Whitney McDonald 0:10
Hello and welcome to the buzz of bank automation news podcast. My name is Winnie McDonald and I’m the deputy editor of bank automation news. I’m joined by Jeff Nicky, Vice President of banking at Treasury prime. He discussed Treasury Prime’s recent partnerships, how the technology is integrated. And why partnering with a banking as a service technology provider is the best longtail ROI solution.Jeff Nowicki 0:33
So, for me, when we’re talking about a community bank here, their options, they have a few different options. One of their, their main and original options out there for them, was to go direct, to build up a team internally, both on the sales side to go out and hunt and find the appropriate FinTech and partnerships themselves, but also build up a technology team internally, that would be able to build the proper technology that they need to expose out to these fintechs. Historically, community banks are, are very much tied to their their core provider, who are or who can be great partners to those community banks. But sometimes, the timing in which that they can turn on access or give a new program, a new build, to turn on is, is lengthy. And when you’re talking about a FinTech community, you’re talking about a community that likes to move fast. They want to be live yesterday, not not potentially in six months. So that that’s a little bit of the negative when you’re talking about going direct. But if a bank has the ability to build it themselves, it’s been something that’s been proven to be relatively successful in the past, but then it’s a big undertaking and some big upfront costs that they need to take on. Now, the other option, which has been more popularized in the last few years is partnering with a banking as a service provider. And when you talk about the banking as a service provider that that’s provided very often brings the deals brings the business brings the fintechs to the door, and introduces them to the bank, and it kind of runs the program for that bank, bank is in the background. And they can have varying levels of involvement, depending on the bass provider that they choose with that and fintech. But at the end of the day, the bank is usually sitting in that second position into that bass provider as these programs are getting spun up much faster to market for a number of programs, but maybe a little less control at the end of the day. So those those are kind of the main main two options there. And Treasury prime, we sit, I feel like squarely in the middle of those two. We are we are banking as a service provider. But we’re built. And we’re created from day one, to think through and be a big first partner. So we’re our philosophy is very much that we’re a software provider, we come to the bank, we do a deep integration with you that we mostly all handle. And where we’re directly connecting into your core. We’re not just moving files around for, for balancing and stuff like that we’re directly integrating into your core and in managing money movement. But we’re also bringing the best of the best world with the sales team. We bring a phenomenal sales team to the table and bring a lot of FinTech business to the bank. But we introduced those fintechs to the bank directly. Bank has a direct relationship. They have the compliance, the due diligence, all of that is managed and run by our bank partners. We’re very much there to put up the guardrails, those guardrails are set by our banks and where they want to be in charge, your prime is kind of managing and making sure no one no one goes outside of those guardrails and gets anyone in trouble. But our bank partners are in the lead in terms of the compliance and the relationship aspect of it and the ownership of the of the client. So we feel like we bring the best of both options. We very much relieve our bank partners of the technical burden that comes with that that first model will turn direct, but we give them the comfort and the ability to own a lot of the aspects of banking as a service that the bank should and the bank should, should manage because it is their charter on the line.Whitney McDonald 5:01
Now I know you’ve talked a little bit about the integration directly to the core of a bank. Can you explain a little bit more about what that looks like, what the process is, and maybe the timeline.

Jeff Nowicki 5:13
So Treasury product comes with our, our own ledger. And on our ledger, we’ve built out a number of ancillary banking products that really helps our our bass offerings, the FinTech, the end users of a FinTech are generally sitting on the Treasury prime ledger, but were integrated into the bank score, to manage the funds and manage the aggregate funds manage the money movement through F POS, or Omni bots, accounts and settlement accounts. To do that, we need access to the core for a real time balance and transaction checks on those on the boss or FBO accounts. And we need to be able to do internal book transfers between settlement accounts to make sure that everything reconciles properly. Now, we will do money movement out of the bank’s walls, your traditional channels ACH and wire, which, because it is the final the US financial system, those are still file based. So we will will will create the NACHA Files we’ll create the route when the the wire fed files to actually upload and move out the door to the banks payment gateway. But to interact with the the Omni Boston, the aggregate funds on the big score, we integrate into it, to make sure that settlements and reconciliation happens in real time throughout the day, not just once a day through batch files.

Whitney McDonald 6:51
Now speaking of integration into a bank, I know that you have a recent example of a partnership. Can you share a little bit about that integration with third Coast bank?

Jeff Nowicki 7:02
Yeah, their coast Bank is a great partner of ours. They’re gonna be one of a few of our first partners on the on Jack Henry. So we’re very excited there. We we have a number of bank partners already on Fiserv and FIS, but we’ve been lucky enough to have a cohort of a few different banks. They’re close being one of them as our first first Jack Henry entrance, lot have done a big project for us and exciting to integrate it into that core and be able to kind of duplicate our work going forward for the next check and the banks but they’re close, we’ll be the first one. And they’re, they’re phenomenal bank very excited, very eager to get going in this space. There’s been a few people on that team that have done this before and understand the FinTech community, and excited to get going on sales. And we’re already bring some FinTech deals to them as we speak. Some of our leading leading banks today are Piermont bank. In New York, they’ve been a great partner of ours for over a year and a half. Now we have a number of products running with them. Our main business with Pyrmont is this FBO ledger. product that we were we were referencing on how Treasury prime manages a separate ledger to the bo encore. And it’s been working great. We also have a partnership with marquetta through with Pyrmont. To offer card issuing to honor and underlying clients. We have a number of relationships like there. We have a few other banks that we have slightly different variants of that grasshopper bank is is some someone we’ve known for a little while now. We’ve been official partners for a little less than a year but the management team at grasshopper bank came over a lot of them came over from their days at radius bank after the Lending Club acquisition. And that was that’s obviously another partner bank of treasury prime. So we have good relationships there. But both at Lending Club grasshopper, and bank Prov is another another partner of ours. We’ve gone a step further in our integration and actually our managing encore accounts for them in a partnership in the FBO or in a in a bass relationship. So Treasury Prime’s ledger is sometimes being utilized in some programs at those banks. But other times, we’re actually opening up direct encore bank accounts at these banks for the underlying FinTech users. There’s certain reasons on why some, some programs that that model works better there. But we’ve been able to do an integration with so we can offer a full flavor of banking, the banking suite at all those banks.

Whitney McDonald 10:12
Great, thank you. And I know that we kind of kicked off the conversation with how things can get into banking as a service and what their options are to do that. But wondering if we can talk a little bit about partnering with with a VAs provider, and then how that helps the bank maintain control of the client base for for the best return on investment?

Jeff Nowicki 10:33
Sure. So I wouldn’t, I would say, maybe not all, all all bass providers out there are built the same way. But when I when we talk about this, specifically for Treasury prime, the best opportunity for the bank is on their return on investment is exactly that what we talked about where we’re sitting right in the middle of those kind of initial two options that we talked about, where the initial investment to get going in this space is much lower. When you look at all the things that need to be built and, and programming ised at a bank to do better banking as a service, we’re Treasury prime can come in and do that much faster, cheaper, easier. And then, where we’re also giving the best of the secondary option of having control of your clients, we are not getting in the way of the bank having direct relationships with with their FinTech partners. We’re facilitating that in a much more streamlined way. So they’re, they’re getting access to more clients faster, cheaper. And they get to maintain the relationships through Treasury prime. Yeah, the banks not not having full control or visibility over over the things that are happening in those accounts. I think a big part of, of who we are, is wanting to give access to this new a new business line that a community bank historically wouldn’t be able to, to compete in, because of that high entrance cost of doing it direct. So we very much feel that we’re here to give the banks this new new opportunity to this new business line. Advantage. And we’re building all the tooling and all the access and visibility for the banks to look at Treasury prime and look at the the accounts that that are open on our ledger of the underlying users in the same light as if they were open up on their direct core. Their operations teams should be able to see everything that’s going on, on on Jeff Nikki’s account on XYZ fintechs program in the same way that they would if I was direct client of theirs, walking into the branch. And that’s a big, big staple for us is to make sure that the bank has complete and utter confidence and, and visibility into everything that’s happening. The last thing we want is to say that the banks not not having full control or visibility over all the things that are happening in those accounts.

Whitney McDonald 13:36
You’ve been listening to the buzz, a bank automation news podcast, please follow us on Twitter and LinkedIn. And as a reminder, you can rate this podcast on your platform of choice. Thank you for your time and be sure to visit us at Bank automation news.com For more automation news

Whitney McDonald 0:10
Hello and welcome to the buzz of bank automation news podcast. My name is Winnie McDonald and I’m the deputy editor of bank automation news. I’m joined by Jeff Nicky, Vice President of banking at Treasury prime. He discussed Treasury Prime’s recent partnerships, how the technology is integrated. And why partnering with a banking as a service technology provider is the best longtail ROI solution.Jeff Nowicki 0:33
So, for me, when we’re talking about a community bank here, their options, they have a few different options. One of their, their main and original options out there for them, was to go direct, to build up a team internally, both on the sales side to go out and hunt and find the appropriate FinTech and partnerships themselves, but also build up a technology team internally, that would be able to build the proper technology that they need to expose out to these fintechs. Historically, community banks are, are very much tied to their their core provider, who are or who can be great partners to those community banks. But sometimes, the timing in which that they can turn on access or give a new program, a new build, to turn on is, is lengthy. And when you’re talking about a FinTech community, you’re talking about a community that likes to move fast. They want to be live yesterday, not not potentially in six months. So that that’s a little bit of the negative when you’re talking about going direct. But if a bank has the ability to build it themselves, it’s been something that’s been proven to be relatively successful in the past, but then it’s a big undertaking and some big upfront costs that they need to take on. Now, the other option, which has been more popularized in the last few years is partnering with a banking as a service provider. And when you talk about the banking as a service provider that that’s provided very often brings the deals brings the business brings the fintechs to the door, and introduces them to the bank, and it kind of runs the program for that bank, bank is in the background. And they can have varying levels of involvement, depending on the bass provider that they choose with that and fintech. But at the end of the day, the bank is usually sitting in that second position into that bass provider as these programs are getting spun up much faster to market for a number of programs, but maybe a little less control at the end of the day. So those those are kind of the main main two options there. And Treasury prime, we sit, I feel like squarely in the middle of those two. We are we are banking as a service provider. But we’re built. And we’re created from day one, to think through and be a big first partner. So we’re our philosophy is very much that we’re a software provider, we come to the bank, we do a deep integration with you that we mostly all handle. And where we’re directly connecting into your core. We’re not just moving files around for, for balancing and stuff like that we’re directly integrating into your core and in managing money movement. But we’re also bringing the best of the best world with the sales team. We bring a phenomenal sales team to the table and bring a lot of FinTech business to the bank. But we introduced those fintechs to the bank directly. Bank has a direct relationship. They have the compliance, the due diligence, all of that is managed and run by our bank partners. We’re very much there to put up the guardrails, those guardrails are set by our banks and where they want to be in charge, your prime is kind of managing and making sure no one no one goes outside of those guardrails and gets anyone in trouble. But our bank partners are in the lead in terms of the compliance and the relationship aspect of it and the ownership of the of the client. So we feel like we bring the best of both options. We very much relieve our bank partners of the technical burden that comes with that that first model will turn direct, but we give them the comfort and the ability to own a lot of the aspects of banking as a service that the bank should and the bank should, should manage because it is their charter on the line.Whitney McDonald 5:01
Now I know you’ve talked a little bit about the integration directly to the core of a bank. Can you explain a little bit more about what that looks like, what the process is, and maybe the timeline.

Jeff Nowicki 5:13
So Treasury product comes with our, our own ledger. And on our ledger, we’ve built out a number of ancillary banking products that really helps our our bass offerings, the FinTech, the end users of a FinTech are generally sitting on the Treasury prime ledger, but were integrated into the bank score, to manage the funds and manage the aggregate funds manage the money movement through F POS, or Omni bots, accounts and settlement accounts. To do that, we need access to the core for a real time balance and transaction checks on those on the boss or FBO accounts. And we need to be able to do internal book transfers between settlement accounts to make sure that everything reconciles properly. Now, we will do money movement out of the bank’s walls, your traditional channels ACH and wire, which, because it is the final the US financial system, those are still file based. So we will will will create the NACHA Files we’ll create the route when the the wire fed files to actually upload and move out the door to the banks payment gateway. But to interact with the the Omni Boston, the aggregate funds on the big score, we integrate into it, to make sure that settlements and reconciliation happens in real time throughout the day, not just once a day through batch files.

Whitney McDonald 6:51
Now speaking of integration into a bank, I know that you have a recent example of a partnership. Can you share a little bit about that integration with third Coast bank?

Jeff Nowicki 7:02
Yeah, their coast Bank is a great partner of ours. They’re gonna be one of a few of our first partners on the on Jack Henry. So we’re very excited there. We we have a number of bank partners already on Fiserv and FIS, but we’ve been lucky enough to have a cohort of a few different banks. They’re close being one of them as our first first Jack Henry entrance, lot have done a big project for us and exciting to integrate it into that core and be able to kind of duplicate our work going forward for the next check and the banks but they’re close, we’ll be the first one. And they’re, they’re phenomenal bank very excited, very eager to get going in this space. There’s been a few people on that team that have done this before and understand the FinTech community, and excited to get going on sales. And we’re already bring some FinTech deals to them as we speak. Some of our leading leading banks today are Piermont bank. In New York, they’ve been a great partner of ours for over a year and a half. Now we have a number of products running with them. Our main business with Pyrmont is this FBO ledger. product that we were we were referencing on how Treasury prime manages a separate ledger to the bo encore. And it’s been working great. We also have a partnership with marquetta through with Pyrmont. To offer card issuing to honor and underlying clients. We have a number of relationships like there. We have a few other banks that we have slightly different variants of that grasshopper bank is is some someone we’ve known for a little while now. We’ve been official partners for a little less than a year but the management team at grasshopper bank came over a lot of them came over from their days at radius bank after the Lending Club acquisition. And that was that’s obviously another partner bank of treasury prime. So we have good relationships there. But both at Lending Club grasshopper, and bank Prov is another another partner of ours. We’ve gone a step further in our integration and actually our managing encore accounts for them in a partnership in the FBO or in a in a bass relationship. So Treasury Prime’s ledger is sometimes being utilized in some programs at those banks. But other times, we’re actually opening up direct encore bank accounts at these banks for the underlying FinTech users. There’s certain reasons on why some, some programs that that model works better there. But we’ve been able to do an integration with so we can offer a full flavor of banking, the banking suite at all those banks.

Whitney McDonald 10:12
Great, thank you. And I know that we kind of kicked off the conversation with how things can get into banking as a service and what their options are to do that. But wondering if we can talk a little bit about partnering with with a VAs provider, and then how that helps the bank maintain control of the client base for for the best return on investment?

Jeff Nowicki 10:33
Sure. So I wouldn’t, I would say, maybe not all, all all bass providers out there are built the same way. But when I when we talk about this, specifically for Treasury prime, the best opportunity for the bank is on their return on investment is exactly that what we talked about where we’re sitting right in the middle of those kind of initial two options that we talked about, where the initial investment to get going in this space is much lower. When you look at all the things that need to be built and, and programming ised at a bank to do better banking as a service, we’re Treasury prime can come in and do that much faster, cheaper, easier. And then, where we’re also giving the best of the secondary option of having control of your clients, we are not getting in the way of the bank having direct relationships with with their FinTech partners. We’re facilitating that in a much more streamlined way. So they’re, they’re getting access to more clients faster, cheaper. And they get to maintain the relationships through Treasury prime. Yeah, the banks not not having full control or visibility over over the things that are happening in those accounts. I think a big part of, of who we are, is wanting to give access to this new a new business line that a community bank historically wouldn’t be able to, to compete in, because of that high entrance cost of doing it direct. So we very much feel that we’re here to give the banks this new new opportunity to this new business line. Advantage. And we’re building all the tooling and all the access and visibility for the banks to look at Treasury prime and look at the the accounts that that are open on our ledger of the underlying users in the same light as if they were open up on their direct core. Their operations teams should be able to see everything that’s going on, on on Jeff Nikki’s account on XYZ fintechs program in the same way that they would if I was direct client of theirs, walking into the branch. And that’s a big, big staple for us is to make sure that the bank has complete and utter confidence and, and visibility into everything that’s happening. The last thing we want is to say that the banks not not having full control or visibility over all the things that are happening in those accounts.

Whitney McDonald 13:36
You’ve been listening to the buzz, a bank automation news podcast, please follow us on Twitter and LinkedIn. And as a reminder, you can rate this podcast on your platform of choice. Thank you for your time and be sure to visit us at Bank automation news.com For more automation news