Onsetto

Transcription:
Transcripts are generated using a combination of speech recognition software and human transcribers, and may contain errors. Please check the corresponding audio for the authoritative record.

Cale Johnston (00:08):
Good afternoon. My name is Cale Johnston, and I'm the founder of Onseto. Onseto is a business switching solution. For the banks that have deployed us, we come in right after a business opens a new account and we get that business switched over. Switching the primary account for a business has always been one of the biggest bottlenecks in banking, so we set out to solve that about a year ago. We are about a year old and have about 10 banks live on our product. My background before starting Onseto: I started a company in 2014 called ClickSwitch. We really pioneered the consumer switching market and partnered with over 600 financial institutions using ClickSwitch to help consumers switch over their direct deposits and autopays. In 2021, we were acquired by Q2 eBanking down in Austin. If you are a Q2 user, you have probably seen ClickSwitch within your online banking.

(00:58):
Towards the end, when we were meeting with different banks, they would always ask the same question: "Can you switch a business?" The answer was always no. About a year ago, we put the team back together to go out and solve this. Switching is in our DNA. This time it's a ClickSwitch-like solution, but it's all focused on getting the business switched over. We identified four pillars to moving a business account: one, get the account properly funded; two, get all their AR moved over; three, move their AP; and lastly, their payroll. If you can address those four pillars, you can identify that business as a primary and profitable account. There are two parts to my demo. One is the business experience: what does your new business go through to get switched over to you? Two is your bank experience.

(01:41):
Without Onseto, historically it's just been a black hole where you don't know where the business is at with getting switched over, and the business doesn't know what to do in order to get switched over to you. You now have a live pulse on every business and every switch. This would be the view of Sarah Martinez, a relationship manager at Platinum Bank. She logs in and she can see where all of her accounts are at with getting switched over. Innovate Inc. is 100% moved over. Meanwhile, Health First Clinic opened an account, but they're at 0%. As we go through the business experience, you'll start to see how everything is fed into a backend admin portal where you have a live pulse on where all your businesses are in the switching process.

(02:23):
This is a completely white-labeled solution. Like I mentioned, we come in right after the account is open. Your new business will get a welcome email that says you're the easiest bank or credit union to switch to. You click it, and it opens up this white-label solution. Through our ClickSwitch days, we saw a bunch of users drop off because it wasn't specifically branded for the bank. We're adding that same touch of full customization and full branding in order to get these businesses switched over. Switching a business is a little bit more complicated than consumer switching. It was one direct deposit and some autopays for consumers. When you're dealing with a business, there's a lot more going on, especially being able to add different team members at the business to pull off the switch.

(03:04):
You can come in here as the primary user, add team members or other employees to a switchboard, and assign certain tasks. The CEO can come in and assign the CFO to take care of payroll or bookkeeping to take care of AR and AP. You now know who's been added to this switchboard and who's taking care of what tasks. In order to get them switched over, we have to figure out what's going on with their old accounts and then migrate everything over to their new accounts. When we first launched Onseto, we built everything around linking old accounts via Plaid. Your business can come in here and link their old accounts with Plaid. We built the Plaid connection, but when we log into that old account, we're just looking at all their debits and credits and cash flow, figuring out what's taking place on their old account to get them switched over to their new account.

(03:50):
What we realized is Plaid doesn't have the best coverage when it comes to commercial; they're really good on retail. So we had to build a backdrop: our own large language model to be able to ingest operating statements and say, "Here's all your debits and credits and here's what we have to get switched over." They can upload their full account analysis statement or operating statement. We need a statement in order to figure out what's taking place on those old accounts to get them switched over. In about three seconds, we take this statement and parse through it. They can give us two months, three months, or up to a year's worth of statements. The more data we have, the more accurate the switch. We now identify, based on cash flow, that there's $302,000 we feel comfortable transferring over today.

(04:33):
Right now, if you're just doing commercial account opening, you're likely sitting there with 50 bucks or 100 bucks—whatever the minimum was for the business to open their account. We didn't get anything else because the business doesn't know what to move over to you. We will suggest a holdback amount and a suggested transfer amount based on the cash flow of what's taking place on their old accounts. Now you have the account properly funded. Regarding how we're doing it, we have incorporated the Plaid Transfer API, so they'll move the money via Plaid transfer, or we can work with your own ACH instructions and put that into Onseto to get it funded.

(05:09):
Once we complete this transfer, you can see this is all now unlocked: AR, AP, and payroll. When I click on accounts receivable, we put in front of your business a list of all the customers who are making deposits on a recurring basis into their old account. You want these deposits. We have to tell these customers to stop hitting the old account and start hitting the new account. For AWS, for example, if we go to notify them—similar to how you use AI or ChatGPT where you ask a question and it tells you the answer—we do the same prompts when it comes to updating vendor AR information. We'll go out and make a call, and AWS comes back and says, "Here's how to update the vendor portal information." You can keep working down through this.

(05:54):
Another example would be Pinnacle Consulting, a smaller customer that probably doesn't have a portal. If they don't have a portal or you can't update it online, we'll put a standard change notification form in front of them. If you ever saw ClickSwitch, this was it: direct deposit forms mailed to employers. We created a similar type of flow, but at the end of the day, we need your new business to update all their customers to stop making payments into their old account and start making them into their new one. Once you have the deposit, we can move down to recurring payments. We've just pulled that account and we can see all the recurring payments being pulled out. This becomes a treasury cross-sell for your team. You can see Amex is pulling $45,000 a month.

(06:39):
You have to get a corporate card strategy in front of them. That's what Onseto is built to do: provide real-time prompts and real-time treasury services. You now know what's taking place on the old account and what treasury services you need to set up on their new account based on activity on the old one. Lastly is payroll. Payroll is the "hold your breath" moment everyone goes through, but we want to make sure the account is properly funded through connecting it. We have their AR going and their AP. One thing I'll mention on the AP: we don't have to set that up using an account and routing number. If the business wants to set it up on a virtual card or through your card offering, they can pick that choice so those payments are pulled that way.

(07:22):
It doesn't have to be an account number and routing number. Finally, payroll: if they're using ADP or any popular payroll provider, they can easily access it. We'll put them right into the ADP portal. Without Onseto, it's very much a black hole where businesses don't know where to go or what to do. By bringing in these statements, we can put together a switch plan for them based on everything going on in their old accounts and migrate them over to your new accounts. I only have about 43 seconds left, but if we go back to this banker dashboard, this might make a little bit more sense. Everything done on the front gets fed over to the back. You can now also track your legacy account exposure. You can see with Sarah's account, she's got $3.2 million of legacy deposits hitting accounts that you now have visibility into.

(08:17):
How is Sarah going to get that $3.2 million moved over to your financial institution? We're early and we are out to solve it. Switching is in our DNA. I feel like business switching is the next big thing. Banks are sitting on more stagnant accounts than ever, and we're here to convert them. One last thing: it doesn't just have to be a net new account switching tool. We can come in and target all your stagnant accounts. For all your businesses that opened accounts over the last 12 months and are sitting at a zero balance, let's come up with a marketing campaign to get them moved over. If you get a 10% lift, that's 10% you weren't going to get anyway. If you want more information or a further demo, just go to our website at https://www.google.com/search?q=onseto.com, throw in your name and institution, and I'll jump on a demo with you.

(09:03):
Thank you very much.