HomeNewsThe Founders Of Visa, and Their Impact On Today’s Fintech

The Founders Of Visa, and Their Impact On Today’s Fintech

De Hoc once wrote That we are living on a “knife’s edge” between a socio-environmental disaster and a livable future.

While this sounds scary, Hawke also realized that simple changes in beliefs could hold the key to a more desirable outcome. These minor adjustments in thinking “can drastically change behavior and outcomes,” he wrote.

Hawke’s belief in that ability stemmed in part from his experience helping Visa build. During the late 1960s, he persuaded a disparate group of bank competitors to put aside his deeply possessive instincts and rancor to support a payment network that would become one of the largest organizations in the world.

hawk, who passed away recently At age 93, she was laying the groundwork for a concept that influences dozens of innovations today that require individual organizations to voluntarily participate in an ecosystem to bring their ideas to a wider audience .

“They have created the framework for fintech today. Not just how financial institutions work, but how many parties clearly come together at any given time,” said payments consultant Richard Krone. Hawke’s associate was the senior vice president of risk management at Visa.

Visa and the modern credit card industry have evolved from what a . was chaotic credit card market during the 1960s.

Visa originated as BankAmericard, a California-based service of Bank of America, in the early 1960s. The credit card market at that time was filled with many bank-issued cards that were not always interoperable and suffered from high debt and fraud.

Hawke was a vice president at one of BankAmericard’s licensed banks. At a meeting of banks in Sausalito, California in 1969, Hawke asked a group of other bankers to form a committee. The committee, led by Hawke, will seek to reform the troubled credit card market.

Hoch, who believed that a different approach from the top-down management hierarchy of most organizations would produce better results, helped build a consensus to launch National BankAmericard in 1970. Hawke became the first CEO of the company, which was renamed VisaNet in 1973.

“He was visionary but grounded. People could count on him and long hold distrust,” Krone said. “That’s how Visa was created.”

Visa’s structure was more decentralized and collaborative than most banks at the time, relying on the participation of member banks to share responsibility for issues such as fraud and credit risk. These banks competed with each other, yet they needed Visa Rail and that rail’s best practices to ensure that consumers could pay securely over as wide a geographic area as possible.

Hawke left Visa in 1984 and became a writer among other works. Visa It has grown to include over 15,000 financial institutions in over 200 countries, with over 100 million merchant locations and 3.8 billion cards. Visa controls about 40% of the global credit card market, according to statista, China UnionPay controls about 32% of the global market and MasterCard about 24%.

MasterCard traces its development to the old MasterCharge, which through a series of partnerships built a network, and renamed itself master card In 1979, then later rebranded as MasterCard, UnionPay is China’s national card network except for the capital C and has expanded to other countries, partly to provide “own currency” payments for travelers to China. For.

As the card industry, driven by a large cooperative network, has evolved over the past three decades, Hawke’s fame as one of the architects of that model has been modest. According to Visa’s own description in its tribute, Hawke is “not a household name beyond the world of financial services” (though several executives in financial services, including Mastercard CEO Michael Miback, have noted Hawke’s influence in Visa CEO. Alfred Kelly’s LinkedIn Message dedicated to Hoch).

Hawk himself liked Let’s make a move, according to Fast Company, as a writer on Speaking Circuit, in the 1990s and years after Visa was founded. He would hold a Visa card, and ask who in the audience knew what it was. Every hand will go up. He then asked who owned it and how it was governed. Usually very few people knew, if any. It was a mission accomplished for Hawk, a vast network so common and ubiquitous that the details of its origins and operations were largely unknown to mainstream users.

“Billions of people around the world live and benefit from the OpenCard network,” said Eric Grover, a principal at Intrepid Ventures. “MasterCard and Hawk’s Baby Visa are the only truly global retail payment networks. But the open bankcard model was also adopted by many national systems. Most of the people who use the products they enable have never heard of them.”

Hawk told his storymany to one“A book on the creation of Visa and how the decentralized collaborative philosophy has influenced other organizations including World Weather Watch and Alcoholics Anonymous.

“A ‘Chordic’ outfit was the punch phrase.” Krone said of the book and the term Hawk was coined to describe the harmony of chaos and order. “In its essence all the new fintech innovations that bolt into the old banking system, especially when you connect new parties to the old system or competing parties and networks.”

It is a concept that survives in embedded finance or open banking, or innovation that uses application programming interfaces or other connective rails to allow customers to access financial services from multiple providers. Or it can be found in the tendency to compete with banks and partner with fintechs based on use case or need.

“It was the concept of co-operation, or collaborative competition,” Krone said. “Hawk was practicing that before it was theory.”

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