1 00:00:10,800 --> 00:00:14,505 Hans Buetow: Friends, hello, and welcome to Never Post, a podcast 2 00:00:14,505 --> 00:00:17,465 for and about the Internet. I am your senior producer Hans 3 00:00:17,465 --> 00:00:21,545 Beutow, and we have an investment worthy show for you 4 00:00:21,545 --> 00:00:24,825 this week. Our host, you are probably noticing, Mike 5 00:00:24,825 --> 00:00:27,800 Ragnetta, he is away again this week, but the mice are 6 00:00:27,800 --> 00:00:32,200 definitely out to play because this episode this episode is all 7 00:00:32,200 --> 00:00:35,400 about squirreling things away. And yes. Okay. 8 00:00:35,400 --> 00:00:38,600 I realize now that I've said it out loud that those are two 9 00:00:38,600 --> 00:00:41,465 different animals, squirrels, mice. Yes. But you have to 10 00:00:41,465 --> 00:00:44,265 realize that right now in the background, in the corner of my 11 00:00:44,265 --> 00:00:49,865 screen, as I read this, our EP Jason is sending me all caps 12 00:00:49,865 --> 00:00:54,585 angry Slack messages about how I need to do a really good job 13 00:00:54,770 --> 00:00:57,090 with this intro and how I better really sell this one as one of 14 00:00:57,090 --> 00:01:01,330 our best ever episodes. And so I'm just I'm I'm really on edge 15 00:01:01,330 --> 00:01:05,490 right now, and I'm distracted. And so two different mammals 16 00:01:05,490 --> 00:01:07,890 that get mixed up and metaphors have now gotten away from me, 17 00:01:07,890 --> 00:01:11,085 and the train has sailed now, and I'm just talking. 18 00:01:11,085 --> 00:01:13,885 Jason says that I need to say this is an incredible episode. 19 00:01:13,885 --> 00:01:17,245 Okay. Yes. It is. But I legally can't tell you it's the best 20 00:01:17,245 --> 00:01:19,885 ever episode anyone has ever made because there are, and I'm 21 00:01:19,885 --> 00:01:23,485 gonna read this from this Slack I just got, quote, ethics and 22 00:01:23,485 --> 00:01:25,805 shit that we need to make people believe we are paying attention 23 00:01:25,805 --> 00:01:25,965 to. 24 00:01:26,540 --> 00:01:30,140 I don't know how to make Jason happy, but I I do know that I 25 00:01:30,140 --> 00:01:34,780 could use some help, and this episode can maybe be that help. 26 00:01:35,100 --> 00:01:39,675 So my 18 year old nephew just started his first job. He's 27 00:01:39,675 --> 00:01:42,075 working in a minor league baseball stadium. That's super 28 00:01:42,075 --> 00:01:45,355 cool, and we're really really proud of him for this. But you 29 00:01:45,355 --> 00:01:47,595 know how first jobs are at that age. 30 00:01:47,595 --> 00:01:50,475 You get that sweet sweet first paycheck, and suddenly in your 31 00:01:50,475 --> 00:01:52,795 hot little hands, you're holding more money than you've ever had, 32 00:01:53,240 --> 00:01:56,520 and you're like, woah. But your parents are like, you gotta 33 00:01:56,520 --> 00:01:59,720 start saving. And so you're like, yeah, okay. I gotta start 34 00:01:59,720 --> 00:02:02,040 saving. You know that, but you don't know how. 35 00:02:02,040 --> 00:02:06,040 And so you start to look around at who you know because you 36 00:02:06,040 --> 00:02:08,735 don't know anything about finance. And you look in your 37 00:02:08,735 --> 00:02:14,015 world and you're like who's good with money? And you see that the 38 00:02:14,015 --> 00:02:18,255 biggest YouTuber in the world, mister beast, is starting to 39 00:02:18,255 --> 00:02:23,160 offer a new financial platform, a fintech. He's starting this 40 00:02:23,160 --> 00:02:27,320 new business where you can invest or you can save money or 41 00:02:27,320 --> 00:02:31,720 whatever it is you can put your money, and mister beast's whole 42 00:02:31,720 --> 00:02:34,845 thing is about having literal stacks of money and, like, 43 00:02:34,845 --> 00:02:38,365 giving them away in increasingly bombastic and clickbaity ways. 44 00:02:38,365 --> 00:02:43,085 So, yeah, maybe mister beast financial makes sense for me. 45 00:02:47,830 --> 00:02:51,590 So I don't think my nephew is mister beastie. I don't think 46 00:02:51,590 --> 00:02:55,590 that's his scene. But I am over here as an adult in his life, 47 00:02:55,670 --> 00:02:59,190 seeing him in this moment of looking at finances for the 48 00:02:59,190 --> 00:03:03,255 first time. And then in parallel, mister Beast launching 49 00:03:03,255 --> 00:03:07,655 this fintech, and it was the perfect time for us to get a 50 00:03:07,655 --> 00:03:11,255 pitch from business and finance journalist Kit Pulliam, who was 51 00:03:11,255 --> 00:03:14,940 willing to take the time to look into Mr. Beast Financial. 52 00:03:15,100 --> 00:03:18,940 Kit is a reporter who really helped me with this piece 53 00:03:18,940 --> 00:03:23,580 understand how if my nephew were to come to me with a grand plan 54 00:03:23,580 --> 00:03:27,740 of opening an account, how to think about and talk with him 55 00:03:27,740 --> 00:03:33,315 about what actually is a fintech and what is a fintech if it's 56 00:03:33,315 --> 00:03:38,195 owned by Beast Industries and what can people, especially 57 00:03:38,195 --> 00:03:43,395 kids, expect when they look to give Jimmy Donaldson all their 58 00:03:43,395 --> 00:03:49,960 money. So after a short break, Kit Pulliam on MrBeast Financial 59 00:03:50,200 --> 00:03:54,520 and what they think that might look like when it launches. 60 00:03:59,815 --> 00:04:03,175 Kit Pulliam: Okay. Get ready because I'm about to jump scare 61 00:04:03,175 --> 00:04:04,535 you with mister beast. 62 00:04:04,615 --> 00:04:07,175 Mr. Beast: I wanted to open a free bank, so I did what any 63 00:04:07,175 --> 00:04:10,855 logical person does. I rented a real bank, grabbed a ton of 64 00:04:10,855 --> 00:04:13,920 money, hired all my friends as tellers, and then bought a 65 00:04:13,920 --> 00:04:16,640 billboard and paid Chandler to flip a sign. And here's what 66 00:04:16,640 --> 00:04:17,280 happened. 67 00:04:20,560 --> 00:04:23,920 Kit Pulliam: In 2019, the mister beast YouTube channel uploaded 68 00:04:23,920 --> 00:04:28,335 this video called, I opened a free bank. Like you might expect 69 00:04:28,335 --> 00:04:31,775 from the title, mister beast, whose real name is Jimmy 70 00:04:31,775 --> 00:04:36,015 Donaldson, didn't offer any of the services banks generally do. 71 00:04:36,095 --> 00:04:40,040 Instead of storing or loaning money, Donaldson and his friends 72 00:04:40,040 --> 00:04:42,600 gave money away to everyone who entered. 73 00:04:42,600 --> 00:04:45,000 Mr. Beast: How are you doing? I gave a six year old a thousand 74 00:04:45,000 --> 00:04:47,080 dollars. Okay. I'll let more in. Alright. 75 00:04:47,080 --> 00:04:47,320 Chandler 76 00:04:47,480 --> 00:04:49,960 Kit Pulliam: Obviously, this wasn't a real business. 77 00:04:50,440 --> 00:05:06,210 Donaldson and his friends were away all the money they started 78 00:05:06,210 --> 00:05:09,250 with, at least $100,000. 79 00:05:09,410 --> 00:05:11,730 Mr. Beast: We broke the bank. That bank said I don't have any 80 00:05:11,730 --> 00:05:16,850 money. Don't cry. Lost money. We're done. 81 00:05:21,765 --> 00:05:26,565 Kit Pulliam: Six years later, on 12/03/2025, Jimmy Donaldson 82 00:05:26,565 --> 00:05:29,685 formally announced he will actually be launching a 83 00:05:29,685 --> 00:05:34,245 financial services platform called MrBeast Financial. Other 84 00:05:33,960 --> 00:05:38,280 influencers and celebrities, including Charlie D'Amelio, ASAP 85 00:05:38,280 --> 00:05:42,600 Rocky, and Kim Kardashian, have invested in or partnered with 86 00:05:42,600 --> 00:05:45,960 companies in this heavily regulated industry. But he'll be 87 00:05:45,960 --> 00:05:51,475 the first to actually own one. A lot has changed in the six years 88 00:05:51,475 --> 00:05:56,035 between his 2019 video and now. In that time, Donaldson 89 00:05:56,035 --> 00:05:59,555 partnered with or started several new business ventures, 90 00:05:59,635 --> 00:06:03,080 including ghost kitchens, chocolate bars, and Lunchables, 91 00:06:03,080 --> 00:06:06,840 and grew Beast Industries to be worth billions of dollars. 92 00:06:07,720 --> 00:06:10,440 But how did he get to this point? What does it mean for 93 00:06:10,440 --> 00:06:14,040 Jimmy mister Beast to own a bank? Will his content have to 94 00:06:14,040 --> 00:06:16,995 change to avoid regulatory trouble? And is there anything 95 00:06:16,995 --> 00:06:19,395 in Donaldson's background that would cement him as a 96 00:06:19,395 --> 00:06:24,355 trustworthy financial services owner? To find out, we have to 97 00:06:24,355 --> 00:06:25,715 go back to 2017. 98 00:06:26,195 --> 00:06:29,395 That's when 19 year old Jimmy Donaldson got his very first 99 00:06:29,395 --> 00:06:32,760 brand deal from a collectibles app called Quidd, which later 100 00:06:32,760 --> 00:06:37,720 pivoted to NFTs before shutting down in 2025. But in 2017, 101 00:06:37,720 --> 00:06:40,520 instead of keeping the $10,000 Quidd gave him for the 102 00:06:40,520 --> 00:06:43,880 sponsorship, he used it to make his very first in a long line of 103 00:06:43,880 --> 00:06:47,645 philanthropy videos. The video titled giving a random homeless 104 00:06:47,645 --> 00:06:51,485 man $10,000 is a lot less polished than his current work. 105 00:06:51,885 --> 00:06:55,165 Donaldson is deeply awkward through the whole process, over 106 00:06:55,165 --> 00:06:57,805 explaining the concept of a sponsor and struggling to say 107 00:06:57,805 --> 00:07:01,870 that, yes, he is actually giving $10,000 to a man who thinks he's 108 00:07:01,870 --> 00:07:02,750 being pranked on camera. 109 00:07:02,750 --> 00:07:06,110 Mr. Beast: And just so we are all on the same page, this is 110 00:07:06,110 --> 00:07:09,230 not my money. This is a new weekly series where I'm getting 111 00:07:09,230 --> 00:07:12,910 companies to sponsor my videos and I'm giving 100% of what they 112 00:07:12,910 --> 00:07:16,515 pay me away to random people. For example, this video is 113 00:07:16,515 --> 00:07:19,235 sponsored by Quidd. I'm doing a brand deal for Quidd and they 114 00:07:19,235 --> 00:07:23,075 paid me $10,000 and I'm taking that $10,000 and giving it to 115 00:07:23,075 --> 00:07:26,035 this homeless man. So before I show me giving the homeless man 116 00:07:26,035 --> 00:07:29,715 $10,000, I need to mention Quidd because they were so generous 117 00:07:29,715 --> 00:07:32,570 enough to sponsor this video and allow this to happen. 118 00:07:32,570 --> 00:07:33,690 Quidd is a new app. 119 00:07:33,690 --> 00:07:36,330 Kit Pulliam: But this video set trends that Donaldson continues 120 00:07:36,330 --> 00:07:39,050 throughout his YouTube career. Although the video is 121 00:07:39,050 --> 00:07:41,850 significantly more subdued than what we've come to expect from 122 00:07:41,850 --> 00:07:45,725 him, there's still some of his trademark hyperbole. For 123 00:07:45,725 --> 00:07:49,725 example, he shows text calling Quidd the best app ever as part 124 00:07:49,725 --> 00:07:54,285 of his ad read. And up to today, Donaldson still says he invests 125 00:07:54,285 --> 00:07:57,700 most of the money he makes back into his YouTube channel. That's 126 00:07:57,700 --> 00:08:00,980 how he's able to make so many big splashy videos, giving away 127 00:08:00,980 --> 00:08:02,580 hundreds of thousands of dollars. 128 00:08:03,140 --> 00:08:06,340 Recently, he even said he had to borrow money from his mom to pay 129 00:08:06,340 --> 00:08:09,140 for his upcoming wedding because he keeps very little of what he 130 00:08:09,140 --> 00:08:09,380 makes. 131 00:08:09,380 --> 00:08:11,505 Mr. Beast: It's funny talking about my personal finances cause 132 00:08:11,505 --> 00:08:14,145 no one ever believes anything I say. So, I mean, because they're 133 00:08:14,145 --> 00:08:16,625 like, you're a billionaire. I'm like, net worth. I don't I have 134 00:08:16,625 --> 00:08:17,905 negative money right now. I'm borrowing money. 135 00:08:17,905 --> 00:08:19,985 That's how little money I have. Technically, everyone watching 136 00:08:19,985 --> 00:08:21,425 this video has more money than me. 137 00:08:21,425 --> 00:08:24,385 Kit Pulliam: So while this 2017 video is his first brand deal, 138 00:08:24,870 --> 00:08:27,750 Donaldson's first major brush with financial services comes 139 00:08:27,750 --> 00:08:32,070 later in April 2021. The mister beast channel had truly made it 140 00:08:32,070 --> 00:08:35,350 by then. The channel was just about to pass 60,000,000 141 00:08:35,350 --> 00:08:39,295 subscribers. That's when he partnered with the financial 142 00:08:39,295 --> 00:08:44,335 technology company Current for a giveaway. 100,000 fans who 143 00:08:44,335 --> 00:08:46,655 signed up for the fintech platform would be awarded 144 00:08:46,655 --> 00:08:48,415 $100,000. 145 00:08:48,415 --> 00:08:52,350 That's a whole $1 per sign up. Not exactly worth divulging your 146 00:08:52,350 --> 00:08:56,430 sensitive financial info. However, months later, if fans 147 00:08:56,430 --> 00:09:00,270 connected their direct deposit to Current, they could also get 148 00:09:00,270 --> 00:09:08,145 an exclusive MrBeast hoodie for the trouble. You might be 149 00:09:08,145 --> 00:09:11,905 thinking, so what? YouTubers get sponsorships all the time. 150 00:09:12,145 --> 00:09:14,785 But this wasn't just a sponsorship relationship. 151 00:09:14,945 --> 00:09:19,025 Donaldson actually invested in Current, which he didn't mention 152 00:09:19,320 --> 00:09:22,920 sponsorship read. What he did say in that read is that Current 153 00:09:22,920 --> 00:09:26,280 is better than the bank you're with. Both of these things can 154 00:09:26,280 --> 00:09:28,040 get him into regulatory trouble. 155 00:09:28,120 --> 00:09:30,760 Alexandria Degree: He has to disclose if he's his 156 00:09:30,760 --> 00:09:33,720 relationship to really any financial product. 157 00:09:34,145 --> 00:09:37,425 Kit Pulliam: That's Alexandria Degree, CEO and virtual chief 158 00:09:37,425 --> 00:09:40,945 compliance officer of Ask Degree. I spoke with her about 159 00:09:40,945 --> 00:09:43,665 the ins and outs of the regulations Donaldson will have 160 00:09:43,665 --> 00:09:46,785 to deal with as the new owner of a financial services platform. 161 00:09:47,200 --> 00:09:51,440 Alexandria Degree: The biggest, area of regulatory concern that 162 00:09:51,440 --> 00:09:53,520 he's going to have is UDAP. 163 00:09:53,600 --> 00:09:56,720 Kit Pulliam: UDAP stands for unfair, deceptive, or abusive 164 00:09:56,720 --> 00:09:58,000 acts or practices. 165 00:09:58,480 --> 00:10:00,960 Alexandria Degree: We we kinda, in the industry, say it's really 166 00:10:00,960 --> 00:10:05,545 the marketing regulation. So it's it's a a regulation that 167 00:10:05,545 --> 00:10:09,865 ensures that whether it's through print or through talk or 168 00:10:09,865 --> 00:10:13,545 through whatever medium that you're communicating to the 169 00:10:13,545 --> 00:10:16,985 public, that you're communicating true and factual 170 00:10:17,570 --> 00:10:22,370 information about the product that's being offered. That's a a 171 00:10:22,370 --> 00:10:28,930 huge one, because it's it's very easy to violate that that 172 00:10:28,930 --> 00:10:33,305 regulation. As an example, you know, to say we have the 173 00:10:33,305 --> 00:10:38,265 greatest, checking account available, that can be a 174 00:10:38,265 --> 00:10:41,545 significant issue because one of the things that UDAP says is 175 00:10:41,545 --> 00:10:44,760 that you have to be able to prove whatever you say. So how 176 00:10:44,760 --> 00:10:48,760 do you prove that you have the greatest checking account using 177 00:10:48,760 --> 00:10:52,920 extreme light language like greatest or lowest or fastest or 178 00:10:52,920 --> 00:10:56,760 best or, you know, any of those types of of things that we so 179 00:10:57,075 --> 00:11:00,195 easily say, especially in the influencer space you're used to 180 00:11:00,195 --> 00:11:03,555 using, you really have to pull that type of language back and 181 00:11:03,555 --> 00:11:07,635 be much more tactful in what you say as it relates to financial 182 00:11:07,635 --> 00:11:08,275 products. 183 00:11:08,595 --> 00:11:11,890 Kit Pulliam: This is especially an issue for Donaldson. So many 184 00:11:11,890 --> 00:11:15,250 of his videos rely on that type of over the top language to pull 185 00:11:15,250 --> 00:11:18,290 his fans in and keep their attention. It served him well 186 00:11:18,290 --> 00:11:20,690 since his very first philanthropy video all those 187 00:11:20,690 --> 00:11:21,410 years ago. 188 00:11:21,490 --> 00:11:24,375 Mr. Beast: And just so we are all on the same page, this is 189 00:11:24,375 --> 00:11:25,255 not my money. 190 00:11:25,255 --> 00:11:27,255 Kit Pulliam: Time will tell whether Donaldson will be able 191 00:11:27,255 --> 00:11:30,855 to switch to a more regulatory friendly tone and if his fans 192 00:11:30,855 --> 00:11:33,895 will tolerate the change. But he can't just ignore these 193 00:11:33,895 --> 00:11:37,095 regulations, especially since his huge following leans young. 194 00:11:37,570 --> 00:11:39,650 Alexandria Degree: You know, you can't talk about it in the same 195 00:11:39,650 --> 00:11:43,250 way you you'll talk about, you know, selling the next best 196 00:11:43,250 --> 00:11:48,130 bubble gum. Like, you there's there's a lot of scrutiny. And, 197 00:11:48,130 --> 00:11:52,455 obviously, because of his his the size of his brand, his 198 00:11:52,455 --> 00:11:55,335 personal brand and and just who he is, there's gonna be 199 00:11:55,335 --> 00:11:59,335 watchdogs. So, you know, it's it's in his best interest to, 200 00:12:00,055 --> 00:12:00,775 reel it in. 201 00:12:10,130 --> 00:12:12,610 Kit Pulliam: His next big fintech partnership would take 202 00:12:12,610 --> 00:12:16,210 place in 2024 when he partnered with MoneyLion as part of a 203 00:12:16,210 --> 00:12:20,050 giveaway during Beast Games. MoneyLion is a gamified fintech. 204 00:12:20,545 --> 00:12:23,345 In addition to the regular services you'd expect from a 205 00:12:23,345 --> 00:12:27,585 financial technology company, it advertises Moneylion Games, 206 00:12:27,585 --> 00:12:30,545 which offers cash rewards in exchange for playing partnered 207 00:12:30,545 --> 00:12:36,020 games. Beast Games, of course, is mister beast TV show based on 208 00:12:36,020 --> 00:12:40,100 his YouTube videos inspired by the TV show Squid Game. The show 209 00:12:40,100 --> 00:12:43,780 made tens of millions of dollars, not enough to earn back 210 00:12:43,780 --> 00:12:47,535 the 100,000,000 that Donaldson invested in it, but enough to 211 00:12:47,535 --> 00:12:50,415 make it one of the biggest shows on Amazon Prime Video. 212 00:12:50,415 --> 00:12:54,495 Mr. Beast: I am sitting on $5,000,000 in cash and competing 213 00:12:54,495 --> 00:12:56,655 for it. Open the gates. 214 00:12:57,055 --> 00:12:59,535 Kit Pulliam: In a promotional video for the show, Donaldson 215 00:12:59,535 --> 00:12:59,775 says 216 00:12:59,935 --> 00:13:02,420 Mr. Beast: I teamed up with Moneyline, the easiest place to 217 00:13:02,420 --> 00:13:05,220 borrow, earn, and win money to give the 1,000 losing 218 00:13:05,220 --> 00:13:06,980 contestants $2,000 each. 219 00:13:06,980 --> 00:13:09,620 Kit Pulliam: In order to sign up for the giveaway, you had to 220 00:13:09,620 --> 00:13:11,220 make a free account with MoneyLion. 221 00:13:11,220 --> 00:13:13,140 Mr. Beast: To enter, just scan this QR code or visit 222 00:13:13,140 --> 00:13:15,700 moneyline.com/pskins. And finally 223 00:13:15,860 --> 00:13:17,845 Kit Pulliam: And that's pretty much all of his current 224 00:13:17,845 --> 00:13:20,645 experience with financial services platforms outside of 225 00:13:20,645 --> 00:13:24,565 occasional sponsors. Brand deals, sponsorships, and content 226 00:13:24,565 --> 00:13:29,525 co productions with existing companies. If you're thinking, 227 00:13:29,525 --> 00:13:32,170 that's not a lot of experience for a soon to be financial 228 00:13:32,170 --> 00:13:36,410 services leader, I agree. As recently as 2024, he said he 229 00:13:36,410 --> 00:13:39,850 didn't even have access to Beast Industries' master bank account. 230 00:13:39,850 --> 00:13:43,690 That's controlled by Sue Perisher, his mom, former prison 231 00:13:43,690 --> 00:13:47,145 warden, and current Beast Industries chief compliance 232 00:13:47,145 --> 00:13:47,865 officer. 233 00:13:48,585 --> 00:13:51,705 If he doesn't have a strong background in finances, you'd 234 00:13:51,705 --> 00:13:54,105 expect he'd at least have a stellar track record as a 235 00:13:54,105 --> 00:13:59,145 businessman. Right? Well, in 2020, Donaldson partnered with a 236 00:13:59,145 --> 00:14:02,000 company called Virtual Dining Concepts to launch Mr. Beast 237 00:14:02,000 --> 00:14:05,520 Burger, a ghost kitchen enterprise. Ghost kitchens are 238 00:14:05,520 --> 00:14:08,400 establishments that make food out of other companies' 239 00:14:08,400 --> 00:14:10,800 kitchens, primarily for delivery apps. 240 00:14:11,200 --> 00:14:14,560 Complaints quickly came in about gross food and undercooked 241 00:14:14,560 --> 00:14:17,845 meats. This resulted in Donaldson cutting ties with his 242 00:14:17,845 --> 00:14:21,685 business partner. In 2023, he even launched a lawsuit against 243 00:14:21,685 --> 00:14:24,885 them. Virtual Dining Concepts launched a countersuit, saying 244 00:14:24,885 --> 00:14:27,925 that Donaldson failed to fulfill contractual obligations by 245 00:14:27,925 --> 00:14:31,830 speaking poorly about the brand on social media. Litigation is 246 00:14:31,830 --> 00:14:32,550 ongoing. 247 00:14:32,950 --> 00:14:37,030 And then there was Lunchly, Beast's 2024 Lunchables 248 00:14:37,030 --> 00:14:40,310 competitor. It received complaints about alleged moldy 249 00:14:40,310 --> 00:14:43,910 cheese. Consumer Reports also published an article showing 250 00:14:43,910 --> 00:14:47,845 that despite claims otherwise, the Lunchleys they tested 251 00:14:47,845 --> 00:14:51,045 weren't healthier than Lunchables. Lunchly challenged 252 00:14:51,045 --> 00:14:54,405 Consumer Reports' test methodology and findings and 253 00:14:54,405 --> 00:14:57,685 said the company did not, quote unquote, believe that the 254 00:14:57,685 --> 00:15:01,750 testing performed on the Lunchly kits provides reliable data. The 255 00:15:01,750 --> 00:15:05,110 company also noted that its products are regularly tested 256 00:15:05,110 --> 00:15:08,950 for heavy metals, which they cited as naturally occurring and 257 00:15:08,950 --> 00:15:10,870 are often in a variety of foods. 258 00:15:15,385 --> 00:15:19,145 Not all of Donaldson's business moves are doomed to fail. In 259 00:15:19,145 --> 00:15:22,585 2022, he launched a chocolate bar brand called Feastables 260 00:15:22,585 --> 00:15:27,225 that, according to docs sent to investors, makes him more money 261 00:15:27,225 --> 00:15:28,450 than his YouTube videos. 262 00:15:28,450 --> 00:15:30,610 Mr. Beast: You've heard me say that Feastful's is the best 263 00:15:30,610 --> 00:15:32,290 tasting chocolate in the world. 264 00:15:32,930 --> 00:15:35,810 Kit Pulliam: So all of this, along with his track record of 265 00:15:35,810 --> 00:15:39,730 pumping money into projects he later abandons, tells us that 266 00:15:39,730 --> 00:15:42,705 Donald son might be a better marketer than he is a 267 00:15:42,705 --> 00:15:46,545 businessman. And if he's not a financial expert and he's not a 268 00:15:46,545 --> 00:15:49,745 businessman, then why is he starting a financial services 269 00:15:49,745 --> 00:15:54,945 company? The honest answer is that it fits well into his 270 00:15:54,945 --> 00:15:58,760 existing brand. Donaldson is known for having a lot of money 271 00:15:58,760 --> 00:16:02,520 precisely because he reinvests it all back into his content, 272 00:16:02,680 --> 00:16:07,080 which is often about money. His very visible spending and lavish 273 00:16:07,080 --> 00:16:10,200 giveaways give the impression that he's loaded even if he 274 00:16:10,200 --> 00:16:11,720 doesn't have a lot of cash on hand. 275 00:16:12,515 --> 00:16:15,155 And the young people who watch him see his success as 276 00:16:15,155 --> 00:16:19,075 aspirational. If they do what he does, maybe they could have the 277 00:16:19,075 --> 00:16:24,915 life he has. Financial services could give him a steadier 278 00:16:24,915 --> 00:16:28,890 paycheck than the famously fickle YouTube algorithm as long 279 00:16:28,890 --> 00:16:32,250 as he's able to avoid the dangers of messing up in a 280 00:16:32,250 --> 00:16:37,050 highly regulated industry. In 2025, Elite Pitch Deck said 281 00:16:37,050 --> 00:16:40,650 Beast Industries plan to mitigate some of those risks by 282 00:16:40,650 --> 00:16:45,605 white labeling a preexisting fintech. In February 2026, 283 00:16:45,925 --> 00:16:50,005 MrBeast Financial announced it had done just that, acquiring a 284 00:16:50,005 --> 00:16:52,725 fintech platform called Step. 285 00:16:53,045 --> 00:16:56,485 Because Step is already operating, we can use it to 286 00:16:56,485 --> 00:16:59,670 guess at what Donaldson might offer once mister beast 287 00:16:59,670 --> 00:17:03,830 financial is up and running. He could still change what services 288 00:17:03,830 --> 00:17:07,270 the app offers, and the leaked pitch deck hints that he might 289 00:17:07,270 --> 00:17:10,790 expand into other financial areas, including loans and 290 00:17:10,790 --> 00:17:15,275 insurance. But this at least gives us a good place to start. 291 00:17:19,035 --> 00:17:22,235 STEP's front page declares itself banking for the next 292 00:17:22,235 --> 00:17:26,280 generation. It offers products designed for children and young 293 00:17:26,280 --> 00:17:29,160 adults just starting to manage their own finances. 294 00:17:29,720 --> 00:17:32,920 That branding meshes well with Donaldson's audience, which is 295 00:17:32,920 --> 00:17:37,395 largely made up of kids, teens, and college students. If 296 00:17:37,395 --> 00:17:40,595 children continue to be allowed to use the app, Donaldson will 297 00:17:40,595 --> 00:17:43,635 have to contend with even stricter regulations. Here's 298 00:17:43,635 --> 00:17:45,395 Alexandria Degree again. 299 00:17:45,395 --> 00:17:47,635 Alexandria Degree: Some of the regulations that apply 300 00:17:47,635 --> 00:17:51,715 generally, they get enhanced when you're dealing with a 301 00:17:51,715 --> 00:17:56,260 minor. There's an assumption of a certain level of knowledge or 302 00:17:56,260 --> 00:17:59,860 intelligence that the average consumer would have about any 303 00:17:59,860 --> 00:18:03,460 particular product. And so when you're dealing with a a a child 304 00:18:03,460 --> 00:18:08,255 audience, that assumption is even lower, meaning there's an 305 00:18:08,255 --> 00:18:13,055 expectation that they know even less about how a checking 306 00:18:13,055 --> 00:18:16,415 account works or how a savings account works. And so you have 307 00:18:16,415 --> 00:18:20,740 to be even more cautious about your disclosures and your 308 00:18:20,740 --> 00:18:24,340 language and what you're saying and making sure that you're 309 00:18:24,340 --> 00:18:28,420 giving enough information so that they can make earnest good 310 00:18:28,420 --> 00:18:32,820 decisions about their, financial product shopping experience. 311 00:18:33,565 --> 00:18:35,965 Kit Pulliam: Donaldson seems to be hoping to get ahead of 312 00:18:35,965 --> 00:18:39,565 regulatory requirements by making financial literacy videos 313 00:18:39,565 --> 00:18:41,325 as part of his YouTube content. 314 00:18:41,565 --> 00:18:44,605 Mr. Beast: I think it would be fun to start weaving in more, 315 00:18:45,565 --> 00:18:47,640 you know, tones in our videos where we educate people. 316 00:18:47,640 --> 00:18:50,120 Probably also on a separate YouTube channel. It's not all 317 00:18:50,120 --> 00:18:52,520 that would fit on the Mr. Beech channel, but educating people on 318 00:18:52,520 --> 00:18:55,160 investing and showing them what is a Roth IRA. And just like 319 00:18:55,160 --> 00:18:57,560 taking my younger audience to a similar experience I had with 320 00:18:57,560 --> 00:18:58,440 Woody back in the day. 321 00:18:58,440 --> 00:19:00,440 You probably could find that video where you're talking about 322 00:19:00,440 --> 00:19:03,455 investing. And so I'd love to make financial content on end. 323 00:19:03,455 --> 00:19:06,575 It just feels like a a nice fit for us because we do so much 324 00:19:06,575 --> 00:19:07,295 with money. 325 00:19:07,535 --> 00:19:10,415 Kit Pulliam: Offering financial literacy education is one way 326 00:19:10,415 --> 00:19:13,695 that banks show regulators their users are well informed. 327 00:19:14,250 --> 00:19:18,090 Alexandria Degree: Providing financial literacy helps that 328 00:19:18,090 --> 00:19:22,970 particular bank or fintech make the argument that, yes, we are 329 00:19:22,970 --> 00:19:27,955 doing as much as we can to make sure that the public and our 330 00:19:27,955 --> 00:19:33,075 buyers have a general baseline of knowledge about what they're 331 00:19:33,155 --> 00:19:34,755 possibly getting into. 332 00:19:40,115 --> 00:19:43,770 Kit Pulliam: This isn't just important from perspective. 333 00:19:44,090 --> 00:19:48,490 These regulations exist because kids and young adults really do 334 00:19:48,490 --> 00:19:51,930 have limited information about how to manage their finances. 335 00:19:52,410 --> 00:19:55,850 Even fintechs that meet regulatory standards can lead 336 00:19:55,850 --> 00:20:00,045 young people into dark patterns. And STEP appears to be waving a 337 00:20:00,045 --> 00:20:04,445 huge red flag. It offers cash advances through a program 338 00:20:04,445 --> 00:20:06,045 called STEP Early Pay. 339 00:20:06,365 --> 00:20:10,045 If you're not familiar, cash advances are short term loans 340 00:20:10,045 --> 00:20:13,490 that let you borrow money from your paycheck in advance with 341 00:20:13,490 --> 00:20:16,530 the intent that you'll pay the loan back in full whenever your 342 00:20:16,530 --> 00:20:20,130 next paycheck hits. Cash advances are less predatory than 343 00:20:20,130 --> 00:20:24,210 their big brother, payday loans. Those come with incredibly high 344 00:20:24,210 --> 00:20:27,250 interest rates that will quickly dig you into a hole you can't 345 00:20:27,250 --> 00:20:31,425 get out of. STEP claims that its cash advances don't come with an 346 00:20:31,425 --> 00:20:35,825 interest rate or late fees. But like many other cash advances, 347 00:20:36,065 --> 00:20:38,785 the app charges a fee to get the money instantly. 348 00:20:39,105 --> 00:20:42,145 If you're taking out a cash advance, you probably can't 349 00:20:42,145 --> 00:20:46,390 afford to wait a few days. Even without high interest rates, 350 00:20:46,390 --> 00:20:49,430 cash advances can get young adults into debt cycles they 351 00:20:49,430 --> 00:20:52,390 might struggle to get out of, finding themselves borrowing 352 00:20:52,390 --> 00:20:56,550 from their paycheck every pay cycle. It's possible that 353 00:20:56,550 --> 00:21:00,125 Donaldson will shut down early pay when he's done taking over, 354 00:21:00,605 --> 00:21:05,165 but I think it's unlikely. Both Current and Moneylion, two 355 00:21:05,165 --> 00:21:08,525 fintechs he had major partnerships with, offer cash 356 00:21:08,525 --> 00:21:12,950 advances. Current even promotes its cash advances on the very 357 00:21:12,950 --> 00:21:16,870 top of the MrBeast promo page from their 2021 partnership. 358 00:21:17,270 --> 00:21:23,190 Importantly, users under 18 can't use STEP Early Pay, but 359 00:21:23,190 --> 00:21:26,765 with the permission of their guardian, they can open a STEP 360 00:21:26,765 --> 00:21:30,285 investing account. STEP currently offers investing in 361 00:21:30,285 --> 00:21:34,525 stocks and ETFs, but there's a good chance it will expand to 362 00:21:34,525 --> 00:21:38,285 offer Bitcoin and other crypto investments once Donaldson is in 363 00:21:38,285 --> 00:21:43,050 charge. Earlier in 2026, the largest Ethereum treasury, 364 00:21:43,130 --> 00:21:48,730 Bitmine Immersion Technologies, invested $200,000,000 in Beast 365 00:21:48,730 --> 00:21:53,135 Industries. Bitmine's cofounder and chairman, Tom Lee, called 366 00:21:53,135 --> 00:21:56,335 out MrBeast Financial specifically as a way to get 367 00:21:56,335 --> 00:22:00,575 younger people into cryptocurrency. The CEO of Beast 368 00:22:00,575 --> 00:22:04,575 Industries, Jeff Hausenbold, also said he looked forward to 369 00:22:04,575 --> 00:22:08,710 finding ways to collaborate and incorporate crypto into Mr. 370 00:22:08,710 --> 00:22:13,590 Beast Financial. Between cash advances and risky investing 371 00:22:13,590 --> 00:22:16,790 strategies, you might be wondering, is there any reason 372 00:22:16,790 --> 00:22:20,470 to go with Mr. Beast Financial? There are ways to start young 373 00:22:20,470 --> 00:22:24,145 people on investing that are relatively low risk, stable, and 374 00:22:24,145 --> 00:22:27,265 good for their financial education. Crypto isn't one of 375 00:22:27,265 --> 00:22:27,745 them. 376 00:22:27,745 --> 00:22:31,345 Even if you only invest in so called stable coins, you're 377 00:22:31,345 --> 00:22:34,945 entering into a high risk, volatile market that makes even 378 00:22:34,945 --> 00:22:38,920 fully grown adults go broke. Kids are even more likely to 379 00:22:38,920 --> 00:22:42,440 make poor financial decisions around crypto, especially if 380 00:22:42,440 --> 00:22:45,720 Donaldson promotes it as a great idea. I'm not the only one who 381 00:22:45,720 --> 00:22:49,320 thinks so. Senator Elizabeth Warren recently sent a letter to 382 00:22:49,320 --> 00:22:52,805 Donaldson with concerns about the possibility of STEP offering 383 00:22:52,805 --> 00:22:56,965 crypto trading among other things. And while investing in 384 00:22:56,965 --> 00:22:59,765 individual stocks might be worthwhile as a learning 385 00:22:59,765 --> 00:23:02,805 opportunity under the supervision of a trusted adult, 386 00:23:03,045 --> 00:23:05,525 kids don't exactly make the best day traders. 387 00:23:08,080 --> 00:23:12,000 STEP's other financial offerings appear less sinister. It offers 388 00:23:12,000 --> 00:23:15,520 a secured credit card, a type of credit card that only lets users 389 00:23:15,520 --> 00:23:18,880 borrow up to the money they have in a connected spending account. 390 00:23:19,360 --> 00:23:23,125 In practice, it functions as a riskier debit card that lets you 391 00:23:23,125 --> 00:23:26,725 build up your credit score. Just keep in mind that you still need 392 00:23:26,725 --> 00:23:29,205 to pay it off each month or you'll have to pay interest. 393 00:23:29,765 --> 00:23:33,300 STEP also has a somewhat confusing membership system that 394 00:23:33,300 --> 00:23:36,500 comes with credit card rewards and 3% back on the fintech 395 00:23:36,500 --> 00:23:37,620 spending account. 396 00:23:40,260 --> 00:23:44,180 They aren't bad perks, but they also aren't unique. If you're an 397 00:23:44,180 --> 00:23:47,745 adult, you can find all of them at other fintechs, online banks, 398 00:23:47,745 --> 00:23:54,145 or credit unions. One last thing to note is that STEP is not a 399 00:23:54,145 --> 00:23:58,065 bank. Banks are chartered with the state or federal government, 400 00:23:58,310 --> 00:24:01,510 and they can offer FDIC insurance that protects your 401 00:24:01,510 --> 00:24:06,710 money in case your bank fails. STEP can't offer FDIC insurance 402 00:24:06,710 --> 00:24:07,430 directly. 403 00:24:07,750 --> 00:24:11,350 It has to partner with another bank that actually stores your 404 00:24:11,350 --> 00:24:15,825 money. But FDIC insurance isn't as helpful as you think it is 405 00:24:15,825 --> 00:24:17,425 for fintech specifically. 406 00:24:17,825 --> 00:24:21,185 Alexandria Degree: So one thing to note, FDIC insurance is an 407 00:24:21,185 --> 00:24:26,160 insurance that kicks in if a bank fails. So I specifically 408 00:24:26,160 --> 00:24:30,720 said if a bank fails because FDIC insurance is really only 409 00:24:30,720 --> 00:24:36,320 for banks. It's not for fintechs. The fintech can have 410 00:24:36,400 --> 00:24:40,615 bank accounts with ABC Bank that they're offering through their 411 00:24:40,615 --> 00:24:46,135 platform. And if ABC Bank fails, then the insurance kicks in. 412 00:24:46,135 --> 00:24:50,455 But if the FinTech fails, FDIC insurance does not kick in. 413 00:24:51,100 --> 00:24:54,780 Kit Pulliam: These days, banks very rarely fail. One of the 414 00:24:54,780 --> 00:24:58,060 reasons Silicon Valley Bank was such big news was because its 415 00:24:58,060 --> 00:25:01,980 failure was so unusual. But many fintechs are startups, and 416 00:25:01,980 --> 00:25:06,355 startups fail all the time. What's more, fintechs generally 417 00:25:06,355 --> 00:25:09,155 have to partner with third parties to communicate with the 418 00:25:09,155 --> 00:25:15,715 banks, and those can fail too. In fact, this happened in 2024 419 00:25:16,035 --> 00:25:19,880 with Evolve Bank, the bank that STEP is currently partnering 420 00:25:19,880 --> 00:25:21,720 with for FDIC insurance. 421 00:25:22,520 --> 00:25:26,440 Fintech customers across many different platforms lost access 422 00:25:26,440 --> 00:25:29,560 to their funds when another company Evolve worked with, 423 00:25:29,640 --> 00:25:31,800 Synapse, filed for bankruptcy. 424 00:25:32,215 --> 00:25:35,175 Alexandria Degree: Synapse was basically, a middleman that 425 00:25:35,175 --> 00:25:39,175 would connect to the fintechs on one side. Amongst this 426 00:25:39,175 --> 00:25:43,415 relationship, there's what is called a ledger. As you have a a 427 00:25:43,415 --> 00:25:46,055 ledger for your own personal account, it's an account of 428 00:25:46,055 --> 00:25:50,820 where the funds are at. And so the debacle was no one actually 429 00:25:50,820 --> 00:25:56,020 had accurate records of that ledger. And so when the accuracy 430 00:25:56,020 --> 00:25:59,700 of the records came into question and you have multiple 431 00:25:59,700 --> 00:26:03,375 fintechs and multiple banks in this very complicated 432 00:26:03,375 --> 00:26:06,655 relationship, there was a question about whose funds 433 00:26:06,655 --> 00:26:10,335 actually belong to who, and then there was a shortfall. 434 00:26:12,255 --> 00:26:14,895 Kit Pulliam: The fintech customers involved didn't get 435 00:26:14,895 --> 00:26:19,030 access to their money for months or even years. Years. Some still 436 00:26:19,030 --> 00:26:24,630 don't have access to their money today. Even in best case 437 00:26:24,630 --> 00:26:28,310 scenarios, fintechs come with risks that normal banks just 438 00:26:28,310 --> 00:26:32,235 don't have. Personally wouldn't keep my main bank account in the 439 00:26:32,235 --> 00:26:35,515 fintech, but everyone has different levels of personal 440 00:26:35,515 --> 00:26:36,795 risk they're okay with. 441 00:26:37,275 --> 00:26:40,795 Mine is fairly low, but it's important that young people go 442 00:26:40,795 --> 00:26:44,330 into it knowing that the step account comes with extra risks. 443 00:26:44,970 --> 00:26:49,050 Even then, young people, especially children, probably 444 00:26:49,050 --> 00:26:52,410 don't have a well calibrated understanding of how comfortable 445 00:26:52,410 --> 00:26:56,250 they are in taking financial risks or even what those risks 446 00:26:56,250 --> 00:27:03,445 could mean for them if the worst happens. Happens. This segment 447 00:27:03,445 --> 00:27:07,685 is not financial advice. Neither I nor Never Post are financial 448 00:27:07,685 --> 00:27:08,485 advisers. 449 00:27:08,885 --> 00:27:12,510 But for whatever it's worth, as a financial journalist, I 450 00:27:12,510 --> 00:27:15,870 personally wouldn't recommend going with whatever financial 451 00:27:15,870 --> 00:27:19,710 services Donaldson ends up offering. His videos make him 452 00:27:19,710 --> 00:27:23,070 look successful, but his business moves don't give me 453 00:27:23,070 --> 00:27:25,870 faith that he's a better fit for a fintech than any other 454 00:27:25,870 --> 00:27:28,725 influencer. Influencer. His approach works better for 455 00:27:28,725 --> 00:27:32,325 creating content, trying a bunch of things and seeing what 456 00:27:32,325 --> 00:27:36,165 sticks. But if a young person in your life is interested in the 457 00:27:36,165 --> 00:27:40,405 product, the best thing you can do is make sure they're aware of 458 00:27:40,405 --> 00:27:43,340 what they might be getting into and to let them know that 459 00:27:43,340 --> 00:27:47,260 MrBeast Financial isn't their only option, though it may be 460 00:27:47,260 --> 00:27:50,060 the only one that has a partnership with a candy bar. 461 00:27:54,860 --> 00:27:58,940 And if they start talking about how MrBeast let them in on the 462 00:27:58,035 --> 00:28:06,755 best crypto deal ever, maybe alert the CFPB. Thanks so much 463 00:28:06,755 --> 00:28:10,515 to Alexandria Degree for speaking with me. You can find 464 00:28:10,515 --> 00:28:16,200 her at ask.degree. You can find more of my work at Business 465 00:28:16,200 --> 00:28:18,360 Insider and the Financial Health Network. 466 00:28:48,830 --> 00:28:52,325 Hans Buetow: That is the show we have for you this week. We will 467 00:28:52,325 --> 00:28:57,445 be back in the main feed next week on or around Thursday, 468 00:28:57,765 --> 00:29:02,245 April 16. But important announcement, before then, this 469 00:29:02,245 --> 00:29:06,900 coming Sunday, April 12 is National Licorice Day. So I want 470 00:29:06,900 --> 00:29:09,060 you to right now stop this no. Don't stop this episode. 471 00:29:09,060 --> 00:29:11,220 Keep the episode playing, but get in your cart. Drop 472 00:29:11,220 --> 00:29:15,140 everything. Get to your local Icelandic grocer and just start 473 00:29:15,140 --> 00:29:20,180 grabbing bags, stocking up on salty sweets. And speaking of 474 00:29:20,180 --> 00:29:25,775 salty sweets, did you know for a salty little $4 a month, which 475 00:29:25,775 --> 00:29:29,695 is like the cost of a big bag of candy, I'm pretty sure, you can 476 00:29:29,695 --> 00:29:35,370 become a member at neverpost.st? That salt helps us keep the 477 00:29:35,370 --> 00:29:38,090 flavor up around here, mixing up all the helpful stories that we 478 00:29:38,090 --> 00:29:41,930 make plus livestreams, plus news, plus chats, and gives you 479 00:29:41,930 --> 00:29:45,530 that sweet sweet deal of getting an ad free feed of the show 480 00:29:45,610 --> 00:29:49,335 along with that chewy satisfaction of supporting 481 00:29:49,335 --> 00:29:53,095 independent media that cleanses your palate and refreshes your 482 00:29:53,095 --> 00:29:53,815 outlook. 483 00:29:54,455 --> 00:29:57,175 Unless you don't like licorice, which case being a member is the 484 00:29:57,175 --> 00:30:00,730 exact opposite of everything I just said. Never Post producers 485 00:30:00,730 --> 00:30:03,130 are Audrey Evans, Georgia Hampton, and the mysterious 486 00:30:03,130 --> 00:30:06,570 doctor. First name, last name. Our contributing producer this 487 00:30:06,570 --> 00:30:09,930 week is Kit Pulliam. Our senior producer is Hans Buto. 488 00:30:09,930 --> 00:30:12,970 That's me. Our executive producer is Jason Oberholzer, 489 00:30:12,970 --> 00:30:18,465 and the show's host is Mike Ragnetta. The world is made of 490 00:30:18,465 --> 00:30:23,665 paper. Although I walk very carefully, the ground tears 491 00:30:23,665 --> 00:30:30,820 beneath my feet. Paperworld, for Diana, by William j Harris. 492 00:30:32,820 --> 00:30:36,180 Never Post is a production of Charts and Leisure and 493 00:30:36,180 --> 00:30:38,260 distributed by Radiotopia.