1 00:00:00.000 --> 00:00:01.890 Sean Murray: All the things that we talk about as having been new 2 00:00:01.890 --> 00:00:04.740 in the last 5, 10 years were already happening at least 20 3 00:00:04.740 --> 00:00:08.220 years ago. As you mentioned, LoanWise, what's exactly what a 4 00:00:08.220 --> 00:00:11.880 lot of the online loan platforms are today, you can go on and get 5 00:00:11.880 --> 00:00:14.100 approved for a small business loan in five minutes or so they 6 00:00:14.100 --> 00:00:17.700 claimed anywhere from like, you know, 5k to 50k. And who were 7 00:00:17.700 --> 00:00:20.760 the first to adopt it, believe it or not, it was the banks. It 8 00:00:20.760 --> 00:00:24.330 was like American Express, PNC Bank, Compass Bank, right. We 9 00:00:24.330 --> 00:00:27.810 talk about today how banks are slow to adopt FinTech. But they 10 00:00:27.810 --> 00:00:31.980 were the first to adopt FinTech back in the late 90s. When 11 00:00:31.980 --> 00:00:34.230 people were coming up with the idea of an online loan platform 12 00:00:34.230 --> 00:00:37.170 where you could go online, put in all your information, all the 13 00:00:37.170 --> 00:00:39.510 banks give you an offer, and you choose the best one, this isn't 14 00:00:39.540 --> 00:00:42.360 this is literally in the 90s. Right. So we think that a lot of 15 00:00:42.360 --> 00:00:44.580 these things that all the innovations happen is because of 16 00:00:44.580 --> 00:00:48.120 the financial crisis of 2008 2009. Clearly not the case, 17 00:00:48.120 --> 00:00:50.760 people were doing this exact same thing back then. 18 00:00:51.120 --> 00:00:53.902 Johny Fernandez: But obviously it was we don't have the same 19 00:00:53.967 --> 00:00:57.850 technology that we have today. So what we what was done back 20 00:00:57.915 --> 00:01:02.122 then we can put some like bow in it, you know, make it nice, make 21 00:01:02.187 --> 00:01:06.264 it cool. And be like, hey, this is brand new. Supposedly. Yeah. 22 00:01:06.329 --> 00:01:10.342 But you clearly and if you guys want to check out the article, 23 00:01:10.406 --> 00:01:13.901 the article is online on deBanked.com on deBanked. And 24 00:01:13.966 --> 00:01:17.590 you can clearly see just essentially the same thing. And 25 00:01:17.655 --> 00:01:21.215 I think we talked about it before that every generation 26 00:01:21.279 --> 00:01:24.968 thinks they invent this new revolutionary, they have this 27 00:01:25.033 --> 00:01:29.370 idea but at the end of the day, it's literally the same thing. But. 28 00:01:29.370 --> 00:01:31.294 Sean Murray: Yeah, it's, it's the same and well, you know 29 00:01:31.338 --> 00:01:33.975 what's funny, you know, the ads are the exact same. And then 30 00:01:34.019 --> 00:01:36.613 just the word FinTech. When people ask, you know, what does 31 00:01:36.613 --> 00:01:36.656 Johny Fernandez: People now especially with things like 32 00:01:36.656 --> 00:01:39.382 deBanked cover? Sometimes I'll use the word fintech. And it'll 33 00:01:39.426 --> 00:01:41.931 say they've never heard of it. And I have to explain what 34 00:01:41.975 --> 00:01:43.910 FinTech means. What the FinTech industry is. 35 00:01:43.910 --> 00:01:45.950 Sean Murray: Yeah, there's literally a guy named John Clark 36 00:01:45.950 --> 00:01:48.500 cryptocurrency, they kind of categorize it all that under 37 00:01:48.500 --> 00:01:52.130 FinTech. Yeah. And it's not nothing new. Because in the 38 00:01:52.130 --> 00:02:52.160 in 1986. He was. Guy from Ohio. Guy from Ohio. He was FinTech 39 00:01:52.160 --> 00:01:56.930 article, there's things from the 90s there's things from I think 40 00:01:56.930 --> 00:02:00.680 1986 is awesome. Yeah. Like, it's literally they use the word 41 00:02:00.860 --> 00:02:03.020 and they use pretty much everything that we're doing now. 42 00:02:03.050 --> 00:02:06.050 Yeah. In it and this was like 20 plus years ago. 43 00:02:08.860 --> 00:02:16.630 back in 86. Right. Guy named John Pete Clark, who's the 44 00:02:16.630 --> 00:02:19.540 president of a one man firm called FinTech. And he worked 45 00:02:19.540 --> 00:02:22.750 for the Ohio Bell Telephone Company. And he could help you 46 00:02:22.750 --> 00:02:26.020 find out when the best time was to refinance your mortgage. And 47 00:02:26.020 --> 00:02:29.080 he had all these formulas and strategies to do it. And he was 48 00:02:29.080 --> 00:02:30.700 written about in the newspapers, this guy was brilliant. They're 49 00:02:30.700 --> 00:02:33.460 like, you gotta check out FinTech and Fintech is this 50 00:02:33.460 --> 00:02:34.930 FinTech is a genius, right? 51 00:02:34.960 --> 00:02:36.730 Johny Fernandez: Something that really gets me about that is 52 00:02:36.730 --> 00:02:40.240 that this was like in the 80s when technology wasn't advanced. 53 00:02:40.240 --> 00:02:43.300 So these guys are like, like going old school, like how I 54 00:02:43.300 --> 00:02:46.150 would do things like paper pen, like trying to come up with 55 00:02:46.150 --> 00:02:48.760 ideas and formulas and making sure everything works and like, 56 00:02:49.330 --> 00:02:51.880 like, just think think about that. Like that's, like, hey, 57 00:02:51.970 --> 00:02:55.300 how much paperwork was involved in this whole process? And he 58 00:02:55.300 --> 00:02:58.240 was just doing it and not looking back. 59 00:02:58.240 --> 00:03:00.010 Sean Murray: Yeah, I mean, the unfortunate thing for John 60 00:03:00.010 --> 00:03:03.790 Clark, the first FinTech in 1986, is that he didn't have an 61 00:03:03.790 --> 00:03:05.920 email address or an online portal that you could just sign 62 00:03:05.920 --> 00:03:08.620 up for after you read all about, you know, his brilliance. In 63 00:03:08.620 --> 00:03:11.620 fact, the article listed his home address, you want to reach 64 00:03:11.620 --> 00:03:15.850 John Clark, Mr. FinTech in 86. You had to go to his house, or 65 00:03:15.850 --> 00:03:18.610 you had to write him a letter, you had to travel to Cleveland, 66 00:03:19.120 --> 00:03:20.980 you know what I mean? Or whatever it was. 67 00:03:21.100 --> 00:03:22.660 Johny Fernandez: Would you have done that in 86? 68 00:03:22.990 --> 00:03:26.230 Sean Murray: I would not have done that myself in 86. But you 69 00:03:26.230 --> 00:03:29.590 know just goes to show how far back it goes. In fact, one of 70 00:03:29.590 --> 00:03:33.220 the other things I found funny was that I saw an ad for small 71 00:03:33.220 --> 00:03:39.220 business financing. This is from the year 1989. I when I first 72 00:03:39.220 --> 00:03:43.300 saw this ad, and it popped up and it said 1989 I thought there 73 00:03:43.300 --> 00:03:46.000 was an error because it looked like an ad from today. It was 74 00:03:46.000 --> 00:03:47.320 like an ad from 20, 2021. 75 00:03:47.350 --> 00:03:49.480 Johny Fernandez: But let's so let's put things into 76 00:03:49.480 --> 00:03:54.340 perspective. 1989. The Iraq war was just that was kind of 77 00:03:54.340 --> 00:03:58.360 wrapping up. Not this year Iraq war. Oh my gosh. 78 00:03:58.570 --> 00:04:00.400 Sean Murray: Hard to remember all the different ones. So. I 79 00:04:00.400 --> 00:04:01.660 think that was the early 90s. 80 00:04:02.320 --> 00:04:06.550 Johny Fernandez: So 89, 90 Bush was in office. Old, Bush, Bush 81 00:04:06.550 --> 00:04:10.000 Senior, holderBush was in office. Okay. Or closing 82 00:04:10.000 --> 00:04:10.330 Clinton. 83 00:04:11.260 --> 00:04:12.490 Sean Murray: Alright, let's take let's just stick to the 84 00:04:12.490 --> 00:04:15.430 important facts. Yeah, we don't yeah, Iraq war is a different 85 00:04:15.430 --> 00:04:19.240 story. So in 1989, I saw an ad at first I didn't believe it. 86 00:04:19.390 --> 00:04:22.780 Said this is an ad in a newspaper. Said small business 87 00:04:22.780 --> 00:04:25.900 financing. Bullet points are expansion, refinancing, 88 00:04:25.930 --> 00:04:29.170 equipment purchases. Owner occupied commercial real estate, 89 00:04:29.200 --> 00:04:34.990 working capital. Call FinTech 349-2729. 90 00:04:35.050 --> 00:04:36.070 Johny Fernandez: You don't have an area code. 91 00:04:36.070 --> 00:04:38.410 Sean Murray: You don't even need an area code. This was in San 92 00:04:38.410 --> 00:04:39.370 Antonio, Texas. 93 00:04:39.370 --> 00:04:40.510 Johny Fernandez: Minimum $100,000. 94 00:04:40.810 --> 00:04:43.960 Sean Murray: Yeah, minimum 100k. I'm like I've seen this exact ad 95 00:04:43.960 --> 00:04:46.780 before in 2021. In fact, I've seen it 10 million times. 96 00:04:47.680 --> 00:04:50.470 Literally the exact same ad you would see today with the ad 97 00:04:50.470 --> 00:04:55.210 being shared around in 1989. And who do you call, who do you want 98 00:04:55.210 --> 00:04:58.090 to call for your funding? You call FinTech. That's that's what 99 00:04:58.090 --> 00:05:03.610 you do. Then you go back even earlier. This was a 1963 a guy 100 00:05:03.610 --> 00:05:10.180 named Sydney FinTech. It was spelled F E I N, T E C H, right? 101 00:05:10.180 --> 00:05:13.180 But his name was Sydney FinTech. That's how that's how they 102 00:05:13.180 --> 00:05:15.670 pronounced it. It was crazy that he owned a supermarket in Des 103 00:05:15.670 --> 00:05:19.570 Moines, Iowa, in the 60s, and he expanded his business. And he 104 00:05:19.570 --> 00:05:22.180 said, you know what, I could sell a lot more stuff. If I have 105 00:05:22.180 --> 00:05:25.420 my own in house credit business where people can buy now pay 106 00:05:25.420 --> 00:05:29.440 later, I'll sell things on credit. So he does he like 107 00:05:29.470 --> 00:05:33.730 starting the whole BNPL thing. Now, having a credit offering at 108 00:05:33.730 --> 00:05:36.790 a store isn't that unique in the 1960s. It's not like he invented 109 00:05:36.790 --> 00:05:39.850 that. That's not the unique innovation. But the fact that he 110 00:05:39.850 --> 00:05:44.050 did it, and you tie in his name to the whole thing. The funny 111 00:05:44.050 --> 00:05:46.870 thing is that when the papers talked about with this guy 112 00:05:46.900 --> 00:05:49.240 Sydner and his grocery store we're doing is that they 113 00:05:49.240 --> 00:05:52.600 misspelled his name, because of how it was pronounced. And they 114 00:05:52.600 --> 00:05:56.470 announced that FinTech was now going into the credit business. 115 00:05:57.010 --> 00:06:00.910 So the world the word being spread in 1963, was that FinTech 116 00:06:01.420 --> 00:06:05.650 with the new way to shop. Here we are, all these years later. 117 00:06:05.830 --> 00:06:09.340 Good old good old Sydney FinTech was the paving the way for 118 00:06:09.340 --> 00:06:09.670 future. 119 00:06:09.760 --> 00:06:11.860 Johny Fernandez: We had this conversation about the younger 120 00:06:11.860 --> 00:06:14.860 people payment of buy now pay later. Essentially, it's all the 121 00:06:14.860 --> 00:06:15.460 same thing. 122 00:06:15.460 --> 00:06:17.190 Sean Murray: People were doing this in 1960, people were doing 123 00:06:17.190 --> 00:06:20.100 it before that, too, you could get store credit. I mean, much 124 00:06:20.100 --> 00:06:23.250 before, before that, I mean, credit cards were just an 125 00:06:23.250 --> 00:06:26.790 eventual evolution out of that era. So I think what what was, 126 00:06:27.120 --> 00:06:30.180 you know, the the quirk of that story, it was his last name, and 127 00:06:30.180 --> 00:06:33.420 that it was misspelled when they announced it. And so the coming 128 00:06:33.420 --> 00:06:36.300 of FinTech is getting into the credit business happened to be 129 00:06:36.300 --> 00:06:39.150 about a guy named Sydney FinTech, but spelled spelled 130 00:06:39.180 --> 00:06:42.810 Feintech. And then if you start to think about, well, you know, 131 00:06:42.810 --> 00:06:45.390 what actually survived from that era, it was just all talk, the 132 00:06:45.390 --> 00:06:47.850 technology wasn't there. You said before, like, you know, the 133 00:06:47.850 --> 00:06:50.010 technology wasn't the same. That's not exactly true. There 134 00:06:50.010 --> 00:06:56.250 was a guy in 1996, he said, he went to go apply for a mortgage 135 00:06:56.250 --> 00:06:59.130 at a bank, and he got denied. So he had to go to a different bank 136 00:06:59.160 --> 00:07:01.500 and got denied he had to go to a different bank, right? After 137 00:07:01.500 --> 00:07:04.170 that. He's like, this was ridiculous. There should be a 138 00:07:04.170 --> 00:07:05.970 way where I can put my information in one place, and 139 00:07:05.970 --> 00:07:08.640 then the banks can all just come to me. So he came up with a 140 00:07:08.640 --> 00:07:10.590 website, he's like, I'm gonna make a website where people can 141 00:07:10.590 --> 00:07:13.920 do that. And then the banks will all compete, and then the 142 00:07:14.160 --> 00:07:18.240 potential borrower could just choose the best option. This is 143 00:07:18.240 --> 00:07:21.750 in this is in literally the 90s He's founded the company in 96. 144 00:07:22.080 --> 00:07:24.180 He's like I'll call it my business lending tree. 145 00:07:24.510 --> 00:07:28.590 LendingTree.com. You know what I mean, or www.LendingTree.com was 146 00:07:28.590 --> 00:07:32.670 probably he probably said HTTP on top of it, I bet you HTTP. 147 00:07:32.760 --> 00:07:35.970 You know what I mean, colon slash slash www.LendingTree.com, 148 00:07:36.090 --> 00:07:38.910 as I said back in the 90s. And people could go there put in all 149 00:07:38.910 --> 00:07:42.060 their information. And you might think, oh, wow, you know, I bet 150 00:07:42.060 --> 00:07:45.240 it was a good try. But it didn't work out. He was too soon. This 151 00:07:45.240 --> 00:07:49.710 guy was too early before his time. Well, not true. Because in 152 00:07:49.710 --> 00:07:54.510 1999, in the fourth quarter of that year, he'd already helped 153 00:07:54.510 --> 00:08:00.540 originate over $400 million worth of loans. Fourth quarter 154 00:08:00.540 --> 00:08:02.550 of 1999, this company LendingTree's already putting 155 00:08:02.550 --> 00:08:05.310 out over $400 million worth of loans, and they weren't the 156 00:08:05.310 --> 00:08:07.980 lender, they were the online matchmaker, they were the 157 00:08:07.980 --> 00:08:10.320 portal, go on there apply for a loan, all the lenders compete 158 00:08:10.320 --> 00:08:13.560 for your business, choose the best one, get funded. Today, 159 00:08:13.560 --> 00:08:18.750 that company's still around, worth $1.8 billion got over 900 160 00:08:18.750 --> 00:08:22.920 employees. So, you know, it's you can't say that these 161 00:08:22.920 --> 00:08:24.630 companies were before their time, or they didn't have the 162 00:08:24.630 --> 00:08:27.240 same technology or it was different. That company is a 163 00:08:27.240 --> 00:08:30.690 success story. Some of those companies, they they made it, 164 00:08:30.990 --> 00:08:31.500 right. 165 00:08:32.640 --> 00:08:35.610 Johny Fernandez: Yeah. It's funny, because when I hear about 166 00:08:35.610 --> 00:08:38.940 different programs, different apps, websites, whatever, 167 00:08:39.120 --> 00:08:41.730 offering different services, sometimes in my mind, I'm like, 168 00:08:41.820 --> 00:08:45.000 that's genius. But in reality. 169 00:08:45.050 --> 00:08:47.752 Sean Murray: It could have been an idea someone had like a 1963. 170 00:08:47.805 --> 00:08:50.985 you know what I mean, that was already done. And then people 171 00:08:51.038 --> 00:08:54.429 forgot about it. And then people started it all over again. What 172 00:08:54.482 --> 00:08:57.662 was shocking to me is that, I think it was the LA Times when 173 00:08:57.715 --> 00:09:00.788 they were talking about the company LoanWise. And how they 174 00:09:00.841 --> 00:09:03.862 had all these banks on the platform, this, they mentioned 175 00:09:03.915 --> 00:09:07.200 that they had competition. They weren't the own small business 176 00:09:07.253 --> 00:09:10.327 lending platform, like no matching portal on the internet. 177 00:09:10.380 --> 00:09:13.771 There were others. And all three that were mentioned, of course, 178 00:09:13.824 --> 00:09:16.792 I wanted to know well, what happened? Yeah. So I checked 179 00:09:16.845 --> 00:09:19.971 them out. They're all gone. They're all gone. But the exact 180 00:09:20.024 --> 00:09:23.416 concept lives on. And the banks were the first adopters of them. 181 00:09:23.469 --> 00:09:26.913 So today, we talk about how, you know the banks are slow to adopt 182 00:09:26.966 --> 00:09:29.987 and all this stuff. No, they were doing this more than 20 183 00:09:30.040 --> 00:09:30.570 years ago. 184 00:09:32.160 --> 00:09:33.150 Johny Fernandez: That's a good article. 185 00:09:33.150 --> 00:09:34.260 Sean Murray: Deja Vu. 186 00:09:34.260 --> 00:09:35.460 Johny Fernandez: Dej it's happening all over again. 187 00:09:36.240 --> 00:09:38.073 Sean Murray: Yeah, I bet you in five years, we're going to be 188 00:09:38.112 --> 00:09:40.290 talking about peer to peer lending like it just came out. 189 00:09:40.290 --> 00:09:40.650 Johny Fernandez: Yeah.