BT_RexSalisbury_2026-05-10_Mix1_MR1943

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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

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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.

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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)

While the industry watches companies like Nubank and wonders what

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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.

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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)

Banking is quietly being unbundled by software

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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.

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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.

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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)

He's going to join us to discuss why legacy banking modes are evaporating

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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

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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)

further.

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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)

So Rex,

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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,

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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)

but you're on various organization boards or advisory councils

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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)

working on how to get more information out to not only the

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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.

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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?

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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.

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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.

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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)

You know, it's interesting,

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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)

Rex, because it's a trust factor.

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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.

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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.

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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

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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

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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

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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

6:36

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.

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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)

And it's helping drive their gold subscribers.

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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,

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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)

hey, we're going to give away all the interchange,

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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)

we're going to give away all the net interest income,

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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)

but we're going to make money by doing a bunch of things,

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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)

doing it super efficient at scale,

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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)

having fewer people in the back office,

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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

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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.

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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)

I'm the deposits line of business.

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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)

I'm the card line of business.

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S… Speaker 1 (BT_RexSalisbury_2026-05-10_Mix1_MR1943)

And they're not able to work across those silos nearly as well

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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.

BT_RexSalisbury_2026-05-10_Mix1_MR1943

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