YouTuber MrBeast has filed a trademark for a financial services venture. Great timing?
One of the recurring themes in the oeuvre of YouTube’s MrBeast is large sums of money, often rewarded by the thousands or even millions, to contestants that participate in his various viral challenges.
But rather than giving cash away for completing stunts like sitting in a bathtub of snakes or being trapped in a burning building, the 446 million-subscriber-strong content creator now seems to be exploring the idea of accepting deposits.
The internet sensation, real name Jimmy Donaldson, filed a trademark for “MrBeast Financial” with the US Patent Office earlier this week, Business Insider reported on Wednesday.
It was an interesting week to announce an interest in banking, to be sure, because meanwhile regional banks were cratering following more news of souring loans.
Zion Bancorp tanked after announcing that it’s taking a $50 million charge-off related to loans of more than $60 million made to investment funds that purchased distressed commercial mortgage loans.
Western Alliance Bancorp was also facing significant selling pressure, as it made a loan with an outstanding balance of nearly $100 million to the same investment funds.
JPMorgan CEO Jamie Dimon, a sober voice on such matters, remarked last Tuesday on a conference call with analysts that “when you see one cockroach, there are probably more. Everyone should be forewarned on this one.”
Exciting times.
So, what’s Donaldson’s angle? Per BI, these initiatives are very close to a pitch deck from the YouTuber’s company that was shown to investors back in February. This described “Beast Financial,” a fintech arm that would provide “customized offerings” — like student loans, credit insights, and insurance — supported by financial literacy content and targeted toward the vast, growing, and predominantly young MrBeast audience.
The Takeaway
Perhaps he does have an edge against existing banks; after all, what is leaving a guy in a burning house if not a slightly more rigorous due diligence than usual? Can you truly say you’ve appraised a property if you haven’t locked someone in it for 100 days? We, for one, cannot think of a more thorough version of Know Your Customer than filming them locked in a supermarket for seven weeks.