00:51:26 · Jackie Reses
[00:51:26] S0: This has all been referrals and you've reached over 200,000,000 in revenue? Yeah, our last year's revenue was about $280,000,000 Yeah, and about $31,000,000 of net income. Wow. And all referrals, can you list out some of your clients? It is all referrals, but, and honestly, our clients are really our sales team. And between our clients or me, that's sales. And so, you know, our first client was actually Ramp. And at the time I was at a CO2 conference and I was with Eric and I pitched him on what we were building, and he was like, I'm in. And we ended up working on one product with them, and his philosophy was you can be no worse than the traditional banks that we use. And given the roadmap that you're going to build and the technologists that you're working with, you'll be incredible. And so I'm willing to wait the six months when you go build out your tech and advance your technology in such a way that we're willing to wait, and I know you won't be worse than what we work with. And so we got very lucky to have such a high quality client. And so that was our first client. And then Atlas was one of our other clients. And they had just had a situation where another bank ran into trouble and Atlas had to come off their rails along with a handful of other clients. So they immediately came to us in an emergency and said, can you take us? We hadn't even closed the deal when I said, you have to go talk to the team before we own the company. But if they onboard you, we will absolutely deploy our technology to your products. And so we ended up onboarding Atlas as our second client. And then from there, we've added Stripe, Walmart's One Pay, Affirm, Flex, Self. And so we have an amazing, amazing roster of clients. Revolut is a client. And so I think they're just absolutely incredible clients to work with, and they're the world's best consumer and fintech companies. We have lots of crypto companies as our clients, over 100 of them. And so we're lucky that they refer us into the network and our investors refer people to us. And it's all word-of-mouth. We're really lucky to have such an incredible client base. What is the core of the technology and how did you build that tech stack? So we have five core API sets. First is lending, second is money movement, third is issuing, fourth is accounts, and fifth is stablecoins.
00:54:20 · Jackie Reses
And so all of those things sound absolutely boring. Like, it sounds dreadfully boring and as if we're stuck in 1974 with the exception of the stablecoin one. But all of those APIs are built around modern programmable, interoperable APIs that can be adjusted to build any kind of product that a client needs based on like their infrastructure needs. So we provide the components that make their systems operate underneath. And so you could be Bridge, which is now owned by Stripe, and we help build their stablecoin backed cards. And we deploy account technology. And by accounts, I mean literally bank accounts. The only difference is we could spin up a million of them in very short amount of time versus sitting there with a pen and paper and hoping for a free toaster at the end of your half an hour sign up for a bank account. We could deploy a million accounts instantly. But they're really cool products. They just sound dreadfully old school, even though there's nothing about the construction of our programmable APIs that's remotely old school, including like our stablecoin products, where we're one of the only banks in The United States that could build both fiat and stablecoin on chain rails concurrently. And so I think given where the financial system is going, I think that product suite is highly relevant to the future of finance. Where does AI fit into the platform? Well, is incredibly powerful to everything we've built. I mean, first from a team, our team uses AI in every team in our company. And it doesn't matter whether you're in the ops team, you're in the local lending team, you're on the HR team. And obviously our technical teams deploy almost all of their code with AI. But then as it relates to products, there are core components of our products that deploy AI in the products so that our clients can use them for agentic commerce. And so the way that they're built, the way that they're deployed, they're pretty powerful from like a money movement. It's completely programmable such that you could deploy it in a real time payment network or in a checkout, a checkout modal prompt, and you could use it for agentic commerce or any type of financial product you're trying to deploy in context of whatever your product is doing.
00:57:07 · Molly O'Shea
[00:57:07] S1: So you not only are an icon of Silicon Valley and banking, but your brother is JD Vance's chief of staff you have deep ties to DC. So what's going on there?
00:57:22 · Jackie Reses
[00:57:22] S0: I'll start on the nutso part because I'm from Atlantic City. And so I don't think anyone expected these two kids from Atlantic City to end up where we are. But yeah, no, my brother's worked for JD since pre his Senate run. And he has this amazing job as his chief of staff, which is pretty surreal. And it's really cool to see, even from my vantage point, because I've never really had that much of a view into politics. Now he's just living his ordinary life. Where he is in the world or what he's doing, which is chronicled all over the news, is on a family thread where you're like, dude, you gotta get your stuff out of the house. And he's like, I'm on my way to Islamabad. And so, it's a very funny dynamic to have where you realize that people are just people no matter what their job is, and everyone's just trying to kind of do their best. But it certainly is fascinating to look at the world through his lens and the lens of his colleagues, because at this point they are in huge jobs across the executive branch. What's it like going into the White House with a family tie there versus for work? It's weird. Like, it's very weird. Like, I'm very deferential. Like, I really feel like I should walk in and curtsy to everyone I see. Like, it's still the White House. It doesn't matter who's in it at the time. You have to kinda go in with the attitude of like, this is a historic house that has been part of our country's history. And so I have that kind of deep respect for the institution. And then it's just crazy because it's your siblings. So you can ask stupid questions that you'd otherwise never ask people, or you go into rooms that you probably wouldn't ever be allowed to go in, in a corporate environment or where you're trying to be more formal and polite, but it's your brother. And so that's kind of a fun and surreal experience that I've loved. I feel grateful that I get to do that. And into some of those places in the White House has just been eye opening. It makes you feel really small and like a tiny, tiny little part of history. Just because the house and the institution of the American government just is so storied regardless of who's in there. And so, I feel like it's my moment to witness history in a weird way. Like, I've gone on Air Force II, that was super cool. No way. Wildly cool. Where'd you go? That's like a life moment.
01:00:18 · Jackie Reses
Went from the Atlantic City Airport, as I said, I'm from Atlantic City. We went from the Atlantic City Airport to the White House, and J. D. And Usha, and many people from the White House were kind enough to come to my father's funeral last summer. And so we flew back to DC and they were nice enough to take me. It was so cool. And I have to say, it kinda looks like a business class flight. And I've been on many a planes that are much nicer, but it's kind of amazing. And may I get to go again? I'd be absolutely thrilled. But it's super cool. Like, what a life experience to have. That's wild. Yeah, it's pretty crazy. And then the rest of my government experience, I spend a lot of time with the FDIC, with the OCC, with the Federal Reserve. I do a lot of work in trying to improve banking regulation for the digital and AI age, and doing a lot of work around crypto legislation. It's super fun. I genuinely like our regulators. I think they're good people. They've been wonderful to us at LEAD. And so I've been able to build these relationships over the last fifteen years throughout the organization. I remember in 2016, Hamaam, my co founder, helped the FDIC think through machine learning and how algorithmic lending works. And so from that era where it was like the first glimpse into what the precursor to full AI underwriting models look like, I've been deeply embedded in a lot of these regulatory environments to build relationships from all levels of the organization. And so, I've loved being included. I've loved being part of the Fed family. That's super cool. And the Fed has been largely nonpartisan, and the nerdiest group of economists you've ever seen, really just trying to divine economic wisdom across The United States to make employment and inflation judgments make the American economy better. And so that's been fun to be a part of because I didn't understand it before I got involved at the San Francisco Fed. And then John Williams and now Mary Daly have just taught me so much about economics and how they make decisions in order to move interest rates. What do you think
01:02:53 · Molly O'Shea, Jackie Reses
[01:02:53] S1: the biggest misconception is about working with the government? [01:02:57] S0: They can't actually have a conversation. I think the more honest and open you are and square about what your agenda is, the more you can have a conversation that actually provides advice or listens to a perspective about what they're trying to achieve. Like, there's so many things that need to be changed to update the world for the AI age, and I don't think the experts are going to be in the government at all. Therefore, the people who are the experts need to show up in droves and actually provide their insights to the government so that they then can distill the best framework for judgment to build laws. Like, I think lawmakers are good at figuring out what level to write those frameworks in, but they're not gonna be able to do it in AI based on their insight and knowledge and experience. They have zero of it. And so I think all of us who have specialized knowledge, mine around crypto, financial services, building out digital rails, many on the AI side, probably our lead, many of us are experts on what regulatory frameworks need to be changed for agenda commerce. But like true AI legislation on the core of the technology, I think it behooves all of those executives to just show up in droves. I know we have to wrap up. I'm getting some signals. But a fun fact that I learned is that the bank is 60% women. [01:04:29] S1: Yeah, absolutely. That's crazy. Where'd you find all these female bankers?