You are currently viewing Payment Systems Leader Alex Pete Hart Verifone, Chairman, Former MasterCard International President Show 002

Payment Systems Leader Alex Pete Hart Verifone, Chairman, Former MasterCard International President Show 002
0:00Alex Pete heart former president and CEO
0:02of MasterCard international show 002
0:06friend your business it’s your family if
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1:19now on to our show we are so glad to
1:22have with us today Alex Pete heart and
1:25he is a true business leader and who’s
1:27who in all things banking financial
1:29services and just a wealth of experience
1:31and wisdom decade after decade in terms
1:35of his career and his longevity in the
1:37profession from mastercard international
1:39where he was president and CEO and now
1:42he is chairman of the board at verifone
1:44a credit card terminal company he was
1:46also president of silicon valley bank
1:49and the former chair and board member at
1:51NC software which is a financial
1:54services technology company which is now
1:57fair isaac psycho where he was also on
1:59the board and currently he is now on the
2:02board at my tech systems which is a
2:04mobile capture deposits company so you
2:07really are a financial services industry
2:09rockstar from all things consumer
2:12finance and
2:13no I mentioned a lot of companies but
2:15maybe you can fill in some of the gap of
2:17your personal story so let’s jump in
2:20lumpy are you excited about this as I am
2:23Mitchell yes are you there hi there i am
2:25and so I thank you for that generous
2:28introduction may be overstated but in
2:32every term accept my longevity and I
2:35have spent about 50 years in the
2:37financial services industry and
2:39increasingly focused around the payment
2:41side of the business and it continues to
2:44be very stimulating and i added
2:47virtually every day
2:48well that’s terrific let me ask you how
2:51fast you think the mobile devices the
2:53world will penetrate the credit payment
2:55space i mean if you look at it i pay
2:58really doesn’t seem it doesn’t see it
3:00seems to be less pervasive than what we
3:04well I think it’s hard to change
3:05consumer behavior Mitchell particularly
3:08when the the existing system works
3:10rather well and I think that the credit
3:13card has been around for 50 years and it
3:16does most of what consumers wanted to
3:18and I think transition do the mobile
3:21device for this waste credit cards is
3:24going to take some time but i think that
3:26that we see everyday evidence that more
3:28people are using it and I think it’ll
3:31take a bit of time but it will go to be
3:33inevitably happen I you probably saw
3:36that both UVA and Wells Fargo are now
3:39moving to use NFC conjunction with their
3:43ATM devices and that’s just one more
3:46awesome step along the way you know I i
3:49agree how do you define success
3:51I mean like you said before you you’ve
3:53had many many years in the profession
3:55and and I know that there’s a lot of
3:57people out there who are either just
3:59starting out in the financial services
4:01industry there’s people that are
4:04transitioning would you define success
4:06well I think that’s a very personal
4:07subject and everybody has their own
4:10definition for me it’s always been that
4:12being able to do the things I like to do
4:15with people like doing them with and
4:17feeling as if i’m being paid acceptable
4:20beyond that there’s a little more to it
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5:08start your snappa designgraphic today
5:11going over to Mitchell chatter dot-com /
5:14snappa a lot has talked about successes
5:18and a lot of times we hear a lot of a
5:21lot of the success stories that that
5:23business leaders have but they don’t
5:26really see the behind-the-scenes what it
5:28takes to get there so to speak and can
5:31you can you tell us a little bit about
5:33some of the failures what you’ve
5:35actually learned from them and how you
5:38actually overcame them to sort of become
5:41you know a better business leader and a
5:43better person and and colleague to to
5:47the other people that you work with
5:48well I suppose that one of my earliest
5:52lessons was envied the first days of
5:55automated teller machines i was working
5:57for bank Ohio back in the late sixties
6:01and diebold provided me with a look at
6:04their first cash dispensers that the
6:08precursor to ATMs and I was completely
6:12taken with it and convinced that these
6:14were going to revolutionize the business
6:16overnight i convince my bank to be among
6:21the first to install an ATM and every
6:25branch and we were underwhelmed by the
6:29speed at which the customers converted
6:32and i have been the very cautious about
6:35predicting that
6:36they’ll be a rapid pick up on any new
6:39technology going forward so that was a
6:42lesson I learned almost 50 years ago and
6:45remains true today
6:47sure what what advice do you have for
6:51whether it be a young person who’s
6:55trying to possibly start a new business
6:57or get into a business or transition
7:00their career
7:01what do you think some of the things
7:03that they can do some of the things that
7:04that you’ve gained knowledge over these
7:07last decades working from different
7:10types of companies that you can impart
7:11on them so that they can sort of take
7:13away one or two or maybe three practical
7:16tips from someone who has as much wisdom
7:19and as much our breadth and depth as you
7:24Mitchell I think the most important
7:27thing of all is to find a business that
7:30really excites you stimulate you I
7:32finished college married with one child
7:35and having a need to make income and i
7:39spent seven years as a commission lumber
7:42broker and while it was a role lucrative
7:45business for someone of my age and it
7:48certainly prepare my family needs uh
7:51when you sold one car happens part of
7:54what you’ve sold them all mental it and
7:56i found that there was very little
7:58stimulation and that business banking
8:01with something that that stimulated me
8:03and the increasingly the consumer side
8:06of the business and the advent of
8:09Technology and and the the
8:12ever-increasing application of of
8:16emerging technologies something that is
8:18get me fascinated and excited about the
8:21business ever since I’ve starts start
8:24off saying find something that that
8:26excites you just from up a an
8:30application standpoint after that make
8:35sure you find people that that you enjoy
8:38being around and that the enterprise
8:40that you’re engaged with as the values
8:44that you’re comfortable with
8:46excellent excellent advice from the true
8:48business leader as far as MasterCard
8:51goes you know it’s not easy overseeing a
8:55membership of over 27,000 banks
8:58financial institutions organizations arm
9:02what well first of all how did you how
9:04to just sort of get into that role you
9:07know cuz cuz right now people are are
9:09saying you know i’m i’m somewhere and I
9:11want to get to the next step whether
9:12it’s their their first job their first
9:15position whether they want to go to
9:16another industry or another career they
9:19want to move up that ladder so to speak
9:22how do you get how does someone like
9:23yourself sort of break into a mastercard
9:26how do you how do you lead a group of
9:29consensus among and between various
9:31people how are you able to do that
9:36well i was involved in the industry for
9:38a long time at from a bank issuer and
9:41acquire standpoint mitchell and overtime
9:45got to know the mastercard people better
9:46and better all the way was invited to to
9:50join the board and and only then to
9:53become see you know are you right i
9:55think that that at the time mastercard
10:00was a collection owned by 27,000 banks
10:05around the world and so you had too many
10:08masters and i found that disenchanting
10:12and that was probably the biggest reason
10:13I left mastercard but having said that
10:17you know every business has good and bad
10:20things about it and you gonna have to
10:24sit down from time to time and take a
10:27look at the balance sheet determine
10:29whether this makes sense for your not
10:30i’m one of those people who has changed
10:33jobs many times and I’ve had the benefit
10:37of a lot of different corporate
10:38environments and each one has some
10:41positives negatives and death as long as
10:44the positives are dramatically stronger
10:47than the negatives I’ve stuck with them
10:49when I found something that was more
10:51stimulating and more appropriate for me
10:54i I’ve moved on hostgator to sponsor my
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10:59what’s because students business owners
11:01those individuals out there who want to
11:03start of something new they need a
11:06presence online and they need a web
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11:32start your plan today you know there’s a
11:34lot of people out there that are going
11:37from job to job just because you know
11:39staying with the same company for 20 or
11:4130 years that just doesn’t you don’t you
11:43don’t see a lot of that out there and so
11:45how does someone who has been at three
11:49or four or five or six different jobs
11:51over the last 15 to 20 years either a
11:54explain that or use that to their
11:57advantage because it used to be not too
12:00long ago that that was a disadvantage
12:02are you are you now saying that that’s
12:04more of something that you look at as
12:07being a pro vs a con
12:09you know I i think that we crossed the
12:12Rubicon in that regard i will say that
12:14there are there those for whom I 20
12:18years experience the same company is is
12:21is a good thing but I think increasingly
12:23we’re looking for people who have
12:26multiple experiences because in almost
12:30every situation there is a a learning
12:34curve that begins and those over at a
12:37certain point that in terms of years of
12:40service now if you’re a big company you
12:42may be able to get mobile experiences
12:45and and continue to grow but i think
12:48most of us would say that that the
12:51repotting process so to speak is
12:54typically a real growth opportunity you
12:56know we we we left out a few of the
12:59other companies that you’re involved
13:00with like for example lending club you
13:03know it’s kind of interesting because
13:04you know a lot of our our people are
13:07trusted friends in our audience are
13:10new business owners or they’d been in
13:12existence for just a short period of
13:14time and sort of going to that
13:16traditional bank is not an option for
13:20them and so they look to either
13:22non-banks or other non-traditional type
13:26of places like for example lending club
13:29or some others out there like credit
13:33unions or a local bank or a private bank
13:36what what how did you get involved with
13:39lending club and you know how can some
13:41of these other organizations benefit and
13:43help and some of some of the people kind
13:45of just starting out who don’t have a
13:47lot of wherewithal well i was invited to
13:50to meet the the people who are
13:53organizing the lending club back in 2007
13:57we found that the chemistry was good and
14:00I became an advisor them i don’t want to
14:03overstate my relationship with them
14:05because they they did all the work and I
14:08simply offered input time to time but i
14:11think that you know increasingly there
14:13are there non-traditional players who
14:16are taking a fresh approach and applying
14:18these emerging technologies to almost
14:20every aspect of financial services and
14:23we see the companies out there by that
14:26the hundred we see dozens of successes
14:29and and we see many of them either going
14:32public out in the case of the lemon club
14:35or where or paypal our people that sword
14:38or many of farm anymore required very
14:41attractive valuation or braintree or
14:44some of these others that are accepting
14:46you know global payments for example
14:48then you’re also involved in my tech
14:50might as well how did you get involved
14:52with them well I i live part time in san
14:56diego and I got the notion fellow the
14:58CEO of my tech and the gym invite me to
15:02to get involved there as he was changing
15:05their business bottles essentially and
15:07so I came on board about six years ago
15:10and we have certainly come to dominate
15:13the mobile chick capture business and
15:16we’re doing some very exciting things
15:19now in the identification space that are
15:21taking us out of the face
15:23services vertical and expanding us into
15:25a variety of other business lines that
15:28were very excited about the reason why i
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16:01recommend the last lecture by randy posh
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16:06going over to Mitchell
16:08/ audible now it’s very exciting you
16:11know one of these fun facts that I had
16:12here I actually read that you were
16:15actually the captain of the Harvard
16:17football team in 1961 is that how you
16:21sort of started to develop that
16:22leadership by all and you know I mean to
16:26have your teammate you know nominate you
16:28as the captain you know that that’s
16:31pretty interesting and and i would think
16:33you know that that that talks a lot
16:35about your leadership style and and your
16:37likability and talk to us a little bit
16:40about that and how that influenced you
16:42as an individual as a person as you go
16:44from career to career
16:46well I think that um yeah it is pretty
16:48hard to set out to become captain of a
16:51sports team by and large your teammates
16:54decide whether or not they’re going to
16:56look to you for some element of
16:58leadership or not having that I don’t
17:00take much credit for that 1i was pretty
17:03ways to play on a good team that won the
17:07league championship that year and it
17:09certainly was an excellent leadership
17:11experience I think more importantly I
17:14think that that the benefit of playing
17:18football taught me that that there’s a
17:22position for almost everyone and that
17:24the best of tackles will probably never
17:27make it as a quarterback and vice versa
17:30and yeah that you you look at
17:35and determine where people are likely be
17:38most effective and so if i learn any
17:41lesson from that experience that’s
17:43probably it
17:44sure you know I i see here that you’re
17:48on the board at p harmony you know we we
17:51see a lot of these commercials and so
17:53someone who like for example like
17:55yourself has always been involved in a
17:56lot of different financial services
18:00how did you find yourself kind of you
18:02know this its financial services
18:05career-oriented industry focused
18:09individual kind of come over here to
18:12eharmony I mean how did have it
18:14how did that happen how did that all
18:15come about well I think he was involved
18:19in starting harmony and that it was
18:22really driven by my personal experience
18:25with with my own relationship and and my
18:30belief in predictive analytics and
18:33harmony to probably greater extent than
18:36anyone in that field out goes through a
18:40very elaborate process of factor
18:43analysis and predictive science to match
18:47people up for relationship purposes and
18:51in some ways is this is no different
18:53than a lot of the work we did that
18:55credit scoring at psycho and and other
18:58predicted businesses i have a particular
19:02affection for that business and while
19:04i’m not on the board any longer i still
19:06am very close to the founder and and two
19:09other directors and so what do you what
19:13is your advice because you know you hear
19:15a lot of these gurus talking about fico
19:17scores and building up your credit and
19:20establishing your credit whether you’re
19:22a young person who’s just kind of
19:24starting out or whether you’re someone
19:26who you know had a bad experience are
19:28either trying to rebuild or someone who
19:31has good credit wants to continue it
19:32being involved with fair isaac and
19:36and what are what are some of the words
19:38of wisdom that you might have for them
19:40in in terms of you know just you know
19:43good financial practices just that just
19:47as a practical matter of practical tips
19:49that they can take away well you know I
19:52think that particularly for those
19:55entrepreneurs who are part of your
19:57audience we know that credit is a very
20:00important part of starting most
20:02businesses and most businesses at a
20:06shortage of cast for most of their early
20:09years the the a good credit reputation I
20:16we didn’t go good credit score is very
20:20important personal and from a corporate
20:22standpoint and increasingly is a factor
20:26in in most of the things we do now
20:30insurance underwriters take a look at
20:33your credit score’s just determine your
20:36lifestyle and how much risk is likely to
20:40come from a relationship with you and so
20:43for anyone just starting out i’d say
20:46work hard to maintain a good credit
20:49score for those who have run into a
20:52brick wall and and they had some
20:55difficulty i would say do everything you
20:56can do rebuild your credit score because
20:59it’s something would be with you the
21:01rest of your life into snap sponsors the
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21:07podcast I was not going to hire my own
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21:17actually interviewed him in our show 028
21:21so if you head on over to Mitch
21:23slash show 028 you’ll hear that awesome
21:27interview with Christopher gamer and I
21:30just have a few more here I know where
21:32we’re on a tight schedule here in terms
21:34of time but you’ve been involved in so
21:36many different organizations that you
21:39know we like to get through it just a
21:40few more here if we could you were the
21:43president of silicon valley bank
21:46tell us about that because you know it’s
21:50it’s an unbelievable area
21:52I’m like you said you you live in San
21:54Diego but but being involved with
21:56silicon valley bank
21:58how do you get how do you see what a
22:00break into that I mean I know you’ve had
22:01your other experiences but but i think
22:04you know let us be a fly on the wall and
22:06take us sort of in a little bit because
22:08I i think that there’s a lot of people
22:10out there who would who would be very
22:11interested to to hear that dynamic well
22:15i was actually chairman and and nothing
22:18executive chairman that silicon valley
22:20bank so I wasn’t involved in the
22:22day-to-day operations the bank i was
22:25brought aboard by virtue of my
22:27background in banking and and the fact
22:30that i had a reasonably comfortable well
22:32fuel for technology and had been
22:36involved in some other technology
22:38companies i spent two years on the board
22:42before I was elected chairman and then
22:45spent some guys I guess 11 years as
22:49chairman of the bank and it was a it was
22:51a great experience
22:52I in that you had an opportunity to meet
22:55many of the entrepreneurs that we read
22:59about today I think that Silicon Valley
23:03is banks about half of all the
23:07venture-backed companies in the United
23:09States and we have a unique
23:13understanding of early-stage businesses
23:16and and how those businesses involved
23:19and what their credit needs might be
23:21throughout that evolution and so was a
23:25really unique experience and I really
23:29treasure my time there the bank’s been
23:31extraordinarily successful certainly I’m
23:35what what’s next for you i mean i know
23:37your chair of their phone
23:39i meanwhat water what are you doing are
23:41you know if you know it
23:44what are you promoting or you know how
23:46can we be of service and assistance to
23:48you our audience
23:51well that’s all I think that verifone is
23:53a business in transition
23:56we’re spending all time on it
23:59I can’t talk a great deal about what
24:03we’re doing obviously because it’s a
24:05public company and I can’t share with
24:07you very much inside information but
24:10publicly we can just say that we believe
24:13that the point of sale is changing
24:15dramatically and that the the
24:18traditional point-of-sale device that
24:22that wasn’t very smart frankly have to
24:25become smarter has to become
24:28interconnected has to do a variety of
24:31other things for the customer and the
24:33and their customers and just a few
24:38additional things here in in closing we
24:40want to really thank you for your time I
24:43i know that this is going to be a real
24:44benefit and enjoyment for people to
24:47listen to
24:48well this has been Alex heart better
24:50known to his friends as Pete and we just
24:52want to thank you very very much for all
24:54your time and we wish you all the best
24:57and if people wanted to get in contact
24:59with you or if there’s any there’s
25:02anything else that you want a promoter
25:04or additional parting words that you
25:07think would be practical to the audience
25:09i think that that would be that would be
25:11great to hear right now
25:12well nothing in particular Mitchell but
25:15I always welcome hearing from people
25:17with ideas particularly as it relates to
25:20the payments industry and it’s nice to
25:24reconnect with you after all these years
25:27and I wish you the very best thank you
25:30so much meeting will be in contact soon
25:32you take care now
25:33thank you bye-bye now in closing let me
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