William Hockey - Building the Operating System for the Dollar and Silicon Valley Heresy - Invest Like the Best with Patrick O'Shaughnessy Recap

Podcast: Invest Like the Best with Patrick O'Shaughnessy

Published: 2026-03-17

Duration: 1 hr 11 min

Guests: William Hockey

Summary

William Hockey discusses his unique approach to building Column, a software company with a bank, emphasizing self-funding, deep industry knowledge, and a global perspective on financial services.

What Happened

William Hockey, founder of Column, discusses his unique approach to building a software company that also owns a bank, focusing on leveraging the regulatory advantages of owning a bank to create innovative financial software. He contrasts his current venture with his previous experience at Plaid, highlighting his decision to self-fund Column to maintain control and prioritize long-term growth over short-term gains. Hockey emphasizes the importance of deep industry knowledge and shares how he reads extensively about the history of banking to find unique insights that can inform his business strategy.

The conversation touches on Hockey's global perspective, including his travels to emerging markets like Kinshasa to understand different financial systems and their challenges. This global focus is driven by the dollar's influence internationally and the need for U.S. financial services in dollarized economies. Hockey argues that emerging markets offer unique opportunities for innovation due to their constraints and different market needs compared to the U.S.

Hockey also critiques the consensus-driven culture of Silicon Valley, suggesting it can lead to a lack of original thinking and risk-taking. He believes that true innovation often requires stepping outside of this environment and seeking diverse perspectives. This approach is reflected in his company's strategic decisions and the way they engage with both domestic and international clients.

The episode explores how AI is perceived in the financial services industry, with Hockey noting that its impact may be slower in fintech compared to other sectors. He sees AI as a tool that can improve efficiency and reduce costs, particularly in large banks, but emphasizes that the real value will accrue to those with existing distribution and cost structures.

Hockey shares his views on the venture capital model, arguing that it may not be suitable for every type of company, particularly those that cannot sustain high growth rates off a large revenue base. He believes that companies can be ambitious and successful without relying heavily on venture capital funding, using Column as an example of a company that has thrived through self-funding and strategic growth.

In terms of company culture, Hockey emphasizes the importance of aligning employee incentives with the company's long-term goals. He describes unique approaches to compensation and employee retention, such as offering liquidity options and focusing on both short-term needs and long-term wealth creation for employees.

Key Insights

• Column, a software company that owns a bank, leverages regulatory advantages to innovate in financial software, a strategic move that contrasts with traditional fintech models which often rely on partnerships with banks.
• Emerging markets like Kinshasa offer unique opportunities for financial innovation due to their distinct market needs and constraints, which differ significantly from those in the U.S.
• AI's impact in fintech is expected to be slower compared to other sectors, with its primary value lying in improving efficiency and reducing costs in large banks.
• The venture capital model may not suit all companies, particularly those unable to sustain high growth rates; Column exemplifies a successful self-funded company focused on strategic growth.