Fintech Impact

Share

Funding Matters with Bill Petruck | E225

Ep. 225

Jason Pereira talks to Bill Petruck, Founder and CEO of funding matters. Funding matters is a light fintech with a series of calculators and other tools that help not-for-profit charities. It helps generate donations more easily by showing people the actual tax implication of various donation schemes and options and helping kind of grease the wheels towards making that happen.


Episode Highlights:

  • 1.08: Bill developed an application called gift tabulator, used as their secret weapon for illustrating tax-efficient charitable giving. A few organizations came to them and said - we would love to have your gift tabulator on our site. 
  • 3.10: You don’t just have to donate only in cash in many countries. You can donate assets, and those assets might have some sort of embedded gain in them already that if you sold them, you would pay tax, says Jason.
  • 10.43: With the gift tabulator, we also want to reach out to the end-user or the potential donor and provide the opportunity to the donor to share this with their financial advisor, says Bill.
  • 12.28: Bill explains what is the user inputting as the variables, and what are they getting as a result?
  • 12.46: Bill says that their objective is to create a landing page with a bit of a narrative to it, and that landing page then says, select one of these assets, so the user or the donor can go everywhere, from cash to stocks to mutual funds, etc.
  • 15.23: 99% of all donations to charity come in the form of a check or credit card, and 1% of the donations come in the form of appreciated asset donations, and we want to see that number start to increase, says Bill.
  • 16.32: Bill says that in the gift tabulator, they have clearly illustrated why people need to have a current estate plan, but the major reason is that they want to leave as much money for their assets as possible.
  • 22.31: There was a very strong push back that tax credits do not influence charitable giving within the not-for-profit sector. A $50 donation is not driven by tax, but the tax drives the $50 million donations.


3 Key Points

  1. Bill explains how when you are starting to look at the $50,000 appreciated asset donation that is being transferred over to charity, you are getting the tax credit on it, but you are also getting tax avoidance.
  2. Bill explains how does the charity get your technical tools into the hands of possible people or people who might donate?
  3. Bill will be focusing on developing an educational curriculum through the college system as an online tool that will help organizations and individuals within those organizations become far more conversant and more comfortable in illustrating the positive outcome scenarios for their clients.


Tweetable Quotes

  • “Different countries have different schemes for how they recognize the donation. We live in Canada, and it depends on the provinces up to 50% or around there.” - Jason
  • “Our objective was why don’t we create a gift tabulator to be an outreach for the charity and allow them to see the most tax-efficient ways to give.” – Bill
  • “We have many charts available, and one chart says that this is the tax you would have to have paid, e.g., $5000, based on the taxable capital gain, and this is the actual cost to you of making this donation.” – Bill


Resources Mentioned:

More Episodes

11/15/2022

Finclusion with Timothy Nuy | E251

Ep. 251
Jason talks to Timothy Nuy, Founder and Co-CEO of Finclusion. The company is an African based neobank that is basically tackling a lot of the structural issues in banking in Africa in a digital way. Episode Highlights1.11: Today our lending products predominantly are either employed or merchant distributors ranging from earned wage access to payroll loans and from buy now pay later to merchant lending facilities, says Timothy.2.06: Timothy explains how he predominantly distinguish clients with our AI based credit scoring where they have consistently outperformed the markets from a collections and repayment perspective on the back of our scoring models.5.14: The traditional data is oftentimes not available on our type of supply and field. Also, the easily accessible credit score, simple repayment behavior isn't available. What is available is a whole lot of different data points that by themselves aren't actually predictable, says Timothy.9.03: Timothy explains how does the business side of the business differ from the personal credit scoring?11.10: Pledging security it depends on the market. In some markets it works, many other markets it doesn't. But depending on the relationship we can take a risk.13.01: One of the benefits of building some of the infrastructure in Africa from scratch is that infrastructure gets built based on modern day design principles.14.17: Buy now pay later has been something that has largely been a newer innovation in the Fintech space and within the last 24 months it's really taken off, says Jason.15.02: Today we can offer credit better than anyone else, but that's a leap. IT doesn't mean we'll always be better than anyone else, says Timothy. 16.01: We basically unconverted ownership of a client into our world and really achieve long term client stickiness, says Timothy.17.07: Timothy would love for the African rails to work as well as they do in India where you could just digitally verify anyone's identity and get access to their data in a readily simple, straightforward way.17.51: Getting people brought into the company culture and building together, creating that feeling of togetherness without actually being able to be together in the same office has probably been the hardest thing to do, says Timothy.19.20: Africa has been in the loss from probably the last 30 years. But Timothy truly believes it is going to convert and end up in the same space as a Brazil or China or India.3 Key PointsTimothy talks about the core problem that has to do with the AI based models on credit scoring you deal with in Africa compared to more developed nations like the US and UK.Timothy’s company does future wage access where they give you a loan which you can repay over 12 to 24 months using about 30% of your income as a maximum installment.The reality of not being able to pay for goods and services at checkout is a much bigger problem in the African population than the rest of the world.Tweetable Quotes“I feel there is no one really addressing the credit gap effectively with products and solutions that truly address the market needs on the ground and we could make a real difference.” -Timothy“We work with any employer more than 200 employees, but we prefer to work with larger employers.” – Timothy“No one would ask you for your house title for a small loan in the rest of the world probably via emerging markets where there's still an opportunity.” - TimothyResources MentionedFacebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInWoodgate.com – Sponsorhttps://www.linkedin.com/in/timothynuy/https://www.finclusiongroup.com/
11/8/2022

Episode 250 with Guest Host, Guy Anderson | E250

Ep. 250
In today's 250th episode we have guest host, Guy Anderson to interview Jason Pereira. Guy asks Jason what he has learned till now and where he is going from this point. Episode Highlights2.08: There are a lot of integrations in the US market, but Jason would actually refer to a lot of those integrations as borderline superficial.3.25: As per Jason there are a couple of ways to look at big trends. We can contrast the US market versus elsewhere because in US market everybody got baseline technology.4.35: If you went too far and just focused on digitizing and optimizing your process without focusing on how you can provide deeper, greater value to a client, you didn't do yourself a service in that regard, says Jason.5.24: In the developing markets, Jason is seeing a lot of unique and interesting ways of trying to get more people access to financial services, which is enormously important.8.40: The longer you depend on a system the more likely you are to depend on it for a longer period of time, says Jason.9.23: One of the single biggest bottlenecks with old systems is the inability to get the data open and out and then put into something elsewhere.11.28: Netflix and all that were big examples of technology uptake during COVID where people were using streaming systems. Jason explains whether he saw an uptake in Fintech adoption during COVID or not. 16.54: Flow charts technology to basically make a decision or to basically confirm that the planning solution you make is solid, that is foundationally found fantastic nudge.21.55: To monetize open banking, they're going to figure out a way to monetize it through the companies that are giving it to you, which is going to basically come back to you through fees, says Jason.23.31: When Jason started four and half years ago, Fintech was new term and we were in a big hype cycle at the time and he was seeing solutions left, right and center, novel things and different ideas but that's slowed down because the industry had hit maturity plateau at this point.28.33: Jason sees a world where money or decisions with money are going to be minute and the challenge is that this is a cognitive burden on humanity. 31.45: Google basically gives you every financial service for free and monetizing out the data and that should be scared to every sector of finance. 3 Key PointsJason talks about the challenges that he has seen in the sector that perhaps are limiting the advance of some of the Fintech companies.  When it comes to how to digitally transform businesses, many institutions don't have internal people that can think at higher level and nor the incentives designed to do that, says Jason.In Canada Jason had released the paper on open banking framework and when he started reading it, he stopped reading it very quickly because timeline set out was completely unrealistic.Tweetable Quotes"There is a lack of surprisingly digital on-boarding systems that exist in any country." – Jason"There is no way that we are going to meet the demand for developers in the future." – Jason"It's hard to teach an old dog new tricks sometimes." - JasonResources MentionedFacebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInWoodgate.com – Sponsor
11/1/2022

Covey with Brooker Belcourt | E249

Ep. 249
Jason talks to Brooker Belcourt, Founder of Covey; an online platform for new inspiring portfolio managers to earn credibility by sharing their best ideas online in order to establish a track record and hopefully establish a career input for the management.Episode Highlights1.20: Covey seeks to solve the problem of finding investment analysts by creating a community to find and reward the best investment analysts so that we can all copy them and generate higher returns.3.07: People use Covey as a way to get into investing or to learn more about it or to play with virtual cash before playing with real cash and they use it to earn rewards.4.19: Covey tracks 50 matrix in real time and you have a shareable portfolio that's like probably the most robust mock portfolio software online right now. 7.09: Brooker explains that they post all trades to an immutable ledger so that the client won't have to hire auditors to come and verify their fidelity account or their e-trade account, which is actually really expensive.10.03: Brooker has observed that the great managers, great analysts tend to stay great and it has been described in academic research as the phenomenon called performance persistence.11.27: There are a ton of barriers to entry to becoming a great investment analyst. If you went to some big investment bank, you could probably become an investment analyst. But otherwise, if you're great, you may not be discovered, says Brooker.13.47: Brooker have received a lot of interest from the hedge funds to buy their analyst data and what we have to do though is structure the right deal that benefits the community of people who contributed that data.15.08: Brooker says that they had to think with their community how do they actually identify who is an amazing investment analyst and they came up with five or six metrics and looked across things like total return of course.18.57: Doing something that is totally new for you and getting VCs on board was probably the highest hurdle for us, says Brooker.3 Key PointsBrooker explains why community database information is valuable to others than to the people who are looking in Covey's ideas.In 2023, we are going to be launching the Covey copy trading style product that allows you to invest in the top analyst list, says BrookerBrooker explains how that entire reward mechanism allocates rewards to the different analysts. Is it just based solely on short term performance over a period of time or are there other metrics taken to consideration?Tweetable Quotes"It always struck me as odd that where this data rich world is investing and yet we have no way of like sorting through the masses to find the best." – Brooker"We are going to build more infrastructure to make it easier for people to follow and get the benefits of following the best people and little branches of investing.' – Brooker"If we built a fund around the top analyst and their ideas, we could allow anyone to invest in that front and then we can compensate some of the undiscovered investment analysts who otherwise wouldn't have been able to manage money." - BrookerResources MentionedFacebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInWoodgate.com – Sponsor