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How Fast Food Is Using Tech To Bridge Labor Crunch · Bloomberg Intelligence

• 0:00
  Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, alongside
• 0:04
  Speaker 1: my co host Matt Miller. Every business day we bring
• 0:06
  Speaker 1: you interviews from CEOs, market pros, and Bloomberg experts, along
• 0:11
  Speaker 1: with essential market moving news. Find the Bloomberg Markets Podcast
• 0:15
  Speaker 1: on Apple Podcasts or wherever you listen to podcasts, and
• 0:18
  Speaker 1: at Bloomberg dot com slash podcast. Now, we want to
• 0:21
  Speaker 1: talk about the restaurant business with Lad Ricker's, the CEO
• 0:25
  Speaker 1: of zen Put. If you run a large restaurant chain,
• 0:30
  Speaker 1: you already know what the company does. It's a platform
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  Speaker 1: used by huge names Domino's, Papa John's, uh KFC, five Guys, Chipotle, etcetera. Um,
• 0:42
  Speaker 1: I don't know exactly what it does flat, so I
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  Speaker 1: know that you your platform helps people with safety, helps people,
• 0:50
  Speaker 1: especially giving the COVID situation. But what exactly do people
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  Speaker 1: use zen Put to do? Yeah, of course, thanks for
• 0:57
  Speaker 1: having us so our customers. You said to make sure
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  Speaker 1: that every time you walk into one of their locations,
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  Speaker 1: the food and dying experience is great. There making sure
• 1:05
  Speaker 1: that the food is being handled and prepared to safely,
• 1:07
  Speaker 1: you know, taking temperature readings, making sure that the hot
• 1:10
  Speaker 1: food is hot. The cold food is cold, and particularly
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  Speaker 1: given given last year with COVID, a lot of our
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  Speaker 1: customers were used us to make sure that you know,
• 1:17
  Speaker 1: safety and clean procedures were followed, that they were being
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  Speaker 1: done correctly, so that you and I, whatever we walk
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  Speaker 1: into one of these places, we know great, this place
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  Speaker 1: is UM. This places following the like protocols and as
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  Speaker 1: you were mentioning, that's correct. We worked with some phenomenal
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  Speaker 1: brands that about UM and roughly about fifty locations across
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  Speaker 1: a hundred plus companies, including including the Dominoes in Germany
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  Speaker 1: and even there should grows technology in Germany as well.
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  Speaker 1: So glad. You know, you walk past almost any restaurant
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  Speaker 1: here in the States, whether it's a you know, part
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  Speaker 1: of the national chain like a Papa John's or Chipotle,
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  Speaker 1: or you know, an independently owned restaurant, almost everyone has
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  Speaker 1: a help wanted sign in the window here. How bad
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  Speaker 1: is the labor shortage in the restaurants slash fast food business? Yeah, look,
• 2:04
  Speaker 1: it's it's it's challenging right now. You know, there's a
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  Speaker 1: there's a comment that we heard from our customers starting
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  Speaker 1: a couple of months ago that said we felt like
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  Speaker 1: we just got out of one pandemic and we're getting
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  Speaker 1: into another one, but now one being the labor shortage. Look,
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  Speaker 1: it's um, it's uh, it's challenging, without a doubt. I
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  Speaker 1: think early on you had a shortage of people that
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  Speaker 1: didn't want to go back. They were worried about you know,
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  Speaker 1: I don't want to get sick of it, I don't
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  Speaker 1: want to get COVID potentially from somebody else in the workplace,
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  Speaker 1: and so they bought out of it. Um that's now
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  Speaker 1: fading a bit with vaccination. Vaccinations obviously where they are
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  Speaker 1: today in terms of how many people are getting them,
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  Speaker 1: um to, you're having a lot of people just kind
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  Speaker 1: of question the type of work that they want to
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  Speaker 1: be doing. All of a sudden they said, well, hold on,
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  Speaker 1: I've been doing this for five or ten years, and
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  Speaker 1: maybe I don't want to do this thing more. Maybe
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  Speaker 1: I want to switch jobs and go to a different career.
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  Speaker 1: And I think that the third piece of it a
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  Speaker 1: little bit, and it kind of varies from the statements.
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  Speaker 1: That is, some of the benefit the temporary benefits that
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  Speaker 1: we have from the government that are coming in, but
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  Speaker 1: are also you know, providing some some money these individuals
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  Speaker 1: and so the customers a week talked to in regulations
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  Speaker 1: are getting real creative, right for hitting out money just
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  Speaker 1: to even get people walking the door for an application.
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  Speaker 1: Fifty dollars just to interview, fives on your first paycheck
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  Speaker 1: if you start within two to three weeks, and another
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  Speaker 1: five drawars that anyone else that would recommend someone. So, um,
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  Speaker 1: it's challenging for sure. So does this get sorted in
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  Speaker 1: the next couple of months. We know those unemployment benefits
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  Speaker 1: run out in September, and I realized, you know, there
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  Speaker 1: are other aspects to this, but once those are done
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  Speaker 1: and people have gone through savings, you'd assume they're gonna
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  Speaker 1: want to go back and get fifty dollars for an
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  Speaker 1: interview and five um to start off. Yeah, I'm actually
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  Speaker 1: considering doing some interviews later today to get I think
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  Speaker 1: I think as a whole you're probably gonna see that
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  Speaker 1: exactly what you said towards maybe you know, my our
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  Speaker 1: best guests is maybe towards the end of the summer
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  Speaker 1: beginning of the fall, at some point we start to
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  Speaker 1: hit some level of normality, and I think maybe people
• 4:04
  Speaker 1: start to kind of fade a little bit out of
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  Speaker 1: the pandemic. To your point, the benefits start to run
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  Speaker 1: out all of a sudden, jobs might be a little
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  Speaker 1: bit harder to come by, right because some of these
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  Speaker 1: places might might start finding the people that they need,
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  Speaker 1: and people start to settle in into certain environments. UM
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  Speaker 1: So I would imagine, you know, based on the things
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  Speaker 1: that we're here and from from our customers, is that there.
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  Speaker 1: You know, while this started off a couple of months ago,
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  Speaker 1: it's very difficult. They found ways to deal with it.
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  Speaker 1: Um A lot of it usually have to deal with technology.
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  Speaker 1: How do you invest in technology to basically make the
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  Speaker 1: people that do have at the store with the restaurant
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  Speaker 1: a lot more efficient. They can get more done this way,
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  Speaker 1: and so they're trying to find ways to increase that
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  Speaker 1: so that hopefully by the time people do come back,
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  Speaker 1: you know, and there and they're fully staff, they're rocking
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  Speaker 1: and rolling, you know, on all cylinders that thirty seconds.
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  Speaker 1: Is there a chicken wing shortage out there? Yeah, a
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  Speaker 1: little bit. These uh, these these chicken uh, these chicken
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  Speaker 1: wars have gotten very serious. I think the you know,
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  Speaker 1: everyone's pushing into the chicken sere, which is the chicken wings.
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  Speaker 1: Obviously wingstoff did a phenomenal job during the pandemic, but
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  Speaker 1: the most searching pieces. As prices have gone up on chicken.
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  Speaker 1: I think Winstoff came out a couple of weeks ago
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  Speaker 1: with there now five stop UH brand that's delivery only
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  Speaker 1: they're buying whole chickens trying to get a lower price
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  Speaker 1: for the chicken, and then they're now selling a big
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  Speaker 1: chunk of it off from some other way. But that's
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  Speaker 1: UH should be good. Listen, Chicken from a lot of
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  Speaker 1: these places is pretty solid, so it's we benefit of
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  Speaker 1: consumers from these chicken wars. All right, glad, thank you
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  Speaker 1: so much. We appreciated glad Rick deir CEO of zen
• 5:32
  Speaker 1: Pod giving us a son of the overview of what's
• 5:35
  Speaker 1: going on on the restaurant business fast food business. Obviously
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  Speaker 1: the demand picking up dramatically supply side, particularly on the
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  Speaker 1: labor A little bit challenge here as a deal with
• 5:45
  Speaker 1: the rebound right now, I want to get into UM
• 5:51
  Speaker 1: crypto and defy and everything surrounding it. Diva Balji joins
• 5:58
  Speaker 1: as senior editor at Bloomberg News. Talk to us about
• 6:02
  Speaker 1: what's happened here. I guess you know, as we broke down,
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  Speaker 1: UM did you a below thirty thousand, A lot of
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  Speaker 1: people took that as a technical time to buy in
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  Speaker 1: and did so. Now we're bounced back up UM from
• 6:16
  Speaker 1: that level. What's what's the state of crypto currently at
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  Speaker 1: this point, it's up about it's up to about thirty
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  Speaker 1: four thousand for bitcoins specifically. You know, even stocks that
• 6:30
  Speaker 1: slump yesterday, crypto linked stocks that slumped yesterday have sort
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  Speaker 1: of quickly reversed UM today. They're mostly all in the green.
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  Speaker 1: You know, micro Strategy, which obviously was a huge focus
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  Speaker 1: for a lot of investors yesterday because you know, they've
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  Speaker 1: been making a bullish beat on bitcoin UM is also
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  Speaker 1: back up today. So overall, you know, I don't want
• 6:55
  Speaker 1: to say it was a bit of a blip yesterday
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  Speaker 1: because that was a huge loss for a decent amount
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  Speaker 1: of time. But you know, I also don't want I
• 7:01
  Speaker 1: also just you know, it's not exactly surprising, you know,
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  Speaker 1: to see the type of volatile ride that bitcoin and
• 7:08
  Speaker 1: crypto stocks have. Yeah, that's kind of where I want
• 7:11
  Speaker 1: to go, give you the volatility associated with crypto and
• 7:14
  Speaker 1: particular bitcoin. For some naysayers or some folks that look
• 7:18
  Speaker 1: at this, they say, you know, the volatility is just
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  Speaker 1: too great for this to be a real asset class um.
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  Speaker 1: What are you hearing? Um? You know, generally people who
• 7:31
  Speaker 1: are invested in crypto currencies and bitcoin and the stocks
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  Speaker 1: that are linked to them are very very well aware
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  Speaker 1: of how volatile it is. And you know, some people
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  Speaker 1: that we've spoken to generally what they say is as
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  Speaker 1: much as it goes down, there's a chance of it
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  Speaker 1: going back up and even higher. So, you know, they
• 7:52
  Speaker 1: seem to be very well versed or or knowledgeable in
• 7:56
  Speaker 1: the land of crypto and seemed to be generally or
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  Speaker 1: at least the bulls are sticking to their guns and
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  Speaker 1: believe that, you know, this is the place to be,
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  Speaker 1: whether it's volatile or not. If you can stomach it,
• 8:07
  Speaker 1: you know, stay because you can potentially make money off
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  Speaker 1: of it. Is there any uh, is there any merit
• 8:16
  Speaker 1: to trying to find a reason for the gains and losses?
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  Speaker 1: I mean, we always cite China's clamp down on mining
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  Speaker 1: or Elon Musk's tweet, But isn't a lot of this
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  Speaker 1: really momentum driven in technicals. I think it's a combination
• 8:33
  Speaker 1: of both. You know, sometimes it is hard to sort
• 8:35
  Speaker 1: of pinpoint a specific reason on any given day. But
• 8:39
  Speaker 1: and you know, sometimes it could be the fact that
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  Speaker 1: Musk is tweeting something about it that's really driving the shares.
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  Speaker 1: But you know, there's definitely a part of it that's
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  Speaker 1: momentum driven. You know, if it's a bunch of people
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  Speaker 1: on Reddit who are talking about it and pushing the
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  Speaker 1: stock higher, or just general market rotation. Um, they all
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  Speaker 1: tend to play a part in this, you know, on
• 9:03
  Speaker 1: any given day. So let's broaden it out to some
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  Speaker 1: of the derivative plays that the stock market plays for crypto.
• 9:12
  Speaker 1: I'm thinking coin based that was a really high profile
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  Speaker 1: direct listing here. Are direct direct listings still a thing here?
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  Speaker 1: Or you know, the coin base says it hasn't traded
• 9:23
  Speaker 1: very well, So I'm wondering if that kind of puts
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  Speaker 1: a pall on that. Yeah, you know, it definitely was
• 9:29
  Speaker 1: something that a lot of companies were, you know, actively
• 9:33
  Speaker 1: pursuing or considering. I think what we've seen of late,
• 9:37
  Speaker 1: whether it's coin based or other direct list things that
• 9:40
  Speaker 1: have come through, is just the fact that you know, yes,
• 9:43
  Speaker 1: they are an alternative way to list your stuff, but
• 9:46
  Speaker 1: some of them haven't done as well. Like you pointed out,
• 9:49
  Speaker 1: with coin based UM as other ideas. So you know,
• 9:52
  Speaker 1: generally people seem to be questioning whether a direct list
• 9:58
  Speaker 1: thing is really the way to go UM for their company.
• 10:03
  Speaker 1: All right, we really appreciate it to be a bold
• 10:05
  Speaker 1: senior editor Bloomberg News joining us on the phone, talking
• 10:07
  Speaker 1: all things crypto again. Bitcoin up about two point eight
• 10:11
  Speaker 1: percent today, pushing up close to thirty four thousand, a
• 10:14
  Speaker 1: big reversal from it when it broke below a technical
• 10:16
  Speaker 1: support level of thirty thousand. Levet more coming up now.
• 10:21
  Speaker 1: I want to bring Dr Eric Servini. He is a
• 10:24
  Speaker 1: Gates Cambridge scholar and an historian. He wrote a book
• 10:27
  Speaker 1: called The Deviance War, The Homosexual versus the United States
• 10:31
  Speaker 1: of America, and we bring him on UM to talk
• 10:34
  Speaker 1: about that obviously in relation to Pride Month and New
• 10:38
  Speaker 1: York City's Pride Week, which is this week. UM, Dr
• 10:42
  Speaker 1: thanks so much for joining us. UM. We have strewn
• 10:46
  Speaker 1: around the office a number of different Pride flags and pins,
• 10:50
  Speaker 1: and you know here at Bloomberg obviously, UM, we're very
• 10:55
  Speaker 1: aware of the situation. I think in New York City
• 10:57
  Speaker 1: as well, people are is it nash only as as
• 11:02
  Speaker 1: as as UM visible as it is on the coasts.
• 11:08
  Speaker 1: I think so, and thanks for having me. You know,
• 11:10
  Speaker 1: Pride goes back more than fifty years now, and it
• 11:14
  Speaker 1: started out as as a protest and as a reaction
• 11:17
  Speaker 1: to police violence at the Stone Wall in in New
• 11:20
  Speaker 1: York City. But it's really from that moment has grown
• 11:23
  Speaker 1: all across the country and all across the world. You
• 11:25
  Speaker 1: can rainbow flag, uh, not just on on logos and
• 11:29
  Speaker 1: not just in parades, but in in houses and schools
• 11:33
  Speaker 1: all across the w entire world, and it's comes to
• 11:36
  Speaker 1: mean a symbol for equality. And I think that's something
• 11:40
  Speaker 1: that you'll start to see grow even more in the future.
• 11:43
  Speaker 1: All right, Well, the folks in Washington are friends in Washington,
• 11:46
  Speaker 1: and Congress are you? I guess there's the Equality Act
• 11:50
  Speaker 1: which is going back and forth. Give us the status
• 11:52
  Speaker 1: of what is the Equality Act? What does it seek
• 11:55
  Speaker 1: to do? And kind of where are we in terms
• 11:57
  Speaker 1: of the discussion in Washington. Sure, Well, until last year,
• 12:02
  Speaker 1: there was no federal protections for anyone who was lgbt
• 12:06
  Speaker 1: Q plus when it came to employment, when it came
• 12:10
  Speaker 1: into housing, public spaces, or services. And there was a
• 12:14
  Speaker 1: very important Supreme Court decision last year bus Dot versus
• 12:17
  Speaker 1: Clayton County, which for the first time, the Supreme Court
• 12:21
  Speaker 1: said that actually the Civil Rights Act of nineteen sixty
• 12:23
  Speaker 1: four protects queer folks in this country. The problem is
• 12:28
  Speaker 1: according to which administration is currently in power. Currently President
• 12:33
  Speaker 1: Biden issued an executive order saying he was going to
• 12:36
  Speaker 1: interpret that to mean that it applied to all sorts
• 12:38
  Speaker 1: of different areas where discrimination should be prohibited, so education, housing,
• 12:43
  Speaker 1: and healthcare. But the problem is, at any point, if
• 12:46
  Speaker 1: we had a different administration in office who interpreted that
• 12:49
  Speaker 1: Supreme Court case differently, UH, than very easily those protections
• 12:54
  Speaker 1: that we currently have UH could be stripped. So what
• 12:57
  Speaker 1: the Equality Act would do is cod if I and
• 13:00
  Speaker 1: make very explicit that Supreme Court decision to ensure that
• 13:03
  Speaker 1: this is a permanent protection for a very large and
• 13:07
  Speaker 1: growing minority in our country. Is at some point has
• 13:12
  Speaker 1: the movement shifted the zeitgeist of it from a gay
• 13:15
  Speaker 1: rights movement to really just a general political movement, because
• 13:22
  Speaker 1: it's not just lesbians, gays, and bisexuals. There are many
• 13:26
  Speaker 1: many more letters and numbers now in UH involved. And
• 13:32
  Speaker 1: it's not just the rainbow flag I read today. There
• 13:34
  Speaker 1: are thirty different rainbow flags UM is it at some
• 13:39
  Speaker 1: point just a political dogma. Well, I think it's just
• 13:45
  Speaker 1: a community of folks who don't identify as straight or
• 13:49
  Speaker 1: cis gender meaning you're this, you identify as the same
• 13:51
  Speaker 1: way you were assigned at birth. Uh, And so there
• 13:55
  Speaker 1: are so many different gender identities and this goes back
• 13:58
  Speaker 1: thousands of years. What's new isn't the concept of being
• 14:02
  Speaker 1: non binary or not being male or female. What to
• 14:04
  Speaker 1: do is that binary itself? And so what you're starting
• 14:07
  Speaker 1: to see is people realizing that, especially younger folks, that
• 14:11
  Speaker 1: there are so many different varieties of humanity. And that's
• 14:15
  Speaker 1: true not just among straight people, but within the queer
• 14:17
  Speaker 1: community as well. There's so much diversity contained within that
• 14:22
  Speaker 1: one rainbow flag. In fact, it's changing, and I reginate
• 14:29
  Speaker 1: that there's an a sexual flag as well. I mean
• 14:31
  Speaker 1: there's it's it's almost like everyone except for a small group,
• 14:35
  Speaker 1: is contained into the in the in the movement. Right. Well,
• 14:39
  Speaker 1: at the end of the day, you look at our
• 14:40
  Speaker 1: Congress and you see a very small group it's running
• 14:43
  Speaker 1: our country. It's a it's white, this gender straight men.
• 14:47
  Speaker 1: And you know, there should be flags for everyone else
• 14:50
  Speaker 1: because given how ubiquitous we are, we should be also
• 14:55
  Speaker 1: in power. We should also have representation in media. So
• 14:58
  Speaker 1: I think that's why those flags are so portant, because you,
• 15:00
  Speaker 1: as you mentioned, there is a disparity between who is
• 15:04
  Speaker 1: actually in power, who has the wealth, and then who
• 15:07
  Speaker 1: actually constitutes this country. All right, Eric, thank you so
• 15:10
  Speaker 1: much for joining us. We really appreciate uh your time.
• 15:13
  Speaker 1: Dr Eric Servini Gates, Cambridge scholar and historian, also author
• 15:18
  Speaker 1: of the book The Deviance Wore The Homosexual versus the
• 15:21
  Speaker 1: United States of America. And you're right, Matt, the flag
• 15:24
  Speaker 1: is it seems to be growing and growing and growing.
• 15:26
  Speaker 1: Is more and more people you know, look to have
• 15:29
  Speaker 1: their positions is aired and and be you know, fairly represented.
• 15:34
  Speaker 1: So it's an issue that is important. Is you know,
• 15:37
  Speaker 1: Eric was saying, are the folks on the Congress are
• 15:39
  Speaker 1: you know, looking at a lot of these issues as
• 15:42
  Speaker 1: well from a legislative perspective. Um, and certainly for the
• 15:45
  Speaker 1: Biden campaign, kind of a a important issue. All right,
• 15:51
  Speaker 1: Let's talk technology, particularly artificial intelligence and how it's transforming
• 15:57
  Speaker 1: the financial services business. For that, we bring in Lisa Chi.
• 16:00
  Speaker 1: She's a senior research analysts for robot Global. Lisa, thanks
• 16:03
  Speaker 1: so much for joining us. Here, I'm probably fairly representative
• 16:07
  Speaker 1: of some people. Are a lot of people that during
• 16:09
  Speaker 1: the pandemic, I found myself doing a lot more digital banking,
• 16:13
  Speaker 1: a lot more banking on my phone. Talk to us
• 16:16
  Speaker 1: how the financial services industry is adapting. How well is
• 16:20
  Speaker 1: it adapting to technology? UM, Yeah, thanks for having me. UM. So,
• 16:26
  Speaker 1: I've been following the fintech industry for a while now
• 16:29
  Speaker 1: and and and it has really evolved, probably in the
• 16:33
  Speaker 1: past decade, has really seen a lot of advancement, and
• 16:36
  Speaker 1: obviously with the pandemic has accelerated all the activities around
• 16:41
  Speaker 1: e commerce. And just like you, I've also been home
• 16:44
  Speaker 1: and be doing a lot more online shopping and a
• 16:47
  Speaker 1: lot more of the kind of the touchless payment system. Right. So,
• 16:51
  Speaker 1: some of these dynamics that we're seeing and experiencing today,
• 16:56
  Speaker 1: UM is due to all these digitization that we're seeing
• 17:00
  Speaker 1: growth of IOP devices that definitely had a lot to
• 17:02
  Speaker 1: do with it. UM. I think ten years ago we
• 17:05
  Speaker 1: had just about a third of the world that we're
• 17:08
  Speaker 1: Internet users, and now almost two thirds of the world
• 17:12
  Speaker 1: has access to some type of Internet. So, and on
• 17:16
  Speaker 1: top of that, I think technologies around cloud services UM
• 17:21
  Speaker 1: combined with advanced compute power has really accelerated, so so definitely,
• 17:27
  Speaker 1: the financial industry has been real tremendous progress in terms
• 17:30
  Speaker 1: of innovation, and I think we're just at the tip
• 17:33
  Speaker 1: of the iceberg and what's to come talk to us?
• 17:36
  Speaker 1: I mean, I often wonder is that, you know, here
• 17:38
  Speaker 1: in midtown Manhattan, there's still a lot of bank branches around,
• 17:42
  Speaker 1: and I'm wondering what's the future of a branch commercial
• 17:46
  Speaker 1: bank branch because I can't even recall the last time
• 17:49
  Speaker 1: I went in one, right, I think UM definitely the
• 17:54
  Speaker 1: we've all received our if you had a credit card,
• 17:58
  Speaker 1: we all received that touch this UM credit cards in
• 18:01
  Speaker 1: the mail in the past six months or so. I
• 18:04
  Speaker 1: got a few exactly UM. I think the younger generation,
• 18:09
  Speaker 1: the millennials, definitely feel much more comfortable using their apps
• 18:13
  Speaker 1: to do their banking. And you saw the growth of
• 18:17
  Speaker 1: UM institutions like robin Hood, right, and you've got companies
• 18:21
  Speaker 1: that coin b is coming out, and and that that
• 18:24
  Speaker 1: use of the used platform in the apps have really
• 18:27
  Speaker 1: UM kind of dominated UM some of the usage and
• 18:31
  Speaker 1: mind share. So definitely, the banks and credit card providers
• 18:34
  Speaker 1: are kind of scrambling at the moment trying to find
• 18:37
  Speaker 1: some innovative solutions and really adapting to the world um
• 18:41
  Speaker 1: and I think that definitely we're seeing a combination of
• 18:44
  Speaker 1: the cloud and co put power and adoption of the
• 18:47
  Speaker 1: AI that's really making the experience for the consumer a
• 18:51
  Speaker 1: lot more user friendly, and I think we're going to
• 18:54
  Speaker 1: see a lot more innovations around that. I think the
• 18:57
  Speaker 1: biggest hurl, and while you still will see some of
• 19:00
  Speaker 1: the banking branches is because of the integration between the
• 19:04
  Speaker 1: back end solutions and then the front end. It's still
• 19:07
  Speaker 1: being worked on and that's still um I think we're
• 19:11
  Speaker 1: going to see a lot of spending around that UM
• 19:14
  Speaker 1: but I think that the industry is really um embracing
• 19:18
  Speaker 1: technology to offer that integration from the back influtions and
• 19:23
  Speaker 1: the front end, and you're seeing lots of progress. You
• 19:26
  Speaker 1: publicly don't really feel it on a day day basis,
• 19:30
  Speaker 1: but you believe it or not. Um AI is just
• 19:34
  Speaker 1: at the forefront of everything that we're doing. So when
• 19:38
  Speaker 1: you're banking, whether you're talking about your credit card transactions
• 19:41
  Speaker 1: are actually transferring money into different payment system like there's
• 19:46
  Speaker 1: the wallets right venmo um cash up where we just
• 19:51
  Speaker 1: have so many options now and you could also trade,
• 19:56
  Speaker 1: you know, equities and bitcoins with our banking and then
• 20:01
  Speaker 1: at the same time you get a credit card and
• 20:03
  Speaker 1: a debit card. So you're seeing this integration of these
• 20:07
  Speaker 1: solutions happening and at the at the same time, UM,
• 20:11
  Speaker 1: I'm very concerned as a tech analyst to see what
• 20:14
  Speaker 1: are the industry doing. Are they doing enough to to
• 20:18
  Speaker 1: prevent fraud? And what type of data are they collecting?
• 20:23
  Speaker 1: And are we going to have this world where every
• 20:27
  Speaker 1: transaction that we're making, um where it's while it's going
• 20:31
  Speaker 1: to be personalized types of transaction and solutions that's going
• 20:35
  Speaker 1: to be coming to us, but in terms of marketing,
• 20:37
  Speaker 1: are we going to get flooded? Right? With marketing? You know,
• 20:41
  Speaker 1: whether it's a spam or alert notification throughout text, it's
• 20:46
  Speaker 1: really it's we're coming at a level where we're industries
• 20:49
  Speaker 1: really embracing technology. But are they going to be smart
• 20:51
  Speaker 1: and be thoughtful and how they're going to use the data?
• 20:54
  Speaker 1: I mean just writing just writing the New York City subway.
• 20:56
  Speaker 1: In my lifetime, I've gone from using the tokens um
• 21:00
  Speaker 1: to then swiping the metro card and now I just
• 21:02
  Speaker 1: tap my iPhone to the turnstyle and boom, I'm in,
• 21:05
  Speaker 1: So that's the good news. The bad news is I
• 21:08
  Speaker 1: think the MTA knows where I'm going at all times
• 21:11
  Speaker 1: now and that's a little scary. So it kind of
• 21:13
  Speaker 1: goes to your point of uh, security, are are there
• 21:17
  Speaker 1: are there some companies that are focusing on that? Yes, definitely,
• 21:21
  Speaker 1: UM there are many companies that are whether private and
• 21:24
  Speaker 1: public that's really helping with the either cybersecree types of
• 21:27
  Speaker 1: solutions or data protection and also fraud prevention. So right now,
• 21:33
  Speaker 1: um a I can figure out whether um, you can't
• 21:38
  Speaker 1: be definitely in two places at once. So it's basically
• 21:41
  Speaker 1: where there it's AI analyzing the feelings of transactions are
• 21:45
  Speaker 1: crying each day, so um while the financial service industry
• 21:49
  Speaker 1: is and I published for the last ten years. So
• 21:52
  Speaker 1: what we're seeing the instruction innovation is that AI application
• 21:55
  Speaker 1: is a really expanding and a very quick level. So
• 21:58
  Speaker 1: you're they're using predictive analytics to really improve the accuracy
• 22:02
  Speaker 1: levels and there's a lot of data around this where um,
• 22:05
  Speaker 1: if you've ever been in a store where your credit
• 22:07
  Speaker 1: card is getting declined, it's a terrible experience and and
• 22:11
  Speaker 1: the retail stories don't want to lose you as a customer.
• 22:13
  Speaker 1: The banks don't want to lose you. But some of
• 22:15
  Speaker 1: the data around it's really shocking that UM over a
• 22:18
  Speaker 1: hundred and twenty billion dollars a year of transaction credit
• 22:21
  Speaker 1: card transaction UM is from false decline and over a
• 22:26
  Speaker 1: third of that customer stopped shopping at that retailer after
• 22:29
  Speaker 1: being falsely declined. So that's that's really shocking number. And
• 22:33
  Speaker 1: according to MasterCard data, over twenty percent of customers also
• 22:36
  Speaker 1: switch to their bank after experiencing some type of frauds.
• 22:40
  Speaker 1: So you're seeing companies like Fara ISAAC that has whether
• 22:43
  Speaker 1: it's credit you know, kind of score monitoring systems UM
• 22:47
  Speaker 1: services like Psycho scores, and you've got company like fly Serve.
• 22:50
  Speaker 1: They have solutions around this and they've been using AI
• 22:53
  Speaker 1: for probably the longest out of all the publicly traded
• 22:56
  Speaker 1: companies out there because they have so much data. But
• 22:59
  Speaker 1: we're we're seeing um um these companies continue to adopt
• 23:04
  Speaker 1: in and invest heavily an AI so so to really
• 23:08
  Speaker 1: improve the accuracy level. So I think I think that's
• 23:11
  Speaker 1: that's very important, I think, and I think that's very exciting.
• 23:14
  Speaker 1: All right, Lisa, thank you so much for joining us.
• 23:16
  Speaker 1: Fascinating stuff. Lisa Chai, senior research analysts at Robo Global
• 23:20
  Speaker 1: Technology overtaking and or disrupting, certainly the financial services industry
• 23:25
  Speaker 1: like never before. Just look at all the apps you
• 23:27
  Speaker 1: have on your iPhone. Thanks for listening to the Bloomberg
• 23:30
  Speaker 1: Markets podcast. You can subscribe and listen to interviews with
• 23:33
  Speaker 1: Apple Podcasts or whatever podcast platform you prefer. I'm Matt Miller.
• 23:38
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• 23:42
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• 23:45
  Speaker 1: you can always catch us worldwide at Bloomberg Radio