FinTech & Future Financial Services: Opening up stock markets to all

Hello and welcome back and welcome to opening up stock, markets room, and Incredibly insightful session view. Already had a discussion here backstage before even taking off. So you really can look for what you as a reminder. My name is Olga Miller and your emcee for today's date and ass is probably will be super inside full and very topical and relevant. Don't Shy Away by shaving her opinion. I kind of end of Life Church having you question, but it was a sweet thing. Voicing your opinion, in social media, using the hashtag. Kodak's 2020 want discussion will be moderated by Amy

French director at level 39 and Amy, take it away. Great. Thank you so much Olga. Hello, everyone. It's great to be, he'll need thinset computer Financial Services stage, YouTube channel called Alex, a bunch of opening up stock, market. Myself in the wolf loose, back in 2013 By Canary Wharf, by the security small that use blockchain and more fast-paced Revolution. Many of Europe's fastest-growing companies including who is a very special welcome to all speakers today. Who I lost introduce themselves in a moment. We

have you any idea of the founder and CEO of Utah. Jamie buzinski founder of Wall Street set today. Yes 8 or help me with this panel is looking at the investment market and how we can make it more inclusive and accessible told 2020-2021 with a landmark year for retail investors with people spending more time at home. Many have had the free time to try their hand at investing as the market and rebounded in the best pop of 2020. Especially retail investors flocked into the market and try to

talk to you about how day Traders,. I should be interacting with the market outside of traditional investment houses. People asking how the industry to the Bowl to be more inclusive. There are in sight results in many people, effectively, gambling. So today will be looking at how we can provide great to access as well to the tools advice on knowledge for success. Best pod love to introduce our speaker today. I owe Hyundai with spices them to show themselves.

Sure, I am curious and co-founder and CEO Toro Toro is the Lord world's largest social investment platform where we have 20 million registered users, for more than a hundred different countries who can both talk and Converse about the both, the capital markets, in cryptocurrencies, in the Trade Commission, free stock trading, alongside cryptocurrencies out, with a unique feature of being able to actually see the performance of the p&l. The mark-to-market every month of all of the most successful investors, and then automatically coffee the most successful

investors on our platform. Wonderful. Thank you. Johnny and Jamie. Hi, I'm Jamie rogatinsky. I'm most known for having founded. Wall Street bets also the author of Wall Street bets, how Boomers made the world's biggest casino entrepreneur. The heart of many different projects. I have passion for anything everything that has to do with the stock market, in the empowerment of the individuals around the world. Ready, ready? Good to have, you buy pants. Thank you for joining us by reflecting on the last year

about 1 million different account with best acceleration of an established Trend towards increased adoption program. In 2020. I totally added the half a million funded brokerage accounts in 2020 and over 5 million registered users to the platform. And I think what we saw is sort of a good thing which was March 2020, where markets tumbled institutions were pulling money back out of the market in retail investors sort of identify. Opportunity in a lot of retail investors were flocking into the markets while institutions were going out of the markets and I think that's

feedback loop created something very interesting alongside, you know, a very interesting Confluence of circumstances for interest rates, stimulus, checks, and money and it printed all around the world. It's unprecedented rate. Leading to a very, very white, probably the widest discussion in human history about the value of money, which sort of connected with the Crypt, the world, but also the stock market's world-leading to get a whole new generation start figuring out with Warren Buffett has been saying for 50 years, you need your money invested in the market if you

don't want to lose the value of your Investments, I said what kind of resources were available to those new investors. I wanted to get involved in investing. I think today is the level of resources and information available for retail. Investors doesn't fall from the largest investors institutional investors and hedge funds in the world. Are you do you have faxed over the internet? You do too so much information at 2 with other people's thing to Trends are to the level of instigators that I think again or seeing now,

we're actually seeing institutional investors, sending you looking at platforms like eat or like Wall Street Vet, looking there for information. So I think sort of we see sort of Flip or so leave information outside freely available on the Internet is as valuable. And sometimes even more valuable than information that used to be reserved only for people for whales and in Wall Street. I'm Jamie's coming to you. So I'll be flying from Jenny. Mentioned about like on a step-change from March 2020. Have you seen over the last year up until now 2021

the Verizon retail treated kind of culminating. I agree with Union that in that be the Catalyst was definitely an action point was, but I seen over the years, the size of starting as a proxy, the size of Wall Street bets in the number of people that would join it was doubling every single year, right? And then you have Robin Hood that comes in, in the US, in the stores, meat commission, free trading at the barriers of entry for the stock market really low. As far as how much money you need to know how much time you have to wait. They instantly funded the

account, made it very easy, and very welcoming for people that didn't know anything about stocks or about stock options. Even the simple fighting entire process and need it kind of a fun experience. Up until last year. It was just obviously the explosion, right? You have what you need mention regarding the money, put in the monetary policy at home, looking for things to do. There was no sports on TV, a lot of money because maybe they're so yeah, it was, it was a natural segue for people to to join and

once they start playing with the stock market, do stop learning about it. They realize how much easier it is in, people especially institutions are, the media might have portrayed the complexity of Financing General. Let's go ahead and do this, even, even if I go back to my job, or when I go back to my job and, and then, let's just continue to grow ever since. Is it almost you think you seen a change in attitude towards Trading? Yeah, you can give him the fact that you had such a growth. I wouldn't say that

it's a shift in Attitude as much as now. We have many more attitudes at the same time. You have Warren Buffett who can continue to do, what he does alongside. Everybody else. It goes in. He's got a methodology to evaluate, the book value, and market value of a company and finds. He's under price things in the invest, in them forever, blah, blah, blah, you can finish to do that. And then when people started getting into the stock market, I would see a lot of people trying to guess then you'll start to learn about them that you see is gambling with stock options when you see different

genre. And that's how they did a lot of Buzz around these things. Go to the market just more and more approaches started presenting themselves. I think it's it's really about sort of a generational, buying a moment and answer of the entire generation with when you look at people sort of 18 to 35 or even forty-five. A lot of them has been sort of thinking for a while that trading and investing is complex. It's boring. It's intimidating. There were barriers to entry today. With fractional shares

commission-free. Stock trading. People can download a mobile app, in a sort of funded almost immediately and open an account. And then open a fraction of a share of Tesla on Amazon, simplified and lower the barriers to entry, nothing. That that's just open for a very large movement of a new generation where the majority of of Gen Y. This is the first time the directly trading and investing in the market. So this is a whole new generation suddenly participating in the markets were historically. This used to

be This used to happen with people in their forties or fifties when they had enough money to actually fund accounts. Suddenly. This is happening it with people in their twenties and thirties. And there's a process of all also of Education. People are starting with you, do with investing in Tesla because they heard about this Taurus or teslar bought a Tesla or an Apple phone, our Netflix or Google. But then what we see, Eddie Toro, it is people are coming with a lot of passion, you know, to a specific stock, but gradually, they're actually going through this process of. We learning

about Capital markets learning about new assets like cryptocurrencies. So, I think in general, this is just bringing a lot of people into Capital markets, not only in the US, but globally, I think this year we'll probably see the highest level of new account open for people buying shares online. I'm just picking with you. Yeah, I need for additional investment firms. Reacted to the increase in income retail investors. I think it's storical either were sort of two camps and there's there is and always will be this discussion. I

think we've been ready tomorrow since 2007, democratizing the world of investing. I started treating in Capital Market. Since I was 13, very passionate about Capital markets in and we believe that this should be a part of the color of a person's education and experience has to understand how to invest in his money in capital markets. I think some financial institutions of you do feel that they should do this work for others in the people can't cope with understanding Capital markets, learn and capital markets understanding risk

management diversification. I think that's the beauty of, of online, platforms of the internet. People can actually learn new trades in again. Learning how to manage your money is basically learning, how to manage what you do all day. You go to job, you make money, you want to also understand what you're doing with that money, rather than delegating it to someone who will delegate it to someone else. You won't understand where that is, but it's clear that people have the access to the tools, to invest, you know, how to

Resource. Place to invest, responsibly. Jamie, should online Brokers have a responsibility when it comes to providing them with the knowledge to invest. I mean, you have to let you know, there's a lot of assumptions in that question, right? You need to need you to find exactly what it is. The information to invest responsibly. Is that. That that almost sounds like you want to copy or Buffett. That's right. If you if you just want to put your money in the stock market so you keep up with inflation just buy an ETF is further

diversify like the recipe. Text or whatever and just let it sit there. You don't need any information. What's Beauty about the platforms? Like you throw up and another Zara from your cell phone and it's very inviting really quickly either. So it's much different than it used to be in previous generations. That it's instant, but when it comes to investing book, everybody, add a list of the biggest hedge funds in the biggest investment banks. In the most successful means that I can think of big deal. So sometimes get things wrong, including Warren Buffett, right. At the

end of the day. It's a matter of singlecare. What is it that I want to make? I want to make a little people quickly learned that risk and return or one of the same thing. So, if you want make a lot, you might lose a lot of etcetera, become a bit of a Jessie game. And the prices on the market at this point are proving to really be an economic function of supply and demand, right? You know what we'll see for example, Stop GameStop. We all know that the price shot up because of the popularity of people on social media evaluations that were on sustainable, right? Like you

push the price up from I forget $35 this year at the beginning of this year, and I'm used to have an illicit there. So yes, yes. Yes, but these kids are going to lose all their money because it's not really worth that much to. Look at the look at the cash. But guess what? It's been six months in the price is still up there and guess what GameStop has reinvented itself and now getting into things. Like and if he's another know what it is, now, they have the money to really to pull themselves ahead. So walk while the valuation, but I'm the Alice might have been correct about GameStop. It's no

longer relevant because GameStop now has a different profile on a business standpoint. Now, you could potentially justify why I haven't really done it myself. So I don't know but I can imagine how it's feasible that with this extra money. They cannot do whatever they want with it. Right? So when we What about what information you need? It's a matter of simple. What is it? What, what is the end game? So, we want to make money now to be one big money later. Do we want to save this company? Because now, that's a thing. Remember? And by the way, that the stock market was meant that you

write. I hate to Resort stock market exist. So what your definition is of information? Kanye, what you going to say? First of all, I think they were learning about our customers is a lot of them do need additional information, and education, about two very basic things that once people understand them, that they will become more responsible and they're investing in vests risk management and diversification. So it has Jamie said, it's towards the one of the same. So if you're trying to invest in something, which is high-risk

high-reward, if it's can go more than two three times, it could probably also go to zero, there's a linear correlation there between those. But if you diversify your Investments across both lower risk, asset value, stocks higher risk assets, if there was a lot of people, Jordan socks heard of risk management diversification, you are able to construct a portfolio, which does have high risk assets, but it's still a responsible for is, is it getting too

attached to? Its institutional investors are doing and it is fine for us to think of now. You want to bring that information in those people lose them tools for retail investors to do. And I also agree with Jamie. This is capital markets, were constructed to queef Capital formation that this can happen with only institutional investors or this can happen. Instead of 20, 30, or a hundred students, all investors with a couple of million or tens of millions of retail investors, which actually provide, you know, what a better markets

are there, risks in things that's happening around me me stocks. On dal's. Neither risks around her. Have we seen very interesting stories, like, Jimmy, and AMC. Where retail investors actually push these companies to do it, turn around, whether it's going to be successful or not. That's not for me to analyze right now. There were these companies were able to raise funds because of the support of retail investors and then potentially do it. Turn around. Yes, and I think that is the purpose of capital markets. I'm done. Kind of understanding of the risks

Associated. How do we ensure that all investors have access to that kind of reliable educational resource? I think again, we re Toro constantly try to convey that message of risk management diversification, the risk, or in your account. So you can actually see a risk or this meme. Stocks are are somewhat similar to cryptocurrencies, where we've seen significant rise in interest in demand as well. Any Toro generally, I think the fact that people get more knowledgeable to get from us communication about it. But also

only Toro, they can actually see what the most successful investors are doing. So what we think is the best educational way is actually looking at one of the most successful investors are doing, then you can actually just replicate them manually or you can just decide that you want to automatically coffee, one of the most successful investors. So I told her we have our chief investment office which provides book idea, doors, education, content, as well as just a highlighting. Successful investors are doing through very different time. This is an example. We

constantly see these Corrections good Traders and investors understand how to manage their portfolio when there's a significant correction. So there is not, they're not in the data to a highly volatile, highly risky asset. It's really about giving them the tools, but I think over the internet right now, people have all the tools. They need to learn how to invest successfully in the market. Yeah, I know if I could cut it. I agree. A hundred percent. Is it nowadays? The information is out there. Just a matter of organizing it, and I do believe there's a component that we've seen recently.

What you think the concept of kind of social information-sharing, right. This is. I guess you can call it the social media kind of effect, but for the S, social media has grown and mature. There's gotta be the formulas to figure it out where you do have this crowdsource information. But his manicured that is the creases collective intelligence. Right? Like I've recently started getting into the the cryptocurrency world and more than cryptocurrency technology and interesting applications, which I'm very excited about in which you can actually put these Technologies to the number

one. Fix some of the mechanics behind the regular, at least the u.s. Stock market system. Everything is tasteless there. It's a purpose on a decentralized kind of a platform where people get together to talk like they do on Wall Street, veseli on other platforms. They can decide which stocks they want to invest them and bumblebee, stings up into these ETFs. Are you keep bundles of Diversified asset would show up as just one little simple and they can vote on it themselves. And old people all the individuals that do their own research poster, thesis, people get them boat on this

and then purchase these Securities that that are on the blockchain impressed and all those different things, but it is most kind of information-sharing right withdraw from all sorts of different experiences and sources, and share to discuss on social media. I think we should definitely expect Innovation to accelerate. So. So what were the rise of retail? Investors all around the world and also the rise of new technologies, you know, what whether it's online classrooms or where the blockchain and think we should expect Innovation within the retail. Investor in space, to

keep on, surprising people to keep keep on frog resting and told him to open up this world global markets really to significantly more people than it was open 10 years ago, five years ago, or even two years ago. How do we do the ecosystem? Father told me about going to hang out even more? But I think things are already. I think that bad spark has already been lit. And I think that is going to take place in boys, that I don't think we can quite imagine it right. What makes these democratized is access, right? How easy it is to

forget a bowl is also like your dad was saying earlier, how much money you need in order to get involved, make it possible for you to buy stocks at per share or very expensive. Something to prove, we couldn't do a lot of innovation is taking place there. I do believe, I do believe the marriage of cryptocurrency. Wall Street is going to be the next big thing that the just further Global Isis. The entire stock market right now, having access. I live in Mexico. Right now. Your name is Israel. A lot of people that I know that yet. I can't buy stocks from even the US, it's

a little tricky, but if I want to buy Samsung from Korea, I can't Technologies like we're starting to see you. My stocks on on the walkie. Allow me to say now. I want to buy a little bit Samsung and a little bit of Tesla in a little bit of a little bit of Bitcoin all wrapped up into my place and somebody could be sitting in India or in Australia or a Singapore and be able to do the same thing. I think this guy's nicely into that kind of the future of the stock market piece of this conversation and it is just like, there's been a huge hype of

enough. You think this will stick and we'll continue that. I use been saying, I'll start your friends would like to see continued and do you think iTunes regulation will enhance or hinder? The first of all of us. If we are building a platform to open the market for everyone to treat invest the simple and transparent way, we have customers 100 from countries investing in US, stocks and European stocks. So I generally think we're seeing an inflection point that

will continue and grow. I think that when you look at the cohort of Gen Y and even more younger, Jen's ID, but Jen wife for sure, the size of that school for this. This is Going to be the largest gold worth in human history. In the richest cohorts in human history is the beginning. I think we're going to see ten tens of millions of investment accounts. Open the globally from people from all around the world who are all interested in that something, you can easily look at Google Trends. When Tesla

goes up in at a 15% you go to Google translator, right Tesla actually see that the interest daily interest in the term. Buy Tesla stock has went off a hundred different countries in that day. And I think that's the big difference. The world would with both lowering the barriers to entry ride so far from like eat or which enables you to just download the mobile app fund, an account immediately by a fraction of a stock Mission free, but it's also about the fact that our generation has become very Global. It's not about local stocks anymore. The majority of Stoker.

In the world is still hyper local. Financial institutions are still hyperlocal most of the financial institutions, every single country where we operate are very much local financial institutions. But as a generation social media, for example, is very Global, right? You see people from around the world. There are interesting whether it's that slow or Facebook or Google, or GameStop, its people from around the world. Interested in that the rate of thing. That's a part of what we're seeing. We're seeing through the emergence of that one generation who was investing in the market together,

but also smarter global Brighten, I think I just realized the time they lost off, now is flying by new number of questions from the audience. So I do have the final question for both of you. Just if you can share what you think, the store,. Okay. I'm kind of the retail investor role will look like in ten years time if you could predict. Yeah, that's a great question. I don't think if you asked me two years ago, it was going to look like in ten years. I wouldn't have guessed. It was going to look like today. So, you know, pretty much my answer's going to

be wrong. But, you know, I just go along the same friends, you know, more people, more or individuals around the world are able to have access to Capital markets everywhere board, more than just Capital markets, their financing Jenner when he was a little earlier. Now, people can be in control of their own money, if they want to make money to lose money or learn about it because they once again, like you said it, once you buy a certain stock, now you're interested in following the news about it. Now, you won't understand why these things happen. You might even be interested in

listening to his court to get more involved with it. And so this potential spillover into other types of asset classes are outside of capital markets. It could be things like real estate or things like Everything money related. I think people are now going to take control over it themselves and less and less centralized it to an institution. If you think it was you were seeing two things, one is the democratization of trading and investing which will lead to a probably north of 200 investment account over the next ten years in that is in parallel to the

fact that people with house today, several thousands of dollars as they grow up to be a mess wealth. So we are just at the point where generation why are starting to amass wealth, which means those millions of accounts are going to move from thousands of dollars, the tens of thousands of dollars. And if you multiply those two numbers, you sort of realized, okay that there are now get a trillions of dollars who basically shifted between generation. So this is a very big process happening with retail investors in the end that's in, parallel to the democratization. Also of

financial assets. So is Jamie said it, it should Very easy for somebody from Australia or Mexico or Germany to invest in any overseas whether it's a security or weather in my view, and that's a big part for blockchain technology. If you want to build, if you want to buy fractional Arts, I would have bought you a 1% of a Picasso if you want to buy 10% of an apartment in, in in Poland and Romania, I think those investment opportunities are also going to be democratize through technology. So it's both sort of opening up the markets for more

people to invest but also bringing more opportunities, write a marketing, those opportunities which organic stands, that Capital formation. And those two Trends sort of sit on the first ring that. I said, we're going to see inflation. We're going to see more people who understand that they need to invest in in assets because we're seeing a sort of the inflation and actually real Assets in real estate in the stock. It's encrypting Assets in my, My Views were going to see that continue over the next 10 years. Lots of opportunity in the next

few questions from the audience. What do you think of the NFC? Bubble? What do you think? It will become more and more of a valid investment at 1? I'll take a stab at it right into this trouble. Would be a slightly different, unlike other bubbles in that. It's the purest form of supply and demand people, at least even if the prices of any of these are really just a reflection of how many people want them. And if people don't want them as much, then the prices are going to go down, right? But I think a lot of the things that you

can do with that Abby's are number one for personal utility beating. I personally get Joy about having ownership over whatever this particular entity might be, and I'm not doing it as a filly for money. I just want that the right to do that. They do that already with video games, all dress up, the little characters and they'll pay money to have different color shoots. Right? Not, not to have better, guns are better access to whatever it just puts their peers and people value that. So that value is difficult to translate that into a bubble. People need to stop caring about those things. But

on the other hand, Century and they're still correcting and their self. But he called, you go back to, where is the equilibrium? And so at the end of the day, that's just a process that that shows the legitimacy in the health of Any Given Market. But I, I would generally say, again, a bubble bubbles and bursts are part of how every Market works. So people need to understand that which is why you need to begin diversify between different asset classes, Deborah. I

think 8ft have sort of unique characteristics in a lot of Industries in. There are different if these are more like a product rather than an investment. So what would you were going and buying Louis Vuitton? Do you expect the price of that? Louis Vuitton to significantly rise? Not necessarily. When you buy sneakers, do you expect them to rise? So I can, if these are just products over the Internet, that's been either represent digital products or non digital products, right? So when you buy anything offline, you don't necessarily expect

it to have a price appreciation and as such a lot of them, if these will probably go down in value. Like a lot of products go down in value. Is there is bitter liquidity, right? It's hard baby to sell its Better. By the way, you can actually sell your sneakers and and Louis Vuitton probably online as well, and sometimes those sort of products, appreciate in value. Sometimes they appreciate significantly in value, but a lot of cases where you have low liquid single Market asset, if you don't have buyer's right, you don't create a buyer's demand. That

means that over time, you might find out that there's no demand for what you bought. So the price is what you paid for it, and actually the price to sell. It could diminish the zero. So, just get them. Generally, buying a sneeze. If you want to hold those and if these, there's if you do like every product their products out there, if you want to speculate and product, you know, there are great companies doing that as well, but that's a high risk game. If I'm going to come to the next question, so this probably came out cuz I know Jamie you mentioned cryptocurrency in the opportunity with

blockchain technology. Generally about the question is what role does cryptocurrency play in? The Capital Market is going to be a tool, right? It's going to be a medium. Just like a Toro is a lot of things from our conventional Wall Street. It still Takes Me 3 days to transfer money in the US through ACH. So, I think I am in transparent than and lays down the foundation or his opponents. A framework with which people can do a lot of business with a lot of financial operations with it. Like I said, it mention earlier, I'm really getting excited about the idea of actually created

these decentralized funds, right? Like Wall Street, bets. Net. You can see this this new product that I'm helping create in which you have the mixing of all asset classes are combined with social combined with everything so that you can pretty much come by. If you don't like anything is possible to come of this. That if your programmer a concept or you can say, okay, now I want to be able to put some of these amenities in like give me some artwork or some real estate, whatever it is and combine everything together in a decentralized globalized fashion, if it's

transparent been much more secure and it will prevent things that happened. Like, we saw the GameStop with the US Brokers, like, Robin Hood, and the others, and in several other issues to deal with things like that other capital. It's also the average size of the participants worldwide. I think there's like two or even three separate discussions, which sometimes people sort of mix between them even blockchain technology, get a transformational to acknowledge a paradigm shift in finance. I think

over the next ten, maybe twenty years were going to see most of the financial Assets in the world. So hundreds of trillions of dollars are going to move to a digital native for which sort of his 24/7 buildable public or private Ledger's, so that takes knowledge. He's removing Financial assets and making them digital-native and have him. Do those financial assets, being able to sort of go cross the border in real-time. That's an inevitable future that's like, looking at the invention of electricity and saying that it's not going to happen. It doesn't matter whether

we call it blockchain or digital native finance. That is going to transform the financial services industry, which today is still based in like basically blockchains where one Days, every block, right? Everything is p + 1/2 + 2/3 + 3. So I think that's the future is inevitable. And that's the key interest in the technology. I think the other two parts, it is cryptoassets and Bitcoin Bitcoin represents the Hedge against government represents for a lot of people something, which is a global currency of the currency medium, the medium of exchange of the

internet. Now, we need to remember that over five billion people in the world live in countries with relatively High inflation, bad banking system or no banking infrastructure. So people when they live in places like Europe, the UK, or the US sometimes. Forget, there's five billion people out there the living in places where you would not buy the local currency and in general, even the best currencies out. There were there. It's the dollar or the Euro or the pound are by definition inflationary. So you could have deflation every store. Tell you that a lot of people are passionate about and I

think that will continue to sort of rice in adoption as a hedge against government as a store of value for people who need that store of value, as a minute of exchange for the internet and then you have the whole range of other recruit do assets, which summer, or more speculative, Livermore High Risk than others, but I think every cryptoassets has its own story where she sort of need to analyze. Obviously something like a 3. Mm is about decentralized Finance in the etherium blockchain, but you know, we could all of this cryptoassets which some of them are are

very interesting. Some of them are very high risk, but I think that's form of investment, especially again, when you think about this sort of global world, where a lot of people don't have a good local infrastructure for finance banking, I think that does represent someone Opportunity out for people around the world. Again, people need to remember the risks. It is a high risk asset class by definition. It's been a pleasure. Thank you so much. I'm sure that mounts to the number of those questions, and I even will show those people

be connecting to you all for this, sir. Thank you both so much for a time. I really enjoyed this conversation, you know, thanks, but thanks for joining us today.