by Yieldstreet | Staff
When you hear the words inclusion and resilience, do you think about the future of banking? According to this episode of The Yield, you should. Peter Kerr, CFA sits down with Sultan Meghji, Chief Innovation Officer at the Federal Deposit Insurance Corporation (FDIC) to discuss the future of the Financial Sector. Prior to joining the FDIC, Sultan spent his entire career in technology. Now, his mission is to bring the innovations of the future to the FDIC to ensure U.S. Banks are run safely and soundly, as well as inclusively.
[1:43] The 4 pillars in the mission of the Chief Innovation Officer at the FDIC illustrate that the future of banking is in very good hands.
[5:10] A high-level overview of the FDIC consumer mission and its relationship with the Federal Reserve.
[9:25] Increasing inclusion and serving the underbanked starts with removing the biases that put the underbanked at a disadvantage.
[13:08] Does banking consolidation have a negative impact on the underbanked? It might, depending on where you live.
[17:32] Fintechs and startups might like to bend tradition, but they’re still playing by the rules. Does this result in regulatory problems or just human problems?
[19:51] Resilience in the face of threats to consumer data is more essential than ever.
[23:20] Cyber security, climate change and the other problems that are keeping Sultan up at night.
[26:14] Challenges of transitioning from the speed of the private sector to the much slower public sector.
[31:17] What does the future of banking look like from within the FDIC?
[33:20] Different pathways consumers can take to avoid the biases that the FDIC is working to remove.
[38:00] Countries that are getting regulatory banking rights are inspiring change in the US.
[40:10] Sultan’s thoughts on NFTs and the exciting future of fintech.
Sultan, the Chief Innovation Officer at the FDIC highlights the four pillars that are guiding and governing everything that is happening under his leadership. From taking financial solution inclusion to levels that include all Americans to increasing resilience in the face of ransomware or state-based criminal activity, amplifying the level of banking that is done digitally and looking to the 50 year future of global banking, Sultan has a vision that is undoubtedly working to reshape the FDIC.
But how does this improved consumer vision fit in with the Federal Reserve’s banking regulations? Sultan compares the role of each and breaks down the two main ways that the FDIC works to protect the money in US banks, but also to run examinations on all of the banks to ensure that they are being run in thoughtful and safe ways. And this doesn’t end at consumer protection. It extends to climate, cyber security, and a forward-thinking approach to the banking of the future.
You may be surprised to learn that millions of American households don’t have a bank account. The impact of having no way to deposit a paycheck or write out a rent check, let alone consider savings or investments, is huge for underbanked Americans. Sultan calls this the problem that keeps the FDIC up at night. He paints a picture of what life looks like for the underbanked, as well as the work that the FDIC is doing to remove biases and make banking more accessible for everyone. This means increasing technology, eliminating overextended contracts, and reducing the haves and have-nots when it comes to digital access to banking.
Fintechs and startups tend to bend tradition when it comes to laws and regulations, but they generally still aim to play by the rules. The greater concern, according to Sultan, is at the operational level, where the culture divide between older and younger users is only growing as banking moves more and more digital. But, Sultan says, this is not so much a regulatory problem as it is a human problem.
Resilience in the face of threats to consumer data is more essential than ever, as well as the ability to prepare for the massive, Y2K style overhaul that is going to happen to the computing system in the near future. According to Sultan, preparing for these changes and guarding against cyber attacks needs to be in the top three focus areas of every bank in America.
These are exciting and promising times for banking. The pace of the digital transformation is only picking up speed, and Sultan is working to bring the slower-paced federal agencies up to speed so that the next generation can operate with an even higher level of efficiency. Hopefully, this translates to fewer meetings and fewer filing cabinets for everyone. Overall, Sultan has an optimistic outlook for the future of banking. In the same spirit of inclusion and accessibility that you can find at Yieldstreet, he is working to make the possibilities of banking for a broader audience a reality for everyone.
Take all of our content on the go with you and listen on demand no matter where you are. Subscribe on Apple Podcasts, Spotify, YouTube, or wherever podcasts are available so you don’t miss an episode.
Sign up with your email address
Securely verify your identity and link a bank account
Verify your accreditation (if applicable) to access all of Yieldstreet’s offerings.
Our weekly podcast providing ideas about how to make money work for you and bring you closer to your dreams.
1 Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in significant losses.
2 Represents a net estimated, unrealized annualized internal rate of return (IRR) of your portfolio and is based by reference to the effective distribution dates and amounts to and from the investments, as well as any outstanding principal and accrued and unpaid interest as of the current date, after deduction of management fees and all other expenses charged to the investments.[read more]
3 "Annual interest" or "Annualized Return" represents an annual target rate of interest or annualized target return and "term" represents the estimated term of the investment. Such target interest or target returns and estimated term are projections of the interest or returns and or term and may ultimately not be achieved. Actual interest or returns and term may be materially different from such projections. This targeted interest or returns and estimated term are based on the underlying investments held by the applicable.
4 Reflects the annualized distribution rate that is calculated by taking the most recent quarterly distribution approved by the Fund's Board of Directors and dividing it by prior quarter-end NAV and annualizing it. The Fund’s distribution may exceed its earnings. Therefore, a portion of the Fund’s distribution may be a return of the money you originally invested and represent a return of capital to you for tax purposes.
5 The Fund will cease investing and seek to liquidate the Fund's remaining portfolio no later than 48 months after the Fund's initial closing. It may take up to twelve months thereafter to fully monetize any remaining illiquid investments in the Fund's portfolio.
6 Represents the sum of the interest accrued in the statement period plus the interest paid in the statement period.
7 The internal rate of return ("IRR") represents an average net realized IRR with respect to all matured investments weighted by the investment size of each individual investment, made by private investment vehicles managed by YieldStreet Management, LLC from July 1, 2015 through and including Sept 6th, 2021, after deduction of management fees and all other expenses charged to investments.
8 Investors should carefully consider the investment objectives, risks, charges and expenses of the Yieldstreet Prism Fund before investing. The prospectus for the Yieldstreet Prism Fund contains this and other information about the Fund and can be obtained by emailing [email protected] or by referring to www.yieldstreetprismfund.com. The prospectus should be read carefully before investing in the Fund. Investments in the Fund are not bank deposits (and thus not insured by the FDIC or by any other federal governmental agency) and are not guaranteed by Yieldstreet or any other party.
No communication by YieldStreet Inc. or any of its affiliates (collectively, “Yieldstreet™”), through this website or any other medium, should be construed or is intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice. Nothing on this website is intended as an offer to extend credit, an offer to purchase or sell securities or a solicitation of any securities transaction.
Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. In addition, other financial metrics and calculations shown on the website (including amounts of principal and interest repaid) have not been independently verified or audited and may differ from the actual financial metrics and calculations for any investment, which are contained in the investors’ portfolios. Any investment information contained herein has been secured from sources that Yieldstreet believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefor.
Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by Yieldstreet or any other party, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment.
Investments in private placements are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. Additionally, investors may receive illiquid and/or restricted securities that may be subject to holding period requirements and/or liquidity concerns. Investments in private placements are highly illiquid and those investors who cannot hold an investment for the long term (at least 5-7 years) should not invest.
Alternative investments should only be part of your overall investment portfolio. Further, the alternative investment portion of your portfolio should include a balanced portfolio of different alternative investments.
Articles or information from third-party media outside of this domain may discuss Yieldstreet or relate to information contained herein, but Yieldstreet does not approve and is not responsible for such content. Hyperlinks to third-party sites, or reproduction of third-party articles, do not constitute an approval or endorsement by Yieldstreet of the linked or reproduced content.
Investing in securities (the "Securities") listed on Yieldstreet™ pose risks, including but not limited to credit risk, interest rate risk, and the risk of losing some or all of the money you invest. Before investing you should: (1) conduct your own investigation and analysis; (2) carefully consider the investment and all related charges, expenses, uncertainties and risks, including all uncertainties and risks described in offering materials; and (3) consult with your own investment, tax, financial and legal advisors. Such Securities are only suitable for accredited investors who understand and willing and able to accept the high risks associated with private investments.
Investing in private placements requires long-term commitments, the ability to afford to lose the entire investment, and low liquidity needs. This website provides preliminary and general information about the Securities and is intended for initial reference purposes only. It does not summarize or compile all the applicable information. This website does not constitute an offer to sell or buy any securities. No offer or sale of any Securities will occur without the delivery of confidential offering materials and related documents. This information contained herein is qualified by and subject to more detailed information in the applicable offering materials. Yieldstreet™ is not registered as a broker-dealer. Yieldstreet™ does not make any representation or warranty to any prospective investor regarding the legality of an investment in any Yieldstreet Securities.
Banking services are provided by Evolve Bank & Trust, Member FDIC.
Investment advisory services are provided by YieldStreet Management, LLC, an investment advisor registered with the Securities and Exchange Commission.
Our site uses a third party service to match browser cookies to your mailing address. We then use another company to send special offers through the mail on our behalf. Our company never receives or stores any of this information and our third parties do not provide or sell this information to any other company or service.