1 00:00:06.060 --> 00:00:09.240 Johny Fernandez: Hey, what's going on everyone and welcome to deBanked News. I'm Johny Fernandez. 2 00:00:09.299 --> 00:00:10.289 Sean Murray: And I'm Sean Murray. 3 00:00:10.439 --> 00:00:16.079 Johny Fernandez: And we're gonna keep you guys up to date on the latest headlines going on this week in the business. So Sean, first and 4 00:00:16.079 --> 00:00:24.809 foremost, let's talk about Miami. We just released a story with the interview I did with the Miami mayor. And it's very very popular because 5 00:00:24.899 --> 00:00:35.279 Miami's Mayor he specifically powerful spotlight politician right now at the current moment, and it was really interesting to chat with him 6 00:00:35.279 --> 00:00:45.089 because we were able to talk about a number of things, including what Miami's future looks like. Also, like his plans for retention for Miami, 7 00:00:45.089 --> 00:00:51.419 it's specifically because, you know, he's encouraging a lot of small business owners and tech business owners and FinTech business owners to 8 00:00:51.419 --> 00:01:00.779 come into Miami. So you know, how exactly does he plan to make sure they stay in Miami. And then we also spoke about merchant cash advance 9 00:01:00.779 --> 00:01:08.249 business owners, and if he's welcoming them into Miami because of different laws that have passed here in New York that are kind of 10 00:01:08.249 --> 00:01:14.039 pushing them out. So I asked him directly if he is welcoming them and take a listen to what he had to say. 11 00:01:15.350 --> 00:01:22.340 Mayor Suarez: And we definitely want to make sure that, you know that small business merchants and lenders are able to capitalize small 12 00:01:22.340 --> 00:01:28.820 businesses in our community Miami's a very thriving small business community. A lot of our you know, one of the things that people have 13 00:01:28.820 --> 00:01:36.440 criticized us for is we don't have those big massive companies were actually really built on small businesses. So for us, having fluidity of 14 00:01:36.440 --> 00:01:41.060 capital liquidity of capital access to capital are enormous things in terms of scaling. 15 00:01:47.090 --> 00:01:54.470 Johny Fernandez: Let's talk a little bit about how powerful Miami is in regards to the industry and why it's so important for us to have a 16 00:01:54.470 --> 00:01:55.580 presence down there. 17 00:01:56.050 --> 00:02:05.530 Sean Murray: Sure. Well, I mean, it is the second largest geographic location in the country. As far as our audience goes, New York, the New 18 00:02:05.530 --> 00:02:13.930 York metro area is number one, by far after that, it's Miami. And then after that, it's California, which is why we do our shows in those three 19 00:02:13.930 --> 00:02:22.390 cities. You know, Miami has been big for a number of years, this isn't a new development. By the way, Miami has been a big area for quite a while 20 00:02:22.390 --> 00:02:31.030 for the alternative finance industry. And I think what's interesting is that the pandemic and as you mentioned, some, like, you know, regulatory 21 00:02:31.330 --> 00:02:42.370 obstacles are coming up in states like New York here in New York, and people are considering their options. Should I move? Right? Yeah, you 22 00:02:42.370 --> 00:02:49.330 know, the cold weather and living in a small apartment in New York City during a pandemic probably wasn't an enjoyable for a lot of people. And 23 00:02:49.330 --> 00:02:58.300 I think, even if you're a huge New York fan, right, you know, the diehard New Yorker, a lot of people started to consider moving for the 24 00:02:58.300 --> 00:03:04.060 first time ever. And Miami's Mayor wants everybody which we which we saw, which we saw from your interview. 25 00:03:05.130 --> 00:03:11.850 And, you know, it's a, it's a good opportunity to consider that as a location, because you will find so many of your peers if you work in 26 00:03:11.850 --> 00:03:18.510 alternative finance, so many of your peers already work there. Yeah. And so that's, that's why it's, it's important for us to have a big presence 27 00:03:18.510 --> 00:03:19.050 now there. 28 00:03:19.050 --> 00:03:25.750 Johny Fernandez: And it's really interesting, you say that, because not only did the Miami Mayor tell me that that, you know, there are peers 29 00:03:25.930 --> 00:03:33.790 moving down to Miami, but we also did a real estate piece with the Chief Economist from Nest Seekers International. And she also said the same 30 00:03:33.790 --> 00:03:41.020 thing, that the reason why people are migrating down in Miami, specifically from New York is because it's also a reminder that in the 31 00:03:41.020 --> 00:03:49.510 social aspect of it, the social circle, not much changes when you go down to a place like Miami because everyone from New York is already in 32 00:03:49.510 --> 00:03:59.230 Miami. So it not only gives you like Florida gives you better weather, you know, lower tax taxes. But also that social circle is also a big 33 00:03:59.230 --> 00:04:07.210 part of why people move down to Florida, or something that the Chief Economist did say also and also, Miami's Mayor, something that he 34 00:04:07.210 --> 00:04:14.440 recognizes is that a lot of people are now calling Florida, their primary residence, and they're going to be moving back and forth from 35 00:04:14.440 --> 00:04:20.620 New York. So they're still going to keep their New York property, but they get more bang for their buck down in Miami. You know, in Florida, 36 00:04:20.620 --> 00:04:26.080 they don't pay as much taxes. And on top of that, they get the benefit of the great weather. So 37 00:04:26.110 --> 00:04:32.710 Sean Murray: Yeah, I get it. I just know that. When I go to Miami, I'm almost as likely to bump into someone I know from from the non bank 38 00:04:32.710 --> 00:04:40.870 finance industry as I am in New York. Yeah. And that's a testament to just how, how many people from this world are already down there? 39 00:04:40.920 --> 00:04:42.840 Johny Fernandez: Yeah. Would you move down there right now? 40 00:04:43.259 --> 00:04:49.709 Sean Murray: I would. No, I totally, I totally would. It's something I'm actually considering. Yeah. Are you gonna move down there? 41 00:04:50.200 --> 00:04:59.500 Johny Fernandez: I've lived there. I've lived in Florida for a number of years. Going back reminded me why I like the beaches. So it's something 42 00:04:59.500 --> 00:05:03.550 that You know, it's crossed my mind. My mother would be happy. She'd be ecstatic. 43 00:05:03.580 --> 00:05:05.470 Sean Murray: Well, then you got to do it for your Moto, but 44 00:05:05.530 --> 00:05:11.530 Johny Fernandez: I don't know. We'll see. We'll see. But you know, honestly, like looking at the prices of real estate of how much it costs 45 00:05:11.530 --> 00:05:17.770 to own something on the beach down in Florida versus here is a game. That is definitely a game changer. 46 00:05:17.800 --> 00:05:27.130 Sean Murray: Yeah, no, I get it. It's, you know, you don't want to rent your whole life. Yeah, at least I don't want to. And it's really hard to 47 00:05:27.130 --> 00:05:35.080 be a, you can do it in the borough's or you can you can do it in the boroughs. And you can you can do it out in the suburbs, but it's really, 48 00:05:35.080 --> 00:05:41.740 really, really difficult to do in like Manhattan. And so you know, that's another reason why Miami would be a good choice. 49 00:05:41.740 --> 00:05:48.770 Johny Fernandez: And I think once the other piece that we're working on regarding real estate down in South Florida, something that is 50 00:05:48.770 --> 00:05:56.480 interesting is that a lot of people, you know, buy something in Florida and South Florida, for example. But one thing that people forget is that 51 00:05:56.480 --> 00:06:03.170 there are HOA fees down there. And something that in the piece that we're working on, she talks about is that sometimes it could be actually 52 00:06:03.170 --> 00:06:11.750 a little higher down there than it is here in Manhattan. So there's pros and cons. It's very interesting. Yeah. So be on the lookout for that 53 00:06:11.750 --> 00:06:20.300 that one will be coming out soon, too. So but for now, the piece regarding the Mayor and our conversation with the Mayor is on our 54 00:06:20.300 --> 00:06:23.150 website, you can log on to debanked.com. 55 00:06:23.360 --> 00:06:28.550 Sean Murray: Yeah, literally on the homepage right now, and when we take it down from the homepage, it'll be available@debanked.com/tv. 56 00:06:30.380 --> 00:06:40.100 Johny Fernandez: So that's exciting. Sean, so the next thing that's very interesting, that's been all over social media is regarding Texas, and 57 00:06:40.100 --> 00:06:49.580 the Governor of Texas lifting the mandates regarding, you know, wearing masks and opening up Texas 100%. We've been here for most of the 58 00:06:49.580 --> 00:06:54.980 pandemic. So, Sean, when you hear that? What goes through your mind? 59 00:06:56.390 --> 00:07:03.950 Sean Murray: It sounds like a dream. At this point. We've been in New York in you know, the entire time. We've been commuting, I've been 60 00:07:03.950 --> 00:07:11.060 commuting to the office since June.I take the subway every day. I see people talking on social media about coming finally coming back after a 61 00:07:11.060 --> 00:07:12.950 year. I'm like, I've been I've been 62 00:07:14.210 --> 00:07:23.840 Johny Fernandez: You know, we've been back like things have been fairly normal for us. But people are, you know, they're no longer home with my 63 00:07:23.840 --> 00:07:24.950 kids or my dog. 64 00:07:26.700 --> 00:07:34.860 Sean Murray: No, it's what's it's strange, because I haven't been to a supermarket since February or March. We've been doing for FreshDirect 65 00:07:34.890 --> 00:07:42.960 the whole time, I am actually looking back to going to the supermarket, believe it or not. And that's like one of the, you know, it's pros and 66 00:07:42.960 --> 00:07:50.100 cons do I go places? I have, you know, and I have to wear a mask when people have to wear a mask and do the whole hand thing. But, you know, 67 00:07:50.100 --> 00:07:57.390 I'm still intentionally avoiding a lot of areas that are highly trafficked. And one of them being the supermarket because I can do it, 68 00:07:57.660 --> 00:08:06.300 you know, online, you can do FreshDirect, or Amazon Fresh, or whatever food service you have in your local area. But in New York, you have to 69 00:08:06.300 --> 00:08:17.190 wear a mask. And so I have not seen people not wearing masks outside, in however long. It used to be in the very beginning, that some people were 70 00:08:17.190 --> 00:08:27.330 wearing them. And then it was most people wearing them. And now I never see people not wearing them. Like never. And I think it will be strange 71 00:08:27.360 --> 00:08:35.370 to go back to that type of, you know, lifestyle. And I'm honestly looking forward to things like going back to the supermarket. So, you 72 00:08:35.370 --> 00:08:43.830 know, Texas, did it. I think it. I think given their recent situation with the big freeze, they needed to do something bold to kind of 73 00:08:44.250 --> 00:08:47.490 counteract, you know, the disaster they just went through. 74 00:08:47.840 --> 00:08:53.840 Johny Fernandez: And I think Governor, the Governor specifically, he said that he cited the reason why he made a decision like this was 75 00:08:53.840 --> 00:09:02.690 because of the growing number of vaccinations that are happening, like the vaccination rates. And that's what he technically cited. But it's 76 00:09:02.690 --> 00:09:10.910 also really interesting that he pointed out like there's been declines in hospitalizations, and, you know, the vaccinations, but it's something 77 00:09:10.910 --> 00:09:20.390 that we've heard, you know, CDC experts and the World Health Organization experts saying that, you know, regardless, they're saying 78 00:09:20.390 --> 00:09:27.050 that we know, we still need to practice, you know, what we've been practicing the last year, you know, social distancing, we're going to 79 00:09:27.050 --> 00:09:35.330 mass like, even though it's not mandatory won't be mandatory for Texas, but they're so encouraging that be pushed. So it's gonna be really 80 00:09:35.330 --> 00:09:45.020 interesting to see what happens in Texas. Because it's something that between Texas and Mississippi, they're the ones that are really being 81 00:09:45.020 --> 00:09:50.330 bold and starting to continue to live a normal life per se. 82 00:09:51.170 --> 00:09:57.590 Sean Murray: Yeah, we'll see how it goes. If people were to ask, does that mean Texas is a good spot all of a sudden through a conference or 83 00:09:57.590 --> 00:10:06.920 something? I'm gonna say at this point. Probably not, right? Only because people still need to get over their fear of traveling to there. 84 00:10:07.280 --> 00:10:16.460 And you're gonna get some people who are who are okay with it, and a lot more who are not. People have been psychologically affected in different 85 00:10:16.460 --> 00:10:23.660 areas I mentioned before, like, I haven't seen anybody not wearing a mask in New York, I don't know, 6, 7, 8 months, like, not a single 86 00:10:23.660 --> 00:10:30.500 person. To go from that to a world where not a single person is wearing one. I think New Yorkers are just gonna need just a little, even if 87 00:10:30.500 --> 00:10:36.200 they're really excited to get out of this whole thing. I think they're gonna need a little bit more time to feel comfortable. 88 00:10:36.320 --> 00:10:41.060 Johny Fernandez: But let me ask you this, because I know the Texas Governor specifically said that everything gets into place next 89 00:10:41.060 --> 00:10:49.160 Wednesday, and that businesses can run at 100%. But it's up to the business owners to pretty much choose if they want to follow that rule. 90 00:10:50.000 --> 00:10:58.310 But then, for us, for example, coming from New York, where we freak out and we see, you know, like a bunch of tables together. What do you how 91 00:10:58.310 --> 00:11:08.750 does one process something like that, like, the fact that you can choose if you wanted to run at 100%, which all business owners do, but like you 92 00:11:08.750 --> 00:11:12.620 said, will people come back well, they live life normally. 93 00:11:12.650 --> 00:11:18.260 Sean Murray: Yeah. Well, and whether it be a mask section, a non mask section, like non smoking and smoking. You know, I like to be in a mask 94 00:11:18.260 --> 00:11:18.740 section. 95 00:11:18.740 --> 00:11:22.730 Johny Fernandez: Okay, okay. Yeah. It's, it's truly, it's truly just- 96 00:11:22.750 --> 00:11:30.850 Sean Murray: I'm gonna have to get used to not making faces, privately underneath my mask. Right? Because I can I can, I can make a big frown 97 00:11:30.850 --> 00:11:37.960 and no one can see it. Right. Or I can even walk around with my mouth hanging wide open. You know what I mean, to really, really get that nice 98 00:11:37.960 --> 00:11:44.830 fresh air. Right? Especially when I'm wearing a mask? Yeah. Right. I feel like I need to, I don't know, a little bit more difficult to 99 00:11:44.830 --> 00:11:46.600 breathe. You know, psychologically, 100 00:11:46.690 --> 00:11:52.990 Johny Fernandez: Do you think? I mean, it's been a year since we've been kind of going through this entire transition of change of life. Do you 101 00:11:52.990 --> 00:12:02.560 think, personally, you know, you're someone that's working with different venues to, you know, work around the conferences situation? So 102 00:12:02.560 --> 00:12:14.710 do you think that we will ever go back to a normal life with mentally we're not, you know, as in shock about, you know, we will be normal? 103 00:12:14.710 --> 00:12:15.340 Sean Murray: I think we will. 104 00:12:15.370 --> 00:12:15.850 Johny Fernandez: You think will? 105 00:12:15.850 --> 00:12:21.010 Sean Murray: Yeah, I think I think humans have a short memory. I think in two years, people want to remember, 106 00:12:21.610 --> 00:12:22.450 Johny Fernandez: I hope so 107 00:12:24.160 --> 00:12:25.270 I hope so. I mean 108 00:12:25.330 --> 00:12:32.530 Sean Murray: It'll just be it'll be something people write about. It'll be things that people make movies about. And then people just won't care 109 00:12:32.530 --> 00:12:32.950 anymore. 110 00:12:32.950 --> 00:12:43.780 Johny Fernandez: Yeah. And let me ask you this. You working with the conferences, you know, in that entire industry? Have you seen people 111 00:12:43.780 --> 00:12:51.040 call you asking you, hey, like, we want things to be back in person, like, has that attention been there that people actually want to attend 112 00:12:51.040 --> 00:12:57.070 these conferences? Or have you seen it been like a mix reaction that some people say they want to go? Some people say they don't want to go? 113 00:12:57.070 --> 00:12:57.670 What what's been the reaction? 114 00:12:58.170 --> 00:13:03.150 Sean Murray: Yeah, we've actually had people telling us during the height of the pandemic that they were, they were like, demanding an in 115 00:13:03.150 --> 00:13:12.150 person event to happen. And I was like, I don't think, I mean, like, I sympathize with wanting to do that. But you know, at that point, it was 116 00:13:12.150 --> 00:13:20.820 completely impossible. We have had a few people reach out to us who want an event to happen this March, like, you know, let's make it let's make 117 00:13:21.150 --> 00:13:29.250 sure we're ready to go. Pandemic is over, got my vaccination, you know, let's do it. And then we have had some people who said, Hey, if you're 118 00:13:29.250 --> 00:13:36.630 still planning to have an event in the spring, we're not going to feel comfortable. We were like, we really want to get back to it. Hopefully 119 00:13:36.630 --> 00:13:44.310 it's in the fall. And I'm like, well, good news for you. Because that's in December. To me. It's a little bit a little bit past fall. So yeah, 120 00:13:44.310 --> 00:13:50.490 we've had we've had a mix of both, but more so on people looking to do in person versus those telling us they're not comfortable yet. 121 00:13:51.630 --> 00:13:52.890 Johny Fernandez: Do you think people are zoomed out? 122 00:13:53.490 --> 00:14:02.700 Sean Murray: Zoomed out? Yeah. Yeah. I mean, I don't know, Zoom. It was an experience. 123 00:14:05.670 --> 00:14:06.420 Johny Fernandez: And we will keep it at that. 124 00:14:09.480 --> 00:14:18.750 And lastly, we'll talk about today is square became a bank. It's very interesting. They actually launched their own industrial bank on Monday 125 00:14:18.750 --> 00:14:28.080 after receiving a charter from the FDIC. So they pretty much will begin the underwriting business loan under the name Square Financial Services. 126 00:14:28.740 --> 00:14:38.520 And it's something interesting because the CFO did say that it will serve and serve, Square will serve its customers and will continue to 127 00:14:38.520 --> 00:14:46.860 work to create financial tools that serve the underserved. So sure square became a bank and something I think, I think we talked about this 128 00:14:46.860 --> 00:14:54.540 before, do you think do you believe that more of these type of businesses will kind of become something bigger like a bank? 129 00:14:54.720 --> 00:15:03.330 Sean Murray: Well, the story that no one's talking about and you know, our is called deBanked. Right? When we write a story about a company 130 00:15:03.330 --> 00:15:11.640 becoming a bank, those in the trenches on the front lines of non bank finance, like, Who cares? Now the company is sold out? You know what I 131 00:15:11.640 --> 00:15:21.420 mean. They betrayed their original mission, or whatever. I think the story that's not told is that in by becoming a bank Square will, and I 132 00:15:21.420 --> 00:15:27.840 haven't, like read all the fine print, but this is my understanding of it, is that they will be able to circumvent a lot of the new state 133 00:15:27.840 --> 00:15:36.720 regulations that are being put in place. We've talked on this little show about New York disclosure laws, Maryland, you know, California, all 134 00:15:36.720 --> 00:15:47.850 this stuff, those bills, when they're drafted, you usually start off by saying banks are exempt. Right? So all this work is going into debating 135 00:15:47.850 --> 00:15:54.090 the issues and all these states and worrying about trying to comply with 50 different state laws and all that stuff, and whether or not you're 136 00:15:54.090 --> 00:16:01.590 gonna be able to function, depending on what the restrictions are. aA company that becomes a bank, it's, well, there's a lot of compliance 137 00:16:01.590 --> 00:16:09.840 that goes into it. But imagine being able to skirt that skirt, cir-, you know, legally circumvent or, you know, legally be exempt from those 138 00:16:09.840 --> 00:16:16.380 laws. And I think that's the story that people are not talking about, if you're out there, and you're a small, non bank finance company, like 139 00:16:16.380 --> 00:16:23.970 Square became a bank who cares. Well, guess what, in five years Square might be able to lend in all 50 states, and you might only be able to, 140 00:16:24.030 --> 00:16:30.300 you know, lend in a limited number, or it becomes very cost prohibitive, or there's a lot of restrictions on you. And you're like, well, I don't 141 00:16:30.300 --> 00:16:37.710 get it, it's not there. There's a lot of good reasons to become a bank right now. You know, they've really, they've really incentivized it. And 142 00:16:37.710 --> 00:16:48.240 so I think, yeah, we're definitely going to see more of it. Because it's going to allow flexibility and versatility for these FinTech players to 143 00:16:48.240 --> 00:16:54.180 continue operating your business model, without having to you know, having to play this 50 state game. 144 00:16:54.270 --> 00:17:01.590 Johny Fernandez: Yeah. So it's gonna be interesting to see what other businesses are doing that are similar to this. Yes. Like you said, I 145 00:17:01.590 --> 00:17:10.590 mean, I think, you know, they, we've talked about before they end up reversing what the original goal was, which was not to be a bank. 146 00:17:10.650 --> 00:17:18.090 Sean Murray: Yeah. I mean, so fi their whole thing was don't bank. That was there slogan. Right? Their whole thing was hating on banks. And then 147 00:17:18.090 --> 00:17:27.990 they became a bank. And the CEO, former CEO, he got called out on that. And I think he, you know, he changed his mind on how he views it. But 148 00:17:29.310 --> 00:17:37.620 yeah, I think the banking industry is evolving at the same time to like, it's not just that people have sold out or like, Oh, no, it's easier to 149 00:17:37.620 --> 00:17:48.000 do it. I think that the change in technology and the change the mindset of a lot of the, you know, the regulators and stuff have made it more 150 00:17:48.000 --> 00:17:54.990 attractive to become a bank versus 10 years ago, when everyone was saying, don't bank, was it just that the CEO is or like, change their 151 00:17:54.990 --> 00:17:57.750 minds? It's kind of like the world kind of evolved with them. 152 00:17:57.780 --> 00:18:03.600 Johny Fernandez: Yeah. So, will be interesting. So that's all for today. 153 00:18:04.440 --> 00:18:06.750 Sean Murray: All right. Thank you for watching. I'm Sean Murray. 154 00:18:06.810 --> 00:18:09.240 Johny Fernandez: And I'm Johny Fernandez, and we'll see you next time.