innovation. This is creating new financial tools for modern business needs.

Tax compliance and crypto  

One of Franklin’s standout features is its focus on tax compliance. Megan explains, “We build tools that ensure every transaction adheres to federal and state regulations.”  She emphasizes that Franklin’s proactive approach simplifies navigating the regulatory maze. “With over 675 tax jurisdictions in the U.S., automation is critical for ensuring accurate reporting. And avoiding costly errors,” Megan notes. This commitment makes Franklin a trusted partner for businesses handling complex payroll systems.

Decentralized finance for B2B

Megan believes decentralized finance (DeFi) has practical use cases for businesses. ” We’re helping companies operate seamlessly in fiat and crypto. Whether it is multi-currency payroll or international remittances,” she says. 

She also highlights the cost advantages of DeFi. “Businesses can reduce transaction fees and enhance payment speed. It does so by eliminating intermediaries. These are critical factors for today’s global operations,” Megan explains.

Early Wage Access without loans

Franklin’s approach to early wage access differs from traditional models. Megan critiques typical earned wage access programs as “modern payday lending”. She advocates for faster money movement using stablecoins instead. She adds, “Why burden employees with hidden loan agreements when we can facilitate instant payouts?” This method empowers workers and also minimizes administrative overhead for businesses. Franklin uses stablecoins to provide an alternative to outdated payroll systems. This creates more flexibility for both employers and employees.

The Path Forward: Privacy and adoption of crypto

For broader blockchain adoption, Megan identifies a need for privacy technologies. “Financial institutions will continue experimenting rather than integrating. This will happen until we address privacy concerns.” she asserts.

She highlights solutions like zk-SNARKs as promising but notes their computational expense. “The key lies in enabling selective disclosure of transaction data. It includes ensuring both compliance and confidentiality,” Megan explains. She envisions a future where blockchain is a core part of financial infrastructure — not just an experiment. Advances in privacy tech can make this possible.

The Big Ideas  

1. Blockchain Drives Transparency and Efficiency. Megan states, “Public blockchains can create transparency in financial systems. But adoption in heavily regulated industries remains challenging.”

2. Multi-Currency Payroll Is a Necessity for Modern Businesses. Franklin’s tools enable businesses to pay in both fiat and stablecoins. “This flexibility is crucial for modern, remote-first teams,” Megan explains.

3. Tax Compliance Is Key to Crypto Adoption. “With over 675 tax jurisdictions in the U.S. alone,” Megan points out, “building a compliant payroll system is no small task, but it’s essential.”

4. Faster Payroll Cycles Empower Both Employers and Employees. Megan challenges traditional pay cycles. She asks, “Why should employees give interest-free loans to their employers? Stablecoins offer a faster alternative.”

5. Bridging Traditional Finance and Decentralized Systems Is the Real Opportunity. Megan underscores the importance of hybrid models. She says, “Real market potential lies in bridging traditional finance with decentralized systems.”

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Uprise makes entrepreneurial finance simple feat. CEO Jessica Chen Riolfi

Uprise Jessica Chen

Launching a startup is challenging. It becomes even more difficult when tackling personal and business finances that confound entrepreneurs. Enter Uprise, the brainchild of Jessica Chen Riolfi and her co-founders. Uprise offers human-driven financial advisory services embedded into small business (SMB) platforms, like banks or personal finance sites.

Uprise addresses the unique financial needs of entrepreneurs which include dealing with personal and professional cashflow. Jessica has extensive experience from companies like Robinhood, Earnin, Wise, and eBay. This background drives her approach to financial services.

Jessica shares, “Financial advisory, in this context, combines personal and business finances. It helps entrepreneurs make holistic financial decisions.” Lack of personalized financial advisory services at Robinhood inspired the genesis of Uprise, especially for SMBs. Jessica shares a passion for simplifying financial products with her co-founders Chris and Nantha. Together, they work to make financial solutions more accessible, bridging the gap between business and personal finance for small business owners.

Uprise initially targeted Gen Z and millennials but quickly pivoted to focus on older SMB owners. This shift met the growing demand for comprehensive financial advice. It specifically targeted consultants, freelancers, and creators. “The small business world is one where personal and financial lives are intermingled,” Jessica notes. She underscores the intricate needs of her firm’s clientele.

The genesis of Uprise

Uprise emerges from a vision shared by Jessica and her co-founders, Chris and Nantha. They noticed the gap in financial advisory services for SMBs, where personal and business finances often overlap. As Jessica puts it, “We help them make financial decisions. And we kind of ignore the line between business and personal.” This approach recognizes the unique needs of entrepreneurs.

Role of embedded finance in Small Business growth

Embedded finance is at the core of Uprise’s model. It is integrated into SMB platforms and Jessica explains, “Every small business owner interacting with our platform is assigned a human advisor.” This strategy not only builds trust but also addresses the specific financial advisory needs of SMBs. It offers a personalized experience. Jessica highlights the importance of understanding the distinct needs of different SMB sectors.

For example, therapists using the vertical SaaS platform, Heard, prioritize personal relationships. This prompted Uprise to offer more direct communication channels like Zoom calls. “Calls matter a lot to therapists,” Jessica observes. She illustrates Uprise’s adaptability to various client preferences.

Financial planning for entrepreneurs

Uprise has tailored its services to the intricate financial landscapes faced by entrepreneurs. Jessica emphasizes the importance of understanding personal and business finances. She highlights how they are interconnected. She offers advice on entity setup, retirement account options, and mortgage applications. “These are business-related questions, but they very much impact their finances,” Jessica emphasizes. She highlights Uprise’s holistic approach.

Building successful partnerships with SMB platforms

Uprise’s success is intertwined with its partnerships, where Jessica sees a collaborative effort. She notes, “It’s very much a revenue driver for our partners, who are SMB platforms.” Uprise customizes its offerings to meet the unique needs of each platform. This ensures that both partners and end users enjoy their financial advisory services.

The Big Ideas

Uprise focuses on the integration of personal and business finances. “We help them make financial decisions and we kind of ignore the line between business and personal” Jessica explains. She emphasizes the interconnected nature of entrepreneurs’ financial lives.

Personalized financial advisory as offered by Uprise. Jessica states, “Every small business owner who interacts with our platform is assigned to a human advisor.” This ensures that tailored financial advice is adapted to individual circumstances.

Crawl, Walk, Run Approach: “We very much believe in sort of a crawl-walk-run type of embedded approach,” Jessica describes. She highlights Uprise’s phased integration strategy with partners. The purpose is to ensure successful deployment and user adoption.

Uprise focuses on revenue generation for partners. “It’s very much a revenue driver for our partners, who are SMB platforms,” Jessica notes. She highlights how Uprise’s model serves as a revenue generator for its SMB platform partners.

Continuous product evolution is a key attribute of Uprise. “Making sure that our product continues to scale with the new customers coming on board,” Jessica says. She emphasizes Uprise’s commitment to ongoing product development. The aim is to enhance advisor efficiency and meet diverse client needs.

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