Brian Radin With Fintwist Solutions

Intro: [00:00:04] Broadcasting live from the Business RadioX Studios in Atlanta, Georgia, it’s time for high velocity radio

Lee Kantor: [00:00:13] Lee Kantor hear another episode of High Velocity Radio, and this is going to be a fun one today. On the show we have Brian Radin and he’s the president of Comdata prepaid. Welcome, Brian.

Brian Radin: [00:00:24] Hey, nice to be here. Thank you very much, Lee.

Lee Kantor: [00:00:26] Well, Brian, before we get too far into things, tell us about Comdata number one. And let’s also mention Finn Twist Solutions. Let’s let’s talk about how these two tie together.

Brian Radin: [00:00:38] Sure, absolutely so. Finn Twist is a is a brand and a product that Comdata launched a couple of years ago in the payment space, and Comm Data is a subsidiary of Fleet Corp., which, like you, is in Atlanta headquartered, which is a public payments company quite large, about a twenty two billion market cap as of today. Stock market and data itself was the originator of the pay card solution about thirty six years ago. So. Com Data subsidiary of Fleet Core. Finn Twist is the brand that I created with my team when I came to the company about four years ago, and that product covers a number of solutions, primarily payroll cards, but other prepaid type payments products that are in the market today.

Lee Kantor: [00:01:33] So now talk to us a little bit about the evolution of these kind of cards and and how maybe Finn twist came about. Like, what was the problem that you developed it to solve?

Brian Radin: [00:01:46] Well, the the origin of the Corp pay card goes back many years, as said back into the nineties, and really it started as a way for consumers or employees who didn’t have a bank account, didn’t have access to a bank account, didn’t know how to get a bank account to get paid by their employees employers. And so the cards really became at its simplest form when they started a place where money was loaded, pay payroll was loaded down onto the card in their early iterations. It literally was a card that you could take cash off of. Maybe you could use it as a debit card, and pretty much that was it. Over the years, the product has evolved broadly in the market and it data where it has become more of a payments platform and a solution. And while it’s still probably the majority of users are still in this call, underbanked community versus non bank community, the product is evolved into much more of a competitive payment solution, and Finn Twist is really the current evolution of that that we launched, as I said a couple of years ago, which allows our clients employees to use the product not just to get their pay loaded and take money from a cash machine or a bank, or use it a debit card. It’s a full credit rails with MasterCard. It has complete bill payment, P2P type payment solutions, other wellness and budgeting tools, and recently we launched our fin twist on demand, our earned wage access product on the Twist Pay Card. And so it’s become a much more robust product, and it’s I would say our product is is as good if not better than others that we compete with. But I would say in general, the industry has evolved that way from its origins as really being a way for the non-bank to get paid.

Lee Kantor: [00:03:50] Now in in this iteration, you’re working with the employer and this is helping them with their payroll.

Brian Radin: [00:03:58] Correct, so about 70 percent of Americans get their pay through a direct deposit, it’s probably how you do and how I do, but there is about 20 percent that use this pay card product across kind of across the workforce, both part time and and full time, and also even ten ninety nine gig workers. While it’s not payroll because they’re ten point ninety nine, they’re getting paid at a similar a lot of on a similar type product. And surprisingly, still, eight to 10 percent of people are getting checks, although that has dramatically been impacted during COVID. Obviously, it’s a lot harder to pay people that don’t come in or can’t have access. And so there was there’s been a bigger push to move to electronic payments, and we’ve tried to step in with our product. But but broadly, electronic payments have disrupted what’s left of the of the paying people by Czech market. And so we do work with the employer. We provide a program for free to them to offer this product to their to their employees. And again, initially it was for those low bank. The Underbank then then it broadened, and our product, we our typical employee is not somebody who is making purely minimum wage, they’re earning closer to fifty thousand a year. And a lot of the people that use our product also have a bank account as well and use ours as either a way to help plan budget and then use money at a later time. Some use it as a second second way to disburse funds to their others in the family, and still others use it to describe or to set aside money to make specific payments and put the rest of the money in their bank account. So it’s not. It’s not what it was many years ago in terms of this stepchild for Underbank, it’s really a payment platform that we believe into us competes with a lot of the consumer products that are in the market, as well as other pay cards that are being offered through competitors, through the employers themselves.

Lee Kantor: [00:06:01] Now, from the person that is not using Finn Twist yet, but our kind of the person that could use it when they’re banking the way that their banking doesn’t that don’t they suffer with a lot of fees that are maybe not obvious or not in the brochure of some of the other platforms that they’re using, that they’ll have to pay a lot of fees in order to get access to their money.

Brian Radin: [00:06:28] You know, its fees are an interesting discussion, both in the core banking world. At your bank, as well as other ways in which employees get their their money and then get access to their money, and there’s no question that a lot of the consumer products that you’re bombarded with through digital marketing or you see even on television or other advertising, there are definitely hidden fees. I think the question when we’re looking at it for the people that are not using our product that work for our clients and they’re at a bank, clearly they’re going to get hit with fees. There’s minimum deposit fees, their specific transaction fees, there’s out of out of network ATM fees. So while there are fees on our product, they are more nominal. And also, we feel like access to their money, their work, their payroll is much easier facilitated through using the Fentress Platform one, because obviously we’re working with their employer and to because we’ve launched this on demand or twist on demand, earn wage access product, which which allows them to actually get paid as they work, as opposed to getting paid when their employer processes their payroll, which would not be something that would work with their bank account.

Lee Kantor: [00:07:55] So educate us about the earned wage access. How does how does that work? And that means they get as they work there. It’s almost like in real time as they’re kind of earning the money. They have access to the money.

Brian Radin: [00:08:09] Yeah, you described it pretty well. The companies, I think right now, if I step back. We talked to a lot of HR leaders, business business leaders. Clearly, people in the payroll and operational side of companies, and it’s very clear that. Companies today are challenged by how do I recruit and retain workers? A lot of the types of clients that use our product tend to be in the industries that got hit very hard by COVID, whether it’s retail, hospitality, staffing. And so those companies now as the workforce is beginning to go back to work their challenge and many individuals are still slow to come back to work because they’re still getting unemployment benefits, even if the extra federal subsidies have recently ended. Obviously, there’s still a fear of COVID. We know what’s going on with the Delta variants, particularly in certain locations, and a lot of them have found different jobs. So instead of working in a restaurant, I can work in an office. It’s maybe a little less difficult kind of job, and they’re giving me greater work from home flexibility, which is clearly changed the dynamic between employers and employees. In the old days, the employer set the job, set the hours, set the pay. You came in and you didn’t want to get somebody else. Well, now that’s all been very disrupted and employees have an upper hand, frankly, on employers, so that that puts a lot of pressure on recruiting, particularly since today, recruiting isn’t Hey, we’re filling some new jobs or we’re growing. We need to get people in here to work the work, the manufacturing line or to work in the restaurant or we’re losing business.

Brian Radin: [00:09:54] So this is a pervasive issue for employers. It’s not an HR issue or a payroll issue, and Finn twist on demand is is one way in which companies can attract those employees. It’s not the only way, but with nearly 80 percent of Americans living paycheck to paycheck. And I think we’ve seen all kinds of numbers, but about 40 percent don’t even have enough money to cover a $400 expense. And in today’s health environment, that’s obviously critical. So they need their money when they work. And as you described it, well, it’s I work. I’ve accumulated a certain number of hours and in the old days I waited for my employer comp data, for example, to process my pay on a weekly or biweekly or semi monthly basis. Today with our platform, what happened simply is I work a certain number of hours. I’ve earned it. I go into our mobile. I say I want to get my earned wage access money or on demand, and they get their money, real time. And that’s really the difference between getting paid and a regular payroll structure and getting paid as you work. And we think that that in talking to our clients and just looking at a lot of research involving evolving in this area, that it does relieve stress because the financial stress that employees encounter is one of the most debilitating and clearly has an impact on their productivity at their job.

Lee Kantor: [00:11:24] Now you mentioned that there, I guess we’re at the beginning of doing this in this manner in terms of having any research to support that. But I would imagine just common sense wise that this is very attractive to the employee getting, you know, fast pay, make fast friends so they might stay more loyal. You might have better retention if they’re getting paid as rapidly as as you’re describing.

Brian Radin: [00:11:48] Yeah, I mean, there’s been there’s actually while two years ago there was less than something like two or three million in total transactions transactions. Today the number is in the multiple tens of millions. It’s grown incredibly fast over the last two years. And while a number of the providers, as well as people like Deloitte and others, have done research in this area, and what they’ve what they’ve concluded is that it’s a compelling part of a solution that you need to develop as an employer to attract and retain employees. And so, for example, they’ve done studies where I might give an offer of a five hundred dollar sign on bonus to come be a driver at UPS or another company. Or I’ll give you. On demand or an earned wage access option, and more people choose the earned wage access option than the one time five hundred dollars lump sum. So it’s it’s compelling. I would also say that this is only a part of what companies need to do, right? So we’re part of one element of a solution, but I definitely think they need to rethink their wages. They need to think about how do they provide more financial literacy education. So many people who are in the kinds of jobs that are living day to day that are living paycheck to paycheck don’t understand how to to really plan. So they’re not left holding the bag on a lot of expenses. I think better, better other benefits. Some traditional, whether it’s health care or other like employer sponsored benefits are important. I think all of those things have to be combined, and a lot of employers are rethinking it. Many of them cost more money. The good news about our solution is it’s free to our clients. It’s relatively simple, in some cases, very simple to implement, and it’s part of a core platform that we’re already delivering and have been delivering for for quite some time.

Lee Kantor: [00:14:07] So now when they’re working with you, is this something that this is what they’re getting? Whether, as you mentioned, this doesn’t cost them anything directly like you describe, but it’s still you’re helping them holistically solve a bigger problem and you’re helping their employees kind of become more educated so they can make more informed decisions with their money.

Brian Radin: [00:14:29] Absolutely, I mean, it’s you you asked and answered my friend. It’s really it is really that, you know, it can often be trite or sometimes a bit, maybe people who don’t buy into it. But for me personally and our team, we do have a mission and that mission is helping workers become more financially secure. And so that is part of what we’re doing across our broader set of initiatives within data, particularly in the in the Finn twist business, because we’re one of the singular businesses within com data and frankly, flea core that that really is directly in touch with the consumer. The consumer here is generally employees, but we also have, as I said, ten ninety nines and other individuals who are getting paid through our platform. And so when we’re putting those products into the market, we’re always trying to find ways to stay close to that mission. And so that means better ways for people to get access to their money. It means better education. And when I have the money, what do I do with it? Better ways to save it so that I’m not either paying big fees or that I’m truly able to think about the day after tomorrow and have some funds, either for myself or my kids. And how do I think about planning for that? All of those are our pieces of how we look at our constituency and we look at the employers in a way where we’re trying to help them, as you said, facilitate that communication to their employees. Some do it better than others. Frankly, some have a big investment in it. Others are just realizing that I better make that investment because COVID has stimulated this real disruption in the employer and employee relationship.

Lee Kantor: [00:16:25] So now looking into your crystal ball about how you see payroll going forward, is this kind of earned wage access? Is that going to be a must have rather than the nice to have that it is today?

Brian Radin: [00:16:39] Absolutely. And and let’s let’s start at the beginning if if the beginning was today with where technology is in the in the payments world, you would never build a payroll application that says, OK, I’m going to collect hours or I’m going to have salaried employees and over a period of time, I will pay them. Now some of this is clearly employers use that pay to do other things in their business. So if they’re paying out everything every day, it changes their cash flows. It changes their treasury. So I don’t know if we’ll ever see a consistent. Everybody gets paid every day because it has big impacts to the Treasury side of a business. What I do see is which which, frankly, is why it’ll probably never be, even though technology would allow it the way in which employers, particularly the people that are employing, let’s call it, 50 percent of the workforce. These are companies with more than one hundred employees there. They’re going to probably continue to offer the standard way to provide payroll, but I do think this will become one of those components that are part of why do I come to work here? And that’s today. Tomorrow will be if I don’t have it, it’s a reason why people won’t come to work here or we’ll think about going somewhere else. But I don’t think it’ll replace the way or the construct because that construct has financial implications to the businesses themselves, right?

Lee Kantor: [00:18:22] But it might be something that happens gradually, then suddenly. I mean, if there’s enough of a groundswell of people are going to be gravitating to companies that pay when they do the work, it’s going to be it’ll change and it has to change. Now for you, do you have.

Brian Radin: [00:18:39] I think I think. Go ahead. No, would just say, I think just to that point, I think it will change, I think people will offer it all. My point was only I don’t think it will be. I come to work and every day people are going to get paid for the work they’ve done because I mean, let’s let’s look at it this way. If if you could get paid today, tomorrow, on the next day and the money was put on to your fin twist card or your your wallet, or it was if you weren’t using fed to us into your bank account, you’d probably want that versus waiting until Friday or next Friday, because it’s better to have it in my hands than than my employer’s hands if I’ve done the work. And so I think that would be the way they would want it. I just understanding the corporate mentality and understanding how businesses are using cash and how they manage payroll. I think what you’ll see it is, is a very standard offering as part of the. The the the package in which I use to attract employees in my business, and if I don’t, to your point, if I don’t offer it, I will be at a disadvantage down the line as opposed to today, where it’s still at an early enough stage where it’s an advantage because not everybody is using it yet. And so I can use that as a as a leader in in trying to get through this very difficult time of getting employees. I think over time, as the world gets somewhat normal again, it’ll be part of the standard package, just not the standard way in which employers process payroll right now.

Lee Kantor: [00:20:20] Is there a certain niches that this is going to work better in certain industries that that they should know about this maybe sooner than other folks?

Brian Radin: [00:20:30] Well, I think it’s it starts at the top where if I need people? And those people tend to be hourly. I need a way to get people here working, and I’ve had these conversations with people that run manufacturing businesses and and and retail operations and large franchisees and such like that that are in that bind right now. So I think it probably leans more to the hourly worker and the worker that essentially are in industries where you have less salaried and a little less white collar. But but ironically, when I talk to let’s call more white collar businesses, whether they’re in technology or services. And then you ask the head of HR. Well, what you work for us look like? Well, we have, you know, 80 percent of the people here are really salaried managers professional and then 20 percent are more administrative, clerical. Oh, and do those people get paid salaries? Oh, no, they’re hourly workers. And many of those people are making the same or less than than the typical quote pay card a six or SIC codes, which are in the hospitality and and retail and staffing those traditional industries. So I think it has a broader appeal. Sometimes the mentality or the perception of the head of HR or people in HR or as they think about how the solution should be applied sometimes is a little bit disconnected from if I went and asked those secretaries or administrative assistants, would you like to get paid when you work? Many of them would have the same answer as the person who’s cleaning my hotel room. So I think, well leans a little more to the service based industries like hospitality, restaurants, a staffing and manufacturing more that way. I think there’s opportunities across the board, and it’s probably more around the hourly worker who’s getting paid near minimum wage versus just an SIC code.

Lee Kantor: [00:22:46] And then the ones that are the hungriest for employees and or the most frustrated by the turnover are the ones that are going to be attracted to this, I would think.

Brian Radin: [00:22:55] Correct. That’s exactly what’s happening. I had a conversation with a guy who runs, you know, a pretty large manufacturing business. They actually manufacture foam packaging. The business couldn’t be better, as you can imagine, with everybody ordering online, et cetera. He can’t keep up with his demand. He’s losing revenue because he has hundreds of open spots on his line that he can’t get people to come and work in the factory. He just doesn’t have the ability to bring them in. We’re launching this in several of his locations. He has eight locations around the country because he needs to find a way to get people on the job and working because he’s losing money. And as I said earlier, I think that is a real difference between when you talk about added benefits for companies, for their employees, some employers, they’re great. They love to add as much as they can. They think very highly. They want their employees to feel good about working there. But it was less of an economic imperative pre-COVID in most cases. Now the people that we talked to are beyond payroll and HR, the head of manufacturing, head of operations, because they see a correlation between the bottom line and getting people hired. And if this is something that’s working, which, as you said intuitively, it makes sense, but there’s now more data and other people are doing it. They’re saying, let’s do this. And frankly, even on the pay card side, where we think the core pay card solution is a great solution, it really has a lot of use cases and applications. It was more of one of those nice benefits that people want to offer and getting employers to embrace it and push it was a little more difficult because it typically was a payroll issue or it was HR issue. This is really a business issue, which I think has very broad implications to the penetration of the service and the long term legs that I think the business end solution will have.

Lee Kantor: [00:25:05] Yeah, I’m with you. I think that this is a great solution. And if you go anywhere, you see all these help wanted signs. I mean, people are desperate for good talent. And if you have a method that help them attract and retain, then you, you almost have to pay that price because it’s the you’re losing money because you can’t stay open, you can’t deliver all these other things are happening. So I mean, at some point, those companies are going to have to figure out a way to afford to pay people, you know, in real time.

Brian Radin: [00:25:40] No question, and again, because it’s not there’s no cost to it, so there’s not a there may be some level of implementation, and again, it depends on how they’re paying payroll today, what systems are using and so on. But some some can be done in a matter of a couple of days, so it may take a little bit longer. But look, in the end, I think as you as you look at the world, the landscape leaders of businesses have to look at the reality and you just described it in terms of help wanted signs. I live in New York City, there’s one. There’s help wanted signs everywhere. And right next to them are the casualties of COVID, where the storefronts empty store right?

Lee Kantor: [00:26:22] The the closed store.

Brian Radin: [00:26:24] Right. So in some ways you have this paradigm. Hey, here at one end is what’s happened here. The other end there’s a guy who’s got his restaurant bar and all he’s he’s handing out. When you go in for a drink, he’s got on his napkins. Do you know anybody who wants a job? I mean, that’s the kind of stuff that’s going on. And then when you take that same concept above just the neighborhood bar or restaurant and you think about it at a UPS or a FedEx or some of the really large staffing companies that we do business with, it’s just it’s a whole new set of realities, right? They have to rebuild their labor force. They’ve still got the public health crisis going on before the before COVID even hit, a lot of our clients were getting better and more efficient. So I think over time, businesses because of COVID and as I said it was happening, are going to hire less people. So they’re getting more efficient. How do I how do I then conduct business in that new environment? Obviously, every employee wants to work from home. How do you work from home? If you’re you’re running a manufacturing facility, very difficult. But there’s a lot of other businesses where people were always in an office and now they don’t want to go back. That’s another whole new reality that lots of businesses are grappling with, and it’s obvious to me that employees want better and more impactful benefits, and they really look to their employers, whether whether we philosophically agree that the employer is the paternalistic person, a paternalistic organization that it should be, whether it’s in delivering benefits or education. I mean, there’s a lot of people that don’t think that on the on the business side, but that’s where we are today, and employees look to their employers to provide them impactful benefits and ways to improve their life. And this is just one of those ways in which an employer can do it. But there are many others that they need to address, considering all the changes that are going on in the workforce today.

Lee Kantor: [00:28:28] And that’s why it’s good to have a partner like you that can help them look holistically and also strategically and tactically. Now, if somebody wants to learn more. Tell us the website if somebody wants to learn more about the Finn Twist Solutions.

Brian Radin: [00:28:46] Sure, it’s WW dot fin twist solutions. Simple as that, there’s a bunch of information on what it is, including the core twist product, how it works, the benefits of it, some of the other, some of the other things that we’ve done to help educate both our cardholders, but also potential clients of ours as well.

Lee Kantor: [00:29:12] All right. Well, Brian, thank you so much. You’re doing important work and we appreciate you.

Brian Radin: [00:29:17] Well, thanks for having me. I appreciate the time and again. I hope that people will respond. Employers will respond and step forward and help help their workforce.

Lee Kantor: [00:29:27] All right, this is Lee Kantor. We’ll see, y’all next time on high velocity radio.