Ed Mclaughlin, Presidente y Chief Technology Officer, asegura que la tecnología va de la mano con el sector financiero, siendo un elemento clave para el éxito
#Mastercard se ha convertido en una empresa lider en desarrollo #Tecnológico #Innovacion #Tendencias #Banca #Bancadigital #Soluciones #Entrevista #Contenido
#Mastercard se ha convertido en una empresa lider en desarrollo #Tecnológico #Innovacion #Tendencias #Banca #Bancadigital #Soluciones #Entrevista #Contenido
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00:00Gracias por estar en El Economista. Estamos con Ed McLaughin, Chief Technology Officer
00:10of MasterCard. Thank you for being here.
00:12So very glad to see you.
00:14Ed, tell us about technology. I mean, I've got just one first question. Are you a company
00:21of technology or you're a financial company? What are you?
00:26So, I always say we're a MasterCard. And what I mean by that is we're not a financial
00:31services company. We don't hold the accounts. We don't lend money to consumers. We're not
00:36a bank in any way. What we do is connect merchants and institutions and banks all around the
00:43world together. So we provide the underlying technology. Technology enables, it animates
00:48everything that we do. So we enable all the merchants and all the institutions that you
00:55may have an account with to connect together. So MasterCard has about three and a half
01:00billion accounts that run on our network, connected to 120 million merchants around
01:05the world, anywhere you'd want to shop. We're in over 210 countries. So you can get on a
01:11plane, land anywhere in the world and know your MasterCard is going to work perfectly.
01:16That's what we make happen.
01:18A long time ago, I used to have my card, my bank card, and you used to go to the market
01:25and they had the book, you know, and you went to pay and you said, if you were a good payer,
01:31you know, that's things like that. Now you go to the market and you push your card there
01:36and in a second, in a few, in less than a second, what does it happen when I put, when
01:42I pay my supermarket? After that, what happened there?
01:46That is what MasterCard's technology does. That's a great question. So first we want
01:50to make sure that you can use that card, whether physically or digitally, anywhere in the world.
01:56So whether you're sticking it into a machine at your market, whether you're tapping a mobile
02:01phone to get onto a transit system, whether you're online doing a payment, what happens
02:06is that number on your card, the 16 digit number on your card, and all of the information
02:11around your transaction, and a number of security features we have, that hits the
02:16MasterCard network. We go to wherever your account is, we give it a fraud score, how
02:21likely it is. You go with the bank? To the bank. So we tell the bank, it's you, where
02:26the merchant is, we have all sorts of artificial intelligence and other things we do to protect
02:30the transaction. The bank decides, yes, you're you, you're good for it. We then send what's
02:36called an authorization back to the merchant in milliseconds. The terminal goes bing,
02:42the merchant knows they're going to get paid, and you get the goods you want.
02:45How long does it take this?
02:47We'll do it in less than 200 milliseconds. A blink of an eye.
02:51Milliseconds.
02:52Milliseconds.
02:53All this information flies, goes, runs. I don't know how to say it. It goes there, you
02:58check that I am who I say I am. You put it there to tell the bank, this is Eduardo, and
03:05it comes back in that way.
03:08And to think about the scale of how we do it. We'll do over 150 billion transactions
03:13this year. When we look at each transaction, we have artificial intelligence, an AI engine
03:20that checks for fraud, that checks for all sorts of things to protect you as a consumer.
03:26It's bigger than the large language models that are out there. It is absolute engineering
03:30marvel. But the key for the network is you as a consumer have zero liability. We stand
03:37behind that authorization in your transaction. The merchant gets a payment guarantee. They
03:42know they're going to get paid. So that's why around the world, there's no card or no
03:48payment brand that's more accepted than MasterCard. And you get all of that just by tapping that
03:53card.
03:54Just push it there. You went public in 2006, I think.
03:59That's correct. Yes.
04:00What has changed from that point to here? Tell us about that.
04:06So it really is an amazing story. So MasterCard started for that very purpose as a bank-owned
04:12cooperative, connecting all the banks together. And it grew and it grew and it grew. But to
04:18continue to finance that growth, continue to operate around the world, in 2006, we had
04:24our IPO. At the time, there was about 3,500 people in MasterCard. I remember our pre-IPO
04:31valuation was around...
04:32You were in that time?
04:33Yes. It was about $4 billion.
04:37In the not quite 20 years since then. We're now over 35,000 people. And our market valuation
04:43is around $450,000, $60,000, I don't even know what a billion dollars.
04:47I check it in the morning and it's nearly $2 billion.
04:52So the power of technology is...
04:54And you've been growing this year 20% of your stock share?
04:5720% year over year. So the power of the technology, if you think about it, is while we've grown
05:02employees about 10x, the value we've created has grown 100 times. And it's because of various
05:08eras and waves. So when we IPO-ed, it really was pretty much that plastic card.
05:13Okay.
05:14Subsequent events like the rise of e-commerce, people being able to buy online. If you think
05:20of all of the innovations like in Amazon, in e-commerce, Mercado Pago, Uber, Netflix,
05:29all of those innovations were really based on MasterCard technology as allowing you to
05:34take advantage of it. And they could just tap into the MasterCard network and build
05:39their services knowing that the payments would be easy and secure for them.
05:43So since the IPO, the shift to first online e-commerce, then the shift to digital as we
05:49started enabling digital devices, it was 10 years ago. We designed the technology that
05:54became the foundation for Apple Pay and Google Pay. That's genuine MasterCard technology that
06:00helped transform device-based commerce. And now what we're seeing with artificial intelligence,
06:06with the services we can add to the transaction. So we've continued to grow MasterCard by being
06:12more and more valuable to consumers, by having more and more commerce shift from cash in
06:17the physical world into online and digital world. And we just continue to see that growing
06:22into the future.
06:23We're going to talk about artificial intelligence in a moment, but I think at that time you
06:29had a few clients. And when I say a few clients, you had banks, right? Now you have banks,
06:36you have Google, you have Amazon, you have Fintechs. I mean, how does it change it? How
06:42the world has changed and your clients, what do they demand?
06:48That since our IPO has been one of the biggest emphases our business has, of what kind of
06:53new value can we create for everyone in the ecosystem? So it started as really the brand
06:59that banks could use for their payment cards. We developed all kinds of capabilities to
07:04help merchants sell more, to help them analyze their business, to be more profitable. So
07:10a lot of work with merchants, with small businesses, sustainable economic development
07:16communities around the world to help commerce flourish. With the rise of Fintechs, all of
07:22them able to tap into our network. We had a program we called StartPath, where we provide
07:27expertise and funding to Fintechs around the world. Tremendous success stories in Latin
07:33America like NewBank. That was a partner of MasterCard from their start. They've been
07:39exclusive with MasterCard from the beginning because we helped them develop their services.
07:43Breakthrough services like Square, where we knew every device would be a commerce device
07:48to receive payments. We helped design their service.
07:51Let's put that NewBank. Why did they grow up like that? Because of technology? Because
07:58they don't have all these things, all things? They were more easy? They were with the last
08:08technology? I mean, why did they grow up so fast with that technology with you?
08:16I think there are two things. They had a remarkable value proposition. They were such a leader
08:22in using mobile as a primary device to reach consumers. So they've done a great job. As
08:29of partners we have across Latin America, I think they were able to hit a market with
08:34a really compelling product market fit that allowed them to scale.
08:39Where a MasterCard comes in is we provide all the capabilities they needed for payments.
08:44So if you think about our network as a platform that people can build business on, that they
08:50can launch all kinds of new innovations, their ability to tap into the MasterCard network
08:55so their card could be used at that 120 million merchants around the world, that they could
09:00focus on building their consumer value proposition and leverage MasterCard to take care of all
09:06the payment side of the equation.
09:08Let me talk about artificial intelligence. I was talking the other day with a transport
09:15company and they take the people from their homes and they take it to the factory. And
09:22I was saying, where's the artificial intelligence? And they were saying, you get into the bus
09:30and you pass your card, right? And this is Eduardo. Okay. He's on the bus, right? But
09:36Ed didn't come. Ed didn't put his card because he was sick and things like that. They send
09:43information to the factory and they say, Ed, who's the expert in painting, is not coming.
09:49So we have to have solutions to that. Tell me, what do you do? Something like that,
09:57what did you do with artificial intelligence in MasterCard?
10:00So we've used artificial intelligence for a long time in many ways. I always like to
10:05say another fine publication Forbes gave us their innovation of the year in 2019 for how
10:11we were using artificial intelligence. So there's three big things I think about. One
10:17of which is how can we use all of the data we have to make the network smarter? So we've
10:24been able to use it to block a tremendous amount of fraud. So in the last few years,
10:28over $35 billion in fraud that could have happened in the network, we stopped through
10:34how we use artificial intelligence. Because I can predict the things you're most likely
10:38to do, the things you're most unlikely to do. I can look at all kinds of signals intelligence
10:44in real time and stop fraud before it happens. We have things like circuit breakers in the
10:49network that before a human agent could even get a page, we can block runaway transactions.
10:55So the ability to have that kind of intelligence built into our network using artificial intelligence
11:01has been transformative for us. The other thing it's done is it allows us to know better
11:06that it really is you and you want to do that transaction. So years ago, you know, simpler
11:11rules-based systems might have blocked things you wanted to do. Now we can enable that you
11:16can do what you want to do because we can be that much more certain it's you. But it doesn't
11:21stop there. We now use artificial intelligence to work with merchants to say, you know, how can
11:26you sell more? How can you look at across your portfolio of businesses and say, where would
11:31it be good for me to open a new store? So being able to use artificial intelligence to predict
11:39things which are happening and look at all the signals to make better decisions
11:43has been massively helpful for the businesses we work with. And then two other quick areas.
11:49We talk a lot about eliminating toil, work that just has to happen. We can automate that now with
11:55artificial intelligence. It allows things to happen faster. It allows things to be more
11:59repeatable and it frees people up to do more value-added and creative work rather than the
12:04same thing over and over again. And that's my final area. And really with a lot of the things
12:10you're seeing with assistants and co-pilots and chat GPT, artificial intelligence after a few
12:17decades has now become intelligent enough that it's almost a coworker for people. So this human
12:23computer interaction of working with incredibly intelligent systems to prototype things, to help
12:29code faster, to model things that you might want to do. I think it's going to unlock all kinds of
12:35new creativity and productivity for people. So incredibly enthusiastic about how it already
12:42has helped our business and how it will transform it going forward. And as a user of MasterCard,
12:48can I feel safe when I use my credit card? So the one... Credit card or debit card, anyone.
12:55Any MasterCard product you have, you've always had a 100% security guarantee from MasterCard.
13:03Zero liability for you using that product. There are almost no other payment systems in the world
13:09that stand behind you as a MasterCard user the way MasterCard does. We can do it because of the
13:16intelligence we have in the network, because of the security we have in there. But if you get ripped
13:21off, you have recourse. We have chargebacks and liability systems. So the brand promise from the
13:27beginning is MasterCard always stands behind you as a consumer. And much of what we do with the
13:34technology is to make sure that we're keeping that promise to you every day. So one, we stand
13:39behind you. Two, we invest incredibly billions of dollars to fight things like fraud. And three,
13:46and maybe most importantly, make sure that network, it works for you every time,
13:52everywhere you want to do it. When you get off a plane in a city you've never been into,
13:56it'll get you into the cab. It'll get you into your hotel room. When you walk into a transit system,
14:03like a transit of London or New York, or even doing it here in Mexico City,
14:08right? Knowing you can tap your MasterCard and that gate is going to open. Our promise is that
14:13will work every time. So everything we do is working from that experience backwards,
14:19standing behind it for you, building the security into the system, making sure it
14:23works flawlessly every time. Being what we call MasterCard good. And where are we going to?
14:30That's a question that I have to ask you. Where are we going to with the technology?
14:34What happens next? Yeah. Yeah. That is my favorite thing. Great. Because, you know,
14:40if you look at how transformative technology has been to date, I actually think we're just
14:45getting started in an entirely new era. So as we move more and more into digital connectivity
14:52in a digital realm, I think the experiences we're going to get will be much more immersive.
14:57I think things will be much faster, will be instant for what we're doing. We just had one I
15:02like, which is one of those signposts to the future, where we're now working with Mercedes
15:07to enable payments as part of the car's operating system. So you can pull up to an EV charging
15:12station, just plug it in and the transaction works. We can go after, imagine your self-driving car.
15:19You get to your destination and you can say, go park yourself. Well, how does it pay for it?
15:24That's where MasterCard comes in. So a big thing you'll see technology enabling in the future
15:29is our network is entirely programmatical. It's real time. And we can embed ourselves in all
15:36kinds of new, what we call contextual commerce experiences. So as digital environments become
15:41ever more immersive, we'll be there. As you automate more of your life, as you shift to
15:46subscription services, as you have different devices and ways that you want to have access
15:52to your underlying account, we can provide that access for you with all of the guarantees, safety
15:57and security we talked about. So you lose none of the capabilities you have today, but there'll be
16:03all kinds of amazing new experiences we can now enable.
16:08What about ESG? I mean, you know, technology and things like that, but
16:12what about ESG? Are you worried about that? Are you taking care of it? Can you tell us
16:17something about that? This is something else that I'm really, really proud of MasterCard's
16:21leadership in that area. So you kind of have to unpack the three letters. I think they kind of get
16:27together. But on the environmental side, we've been doing solar on premise for years now. So I
16:35generate a significant portion of office and others through solar. We've just launched a
16:42new tech hub that happens to be in Pune, India. It is true green certified. It's one of the
16:47greenest buildings in the world to live that. We've taken a pledge to get to carbon neutrality
16:53and we're doing work where I can now trace a transaction down to the exact underlying systems,
16:59what they are and where they run. So I can get a carbon signature for what we're doing
17:04to reduce our own consumption for that, to help hit those goals. So we're doing a tremendous
17:10amount to make sure that we can run as green and as clean as possible. We're also helping
17:15consumers, which is what's sometimes called conscious consumerism. So we have a carbon
17:20calculator that can give you a feel for the footprint of the things that you're buying. We
17:25have what we call our priceless planet coalition. We're enabling consumers and our partners to help
17:30fund reforestation to again, offset the carbon that we see being used there. So we've been
17:36tremendously invested in a leader in how we can be more environmental with what we're doing. So
17:44on the social and governance, we've invested a lot in financial inclusion. We had an objection
17:50set to bring half a billion people who were not served into the formal financial system.
17:55We met that objective. We've now upped it to a billion. We're working with small businesses
18:00around the world, sustainable commerce. We have things like we call community pass,
18:04which is helping farmers in rural communities in India and developing Africa get market prices so
18:11they can manage their crop yields better. So there's all kinds of things that we can do to
18:15help in sustainable economic development, which not only is great for the people we're serving,
18:21it's long-term sustainable economic development is best for everyone. And then on governance,
18:27and I want to end on that, we run critical national infrastructure. We work with regulators
18:32around the world to make sure we're operating at the higher standards for ethics, for availability,
18:38for serving the economies we're in. It's one of the most important parts of the brand promise.
18:43And I'm very proud of what MasterCard is doing in those areas.
18:45We just have one more, you know.
18:47One more.
18:49Finally, what do you do in an office day, a regular day? You wake up, what do you do in your day?
18:55Tell us about that.
18:56So what is a regular day?
18:58So we always have plans.
18:59As excited as you start eating and you say fraud, you know, companies, consumers,
19:06what's in a day for you?
19:07So I balance it two ways. And when you run technology for a company like MasterCard,
19:12it's almost a little bit of split brain.
19:15So the most important thing is the integrity and the quality of the services we run every day.
19:21So I do deep reviews on the technology we're running, the service levels we have,
19:25the quality of what we have out there.
19:28As I said earlier, our brand is a promise. You make sure you're keeping your promises.
19:32So we do that. We look at any incident which occurs, how we can do those systems.
19:37That's important.
19:39The amazing stuff is the other non-mathematical half of what I do
19:43is our future is what we create. It's what we build.
19:46So how we take research and apply it back into our systems.
19:50We're doing a lot of work on quantum capabilities,
19:52what that might mean for the network.
19:54We're inventing things.
19:55This will be a decade from when we invented that tokenization technology
19:59to enable Apple and Google Pay.
20:01What's the next set of inventions that we can bring?
20:04So taking all of the skills, all the data, all the capability that MasterCard has
20:09and saying, how do we invent what's next?
20:11That's a big part of the job too. It is kind of amazing.
20:14That's great.
20:14Ed McLaughlin, thank you for being here in El Economista.
20:17Thank you very much.
20:18Thank you so much for your time.
20:18That's great. Thanks.
20:19Pleasure talking.