Arjan Schutte is the founder and managing partner of Core Innovation Capital. Core invests in financial services companies that empower everyday Americans. Core is making seed and pre-seed investments out of its one hundred twenty five million dollars third fund. They have a great portfolio of companies like Ripple, Synapse, Opportun, NerdWallet and more. Arjan, welcome to the podcast.
Great to be with you. Great. I heard you say that you are your mission is something like to democratize prosperity. I really like that, me too. How's that working for us?
Well, if it wasn't obvious that we needed it before covid, it certainly is obvious today. And how's it going? Well, mixed honestly, you know, worse, we're a small fund, and it's a big, gnarly, complicated problem that that needs more investments and is getting more investments but can't only be investments. There needs to be a policy side to it as well, which on the side of my desk, I'm trying to figure out how to do a separate story.
But there there are so many ways in which the private sector can figure out this set of public sector problems. And it's just fun to see the emergence of mission driven fintechs of so many shapes and flavors out there chipping away at this. Yeah.
What are the what are the big levers are where you focused? So we really started looking at the unknown under banked where we perceived there to be a boatload of people, shockingly so I had no idea how many people were on an underbanked and then be a complete absence of technology, like it's kind of an old school world of like, you know, place based check cashers and such that serve that industry at significant scale. Consumers are spending like a hundred billion dollars on stuff that you and I get entirely for free.
Where where does that come from?
Yeah, it's fees. So I want a cash this check, oh, that will cost you one to 10 percent of the of the of the face value of that check for me to assume that you didn't Photoshop it and give you cash in return or its fees on payday loans or on title leases or, you know, a whole litany or on Western Union checks, Radware, or even just paying your bills like a shocking number of people walk into a physical location, 7-Eleven to pay their bills.