We live in an instant economy, so why does it take so long to access your own money? Despite incredible technological advancements in the fintech space, money still moves around as slowly as it did decades ago with a paper-based payments system. It’s time for a change. In this episode of The Yield, Yieldstreet CFA Peter Kerr is joined by Orum Founder and CEO Stephany Kirkpatrick for a discussion about how technology is helping investors optimize their financial outcomes and move immediately and automatically across accounts, products, and financial institutions. Orum is the leading platform for smart real-time money movement and is aiming to tackle infrastructure around money at its core.
[1:37] Orum’s mission was founded on the belief that consumers should always have immediate access to their money.
[4:22] Why does it still take up to seven days for moving money to settle?
[9:25] How instant money transfers actually work and the impact they have on banks.
[11:35] A look into the current fraud space and Orum’s ability to change the paradigm of fraud.
[15:20] Using machine learning to gather data and increase financial safety.
[17:14] How does blockchain fit into the digital ledger at Orum?
[23:15] Stephany’s insights as a CFP have shaped her drive with Orum.
[28:24] A look at the coming major shifts in financial services.
Today’s world offers nearly instant access to almost anything — from instant communication to groceries delivered within an hour — but that delivery speed comes to a grinding halt when it comes to moving or accessing your own money. Before you can invest in Yieldstreet, it may take a week or more to move your money from your paycheck into whichever bank account you have linked to your investments. But companies like Orum are on a mission to change that. It’s an expensive and disruptive endeavor, but building embeddable infrastructure that sits on top of those core systems could change the way that consumers access their money permanently.
To understand how this change might happen, it’s important first to understand the friction that causes money to take a week or more to settle when being moved from bank to bank, the impact that this change could have on the traditional banking model, and why banks might be reluctant to invest in real-time payments. Stephany calls it ‘the major disruption that Amazon has made on the consumer world applied to the financial world’, and as she explains it, it’s clear that it works. With the use of machine learning to help protect against fraud, technologies today have made it possible for instant money movement with limited concern about fraud compared to the traditional banking model. And by collecting data about users, Orum is able to reduce fraud and increase the financial security of its users.
Of course, no conversation about financial disruption is complete without a look at crypto. As one of the many payment options available to today’s consumers, blockchain is gaining in popularity and has found a place in the digital ledger at Orum. And by being pegged to US currency, stable coins are a far less volatile option than some of the fiat money alternatives.
As the daughter of an immigrant family, Stephany is keenly aware of the injustices that face the millions of underbanked in America. Calling it an answer to a fundamentally broken system, she shares the vision of what the immediate money movement could do for people who traditionally don’t have the access they need to their money when they need it, and calls that vision something impactful that her team is working to solve.
There’s never been a better time to be building fintech, and never been a better time to take advantage of the investment opportunities that are more widely available today than ever before. To find out more about what opportunities are waiting for you, visit yieldstreet.com today.
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Yieldstreet provides access to alternative investments previously reserved only for institutions and the ultra-wealthy. Our mission is to help millions of people generate $3 billion of income outside the traditional public markets by 2025. We are committed to making financial products more inclusive by creating a modern investment portfolio.