Accrued: After Hours - Episode 13
It’s time to unpack the latest edition of Fintech Confidential’s Accrued podcast series. If you are a modern investor who values long-term wealth, you won’t want to miss the discussion in episode 13: Leveraging Your Assets? How M1 Maximizes client wealth with margin lending and other advanced solutions.
In this Episode, Tedd Huff and Colton Pond are joined by Brian Barnes, the founder and CEO of M1. With a passion for sophisticated wealth building, Brian shares how their platform advances the financial picture of its users. They offer a unique blend of services for your modern investor to earn, invest, spend, and borrow. From lending margin to future entities of digital CFOs, tune in to hear how M1 is shaping the industry with a modernized tech stack.
You can stream the Accrued fintech podcast, (brought to you by LoanPro), in all the usual places.
Here’s what went down
These are the main topics covered by the fintech gurus:
- Top-tier financial tools should be accessible to everyone, not solely the wealthy
- It takes innovation and scalability to thrive as a fintech in this economy
- The future of technology and its effect on core financial principles
Financial tools for everyone
M1 aims to make the financial tools used by affluent individuals available to everyone. For instance, Brian shares their terms governing margin loans which have increased their customers’ purchasing power. The ability to use liquid assets as collateral mitigates risks involved in the lending process and lowers costs. This collateral-supporting concept usually requires a large initial investment, but has now been brought down to M1’s general investor base, forging trust with their customers. Building trust is essential in the financial industry, and according to Brian, the best way to do so is by deserving it. Fostering trust and long-term relationships should be a top priority for fintechs to win every interaction with their consumers.
M1 is a great example of a company that promises a high-class experience, and then consistently strives to deliver on expectations.
M1’s approach to the industry
Starting and scaling a fintech company is no simple task. It requires a modern tech stack that is robust and innovative. By staying true to their vision, Brian discusses how they have overcome many challenges in the evolving industry. Even looking back on a decade of experience, he shares how it can sometimes still feel like they are just getting started. Listeners can find hope from this company fueled with a passion for modernization.
The trio also highlights how our money is completely fungible in today’s modern era. Keeping this in mind, M1 increases the liquidity, flexibility, and possibility of their customer’s net worth. To integrate these services more efficiently, Brian decided to acquire a bank—not an everyday occurrence, even for fintech gurus. But the move contributed value for customers and streamlined their services, and this timely alignment catalyzed M1 to grow to its trustworthy portfolio of $8 billion in assets managed today.
The future of finance
With innovation on the rise, the finance industry is going to see a lot of changes in the future. Although simple financial exercises will remain the same, individuals who implement newer practices will increase their net worth trajectory. The tools and products available will enhance the financial well-being of those who take advantage of them. To maintain customer trust, financial services need to be able to integrate new technology with their existing systems.
In doing so, M1 is building a future that offers personalized digital CFOs using AI. What used to be restricted to the ultra-affluent (and even then costing a small percentage of their net worth) is going to be replicable for pennies and available to everyone. Within the foreseeable future, everyone will have their own digital tax advisor and financial guru, accessible in their pocket at any time. Embracing the future and incorporating these innovations into a company’s product roadmap prepares them to maintain and expand their customer base through the years ahead.
Key takeaways
The exposure of margin lending
What was once available only to high-net-worth individuals, is now accessible for any modern investor. Utilizing liquid assets as collateral, credit products like M1’s margin lending program strategically expand consumers’ financial possibilities.
Gain consumer trust by deserving it
The best way to build trust in the financial world is to deserve it. Promise a high-class experience that aligns with consumer investment goals, and then consistently follow through.
Fintechs should consider acquiring a bank
Acquiring a bank can add significant value and streamline services for your fintech. This opportunity allowed M1 to enhance its customer’s experience with integrated operations.
Lead from the front in the financial revolution
Financial services are on the brink of an innovative breakthrough. With constant fluctuation in financial interests, tax implications, and interest rates, starting a fintech company is not easy. Focus on digitizing operations and owning the consumer experience to establish yourself in the competitive market.
Embrace AI in your product roadmap
A well-planned product roadmap is crucial for continuous improvement. Learn how M1 plans to create an AI digital CFO for all individual investor accounts.
