Discover how David Metz, CEO of Prizeout, is transforming credit unions with innovative fintech solutions. Read his insights on FinTec Buzz!
David, welcome to FinTec Buzz! Can you share your journey as a serial entrepreneur and what led you to founding Prizeout?
I’ve always had an entrepreneurial spirit and a curious mind. Growing up, I absorbed invaluable lessons around the dinner table from my parents, who ran their own irrigation company before venturing into commercial real estate. Our family conversations were always centered on business—the wins, the challenges, and the strategies for navigating both.
In my twenties, driven by a desire to create something with my brother, we embarked on a joint venture. Our shared love for trivia, cultivated through childhood games and TV shows, inspired us to develop a trivia board game. To our surprise, it gained traction, sparking my entrepreneurial journey with one of my earliest ventures—FleetWit, a trivia app that let people compete for money in real-time games.
To make FleetWit work, I needed two critical components: customers and a seamless way for winners to withdraw their earnings. For customer acquisition, I turned to Facebook and Google ads, following the standard playbook. For withdrawals, I introduced digital gift cards as an easy, flexible option.
Over time, I identified an opportunity: while I was spending heavily on customer acquisition through Facebook and Google, the gift card brands handling withdrawals were effectively achieving the same goal—acquiring new customers—without incurring those costs themselves.
I decided to reach out directly to the brands we were working with and proposed a novel idea: what if they paid to be featured as a withdrawal option? To my delight, they said yes. The idea was simple but transformative—I could align their goals with mine while solving FleetWit’s customer acquisition problem.
Excited by the potential, I presented the idea to my board. I told them I believed I had uncovered a solution not just for FleetWit, but for countless brands facing similar challenges. I proposed shifting focus entirely to this new opportunity—and from that moment, Prizeout’s CashBack+ ecosystem was born.
Why did you choose to focus on Credit Unions, and what makes this sector unique?
Prizeout had already developed a proven model where companies paid only for the customers they acquired, creating a technology that delivered a true win-win-win outcome. FleetWit served as the proof of concept, demonstrating that brands were willing to pay to be featured as a withdrawal option. This success prompted us to ask: which industry could benefit most from this innovative approach? By chance, we found the perfect fit—credit unions. By leveraging merchants’ desire for customer acquisition and credit unions’ commitment to improving their members’ financial well-being, we created an ideal partnership that delivered value to all parties involved.
What are the biggest challenges in building a FinTech tailored for Credit Unions?
Building a FinTech for credit unions demands more than technical expertise—it requires a deep understanding of their unique values, mission, and operational landscape.
Navigating Legacy Technology
Many credit unions still rely on legacy systems, making integration a complex challenge. This demands a skilled and innovative engineering team capable of designing solutions that not only work seamlessly with outdated infrastructure but also modernize the user experience without disrupting operations.
Seamless Platform Integration
To succeed, FinTech solutions must integrate effortlessly with every online banking platform, ensuring they feel like a natural extension of each credit union’s app. At the same time, scalability is key—products must cater to credit unions of all sizes, maintaining a consistent and intuitive user experience across the board.
Overcoming Industry Fragmentation
Credit unions vary widely in size, resources, and technological maturity. Creating a product that meets the needs of a small, community-based credit union while remaining adaptable and effective for larger, more complex institutions requires thoughtful design, robust engineering, and a commitment to flexibility.
Embracing Credit Union Values
Credit unions are not just another financial institution—they are highly collaborative and deeply member-centric. They prioritize user experience and community impact in a way that few industries do. For FinTechs, aligning with these values means going beyond functional solutions to create products that genuinely delight members. This requires extra effort but pays dividends in trust and long-term partnerships. FinTech that fail to embrace these principles will struggle to meet the high expectations credit union members have for care and service.
By understanding these challenges and values, FinTechs can create impactful, scalable, and truly member-focused solutions that align with the mission of credit unions while driving innovation in the industry.
How is Prizeout revolutionizing loyalty programs for Credit Unions, and why is this important?
Before Prizeout, credit unions lacked integrated loyalty, rewards, or cashback programs within their online banking systems. When such programs existed, they were often separate apps that felt untrustworthy or inconvenient, discouraging member engagement. Prizeout’s CashBack+ ecosystem changed that by creating the first solution to seamlessly combine all cashback and rewards into a single, central balance..
This innovative ecosystem allows credit unions to leverage Prizeout’s proprietary advertising engine, giving them access to merchant-funded offers that operate outside traditional credit card rails. By empowering credit unions with this cutting-edge technology, Prizeout is not just transforming their future but also helping to create a financial landscape that is more equitable, accessible, and sustainable for everyone.
How do you see these changes reshaping the Credit Union industry as a whole?
The credit union industry has been in a rebuilding phase since 2010, shaped by the impact of the Durbin Amendment and the rapid evolution of digital banking. Before 2010, credit unions thrived by prioritizing exceptional member satisfaction and generating growth through loans—such as mortgages and auto loans—and the introduction of credit and debit cards. These cards opened a vital new revenue stream: non-interest income from interchange fees paid by merchants for card transactions. Credit cards, with their higher interchange fees, became a significant revenue driver, while debit cards emerged as the primary choice for most members.
However, the passage of the Durbin Amendment in 2010 disrupted this model by capping debit card interchange fees, slashing them from an average of 1.14% to just 0.05%. This dramatic reduction cut deeply into credit unions’ revenue, forcing many to scale back or eliminate rewards programs. Members were left with fewer benefits, and credit unions faced the challenge of finding new ways to deliver value.
Simultaneously, the industry grappled with a rapid shift to digital banking. The rise of smartphones, digital-first banks, and services like neobanks and BNPL disrupted traditional financial services, pushing the world online. The COVID-19 pandemic in 2020 further accelerated this trend, creating an urgent need for mobile and digital solutions. Unfortunately, many credit unions struggled to adapt due to limited resources, budget constraints, outdated core banking systems, vendor dependencies, and organizational resistance to change.
Now, innovative solutions like Prizeout are providing a path forward. By integrating advanced technology with member-focused features, Prizeout empowers credit unions to compete with larger banks and digital-first competitors. Credit unions can now offer cutting-edge tools, such as seamless cashback and rewards programs, that drive member retention and attract a younger, tech-savvy generation. These advancements are reshaping the industry, helping credit unions remain relevant and thrive in an increasingly digital world.
What have you learned from working closely with Credit Unions?
Never in my life have I encountered an industry as collaborative, empathetic, and genuinely caring as credit unions. Their unwavering commitment to their members has been both refreshing and profoundly inspiring. Breaking into this world, however, was no small challenge. At first, these institutions were understandably cautious—a former Wall Street professional and fintech startup founder didn’t exactly align with their traditional ethos.
I still vividly remember our first credit union conference. We were outsiders, met with skepticism and apprehension. But through trust, patience, consistency, and a quality product, we gradually earned their confidence. Fast forward to today, and our partnerships now stretch across the nation. Those once-intimidating conferences have become joyous reunions, filled with familiar faces, shared success stories, and warm welcomes.
Credit unions have wholeheartedly embraced this opportunity, recognizing its potential to empower their members. They aren’t just open to new technologies—they are eager to adopt them thoughtfully, always keeping their members’ best interests at heart. Working alongside them has taught me the true meaning of collaboration, empathy, and care, and it’s been an experience that has profoundly enriched both my career and my perspective.
Why did you decide on the CUSO model, and how has it contributed to Prizeout’s growth?
When we first introduced our idea and product to credit unions, their excitement was unmistakable on both sides. They immediately saw its potential to help them grow, scale, and deliver greater value to their members and communities. From an innovation standpoint, it was particularly thrilling because credit unions, unlike larger banks, often lack access to cutting-edge technology. This solution, however, was designed specifically with them in mind.
That said, the challenge was clear: credit unions often don’t have the resources that big banks do to invest in innovative technology. The creation of the CUSO (Credit Union Service Organization) provided a game-changing solution. By collaborating and pooling their resources, credit unions could access high-value products and services in a cost-efficient way, staying competitive while remaining true to their cooperative principles.
The CUSO also became the fastest way to deploy our technology across credit unions. It allowed our founding credit unions to become investors in our business, giving them a direct stake and a seat at the table. This collaboration ensured our products were tailored to their unique needs and priorities.
Ultimately, the creation of the CUSO marked our official entry into the credit union space and solidified our commitment to driving innovation within their community. It was a powerful demonstration of how collaboration and shared values can drive meaningful change in the financial industry.
Can you share a success story or key milestone that highlights Prizeout’s impact?
At 47 years old, having started multiple businesses, my career has been filled with significant milestones—the first time I raised money, hired an employee, or received an incorporation letter. Each was a milestone in its own right. But over time, I’ve come to realize something even more profound: “This could be your last first time.”
As an entrepreneur always focused on the next goal, it’s easy to lose sight of this truth. The real accomplishment lies in staying present and recognizing that every moment in the journey, no matter how small, is a milestone. The key is to honor and appreciate these moments as they happen because they are the building blocks of growth and success.
“The mass of men live lives of quiet desperation.” People often shy away from fear, obstacles, and the unknown. But I embrace the adventure. Whatever the outcome, I’m living life on my own terms, which could lead to great fortune and riches. Even if it doesn’t, I’m still leading an extraordinary life. It’s not the pursuit of happiness; it’s happiness in the pursuit!
What advice would you give to FinTech founders aiming to collaborate with Credit Unions?
Have patience. Take the time to deeply understand credit unions’ unique needs and challenges. Don’t approach them with what you want to do—bring a solution that directly addresses their specific pain points. It’s equally important to understand their technology stack thoroughly and clearly communicate how your solution integrates with it. Many FinTechs underestimate the complexity of working with credit unions, which often operate on legacy systems that require thoughtful, tailored approaches.
Do your research, invest in building trust, and remember that credit unions are distinct in their mission and values. Their foundation is rooted in community, and trust doesn’t develop overnight. Building these relationships is essential to success in the credit union space.
What’s next for Prizeout, and how do you envision the future of FinTech in the Credit Union space?
While we can’t share all the details just yet, the groundbreaking products we’re launching next year are poised to redefine what’s possible for the credit union industry. However, our vision goes far beyond individual innovations. We’re committed to reshaping the financial ecosystem to ensure credit unions have the tools and resources to not only survive but thrive.
Our mission is to level the playing field, enabling credit unions to provide their members with the same advantages as larger financial institutions while staying true to their core values of community, service, and trust. By empowering credit unions, we’re not just driving innovation for the future—we’re helping to build a more equitable, accessible, and sustainable financial landscape for everyone.
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