Mantle, United States, Suntrust discussed on Bank-Fintech Fusion
Absolutely so you know what are the. What are the things we needed to? Innovate industry versus potentially existing players was to bring a much newer approach and put them one technology stack on the industry which is sometimes difficult. Some legacy systems everything in our ecosystem is API I So we have an abstraction layer that we can put on top of any core operating system Importantly a code base is is unified. I'm so it's truly enterprise software so one CO base which goes across every single customer whether your bank at four hundred million or a credit union twenty billion you get the same code base for mantle and that means that every Wednesday you get an update from US forty updates last year instead of sort of the paradigm. You might see the industry of one or two ringing lottery updates ear and say what that lets us do is it. Lets US continue to stay extremely relevant and very cutting edge and that's the top of technology that is being used in industries outside of banking And needs to come to banking. How much of a challenge is it to work with the corners Is it a kind of one and done thing or is it a constant Struggle yes so there's no shying away from it. The expertise to into to interact with the core operating system is very unique and we do see a lot of INTEX. And you. Entrance into the market trying to obstruct away from that and not because it's difficult but it's required. It's just required. You can't innovate industry. Without a good understanding the core operating system they are entrenched. They're not going. Anywhere is an amazing alternatives. Right now for banks to switch in credit unions to switch off it and so you need to be able to integrate with him. We we built that capability from day. One so we have team members that built you know across team we've had Each engineers genes is one of the first five Technical highest at various operating systems. Like smicer vice it. Dna and to date. We've done over a dozen different core banking systems successfully. Integrative lives so it's a challenge. It's an area. You have to invest in and understand. It's not the sexiest area of the technology stack for our engineers to work on. But you have to own that and you have to understand that. That's a challenge and you have to be a safe pair hands there in bank customers understand nothing about it which is probably a good thing. Yes exactly yeah. We don't talk too much about strache lehrer. Api set in sort of bank sales conversations but sometimes with the technology effects. They get really excited about what it can do. What's the most important lesson you've learned in your in your brief career so far shore? I think you might career as as opposed to just walk in this industry. I think the thing that I learned my F- way back when using when I started my first company was and I think it serves me well today and mantle as an organization is we often get comfortable leaning on what we liked doing what we know how to end. That often isn't actually the thing you need to do to grow your business or with a client as I like the tangible example of my first company I my background is I. Wouldn't you know my Undergrad? Was in finance. Went to law school when I was an investment banker for a little while after college before I saw the light and became an entrepreneur and when I started my company I spent a Lotta time legal documents and financial models. Because that's what I knew. And that's what I thought was what made a difference in actually makes very little if any difference and what actually makes a difference as getty out in token customers and understanding what to build and solving problems them and bringing solutions and selling and delivering. And if that's the most important thing in the business then that's where you as you know. One of the more important people in the company in his is one of the founders needs to run to and make your own and it might be something that you're uncomfortable doing. Maybe no particularly good at but you need to get comfortable and you need to get good at it and so That was a personal growth thing for me and I think it also says mantle because just like you until we were talking in the last question about the core operating system. That's not something that you know. A normal one full stack engineer is wanting to understand typically wants to work on. But it's the unsexy thing that is not comfortable but it's the thing that makes a really big difference so maslow's an organization that runs towards us so with so many problems to choose from. How do you? How do you choose which problem? You're going tackle tackle next the customers. Tell us right and so we have to stay very close to customers you know. They know their problems best. We need to be good understanding and passing through what they're telling us. We often have individuals. Tell us and this is no fault of their own. Because this is how express it we have banks and credit unions? Come to US WITH THE SOLUTION. Not The problem. So it'd be like it'd be great if you built this right and that's good that's good feedback but even better than that is. I have this problem right. Because of the the solution that they jumped to embeds a whole bunch of assumptions of what is possible but we actually know a whole another set of things as possible and so if we have the underlying problem to start with we start with a blank piece of paper and other people necessarily might not because of just the paradigm the Bainian. And so it's listening. It's a lot of listening. It's a lot of asking leading. Questions is a lot of talk about what's happening now. What are you struggling with? Technology problems with non technology problems. Sometimes the biggest insights gained from conversations that have nothing to do with technology. Because the person doesn't even realize it technology insolvent right. What is the biggest challenge facing mantle? Right now yeah I'd say it's the way. The industry generally thinks about technology. I think for a long time and I certainly feel this in some of my conversations. Certainly sometimes don't that. The INDUSTRY VIEWS TECHNOLOGIES AND EXPENSE. Which makes absolute sense because on the piano you talking to a bank? Cfo It is on the expense lot. Reid it's reported to the FDIC is dot processing. It's an expense. Look how much I spent on this this this correct? That's right next to payroll and rent and utilities expense. It's an expense from an accounting contract. Bought if you think about technology in other industries a lot of the buying decision in technology is talking about it as a capital investment right and it's a lot of institutions look at investing technology. Just like they look investing in a new branch or new division or acquiring. Something I can spend a million dollars technology like it's been a million dollars on headcount I can spend a million dollars acquiring this business. I can spend a million dollars investing in marketing right. It's capital allocation and often the questions we get when people looking to purchase technology is expense questions not investment questions. What do I mean by that? It's going to cost me. How do I minimize the cost versus great? Once it cost me. How do I minimize cost? But also what is the expected return from the technology? Right if I if I go and buy a million dollars technology whether it's with mantle or anybody else how is my business economically going to be better off? Am I gonNA drive five hundred thousand dollars of cost efficiency? Am I going to increase by revenue growth or in this case deposit growth or asset growth or whatever it is an inner banking context? Am I going to increase that by X. percent next year? What is the economic return that I'm going to get all my economic investment and I think the banks understand that concept and opportunity costs and capital investment because they do these sort of calculations all the time with build a new branch of by a competitor or return money to their shareholders but in the Pasta? I haven't thought about technology that way. Because usually the options they have gotten never express or articulate to them. What they're expected returns should be right there at the expected. Return from all the technology that brought in the past and so when we come in and say well his the cost of that technology but he is the results that we would like you. To See or hear the efficiencies you should gain quantified. I think that that changes the paradigm and that movie me industry in that way to US thought Asking vestment questions expense questions I think is the really big thing holding back a lot of institutions from really innovating here and. Do you see a lot of disparity juicy some institutions. That are really looking at this in a more enlightened way exactly right and I would say the the people that are first over the wall and the fos- followers are asking the question. What's what's all the fuss about over here looking at it critically of course because you absolutely should look at it more in that way and I think that those that are potentially in that bucket who are a little bit more wait and see still thinking about it as an expense question. The proof is GonNa be in the pudding if enough institutions. Make these investments in Dr Ray over times which I think the of the world are etc You will see more and more. Do this. The The BB&T merger with Suntrust and the biggest rationale about one of the biggest rationales was taught cost efficiency and the ability to invest more in technology. That was the second one right. Billy do they literally Saudi. Jp Morgan and said they're spending billions of your technology. We need more at eleven billion or something exactly and by the white technology expenses. The fossils growing light on expenses in the industry right is doesn't expense reduction pushing the industry but technologies growing double digit category because banks are realizing that if they don't invest here they're GonNa see attrition in the customer base and so it's very topical.