{"id":469,"date":"2023-11-03T09:07:32","date_gmt":"2023-11-03T16:07:32","guid":{"rendered":"https:\/\/embedded.gusto.com\/blog\/?p=469"},"modified":"2023-11-03T09:07:32","modified_gmt":"2023-11-03T16:07:32","slug":"how-technology-and-seamless-onboarding-have-evolved-the-banking-industry","status":"publish","type":"post","link":"https:\/\/embedded.gusto.com\/blog\/how-technology-and-seamless-onboarding-have-evolved-the-banking-industry\/","title":{"rendered":"How Mercury\u2019s technology and seamless onboarding have evolved the banking industry with Jason Zhang"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Welcome to the<\/span><a href=\"https:\/\/www.smbtechinnovators.com\/\"><span style=\"font-weight: 400;\"> SMB Tech Innovators podcast<\/span><\/a><span style=\"font-weight: 400;\">, powered by Gusto. We explore the intersection of financial services and vertical SaaS strategy and discuss how software combats the rising complexity of running a business. We aim to share stories, advice, and best practices from the leaders and investors behind today&#8217;s cutting-edge platforms.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For decades, traditional banking has been a convoluted process for customers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the podcast, Jason Zhang, COO and Co-Founder of <a href=\"https:\/\/mercury.com\/\" target=\"_blank\" rel=\"noopener\">Mercury<\/a>, discusses how tech has simplified the banking process for startups and why having a strong opinion about your products makes them better for consumers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Highlights include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How Mercury differentiates itself from traditional banks<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The simplified banking onboarding experience that benefits startups<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Are there any downsides to the partner bank model?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Staying close to customer needs while scaling to ensure meeting their needs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Conventional wisdom for founders in the scaling phase<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Listen to the podcast or read the episode highlights below.<\/span><\/p>\n<div class=\"ose-spotify ose-uid-6427e69eafe990ef543a2c16b240c034 ose-embedpress-responsive\" style=\"width:600px; height:400px; max-height:400px; max-width:100%; display:inline-block;\" data-embed-type=\"Spotify\"><iframe allowFullScreen=\"true\" title=\"Spotify Embed: How Mercury\u2019s technology and seamless onboarding have evolved the banking industry with Jason Zhang\" style=\"border-radius: 12px\" width=\"100%\" height=\"400\" frameborder=\"0\" allowfullscreen allow=\"encrypted-media;accelerometer;autoplay;clipboard-write;gyroscope;picture-in-picture clipboard-write; encrypted-media; fullscreen; picture-in-picture\" data-src=\"https:\/\/open.spotify.com\/embed\/episode\/73MgsaXR0JAZ61eMHYVebH?si=7e4c716e4a2e423d&amp;utm_source=oembed\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" class=\"lazyload\" data-load-mode=\"1\"><\/iframe><\/div>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Between having to show up physically at a bank branch and providing an endless list of information, startups need more straightforward solutions to jumpstart their businesses. Jason Zhang explores how Mercury, a pioneering neobank, reshapes the digital banking industry using a distinct approach and unique positioning.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With an educational background in biology, Jason initially faced limited job prospects. He sought opportunities beyond traditional biology roles and eventually found his way to Heyzap. His career trajectory took a fascinating turn when he joined Heyzap. Over time, he expanded his responsibilities, evolving into a versatile team member. These experiences paved the way for his current role at Mercury, where he juggles diverse responsibilities across various business functions.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Differentiating Neobanks from Traditional Banks<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Mercury&#8217;s core philosophy revolves around being a technology company building banking solutions, setting them apart from traditional banks. They distinguish themselves in three key ways:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Seamless Onboarding<\/b><span style=\"font-weight: 400;\">: Unlike conventional banks, neobanks like Mercury offer an online onboarding experience designed for simplicity. The process prioritizes user experience, featuring auto-completion and continuous saving.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Risk and Fraud as Products<\/b><span style=\"font-weight: 400;\">: Instead of conventional risk procedures, neobanks, including Mercury, treat risk and fraud calculation as products. They analyze customer activity to create adaptable solutions, reducing friction in the process.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Creating Seamless &#8220;Rails&#8221;<\/b><span style=\"font-weight: 400;\">: Mercury crafts products that connect ecosystem partners to ensure an exceptional user experience. Every aspect is meticulously designed to enhance customer satisfaction.<\/span><\/li>\n<\/ol>\n<h2><span style=\"font-weight: 400;\">Navigating Risk and Compliance<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Behind every neobank&#8217;s flashy front-end features lies a robust foundation of risk management, regulatory compliance, and fraud prevention. Mercury employs in-house expertise and strategic partnerships to ensure smooth operations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As Mercury expanded, it brought more critical functions in-house while maintaining strategic alliances with banking and payment partners. This approach requires deep collaboration to align with regulatory requirements, such as FDIC or OCC.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">The Mercury Vault Example<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">During a challenging Silicon Valley Bank (SVB) period, Mercury swiftly introduced Mercury Vault, addressing customer concerns about fund security. This feature was a timely response that resonated with customers, demonstrating the advantages of Mercury&#8217;s partner bank model. By leveraging multiple backend providers, Mercury created a unified and user-friendly solution.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">The Partner Bank Model: Pros and Cons<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">While the partner bank model benefits established entities like Mercury, smaller banking apps face challenges. Success often hinges on the partnership&#8217;s specifics and the partnering bank&#8217;s app prioritization. Smaller apps may need help to connect with decision-makers at the partner bank, resulting in complications during onboarding and account management.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Transparency is crucial in these partnerships to prevent customer misunderstandings, especially regarding terminologies like &#8220;bank&#8221; and &#8220;banking.&#8221;<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Balancing Customer Feedback and Product Vision<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Jason emphasizes the importance of developing a unique product philosophy while staying responsive to customer feedback. Striking a balance between understanding customers and crafting a distinct product vision is critical. While feedback is invaluable, it should align with the company&#8217;s creative vision to create products that resonate with users.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Scaling Tech Companies \u2013 Key Advice<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Jason underscores the significance of hiring and cultivating a customer-centric culture across all functions. Mercury assesses candidates for their customer and product instincts, ensuring everyone prioritizes customer interaction and product improvement.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Furthermore, he highlights the value of bringing in experienced leaders to accelerate growth. Mercury strikes a balance between nurturing internal talent and tapping external expertise to address complex scaling challenges.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Listen to <\/span><a href=\"https:\/\/www.smbtechinnovators.com\/episodes\/jason-zhang\"><span style=\"font-weight: 400;\">How Mercury&#8217;s technology and seamless onboarding have evolved the banking industry with Jason Zhang<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Learn more about <\/span><a href=\"https:\/\/mercury.com\/\"><span style=\"font-weight: 400;\">Mercury<\/span><\/a><span style=\"font-weight: 400;\"> and connect with Jason on <\/span><a href=\"https:\/\/www.linkedin.com\/in\/jason-zhang-5645a860\/\"><span style=\"font-weight: 400;\">LinkedIn<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Welcome to the SMB Tech Innovators podcast, powered by Gusto. We explore the intersection of financial services and vertical SaaS&#8230;<\/p>\n","protected":false},"author":11,"featured_media":471,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[],"class_list":["post-469","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-embedded-partners"],"acf":{"exclude_from_embedded_resources":false,"popularity":0,"essentiality":0},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How Mercury\u2019s technology and seamless onboarding have evolved the banking industry with Jason Zhang - Embedded Blog<\/title>\n<meta name=\"description\" content=\"Mercury COO, Jason Zhang discusses how tech has simplified the banking process for startups and why having a strong opinion about products makes them better for consumers.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/embedded.gusto.com\/blog\/how-technology-and-seamless-onboarding-have-evolved-the-banking-industry\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Mercury\u2019s technology and seamless onboarding have evolved the banking industry with Jason Zhang - 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