08- Mastercard V4 (1).mp4

08- Mastercard V4 (1).vtt

ENGLISH

{{00:00:05}}
Hi, Heather Sugg here, filming live at
Money 20/20 USA for FinTech Futures.

{{00:00:11}}
Today, we have a good
conversation ahead for you.

{{00:00:13}}
We're talking about FinTechs with
MasterCard, and we obviously have a lot

{{00:00:17}}
to cover, so let's jump right into this,
and we'll start with introductions.

{{00:00:20}}
Welcome, and thank you for joining us.

{{00:00:22}}
Thanks for having us.

{{00:00:24}}
Why don't you tell us a little bit about
yourselves and your role at MasterCard.

{{00:00:26}}
Yeah, sure.

{{00:00:27}}
So again, thank you for having us.

{{00:00:28}}
I'm Tim Montgomery.

{{00:00:29}}
I run our North America Digital
Partnerships and FinTech

{{00:00:33}}
team here at MasterCard.

{{00:00:34}}
And my team is responsible for
overseeing all of our relationships,

{{00:00:38}}
including our digital partners, which is

{{00:00:41}}
traditional E commerce merchants
all verticals of digital

{{00:00:45}}
merchants marketplaces, ride
share, subscription verticals.

{{00:00:49}}
But also importantly for this
conversation our entire FinTech

{{00:00:53}}
ecosystem of partners, and we think
about that pretty dynamically.

{{00:00:56}}
That includes all of the partner
banks that are sponsoring in

{{00:01:00}}
financial products and services on
behalf of FinTechs here in the US.

{{00:01:04}}
All of the infrastructure players, Program
Managers, Processors and then the end user

{{00:01:11}}
FinTech platforms across all verticals.

{{00:01:13}}
These could be direct to consumer
banks, these could be small small

{{00:01:17}}
business serving platforms commercial
or enterprise platforms providing

{{00:01:21}}
DDAs, lending products, really we
think about FinTech as a horizontal.

{{00:01:27}}
We talk to and manage about
500 FinTech companies.

{{00:01:31}}
So it's a really exciting
and dynamic role.

{{00:01:35}}
We, see ourselves as an
ingredient for innovation, right?

{{00:01:38}}
And one of the key differentiators
for us here at MasterCard is

{{00:01:41}}
really our approach to partnership.

{{00:01:44}}
We spend a lot of time with our FinTechs,
with our, the founders of our FinTechs,

{{00:01:49}}
who are Solving real pain points for
their customers and their users, and

{{00:01:54}}
we through that time and pairing that
with, as well, some of the research that

{{00:01:58}}
Mastercard has has done on our own we get
to know them, and we, we solve problems

{{00:02:04}}
together, and I think that's what's
most exciting about us and, honestly,

{{00:02:07}}
something that we've found is a really
successful approach in the FinTech space.

{{00:02:11}}
Perfect.

{{00:02:13}}
So I'm Hania Faridi.

{{00:02:14}}
I look after business development
for our FinTech and digital partners.

{{00:02:19}}
on behalf of MasterCard Data Services.

{{00:02:21}}
MasterCard Data Services is the
professional services arm of MasterCard.

{{00:02:26}}
We focus on providing value
beyond the transaction.

{{00:02:29}}
So we work very closely with Tim and
team on a few different areas with our

{{00:02:34}}
FinTech partners, specifically on helping
them make better informed decisions.

{{00:02:40}}
So taking their data
assets, our data assets.

{{00:02:44}}
Shifting those to insights
and then to action.

{{00:02:47}}
We focus on elevating the consumer
and customer experience through

{{00:02:52}}
improving personalization,
loyalty, and marketing efforts.

{{00:02:55}}
And we help partner on innovation.

{{00:02:57}}
So we have a team that leans in
to drive new digital experiences

{{00:03:02}}
and new ideas to help FinTechs
be empowered for greater growth.

{{00:03:07}}
Thank you.

{{00:03:07}}
We have a lot to get into, so
let's just start with some advice

{{00:03:10}}
that you've been giving FinTechs.

{{00:03:12}}
You have been encouraging
FinTechs to shift into a more

{{00:03:14}}
sustainable business model.

{{00:03:16}}
Less focus on new market acquisition
and more of a focus on maturing and

{{00:03:20}}
nurturing the clients that you have.

{{00:03:23}}
How does one make that shift?

{{00:03:26}}
It's funny, we were speaking with one of
our venture capital partners on a panel

{{00:03:30}}
yesterday here at Money 2020, and one of
the pieces of guidance that they've been

{{00:03:34}}
giving their portfolio companies, and
we've been hearing pretty consistently

{{00:03:37}}
from our FinTech partners is don't burn
your cash before 2025, quite honestly.

{{00:03:43}}
And I think we've, how has that manifested
itself in terms of how we're engaging,

{{00:03:47}}
what we're seeing with partners.

{{00:03:48}}
I think for the last several years
in FinTech, we've seen many companies

{{00:03:52}}
that are solving more what I'll say
B2C B2C companies solving real kind of

{{00:03:57}}
consumer problems and that was there
was a proliferation of DDA accounts

{{00:04:03}}
for niche niche segments of consumers,
whether those are new to the US

{{00:04:10}}
kind of immigrants that are really deep
and focused entrenched verticals, or

{{00:04:16}}
just financial services that are serving
under underbanked or underrepresented

{{00:04:19}}
communities, and I think what we're
starting to see now is a focus on how

{{00:04:24}}
do we take that user base that we've
cultivated over the last several years

{{00:04:28}}
and how do we further monetize and create
more lifetime value for that customer.

{{00:04:32}}
So we're seeing more and more of
those types of companies diversifying

{{00:04:36}}
to higher margin products like
lending or credit card products.

{{00:04:39}}
And that's certainly something that we
see as a trend that's going to continue.

{{00:04:44}}
Speaking of emerging clients, you've
got a lot that you see with all of your

{{00:04:48}}
FinTech partnerships and what you're doing
with StartPath which is a great program.

{{00:04:52}}
And tell me what you're looking
for in FinTechs in 2024.

{{00:04:57}}
I'm happy to kick that off.

{{00:05:00}}
Certainly we're seeing a lot of focus
around our data and insights and thinking

{{00:05:06}}
about how to drive better experiences and
drive better decisions through our data.

{{00:05:13}}
I think AI is going to be a big trend.

{{00:05:15}}
That's going to be very
relevant in the space.

{{00:05:19}}
We're Starting to just scratch the
surface, I think, of what's possible

{{00:05:24}}
with AI, so time will tell on, how big
and impactful it can be to the FinTech

{{00:05:29}}
industry, but we think about, for
example, the consumer experience, being

{{00:05:34}}
able to provide really personalized,
targeted recommendations to the consumer

{{00:05:38}}
through AI, and then on the actual
experience and interaction with the

{{00:05:43}}
consumer generative AI, I think, can
play a pretty substantial role there.

{{00:05:48}}
In other areas of FinTech and underwriting
and lending, leveraging data to then

{{00:05:54}}
bring, build learning algorithms from an
AI perspective I think can enhance that

{{00:05:59}}
process and streamline that process.

{{00:06:01}}
So the implications are pretty wide.

{{00:06:05}}
Yeah, I think in from my perspective next
year is going to be a continuation of a

{{00:06:10}}
couple trends that I'm seeing I talked
a little bit about how in the past few

{{00:06:15}}
years, we've seen more focus on kind
of B2C Fintechs, I think we're going to

{{00:06:18}}
continue to see Fintechs solving small
business and kind of enterprise needs,

{{00:06:23}}
particularly in spaces like how small
businesses manage and optimize their

{{00:06:28}}
daily operations, leveraging things
like AI that Hania mentioned, how do

{{00:06:32}}
we create intelligence around them.

{{00:06:34}}
Leveraging the data that they have and
the knowledge that they have of their

{{00:06:36}}
business and create intelligence to help
them manage their payments or manage their

{{00:06:41}}
cash flow or manage their daily operations
in a more seamless and secure way.

{{00:06:47}}
I think as well that we'll also,
particularly in payments, we're

{{00:06:50}}
seeing a lot of companies lean in
and focus on how do we capture and

{{00:06:54}}
optimize buyer to supplier payments
or how do we bring more moderate

{{00:06:58}}
experiences maybe to the corporate.

{{00:07:01}}
Employee travel as well, and I
think the other big trend that

{{00:07:06}}
I'm, we are really focused on is
We've cultivated this ecosystem of

{{00:07:12}}
Fintech partners, and that includes
more modern kind of digital issuer

{{00:07:17}}
processors or core banking providers.

{{00:07:20}}
How do we take those relationships
and those partnerships that we've

{{00:07:23}}
fostered and help better service
traditional financial institutions?

{{00:07:27}}
So these could be a longer tail of
community institutions, regional banks,

{{00:07:32}}
or even some of the top 50 banks in the U.

{{00:07:34}}
S.

{{00:07:35}}
And help them deliver, again, like more
modern, seamless financial services.

{{00:07:40}}
Digitally native financial
services experiences.

{{00:07:44}}
It all leads into helping the consumers
and the businesses in the end.

{{00:07:46}}
So we've made a lot of
improvements over the years.

{{00:07:49}}
That's right.

{{00:07:50}}
On improvements, how are
you helping FinTechs?

{{00:07:52}}
What can a FinTech look
to expect from MasterCard?

{{00:07:56}}
Yeah I'd say MasterCard has holistically
leaned into a lot of programs to

{{00:08:01}}
support the success of FinTechs.

{{00:08:05}}
Specifically within data and services,
we've recently launched a program

{{00:08:09}}
called Success Planning for FinTechs.

{{00:08:11}}
As Tim spoke about partnerships, it's
basically a program where we really lean

{{00:08:15}}
in and partner to help the Fintechs be
successful, tackle some of the challenging

{{00:08:21}}
questions and topics in the payments
landscape, and ultimately look to the long

{{00:08:27}}
term when they think about setting their
business up for the best and most success.

{{00:08:35}}
The Fintechs are basically three areas.

{{00:08:39}}
One is fraud and risk, so helping...

{{00:08:42}}
FinTechs really understand what the
landscape can look like, what they should

{{00:08:46}}
watch out for, what the pitfalls are,
and how to avoid challenges around fraud.

{{00:08:51}}
The second is around their operating
models, and again, setting those up in

{{00:08:56}}
a way that is long term sustainable.

{{00:08:58}}
And the third is on customer life cycles,
so not just looking at acquisition

{{00:09:03}}
and growth, but looking at how to
retain, engage customers over their

{{00:09:08}}
entire life cycle with the, business.

{{00:09:14}}
Yeah, and I have to tell you, so
that's something new that we've

{{00:09:16}}
launched this year, and it's
proven extremely successful.

{{00:09:19}}
We've gotten a lot of great
feedback, and kudos to Hani and

{{00:09:22}}
her team for leading the charge.

{{00:09:24}}
We're rolling that out globally
as well at MasterCard, and that's

{{00:09:27}}
something that we're in our role, too.

{{00:09:30}}
We're charged to be thought leaders and
take best practices in things that work.

{{00:09:35}}
Here in the U.

{{00:09:36}}
S.

{{00:09:36}}
for FinTechs and help roll those and
that's exactly what we're doing with

{{00:09:40}}
our success planning for FinTechs.

{{00:09:42}}
I think as well, beyond beyond that
kind of intense kind of expertise

{{00:09:47}}
and consulting engagement and beyond
our partnership team and approach

{{00:09:51}}
that I spoke about earlier, we
also have several programs that are

{{00:09:54}}
specifically designed for Fintech.

{{00:09:56}}
So you had mentioned our StartPath
program, which is one of our marquee

{{00:09:59}}
Fintech programs focused on how
do we help identify early stage

{{00:10:05}}
companies who are focused in specific,
strategically important verticals

{{00:10:08}}
for MasterCard and bringing them
through our in house incubator.

{{00:10:12}}
We also have programs
like our Engage program.

{{00:10:15}}
I keep coming back to this
word, ecosystem, right?

{{00:10:17}}
But it really is our job.

{{00:10:19}}
We view ourselves as a network of partners
as much as a global payments network.

{{00:10:25}}
And our Engage program, is actually
designed to bring partners in and provide

{{00:10:30}}
access to fintechs, to technology partners
at scale, whether those partners are

{{00:10:34}}
providing processing, whether they're
providing digital core banking, whether

{{00:10:38}}
they're providing tokenization services.

{{00:10:40}}
And so I think you'll see more
from us next year in terms of

{{00:10:43}}
how we're evolving that program.

{{00:10:45}}
And then lastly, this is one
I'm really excited about, but

{{00:10:47}}
is our Fintech Express program.

{{00:10:49}}
This is something we're piloting
launched actually in LEC right now, and

{{00:10:53}}
we're piloting here in North America.

{{00:10:55}}
And that's really designed to...

{{00:10:57}}
When we determine that, hey this is a
partner where we do want to launch right

{{00:11:01}}
now, the first use case is a net new
issuing card program with MasterCard.

{{00:11:05}}
How do we bring all partners to the
table, our partner banks, processors,

{{00:11:08}}
and those FinTechs to make that
process as seamless efficient, and

{{00:11:13}}
get them to market as quickly, safely,
and yeah, securely as possible.

{{00:11:18}}
It's an evolution of scale where
they can keep growing through

{{00:11:21}}
what MasterCard has to offer.

{{00:11:22}}
Absolutely.

{{00:11:22}}
Way past the accelerator, yes.

{{00:11:24}}
A lot to offer there.

{{00:11:26}}
Also an important topic for all
of us, I think, is financial

{{00:11:30}}
inclusion and financial health.

{{00:11:32}}
I want to hear how you think the
industry is doing on that scope

{{00:11:36}}
right now and what happening.

{{00:11:40}}
Want me to start?

{{00:11:41}}
Yeah, sure, I'll start.

{{00:11:42}}
I I think the, one of the most gratifying
things about my role in the work that

{{00:11:48}}
we do at Mastercard is partnering
with companies that are solving

{{00:11:52}}
real problems for real world people.

{{00:11:55}}
Our mission statement is literally
empowering economies, empowering

{{00:11:59}}
empowering people, empowering economies.

{{00:12:01}}
We and we we don't just
talk the talk, right?

{{00:12:04}}
Like we walk the walk.

{{00:12:04}}
And I think that's
evidenced right through.

{{00:12:07}}
Our FinTech partnerships.

{{00:12:08}}
And I'm seeing despite the challenges
in the market right now we're

{{00:12:12}}
continuing to see kind of innovation
and founders uniquely solving consumer

{{00:12:18}}
or small business pain points.

{{00:12:19}}
And I think some really good examples
of that are historic partners that

{{00:12:24}}
we've had Aspiration where you can tie,
actually, the spend on your card and

{{00:12:29}}
your consumer spend to contributing to a
more sustainable future for our planet.

{{00:12:35}}
So really excited about that.

{{00:12:36}}
Other partners, like Greenlight, are
leaning into the teen and young adult

{{00:12:41}}
segment to provide them with prepaid
cards and DDA to teach them financial

{{00:12:45}}
management and actually surround that
with financial education and curriculum.

{{00:12:50}}
Really lowering the barriers of access
to financial services for that segment.

{{00:12:56}}
Partners like Guava, right?

{{00:12:58}}
Kelly, you founded Guava.

{{00:12:59}}
We're really excited about solving
the needs for underrepresented or

{{00:13:04}}
black small business owners, right?

{{00:13:05}}
Which again is something that's a,
huge passion point for us in terms

{{00:13:09}}
of how we lean into that space.

{{00:13:11}}
So I think we'll we, often align with our
partners at a mission level, and it's it

{{00:13:19}}
just makes it a lot easier to do business
together and to grow our relationship

{{00:13:24}}
when we have those shared values.

{{00:13:25}}
And I'm really excited to see even new
partners pop up that we can lean in with.

{{00:13:32}}
Yeah, fantastic.

{{00:13:33}}
And what I'd add to that is from
a data and services and consulting

{{00:13:37}}
perspective, we lean in to help
these partners grow, right?

{{00:13:41}}
And I think that's...

{{00:13:42}}
It's important for them, but it's
important for the whole ecosystem

{{00:13:45}}
and the collective mission.

{{00:13:47}}
So as they launch their payment programs
we're right there by their side, helping

{{00:13:52}}
them grow those programs to make them as
effective for their own businesses, but

{{00:13:57}}
for the end consumers that they serve
in making the world a better place.

{{00:14:02}}
In closing, what advice do you have
for a FinTech that would want to

{{00:14:05}}
get involved into your ecosystem?

{{00:14:07}}
Where do they begin?

{{00:14:09}}
Yeah, I would say number of
different entry points, but we, so

{{00:14:13}}
we actually just launched Mastercard.

{{00:14:15}}
com slash FinTech.

{{00:14:18}}
It's a rebranded version
of our website this year.

{{00:14:21}}
A lot of work and effort went into that.

{{00:14:23}}
That's a great place to start.

{{00:14:24}}
There's a ton of tools, a lot of rich
information, and great resources.

{{00:14:27}}
All the programs that I talked
about are StartPath Program,

{{00:14:30}}
Engage, Fintech Express.

{{00:14:31}}
You can find much more rich
detail and content there.

{{00:14:33}}
So I, really encourage you
to to go and check that out.

{{00:14:37}}
You'll continue to see us going
to iterate on that platform

{{00:14:39}}
as we move forward into 2024.

{{00:14:42}}
You'll continue to see us publish news
and partnerships and highlight some of

{{00:14:46}}
the case studies and success stories
that we're talking about here today.

{{00:14:49}}
So that would be a great
starting point, yeah.

{{00:14:51}}
I like it.

{{00:14:52}}
There you have it.

{{00:14:53}}
Thanks for joining us.

{{00:14:54}}
It's been a great conversation.

{{00:14:55}}
And I look forward to hearing more about
MasterCard and your FinTech ecosystem.

{{00:14:59}}
Thank you so much.

{{00:15:00}}
Appreciate it.

Hi, Heather Sugg here, filming live at
Money 20/20 USA for FinTech Futures.

Today, we have a good
conversation ahead for you.

We're talking about FinTechs with
MasterCard, and we obviously have a lot

to cover, so let's jump right into this,
and we'll start with introductions.

Why don't you tell us a little bit about
yourselves and your role at MasterCard.

I run our North America Digital
Partnerships and FinTech

And my team is responsible for
overseeing all of our relationships,

traditional E commerce merchants
all verticals of digital

merchants marketplaces, ride
share, subscription verticals.

But also importantly for this
conversation our entire FinTech

ecosystem of partners, and we think
about that pretty dynamically.

That includes all of the partner
banks that are sponsoring in

financial products and services on
behalf of FinTechs here in the US.

All of the infrastructure players, Program
Managers, Processors and then the end user

These could be direct to consumer
banks, these could be small small

business serving platforms commercial
or enterprise platforms providing

DDAs, lending products, really we
think about FinTech as a horizontal.

We talk to and manage about
500 FinTech companies.

So it's a really exciting
and dynamic role.

We, see ourselves as an
ingredient for innovation, right?

And one of the key differentiators
for us here at MasterCard is

We spend a lot of time with our FinTechs,
with our, the founders of our FinTechs,

who are Solving real pain points for
their customers and their users, and

we through that time and pairing that
with, as well, some of the research that

Mastercard has has done on our own we get
to know them, and we, we solve problems

together, and I think that's what's
most exciting about us and, honestly,

something that we've found is a really
successful approach in the FinTech space.

I look after business development
for our FinTech and digital partners.

MasterCard Data Services is the
professional services arm of MasterCard.

We focus on providing value
beyond the transaction.

So we work very closely with Tim and
team on a few different areas with our

FinTech partners, specifically on helping
them make better informed decisions.

So taking their data
assets, our data assets.

Shifting those to insights
and then to action.

We focus on elevating the consumer
and customer experience through

improving personalization,
loyalty, and marketing efforts.

So we have a team that leans in
to drive new digital experiences

and new ideas to help FinTechs
be empowered for greater growth.

We have a lot to get into, so
let's just start with some advice

You have been encouraging
FinTechs to shift into a more

Less focus on new market acquisition
and more of a focus on maturing and

It's funny, we were speaking with one of
our venture capital partners on a panel

yesterday here at Money 2020, and one of
the pieces of guidance that they've been

giving their portfolio companies, and
we've been hearing pretty consistently

from our FinTech partners is don't burn
your cash before 2025, quite honestly.

And I think we've, how has that manifested
itself in terms of how we're engaging,

I think for the last several years
in FinTech, we've seen many companies

that are solving more what I'll say
B2C B2C companies solving real kind of

consumer problems and that was there
was a proliferation of DDA accounts

for niche niche segments of consumers,
whether those are new to the US

kind of immigrants that are really deep
and focused entrenched verticals, or

just financial services that are serving
under underbanked or underrepresented

communities, and I think what we're
starting to see now is a focus on how

do we take that user base that we've
cultivated over the last several years

and how do we further monetize and create
more lifetime value for that customer.

So we're seeing more and more of
those types of companies diversifying

to higher margin products like
lending or credit card products.

And that's certainly something that we
see as a trend that's going to continue.

Speaking of emerging clients, you've
got a lot that you see with all of your

FinTech partnerships and what you're doing
with StartPath which is a great program.

And tell me what you're looking
for in FinTechs in 2024.

Certainly we're seeing a lot of focus
around our data and insights and thinking

about how to drive better experiences and
drive better decisions through our data.

That's going to be very
relevant in the space.

We're Starting to just scratch the
surface, I think, of what's possible

with AI, so time will tell on, how big
and impactful it can be to the FinTech

industry, but we think about, for
example, the consumer experience, being

able to provide really personalized,
targeted recommendations to the consumer

through AI, and then on the actual
experience and interaction with the

consumer generative AI, I think, can
play a pretty substantial role there.

In other areas of FinTech and underwriting
and lending, leveraging data to then

bring, build learning algorithms from an
AI perspective I think can enhance that

Yeah, I think in from my perspective next
year is going to be a continuation of a

couple trends that I'm seeing I talked
a little bit about how in the past few

years, we've seen more focus on kind
of B2C Fintechs, I think we're going to

continue to see Fintechs solving small
business and kind of enterprise needs,

particularly in spaces like how small
businesses manage and optimize their

At the Money20/20 USA 2023 conference in Las Vegas, FinTech Futures sat down with Mastercard’s Tim Montgomery and Hania Faridi to discuss the company’s approach to fintech partnerships and the need for start-ups to adopt sustainable growth models.