YouSaid · the spoken record

Harit Talwar

lines on the record: 34
first: 2016-10-13
most recent: 2016-10-13
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“they can choose every day how they pay you in the morning and you choose between 10 different apps which car service you will take to get to work consumers will be more empowered when consumers can avail of services through their phone and that phone is in their pocket or their handbag. It gives them a sense of empowerment. When consumers have to walk to a branch, they lose that sense of empowerment. So consumers will not walk to a branch because that is the bank's turf. It is not the consumer's turf. Consumers will not necessarily call because then they have to wait in line to be called, to be phone picked up. Consumers will use their Mobile apps because that gives them not just convenience, it gives them a sublimal sense of empowerment And I think banks and financial services companies, which keep that in mind.”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“We have a big footprint. I have worked in financial services for 30 years. I've worked for a very large bank. I work for a medium-sized bank, but I don't think I've ever worked in a place which is as heavily scrutinized by everybody outside the firm as we are. So that increases the burden of making sure you do everything right.”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“I think the employment brand of the firm is very strong. So we've been able to assemble a very, very multifaceted, talented team. What's the percentage from inside the firm and outside the firm? When we started, we thought... But this initiative has had such high profile and excitement in the firm that we now have anywhere from 30 to 40 percent of our team from within the firm. And the firm has such deep pools of talent in technology, finance, marketing, site development, product experience, and encourages mobility that we've been able to hire a lot of people within the firm. I think the real con is that until you join the firm you don't realize how heavily scrutinized we are by everybody in the world. That's fine because you know we are a well-known firm, we are a well-known brand and I have worked”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“The uncomfortable about debt. The other big insight we got was that while digital is very important, when they need to call, they want to talk to a human being. They want technology in that app. But when they call the provider, they don't want technology. They don't want a robot. They don't want press one, press two, press three. So therefore what we have done is that in our call center people immediately talk to a human being.”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“That consumers feel very uncomfortable talking about debt. There is a stigma around it. People are almost willing to talk about anything before they want to talk about debt. They feel uncomfortable. They feel embarrassed talking about debt. And does that make it harder for them to manage their debt? That makes it harder for them to manage their debt. That makes it harder for them to understand what is happening in their credit score. How does their credit score impact things? And if you look, most of the industry doesn't use the word debt. And therefore we want to use the word debt. We think we'll play a useful role with our customers by talking about debt. So we want to destigmatize the conversation around debt and managing your way out of it. Yes. So we want to talk about how debt happens and how you can manage debt and how you can get out of debt and how you need to understand debt. So I think they want value.”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“Consumers, as you were mentioning earlier, think in terms of cash flow. So they think of loan amount and how much monthly payment I can afford. Based on which we offer them different periods. So therefore, for somebody, it may be a 31 month loan. For somebody it may be a 22 month loan. For somebody it may be 63 month loan. Whereas most banks and fintech players say it's either two year or three year or five year or six year. So you know the customer feels that they are put into a straight jacket. The other thing is we tend to forget that for most of us which day of the month we want to pay the bill is a big deal. Therefore, the customer can decide which day of the month they want their bill to be paid. So you're saying one of the features you've designed in response to this customer research is just this ability to customize, the ability to purchase.”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“In fact, they don't necessarily want speed. But they want simplicity. Because they feel that when things are not simple, they have lost control. because the financial services companies understand it and they don't understand it. So therefore I think the basics are you have to provide value, you have to be transparent, you have to be simple and you have to allow consumers to the extent possible customize things to their liking and I think the technology today allows you to do that That's a feature you didn't necessarily talk about, but one of the as I understand it one of the features doing is allowing people to really design the payment period if they took a loan out through Marcus they can choose how many months yes so one of our very interesting insights was that everybody in the industry markets loan amount and interest rate”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“But there are other fees. Or somebody saying no prepayment fee, but there are other fees, or there are some people who say no hidden fees. So we have put a claim in our product saying no fees period. Beyond the interest rate. Beyond the interest rate. The other thing is that in this loans that we have, not only there is no penalty for prepayment, the interest rate is fixed during the life of the loan So, you talked a little bit about what you've learned from doing all the consumer research, and you used feedback from potential customers to design the website. What do you learn other than the things you've already discussed from the consumer and from all the research you've done? Lots of learnings from consumers. First is consumers, and I think this is a phenomenon which has become even more pronounced since 2008. They want transparency.”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“So in fact we have provided incentives for on time payment. But if someone finds themselves in a situation where they can't pay one month, they're not paying an additional fee on top of the additional interest. No additional fee on top of the additional interest. And the main reason for that is that our research shows consumers are very skeptical of asterisks. They are very skeptical of fine print. They are very skeptical of somebody saying no origination fee.”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“What we do have is a feature which we think is unique in the market, where after making twelve or more consecutive on time monthly payments, they can defer a payment as long as they have made all their prior payments in full and on time. They earn a free pass, so to say. And what that pass does is that if there is a particular month where they have a cash flow problem, they can defer payment by a month without having to pay any extra interest.”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“There are a few examples in the product. So, if you somehow, your cash flow improves, you don't want to be paying this interest rate, you can pay it off tomorrow. You can pay it off tomorrow. And I must say that no penalty for prepayment is becoming generally a more standard feature in the industry. But then we went a step ahead. Sometimes customers get late on their payment So we also do not have a late fee. And the reason is because it's not that we want to encourage people to pay late, no. In fact, if they pay late, they will pay more interest and there may be other negative implications such as being reported late to the credit bureau. And we let them know that.”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“And so because we don't have the legacy costs and because we have the ability to fund it ourselves, unlike the fintechs, we don't need to go out and find someone to fund the loan, we should be able to provide ready capital, easy capital, and also be able to provide at a somewhat lower cost without any of the legacy systems. Cor”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“Business models, technology or distribution systems gives us a rare combination of strengths. Now, our task is to convert those trends into better value for the customer and better experience for the customer. And that's really what we've been focused on. And we think we can help Americans who have been responsible but have landed up into very high interest unsecured consumer debt on their credit cards.”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“And Yes, and we think there's going to be sexual growth in this market and whether you are there six months sooner or six months later or one year sooner or one year later is not what ultimately is going to be the defining characteristics for success. What I do think is helpful for us to compete in this market space is that we don't have unlike the large banks legacy distribution costs. We don't have legacy technology systems and we don't have legacy business models which we are concerned about cannibalization or implications to those. On the other hand, unlike some of the pure playfin tech players, we have our own balance sheet and we have a DNA of risk management. So I think this unique combination of having our balance sheet and a DNA of risk management and on the other hand having no legal basis”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“First, I would say that this is a very large market. We are not looking at any dominant market shares. We like the fact that it's a very large market and we want to be patient. You have to be responsible. You can make mistakes, especially in a lending business. The firm tends to be long in the business as it gets into. So we are going to do a gradual ramp up. And what we really like is that given that the market is large and deep, small market shares over time can result in good-sized businesses and it's over time. So we like that fact of the market.”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“We are really offering our product to a broad set of customers in the US. People think that individuals can't bank at Goldman Sachs, and we recently purchased a deposit platform where our minimum account size is $1.”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“Yes, as you know, Marcus Goldman is the person who founded the firm. 147 years ago. And he founded it on the principles of innovation and client centricity and execution, excellence. And frankly, every business that the farm has done since then, including this business that we are launching now, follows the same thing about client-centricity, adding value, execution excellence. So in many ways, while we are a startup inside 147-year-old firm, we are proud that there are some things which we cherish which is part of our heritage. So we've just started. It's an unsecured personal loan.”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“Here at Goldman. Therefore, we have our own balance sheet and we have our own funding, leveraging risk management, data analytics and technology has always been in our DNA. We saw this consumer trend of how they consume financial services. There is this market emerging of refinancing high interest credit card debt. So we felt that the confluence of all this gives us an opportunity to enter this market. Our services are branded as Marcus by Goldman Sachs.”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“better sense of the profile and in fact it enables you to do programmatic lending rather than judgmental lending and that has always been there but it has made more strides and become more sophisticated. The other is as you know in 2008 we became a bank.”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“Why wait in line when I can do it on the phone? The traditional distribution strengths, in my view, which some of the large banks have, from distribution strength have become legacy costs. Customers don't like it. Frankly, I don't think most of the banks like it, but they have it. So that's one big trend. Second is that there's a lot of data and analytics available. It has always been available. US is at the cutting edge of that in the world.”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“We at the firm feel that there is a confluence of a few things which has made us decide to get into this business. One is that digital technology is making large brick and mortar branches questionable. You don't need necessarily brick and mortar branch networks to get into consumer financial services or consumer lending.”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“They are not providing free float well said to two-thirds of their customers and therefore those who want to borrow, they are able to get generally at the same comparable risk bands, lower interest rates when they take a personal loan from these fintech lenders, and they can use that personal loan to refinance their higher interest credit card debt.”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“Of colloquially called fintech lenders who have leveraged technology and there have been lots and lots of companies which have come up over the last few years which have used technology to make the borrowing easier. Their whole business model is that consumers who've racked up a lot of credit card debt but who are creditworthy, responsible, hardworking Americans, they are refinancing that credit card debt at lower rates. And they're able to do that because unlike a credit card business which is balancing the people who are not borrowing and the people who are borrowing for an average yield on the loans, these companies have only customers who borrow and therefore can they're not providing free flow.”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“Yes, I think it is focused more on more convenience and choices for the consumer and more security for the consumer, what happens to the cost, we'll see. The other trend overall is that in general, technology has always been a very key enabler in financial services. ATMs got introduced, we tend to forget of them as an innovation. Unfortunately, when you've been in the industry as long as I have, I remember ATMs being heralded as innovation. Phone banking was an innovation. At the dawn of the internet in around 2000, being able to do your banking on the internet was an innovation. So the technology innovation has continued to increase. I think what's been very exciting in this arena of borrowing has been that over the last few years, while the card companies have been focused on payment processing, there have been a lot of”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“There are lots of developments happening. One is that within the credit card industry, a lot of focus is on payment transaction processing. Mobile payments are coming in. Chip cards have been introduced in the US for added security. The Apple pays, the Google pays, and the Samsung pays. And so therefore, a large focus of the credit card industry is using technology for better payment processing. and more convenience and security for customers in payments and using the card as a payment vehicle.”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“Yes. So that trillion dollar of unsecured consumer credit, primarily on the credit card, has been built like this. There are lots of companies, fintech players, some banks are looking at how to help those Americans manage that debt.”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“It can be anywhere from 15% to 25% interest rate in current cost of funds environment. Now that's fine, they borrow, then they can pay back next month or they can pay back over a period of time. They've got a flexibility to pay back. What then typically happens is that maybe three months, six months later, something else happens. There's a leak in the roof. The younger kid needs braces. The washing machine broke down. So normal life moments happen. And there is today in America large number of households who have around 10, 20, 30,000 dollars of credit card debt. And these are not people who've been living life irresponsibly. These are not people who have”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“they are usually going to finance it on the credit card and the credit card financing is very helpful very useful because if it wasn't there it would be problematic for the consumer it would be problematic for the economy and it is on that borrowing that the credit card company makes overwhelming part of their profit so it is around a third of the customers who provide the huge profit pool for the credit card companies”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“Charge for it. But the car industry does that because while a large percentage of customers are the ones which I just described, which in the industry parlance is called transactors, then there are some who are unable to pay the bill because something happened. They had an unanticipated expenditure. you must have read the Federal Reserve came up with a report that if the average American household has $400 of unanticipated expenditure, about half of them would need to borrow”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“As long as you pay your bill in full on time. And in addition, you get lots of rewards to use the card, whether cash back or miles or points, etc. So a great deal for the consumer. Not perhaps that good a deal for the credit card companies.”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“And the government plays a big role in that market. In fact, most of the student loan market today is through government loans. There are just a handful of private student loan lenders. Then there is a trillion dollar of unsecured consumer credit, which can have multiple purposes. In the US, most of that market is on credit cards. And there are some people who use the credit card as a payment mechanism. They purchase everything on a credit card. At the end of the month, they get a bill, and then they pay the bill in time, in full. And that's a really great deal for the consumer because they get free float. Free money.”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“Then there is roughly around a trillion dollars in automobile loans. There is roughly a trillion dollars in student loans, a little more than a trillion dollars. And there's a trillion dollars in what I would call unsecured consumer borrowing, which means that it can be for a variety of purposes and there is no collateral. So in the mortgage and auto loan, there are collaterals. In the student loan, again, there is no collateral, but it is for a very specific purpose.”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“Need to go to college, you take a student loan. So a very large part of the US consumer credit market, the vast majority, the vast majority of it is in these three segments. Mortgage is the big, big segment.”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT
“Shortjake to use the often repeated statement that the consumer is a very important part of the US economy. And for the consumer to be a very important part of the US economy, consumer credit is a very important part of the U.S. economy. And the U.S. consumer credit market is roughly around $12 trillion. And the way I like to look at it is there are various ways to describe that market. But I like to look at it in terms of this purpose-driven borrowing. And then there is other unsecured borrowing. What I mean by purpose driven borrowing is you need to buy a house, you take a mortgage. You need to buy an automobile, you take a car loan.”
2016-10-13 · Goldman Sachs Exchanges · How Fintech Is Transforming Consumer Finance · IDENTIFIED FROM THE TRANSCRIPT