The Fintech Espresso Break Ep. 16 – Robert Mann, CEO, Commonplace C

Hello guys. Welcome to the Fintech Espresso Break. I’m your host, Isabelle Castro, and right now I shared my espresso break with Robert Mann, Co-Founder and CEO of Commonplace C.

Commonplace C is a compliance and threat administration software program and advisory service for small companies and group banks. Centered totally on high-risk and complicated companies, Commonplace C establishes a digital identification for them, enabling streamlined entry to monetary providers.  

I spoke to Robert about how they implement know-how to assist them do that. 

Isabelle Castro – Hello, Robert. Welcome to the present.

Robert Mann – Thanks, Isabelle. A pleasure to hitch you right now.

Isabelle – It’s actually good to have you ever on. So to begin with, what will get you up within the morning?

Robert – Effectively, like most founders, we don’t sleep that many hours. And what I’ve realized through the years is that fairly often, within the night, I’ll form of reshuffle the deck of the day, what occurred, type my playing cards, and are available to some revelation about find out how to resolve an issue. 

So it normally wakes me up as I get up at two or three within the morning or 4 within the morning and say, Wow, that’s the answer to this downside. I run downstairs, get my cup of espresso and take notes. Typically that enables me to return to sleep. However usually, I’ll dig in there. 

That’s how we actually acquired to the important thing differentiating issue about what we do at Commonplace C, which was the ache level that I noticed with each small companies of each kind and small group banks. And we’ll undergo why small group banks and credit score unions are actually important to offering entry to small companies in a while. However it’s there the place I spotted that we might create this digital signature for an organization, actually, virtually the genetics of the corporate, that phenotype exhibiting every thing {that a} financial institution or credit score union or a lender would want to judge open an account in a better manner. In order that got here out of that wake-up that we mentioned.

Isabelle – Okay, cool. Effectively, it feels like a very productive and optimistic approach to begin your day. I want I had that. takes a bit greater than a little bit of espresso to get me away from bed. However yeah, so that you discovered it Commonplace C, inform me about that course of. Since you had this concept? What led you to this concept? How did you get that aha second, and the place did you go from there?

Robert – It’s an awesome query. So I used to be retired, and making an attempt to be retired. Nevertheless, for serial entrepreneurs, it’s actually laborious to do this. And I bumped into an excellent buddy. And he requested me what I used to be doing. After which I mentioned, “Effectively, I’m retired.” He mentioned, “Effectively, you possibly can’t retire,” I mentioned, “Effectively, Richard, you’re retired. Why ought to I not have the ability to?” He mentioned, “Effectively, why don’t we have a look at one thing collectively?”

His identify is Richard Latham. And Richard was the top of International Treasury at Financial institution of America, Head of International Tricia visa, very educated, considerate man. And as effectively, I ought to hearken to Richard if he has an thought. And what we realized was that there was a provenance downside on information for small corporations, the place you possibly can go to. LexisNexis are the large world leaders and have information corporations and good information on massive corporations and well-established corporations, however there was nothing there a few small firm. And that made it very laborious for these small corporations, particularly in rising markets, to safe customary monetary providers at affordable prices. 

So principally, we realized that we might use know-how to stage the enjoying subject, each for small banks and credit score unions that don’t have entry to the applied sciences that the enormous banks have. And for small companies that didn’t have the employees or means to satisfy all the necessities to realize new monetary providers. So to reply your query, it was to stage the enjoying subject for small group banks and for small companies of all sorts

Isabelle – And the way Do you particularly go about doing this? What’s the form of course of that the consumer will undergo?

Robert – Effectively, the core of the system is that we enable small companies to self-declare a enterprise identification round their founders, their buyers, their financials, their prospects, even their distributors. 

We bundle that on this moveable identification that’s completely reusable, by the best way, so that after that firm establishes this digital identification, we validate it, we then name it the usual see credential. And that can be utilized to open financial institution accounts, payroll accounts, mortgage ensures, of authorized providers in a a lot sooner mechanism, it’s virtually a passport to get these providers. 

So the mechanism we use to stage the enjoying subject for the small enterprise is to create this digital identification. And for the small group financial institution, they only don’t have the applied sciences that the mega banks have. We need to present know-how to allow them to learn that digital identification, and perceive it share it between enterprise improvement, share it between compliance, which by the best way, will not be shared in any respect. Now, they dwell in siloed worlds. And shortly determine whether or not to open the account or not. 

After which that very same digital identification is regularly enriched with new information that enables the monetary establishments to handle transactions to simplify their exams and audits, with the tip purpose of decreasing their value construction, permitting them to open increasingly accounts and extra complicated companies with out rising their employees.

Isabelle – Okay, this sounds actually wonderful. You goal higher-risk companies, so far as I can see, together with issues like hashish companies, which I’ve seen numerous press on. This was your preliminary focus, proper?

Robert – So when Richard and I first checked out what we might sort out, we mentioned, let’s sort out the most important downside in banking. And on the time after we began the corporate, banking for authorized hashish licensed hashish corporations was virtually unattainable. The compliance necessities have been so hefty it was costly and troublesome. So we determined, okay, if we will resolve that downside, we will resolve the issue for some other kind of firm, whether or not it’s, , a cryptocurrency firm or only a Mother and Pop small enterprise that doesn’t have the information round them to safe providers. In order that was the origin of the hashish piece, which continues to be an enormous chunk of our enterprise.

Isabelle – Okay. Okay, this is sensible. I perceive the place you’re going with this now. So numerous the components that you just form of got here up in opposition to in or constructed for within the hashish business, you need to use them for different high-risk and underserved areas.

Robert – Completely. In case you have a look at our know-how stack, we solely have one ingredient of our know-how that appears on the element of the hashish corporations, which is their license standing. All the opposite components of possession, financials, and vendor evaluation, are the identical for each enterprise. 

So our platform is common. And we simply have this one particular area of interest setup for hashish. And that’s allowed us to draw some massive prospects, together with one of many largest payroll corporations on the planet, which had an issue the place their gross sales reps would go promote, and so they didn’t at all times comprehend it was a hashish firm. Or they didn’t disclose it. And we began with them in a pile about 18 months in the past. They now have over 750 hashish companies there. And our platform is now used to attach the Salesforce information for the prospect of a enterprise improvement individual fairly quickly with the compliance wants of the compliance division that has to approve the account. So we will expedite that new account opening and guarantee this payroll firm’s financial institution that they’ve good compliance insurance policies for all their prospects.

Isabelle – Okay, cool. There’s, I noticed there was a specific form of concentrate on accessing the enterprise mortgage. Sure. Inform me extra about this.

Robert – Yeah. So so, that’s a present pilot program. We’ve got it in California, the place there’s $1.2 billion out there for mortgage ensures. And the best way this works is that if a financial institution desires to make a mortgage, however the buyer, let’s say it’s a small enterprise, doesn’t fairly have the credit score historical past or information to assist a enterprise mortgage. That financial institution, by way of our system, can apply for this mortgage assure or the state. And that mortgage assure will assure as much as 80% of the mortgage quantity. So it permits small, small group banks to make loans to higher-risk prospects, prospects with out information, and to enlarge their lending capability. 

So we’re very hopeful that that may open up lending to small companies of each kind, particularly now the place there are such a lot of adjustments within the economic system, the place individuals actually need value financial savings, they want the supply of money, and entry to capital, which may be troublesome to realize.

Isabelle – Yeah, I used to be gonna say, within the present form of macroeconomic local weather, this have to be actually useful for everybody concerned. Proper?

Robert – It’s. We have been shocked to study that the majority banks and credit score unions have been unfamiliar with this program.

Isabelle – Actually? Okay. Yeah. Why do you suppose that’s?

Robert – I feel that, , the state of California doesn’t essentially promote what they do effectively. That the entities that facilitate the mortgage ensures are small. They’re usually nonprofits, and so they received’t have entry to numerous know-how. So we’re hoping to broaden the notice and in addition the know-how they should actually broaden their applications. Up until now, all of the paper was managed manually, fax and e mail, actual paperwork. We’re digitizing that entire course of to expedite it and decrease their prices as effectively.

Isabelle – Okay. What are the key challenges that you just’ve come up in opposition to in doing this?

Robert – I’d say, , the key challenges are that monetary establishments undertake new applied sciences very slowly. Okay. Yeah. And that this idea of a enterprise identification, this credential, this digital object, is a brand new idea for everybody. 

To one of the best of our information, we’re the one firm, the one know-how doing this now. So it’s a brand new know-how, it’s it may possibly take a while to deliver to market. , Isabella, that that modified fairly a bit just lately, in that after we began promoting a few 12 months and a half in the past, banks would say, Effectively, who’re your different prospects? And I mentioned, Effectively, we don’t have any. You’re the primary. And now we’re in a spot the place we’ve got a monitor file. We’ve got current prospects. So we expect that adoption might be expedited now and that we needs to be previous that downside.

Isabelle – Okay, cool. Is there any form of extra technological developments that you just’re enthusiastic about which will feed into what you’re doing?

Robert – All proper. I, I’d say that there are increasingly good information feeds and good information out there, principally in startups. And we’re making an attempt to leverage that information now and create partnerships with these rising applied sciences in order that we will proceed to counterpoint that digital object, that centered Commonplace C credential.

Isabelle – Okay, and what do you hope to have achieved inside your sector throughout the subsequent 10 years?

Robert – So what our goal is, create this information customary for the credentialing of companies. And proper now, there isn’t a customary. Okay. And we do this, on this digital format, to allow close to real-time entry to a variety of enterprise providers. There’s no want for somebody to have to attend a month or two months to get approval on a checking account. We are able to flip that round inside days with the adoption of this digital object, and the acceptance of the requirements that we’re creating now.

Isabelle – Wow. Okay. Is there something that you just suppose will get in the best way of that? As a result of I imply, it sounds such as you’re about to do that already, that you just’re already doing this.

Robert – , I’ll simply say that for all the opposite fintech entrepreneurs on the market. The enterprise market has utterly modified during the last 12 months, and months. And we as entrepreneurs, must validate income progress. We needed to validate profitability in a manner that will not have been fairly wanted earlier on. And so we have to meet that problem to get the kind of funding we have to proceed to develop the know-how work collectively throughout fintech sectors.

Isabelle – Okay, cool. What’s your favourite quote, and why?

Robert – My favourite quote is be joyful whilst you’re alive.

Isabelle – I like that quote, I can, I can see the way you observe that as effectively. You’re simply all smiles. 

Robert – Effectively, , you may be wholesome and sad. I don’t care. I wouldn’t need to be wholesome and sad. You may be rich and sad. What’s it? So I feel happiness is the important thing. And there’s no, , there’s no assure of an afterlife. I hope there’s. I really feel like there’s a spot for me after this world, however simply must be joyful day-after-day and try to specific that with everybody you’re employed with.

Isabelle – I like that. That’s nice. I’ve acquired one last query for you, which is the curveball query. You’ve had a very various life, which didn’t has not led to retirement, such as you had deliberate. If a film was made about your life, whom would you wish to see play you? 

Robert – Oh, my goodness. 

Isabelle – I do know. It’s a troublesome one. I’m sorry. The random picker made me do it.

Robert – I, I haven’t ever considered this earlier than. However I feel it could or not it’s it could be Richard Dreyfuss.

Isabelle – Okay. Okay, cool.

Robert – Yeah, I feel it is likely to be Richard Dreyfuss.

Isabelle – Okay. Do you need to go into that? Or ought to we simply go away it there?

Robert – I’ve to say that his portrayal of a dedicated, pushed individual in Shut Encounters of the primary kind I feel that was the identify of the film is, is actually like my perspective in the direction of doing issues. I simply don’t quit after I dig into one thing. And I like that character. An ideal deal.

Isabelle – Cool. I prefer it. How can individuals come up with you?

Robert – Robert@standardc.io is one of the best ways, or LinkedIn, Robert Mann on LinkedIn.

Isabelle – Okay, cool. Effectively, thanks for being a very nice visitor. Thanks for approaching the present. 

Robert – Thanks. All proper. Have an excellent day. 

Isabelle – You too.

As at all times, you possibly can chat with me on my LinkedIn or Twitter at @IZYcastrowrites. However to entry nice each day content material, take a look at Fintech Nexus on LinkedIn, Twitter, Fb, or Instagram. It’s also possible to join our each day e-newsletter, bringing information straight to your inbox. 

For extra fintech podcast enjoyable, take a look at the web site, the place yow will discover extra fascinating conversations hosted by Peter Renton and Todd Anderson. 

That’s it from me. Till subsequent time, take pleasure in your downtime.

RELATED: The Fintech Espresso Break Ep. 15 – Dean Tribble, CEO, Agoric