Called the Shopify of integrated finance by its founder and CEO Duy Vo, Productfy is a Bank as a Service (BaaS) that provides businesses with a platform to launch financial offerings.
In light of the company’s $ 16 million Series A funding round, Benzinga sat down with Vo to talk about his motivations as well as what he is focused on.
Here is the conversation that took place.
Benzinga: Can you explain to us your background and your motivations behind Productfy?
Vo: I am a product engineer. Most of the time I was writing code and then over time I had the opportunity to lead engineering and product operations teams.
In addition, I have three areas that interest me enormously: health technologies, financial technologies and education. After spending a lot of time in fintech, I felt that financial services had both a tremendous opportunity and a huge moral obligation to do good for society.
We, as an industry, have not served the most vulnerable in our society. I am a first generation immigrant and I know what it is like to be homeless. I know what it’s like to have trouble accessing financial services.
So I started the business shortly after my daughter was born, and the question was, “What little thing I can do in this world that can create a kinder, fairer financial ecosystem, more compassionate, more socially just because I want my daughter to grow up in a better world.
Can you explain what Productfy is all about?
We started Productfy with the thesis that financial services are moving to the periphery. More and more non-financial institutions will provide financial products and services.
There are two basic problems that we are trying to solve. The first is to allow the vision of financial services to evolve towards the periphery. The second half is how do we power a church, fintech, or gaming company on the outskirts?
Unpack for me your solution to the first problem.
The first track is [enabling] any business to launch a financial product in as little as three weeks.
Think about churches, universities, your favorite retail stores. How can these organizations be enabled to offer a financial product that better serves their client? So we are launching Project Latinum, a fully white label fintech in a box. Thus, you no longer need a team of engineers to deploy a financial product.
And the second problem?
We basically connect a network of banks together, into a distributed financial infrastructure, and provide the layer of technology, compliance, program management, due diligence on top of that.
What are the implications of your solutions, on a large scale?
We are going to take the power away from the people who have abused it and spread it in community banks, moving it to the edge where the user is. We can add a node in South Africa, Vietnam or Brazil.
We can create the very first globally distributed financial infrastructure that enables secure, globally distributed money transfers in less than a second. This will allow people to issue and access cards around the world.
So what’s your only goal, if you will, given all the issues you’re facing?
We basically have three segments. The first is what we call the basic income segment. The second segment is what we call indirect income. The third is mission oriented.
Primary revenue is our clients’ business model or how they make money. Indirect income … supports their income.
For this, we are launching Project Latinum. You don’t need a team of engineers. We complete customer support, compliance, and cardholder agreements.
And then, mission-driven, it’s about taking care of the people who are members of your organization.
Imagine if my mother’s church can offer her a secure, no-charge credit or debit card, a deposit where she can put her money, and that money can be used to help other members of her church who cannot. not get a payday loan.
What if this church could also do cash checks so that people who don’t make money like you and me, who go to church, maybe can afford that service?
Visions for the future? Where next?
Between January and August, or something like that, we had about 150,000 people created on our system, in a production environment.
We started a debit card program, and now we’re starting to see it take off. Q4 is poised to become the Shopify of integrated finance.
If you want our APIs, you have them. But now you don’t need a team of engineers to launch a financial product, do you?
In 2022, it’s about complementing the rest of our predominantly credit-focused offerings so that by the end of 2022 we can say, “If you want to start a credit union experience, be a debit card, a secure, unsecured credit card loan – whatever it is – you can do in less than a week.
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