BT_RexSalisbury_2026-05-10_Mix1_MR1943

May 12, 2026 10:12 · 52:37 · English · Whisper Turbo · 3 Хөгжмийн зохиолч
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0:11
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
If you think the biggest fintech threat to your bank is a digital wallet or
0:15
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
a sleek new credit card,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
you're missing the real story.
0:18
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
While the industry watches companies like Nubank and wonders what
0:22
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
its U .S.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
entry could mean,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
a far more important shift is already underway.
0:27
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Banking is quietly being unbundled by software
0:31
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
platforms,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
embedded finance,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
and AI tools that move from insight to execution in
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
a nanosecond.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Today, we're joined by Rex Salisbury,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
founder of Cambrian.
0:42
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Rex invests in the company's rebuilding financial services from
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
the ground up,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
often before traditional banks even see the risk.
0:50
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
He's going to join us to discuss why legacy banking modes are evaporating
0:54
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
faster than most executives realize,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
what threats matter most,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
and how banks should respond before the competitive ground shifts even
1:03
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
further.
1:04
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
So Rex,
1:05
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
first time on the show.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I don't know how we've missed each other through these times,
1:08
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
but you're on various organization boards or advisory councils
1:13
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
working on how to get more information out to not only the
1:17
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
fintech founders,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
but also finance institutions on how to do banking better.
1:22
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Start off right off the bat.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
From your vantage point as an early stage fintech investor,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
what are the two or three trends in U .S.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
banking executives have to be taken more seriously right now?
1:34
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I think the number one trend to be paying attention to right now is the fact that there
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
are at -scale tech players who are today taking market share in
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
mass affluent.
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
That was not true even three years ago.
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And it was not true of the companies that were founded 10 years ago that they started
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
in the mass affluent.
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
They started down market with younger or less affluent customers
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
who banks largely did not care about and did not know how to serve profitably.
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Now what you are starting to see is that equation has flipped.
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
They are actually starting to take market share for the customers that banks
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
actually care about.
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And in the intervening 10 years,
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
banks' products have not kept pace.
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And it's a one -way door.
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Once you start experiencing better,
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
modern products,
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
you don't go back.
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And so you might be sitting there and be like,
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Hey, I'm a banker.
2:22
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Things are going fine.
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
10 years,
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Robinhood's a $50,
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
$100 billion company.
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
NewBank's an $80 billion company.
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
But we're fine.
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
My business is still growing at roughly the same rate it's ever been.
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And I think that's missing the point that we've actually just in the last couple
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
of years started to hit the place where customers are leaving
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
banks for some of these new platforms.
2:48
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
You know, it's interesting,
2:49
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Rex, because it's a trust factor.
2:52
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
You know, seven years ago,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
organizations were,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
you know, the fintechs were unknown.
2:57
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And as you said,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
the people that were not being served by financial institutions said,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
well, I'll put my secondary account there and maybe I'll transfer it over.
3:05
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And all of a sudden now we're seeing companies like Chime having the most number of checking
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
accounts open on a monthly basis,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
more than Chase,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
more than any other organization.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And I think that's because people said,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
you know what, nothing went wrong.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
So my trust factor has gone up.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And even bigger than that,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
the service is now being offered by the Robin Hoods,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
by the SoFi's,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
by even the allies.
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And that's where I would say trust does matter.
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And if you screw up trust,
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
it doesn't work.
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I don't think it's just a trust factor,
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
though, because I think if you're a mass affluent customer and you looked at Robinhood or you looked at Chime
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
five years ago,
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
you would say,
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
this does not serve all of my needs.
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I'm not actually interested in this product regardless of whether or not I trust this institution.
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Now,
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
when you start to look at those product offerings,
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
you realize it's more compelling oftentimes in terms of the
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
breadth of products or certainly in terms of...
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
The rewards that are offered to you or the lack of cost.
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Chime, for example,
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
started as a free product for many folks for whom they could not have a free checking
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
account post -urban.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
So,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
you know,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
bankers are,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
what they're getting wrong about the fintech marketplace is that they're underestimating
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
the threat and misunderstanding where value is created.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Is it more than just the fact that they're digital that's the threat or is it basically that
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
they're creating products,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
moving the speed of digital to be able to serve the customer better?
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Because I sense the fact that a lot of this happening is still behind
4:30
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
the scenes.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I talk to bankers all the time going,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
you know,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
do you realize how much silent attrition is happening?
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
that you don't even have a taste of because you haven't lost that customer in
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
your mindset, in the old -fashioned way of saying,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
oh, they're still on the books.
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And part of the thing is, you know,
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
it's not just, it's also generational,
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
right?
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
The amount of time it's taken for this to happen.
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
In the last 10 years,
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Gen Z and millennials have grown up.
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And so they might never have moved their primary broker's account to you in the first place.
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S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
So you didn't necessarily notice the churn.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
happening.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
But to your question,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
what is actually causing it?
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I think there are two really big things.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
One is product.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And product is the thing everyone sees and thinks about.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
The other big one is business model transformation.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And if you take a look at what Robinhood is doing...
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
A lot of people don't like the idea that Robinhood is encouraging day trading.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
But if you look at what Robinhood is doing,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
they basically have a way of monetizing and engaging users through
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
their brokerage account that none of the big banks are very good at competing with.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And so they have this monetization engagement engine that
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
no one else has replicated.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And they've attached to that the ability to cross -sell and
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
upsell more traditional banking products,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
like a credit card that gives you 3 % cash back.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
like a high yield checking account.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And what's interesting about that is not just the product innovation.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
It's very hard to build an incredibly engaging,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
seamless,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
digital front end for a brokerage account.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
If you log into Robinhood and you log into a Merrill
6:00
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Lynch or a Schwab or someone else,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
there's a world of difference in that product experience.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
But there's another part that's even harder than the product experience in some
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
ways.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And that's the business model.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And because Robinhood has a unique way of monetizing on the brokerage account,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
they make about 2 % return on assets for their clients.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
It means they're comfortable being more aggressive
6:22
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
in terms of the value they give back to their consumers for the other products.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
A 3 % cashback card is dead on arrival at every single bank because
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
they don't know how to make money off of that.
6:32
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
It remains to be seen the extent to which Robinhood can make a lot of money
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
off of that, but it's going to be a product within a broader product suite.
6:40
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And it's helping drive their gold subscribers.
6:43
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Also,
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
they have a high yield account.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
If you tell...
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
a banker,
6:48
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
hey, all of your customers now need to be getting market -leading yield on your accounts,
6:52
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
that quite literally breaks the bank.
6:54
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Because banks,
6:55
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
the core thing bringing them together is low cost of deposits.
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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And if you're saying,
6:59
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
hey, we're going to give away all the interchange,
7:01
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
we're going to give away all the net interest income,
7:03
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
but we're going to make money by doing a bunch of things,
7:06
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
doing it super efficient at scale,
7:08
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
having fewer people in the back office,
7:09
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
they're like,
7:10
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
oh my god, I can't compete with that.
7:14
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
structurally, my lines of businesses are incentivized
7:19
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
not to do that,
7:20
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
right? Because you're thinking about each,
7:21
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
not from a customer perspective necessarily,
7:23
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
but they're often managing at the line of business.
7:25
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I'm the deposits line of business.
7:28
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I'm the card line of business.
7:29
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And they're not able to work across those silos nearly as well
7:33
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
as a newer company can.
7:36
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I talk a lot about Robinhood and I talk a lot about Robinhood because they're one of the few that
7:41
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
has, I think, reached any degree of scale in mass affluent.
7:44
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I expect there will be others.
7:45
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
It's just that Robinhood is the first.
7:47
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And I think the best rough proxy for understanding what this looks like is if
7:51
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
you look at JPMorgan Chase and you look at their digital monthly active users,
7:56
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
which isn't like a great number,
7:57
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
you'd probably care about a different number,
7:58
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
but it's a number that they disclose regularly.
8:01
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
It's about 60 million.
8:03
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
monthly active users.
8:04
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And on average,
8:05
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
a Chase customer has like a $60 ,000 account balance.
8:08
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Robinhood went from having basically zero customers that had something
8:12
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
approaching a $60 ,000 account balance,
8:15
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
call it three years ago,
8:16
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
to having about 4 million of them.
8:19
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
They don't break out their deposits by gold subscriber,
8:21
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
but it's probably pretty close or much,
8:25
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
much closer than their average account.
8:27
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
to what a JPMorgan Chase customer looks like.
8:30
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And that has gone from zero to 4 million.
8:32
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
So three years ago,
8:33
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
you'd say like,
8:34
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
there really aren't any customers there that folks care about.
8:37
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Fast forward to today,
8:38
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
$4 million growing at whatever it's growing at now.
8:42
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
It's growing a lot faster than it is for the big banks.
8:44
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And Robinhood is just the first one to come.
8:47
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
You mentioned Chime.
8:48
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Chime historically has down -market consumers earning less than $30 ,000.
8:51
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
But if you read their S1 or any of their lease in public,
8:55
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
they say our core customer is anyone earning up to $100
8:59
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
,000.
8:59
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
They've launched a secure card.
9:02
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
They're launching new products.
9:03
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
They want to move upmarket.
9:06
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Now it's going to be a lot of work for them to move up market,
9:08
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
but they're going to try to do it.
9:10
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And when they do,
9:10
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
if they gain customers and market share,
9:13
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
those are going to come at the expense of the big banks.
9:15
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
So big banks really in just the last three years,
9:18
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
and it's not just the big banks,
9:20
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
it's also the long tail of banking institutions in this country who tend to serve
9:24
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
the older generations as opposed to Gen X,
9:28
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Gen Z, millennials.
9:30
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
they are actually starting to go after the customers that banks care about.
9:33
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And that's just on the consumer side of things.
9:35
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
We could talk a lot more about what's going on on the business side of things.
9:39
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
So Rex, with this being said,
9:41
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
you know,
9:42
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
we're talking a lot about the wealth transfer that's going to happen as people
9:46
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
my age start passing on and the money's being managed
9:50
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
by people that are much younger than us,
9:52
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
our kids or maybe our spouse,
9:53
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
but kids and the ultimate thing.
9:55
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Can the major banks who have had these legacy
9:59
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
accounts
10:01
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
even bar the doors.
10:02
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Can they close the barn door?
10:04
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Is the horse already out of the barn with all the people in this next generation
10:08
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
having relationships that they're much better served?
10:11
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
They're much more personalized services and different asset
10:15
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
tiers and things of this nature.
10:17
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Is the legacy banking environment more
10:21
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
a threat than anybody realizes because of the wealth transfer that's going to end up happening?
10:25
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Yeah.
10:26
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
The wealth transfer...
10:27
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
So before we were talking about mass affluent,
10:29
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
mass affluent households are well off,
10:32
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
but they generally don't have a lot in assets.
10:34
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Maybe they have a few hundred thousand dollars total in investable assets.
10:37
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
So when you talk about the great wealth transfer,
10:39
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
you're really talking about the top 10 % and really even the top 5 % or 1
10:43
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
% of the population where all of the investable assets
10:47
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
tend to sit.
10:48
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
If you look at total net worth for...
10:52
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
It's really not until you get to the...
10:54
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
top 10 % where 50 % of their net worth is held in stocks and other kinds
10:58
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
of financial assets.
10:58
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
So it's a different kind of customer,
11:00
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
but it is a very important customer to be considering.
11:03
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And I think banks are also screwed.
11:06
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And banks, you know,
11:07
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
here banks is a little bit interchangeable with like RIAs because some banks have wealth
11:11
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
management practices.
11:12
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And I think they are also quite screwed.
11:16
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And the reason for that is that the infrastructure of these folks run on...
11:20
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
First of all, the average age of a...
11:22
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Wealth Advisor is a lot older than the average
11:26
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
age of the child of their current client.
11:29
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And so it's like,
11:31
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
hey, you show up,
11:32
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
your parent is passing away,
11:34
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
about to pass away,
11:35
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
or just you're doing financial planning and it's still 10 years,
11:39
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
15 years before that happens.
11:41
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
and you go and interact with this person,
11:43
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
they just don't feel like someone you relate to.
11:46
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
So just on the relational piece,
11:47
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
let alone the product or the technology experience,
11:51
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I don't think it aligns.
11:53
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And then they're like,
11:54
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
hey, congrats,
11:55
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
you get to have our white glove experience.
11:58
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Come down to our office and sign a bunch of paperwork to open
12:02
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
these accounts to pay us a 1 % management fee to
12:06
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
now have a really,
12:07
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
really crappy...
12:10
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
software experience that you can log into.
12:12
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And you look at it,
12:13
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
you're like, wait, I just took like a step back 30 years.
12:15
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
This is terrible.
12:16
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
They're able to do it themselves on their phone better than their
12:21
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
bank can do it on their behalf.
12:23
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Absolutely.
12:23
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
It is easier for me to trigger...
12:26
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
So I'm a customer of Mercury Personal.
12:28
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Mercury Personal is an example of how...
12:31
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
This is very,
12:32
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
very early.
12:32
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
They're probably in the thousands of customers,
12:34
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
but they're going straight after a more affluent client base with a personal
12:38
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
banking account.
12:39
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
It is easier for me to send a wire with Mercury Personal than it would
12:43
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
be to call my banker and send a wire.
12:46
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I do not want to call a banker to send the wire.
12:49
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I do not want a banker to be pitching me and saying,
12:51
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Hey, Rex.
12:52
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
great news.
12:53
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
You want something done,
12:54
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
just text me.
12:55
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Now, I'm going to be charging you 1 % on your assets.
12:57
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I'm going to require you to hold a lot of deposits with me that I don't actually pay you interest on.
13:01
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
But anytime you want something done,
13:03
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
just call me.
13:03
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I'll do it.
13:04
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I don't want to call you.
13:05
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I shouldn't have to call you.
13:06
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
It's not that hard.
13:08
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Why can't I just click a button to send money?
13:11
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Stop asking me to call you.
13:14
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I don't want to be taken out to play golf.
13:17
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
If you're paying for golf,
13:19
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I know I'm paying you in some back -ass words way.
13:21
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I want good software that works reliably.
13:25
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And then ideally,
13:26
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I'm...
13:27
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
paying for it in some clear and transparent manner.
13:30
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Now that's probably not actually going to happen because it turns out people don't like paying for things
13:34
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
in clear and transparent manners and financial services.
13:36
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
So that's probably still going to become the case where you have these opaque
13:41
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
revenue streams in the ecosystem.
13:42
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
But in terms of the fundamental expectations of the client and what they want...
13:47
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I just don't see a world in which the typical,
13:50
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
and it's mostly millennials who are going to start receiving distributions from
13:54
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
boomers,
13:55
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
is going to want the same experience that their parents did.
13:59
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
It's going to necessitate an entirely different set of products and services.
14:02
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
So you're deep in the fintech space,
14:04
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
so you obviously have to look at legacy banking to figure out weaknesses so that your
14:08
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
investments actually apply to the weaknesses of legacy banking.
14:12
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And I know what your answer is probably going to be here.
14:14
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
You're going to say all of the above.
14:15
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
But when you look at the biggest structural weakness of legacy banking today that they
14:20
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
have to be able to solve for,
14:21
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
is it the experience?
14:23
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Is it the cost?
14:24
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Is it speed to market?
14:26
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Or is it the - It's the product and how the product experience
14:30
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
intersects with the business model.
14:32
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I think what is starting to happen,
14:34
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
so let's continue to talk about kind of the top 5%,
14:37
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
so above the -
14:38
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
the mass affluent.
14:39
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
What is happening now is I think more and more products and services are
14:43
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
getting bundled around the core wealth management experience.
14:45
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
The great news about doing wealth management for a client is
14:50
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
you have a huge relationship with them.
14:52
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Their investments tend to be pretty sticky.
14:54
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And even if you're not charging them a 1 % management fee,
14:58
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
but you're the custodian,
14:59
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
you can monitor
15:00
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
monetize those assets from 10 to 25 bits a year in a way that may be completely
15:04
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
invisible to the end client.
15:05
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
So that's a pretty sticky recurring revenue stream.
15:09
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Now, it used to be the person who did the wealth management was like,
15:11
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I don't want to do your taxes.
15:12
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
That's a lot of work.
15:13
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
It's low gross margin.
15:15
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I'd rather refer it out.
15:16
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I don't want to do your estate planning.
15:17
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
It's a lot of work.
15:18
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
It's low gross margin.
15:19
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I'll refer it out.
15:21
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I am the wealth manager or the RIA,
15:24
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
but the bank is separate.
15:26
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And that's like another project for us.
15:28
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I think increasingly what clients are going to demand is,
15:30
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
no, I want one platform.
15:32
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
that is going to do my wealth management,
15:34
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
my estate planning,
15:35
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
and my taxes.
15:37
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And they're going to do it all in one.
15:38
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And I think the reality is taxes are going to be free.
15:41
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
You can already see this today.
15:42
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And this is one of the first things that's starting to happen in terms of the AI revolution is a
15:47
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
lot of people are starting to offer free taxes as a client
15:51
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
at the lower end,
15:52
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
call it the middle class.
15:55
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And for mass affluent,
15:57
S… Speaker 3 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
it's more of a...
15:57
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
a retention tool to retain existing customers,
16:01
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
or an acquisition tool,
16:02
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
help you say like,
16:03
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
hey, you put up a bunch of posters,
16:05
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
say, do your taxes for free,
16:06
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
you get attention from folks,
16:08
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
you might be able to cross sell them new products and use an acquisition tool.
16:11
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
But at the very highest end,
16:13
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I don't think anyone's like,
16:15
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
hey, I'm going to move a million in assets,
16:17
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
5 million assets over just because you'll do my taxes.
16:19
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Also, the taxes are more complicated,
16:21
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
so I don't believe that you're going to be able to do the taxes.
16:23
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
But I do think more people are going to start to require a fully integrated product
16:28
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
experience that covers every aspect of your financial life.
16:31
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And I think the thing that's most likely to get bundled around is around kind
16:35
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
of the wealth management stack.
16:37
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And you can even look at Robinhood and see how this is kind of the case.
16:40
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Robinhood started as this kind of toy account for day trading,
16:44
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
your play money for mostly young folks.
16:48
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Now they've moved into the full set of accounts.
16:51
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
They're working on private banking.
16:52
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
They now have their card.
16:54
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
So they're working on trying to move upmarket.
16:57
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
But there are other folks who are trying to work on ways of doing this as well,
17:01
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
where you have kind of a tech -native RIA that is doing the
17:05
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
full product of services for their clients.
17:12
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
gone through a lot of changes.
17:13
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
FinTech, you know,
17:14
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
eight years ago,
17:15
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
nine years ago,
17:16
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
was disrupting everything or we were worried about disrupting everything.
17:20
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
There were companies being introduced every single day and it's not that way
17:24
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
anymore.
17:25
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And in fact, a lot of the disruption in FinTech has been partnering solutions with
17:29
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
the traditional financial institutions.
17:31
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And I think...
17:33
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
You almost get lulled into a false sense of confidence with a legacy banker
17:37
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
where they assume that because we're not seeing all these headlines of this much
17:41
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
money spent here,
17:42
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
this much money spent here,
17:43
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
that disruption has slowed.
17:44
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
From what you're seeing,
17:46
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
is it really slowed or is it moved deeper into the infrastructure,
17:49
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
intelligence,
17:51
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
and distribution as opposed to that flash
17:55
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
in the pan organization that's going to solve a niche?
17:58
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I totally agree with this perception.
18:01
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I don't think it's unreasonable to have that perception,
18:03
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
but I think it's completely wrong.
18:05
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And it's not unreasonable to have that perception because we've been hearing about these new
18:10
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
things for 10 or even 15 years now.
18:12
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And you're like,
18:13
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I'm still here.
18:14
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
All of the doomsday scenarios that people were talking
18:18
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
about 10 years haven't happened.
18:20
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
This is crazy.
18:22
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
That was all just hype.
18:23
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
It's not real.
18:24
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
But if you actually start to look at the numbers...
18:27
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
you can see that it is now finally starting to happen.
18:30
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
But there's no hype about it.
18:33
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
It's just this long tail of execution and growth.
18:37
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And the things that are getting hyped now are the next generation of
18:42
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
things that are going to happen in financial services and in AI.
18:45
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
That is going to be even bigger and more transformational than the last 10,
18:49
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
15 years of what has happened in fintech.
18:51
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
But that last 10 or 15 years is finally starting to get to the point.
18:55
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
where it's penetrating into the incumbent's
18:59
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
home turf.
19:00
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And that's why I would be particularly scared about if I were a large
19:04
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
incumbent that didn't move very fast in the last 10 or 15 years.
19:08
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
It's like, well, those companies are now coming for your core customers.
19:11
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And by the way,
19:12
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
we have a new bigger shift that's even earlier.
19:15
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And that's going to be even more transformational.
19:17
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
There's less clarity as to what exactly that's going to look like yet.
19:21
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
But even if you manage to fight off this wave that's currently happening,
19:26
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
there's going to be another bigger wave that's driven by all the disruption that
19:30
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
AI is going to bring across the entire economy,
19:33
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
including financial services.
19:49
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
an organization that if you watch the market on an ongoing basis,
19:52
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
they raise your eyebrows because they're big.
19:56
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
And,
19:56
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
you know,
19:57
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I'm down in Florida this time of the year.
20:00
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
They're building a stadium down in Miami to house a soccer team.
20:03
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Well, that's not the biggest thing they're doing.
20:05
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
They're a little different from your challenger bank story.
20:08
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
They started in a marketplace that distrusted banks from the
20:12
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
very beginning.
20:13
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
So they got a little bit of a head start in the way they dealt with their consumers.
20:17
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
But it's more than just a Latin American success
20:21
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
story.
20:22
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
You just did an interview with a new bank
20:26
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
executive.
20:27
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
What was the biggest takeaway you had and maybe the biggest aha that
20:32
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
most American bankers may just not catch?
20:36
S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Yeah,
20:37
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
I think one reason to be,
20:40
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
so NewBank wants to come to the U .S.
20:42
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
Coming in the U .S.
20:43
S… Speaker 2 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)
is very hard.

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