SaaS Interviews with CEOs, Startups, Founders
1728 They Expect 120% Growth This Year, $30m Raised, No Virus Impact, Selling to Banks
17 Apr 2020
Chapter 1: What updates did the host share about the podcast format?
Hey guys, I'm recording this here on April 5th. It's Sunday. Everyone's trying to survive the crisis. Quick note to you guys, we are moving, you know, we used to delay these episodes by, you know, four to eight months after we recorded them in terms of releasing them on the podcast. We've changed that.
A lot of these interviews you're gonna hear over the next many months are gonna be ones we recorded only
days prior we think that's a smarter way to run the show i've made the change so expect more urgent information coming out secondly i am getting destroyed on itunes reviews by these people that say nathan's rude he's hard-hitting blah blah blah which by the way i am it's part of my style it's what works the problem is people that love that style never take the time to go leave a five-star review
So I only get one or five star reviews on iTunes. And right now there's a streak of one star reviews that is driving me crazy. It would mean the world to me, guys. If you're loving the show, you love how direct I am. You like the style. If you go leave a review on iTunes now, if you do that and tweet it to me, text it to me, email it to me, whatever you want.
I'm going to reply with a very special surprise. I think a lot of you guys will really like it is heavy, heavy data oriented. All right. So I appreciate that. Thanks, guys. Enjoy the show. segment helps smaller banks with under $100 billion in AUM categorize expenses from all their customers more accurately by understanding what those credit line items actually mean at scale.
A lot of engineering work, 40 people on the team, called 20 engineers, $30 million raised to build this thing. They charge between $0.06 and $0.20 per banking customer across the 100 banks that they currently serve. Looking to grow, called 120% year-over-year, grew about 100% year-over-year in 2019. Hello, everyone. My guest today is Rob Heiser.
He's the founder and CEO of a company called Segment, which is helping companies make sense of their transactions. Serving right now, obviously, as vice chairman, also co-founder, but more importantly, innovative financial technology company. It is an innovative technology company based in Ohio. Rob, you ready to take us to the top? Yes. All right. So what does this mean?
What does this mean, make sense of transactions?
What we really do is we're a group of library scientists, researchers, and we look at, if you've ever seen your bank statement, you'll see a lot of hieroglyphics. It might say Starbucks and some numbers, a store number, city. What we do is we take all that transaction data and we do research against them.
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Chapter 2: How does Segmint help banks categorize customer transactions?
How many are working with today? Uh, over a hundred. Oh, wow. Okay. So, I mean, really nice scale there. And now how do you bill? Is it a SAS model or is it per transaction analyzed or what?
So we're a SaaS business. We charge on a per customer or in a credit union, it's a per member per month. So they get charged for the amount of active account holders they have. And that last year we charged them based on that.
Interesting. So a small little bank in San Antonio, Texas called Jefferson Bank might use you if they have a thousand depositors and under a hundred billion in AUM, you're going to charge them based off the thousand people that have deposited some money with them.
Correct. So it scales down and scales up based on the size of the institution.
Interesting. Okay. And what, I mean, so give me an average here, the average institution, are we talking like $10,000 ACV accounts or like 10 million kind of ACV accounts? On how many account holders they have? Sorry, sorry. No, on average, what are these smaller banking institutions paying you per year to use your technology?
It just depends on, so we sell a lot through channels and we have several different
products that we sell so you could you know we could be anywhere from you know six cents to 20 cents per customer per month just depends on what they're buying i guess what i'm trying to get in because i just don't i don't know how many depositors some of these smaller institutions have like i don't know if i'm multiplying six cents times a thousand deposit or six cents times a million
I would say our average size institution at this point is about 120,000 customers.
Oh, wow. Okay. That's much bigger than I would have thought. Okay. So about 120,000 depositors. And again, you charge 6 cents to 20 cents per depositor.
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