Michael is the author of “The Fintech Financing and Performance Report” and expert on strategy and innovation in financial services. In this show we dive into the third edition of his report and dive into the critical and fascinating topics of how UK Fintechs have funded themselves, what their valuations have done over time and attempting to measure their performance.
We are all used to seeing big picture, top-down reports saying a gazillion dollars has flowed into Fintech since a week ago Tuesday and hence taking it all with a pinch of salt.
However Michael’s “Fintech Financing and Performance” report [available via Clarus Investments] is hardcore stuff being based on data held at UK Companies House (where in passing its essentially illegal to knowingly file incorrect data).
App Banks are following many courses with many motivations. Who better to guide us through this ever more complicated maze of motivations and destinations than Ricky Knox, Founder and CEO of Tandem Money/Bank and serial entrepreneur sans pareil.
inter alia (alia being things like Insead) Ricky founded GSM Systems in 2003 (where he remains non-exec chairman) which now has partnerships with >170 mobile operators in >70 countries.
In 2005 he founded Small World Services taking it from inception to a Top10 global money transfer businesses with nigh on $5bn annual turnover.
Not content with these laurel leaves he founded the well-known Fintech Azimo in 2012 which does remittances to 198 countries globally, has half a million customers and more than 270,000 cash pick-up locations worldwide.
In 2015 he founded Tandem Bank, which (another inter alia) bought Harrods Bank – which certainly makes it a standout in Fintech as a whole, let alone in the App-Banks sub-sector.
All of which background (and more not included!) makes him ideal to discuss whether the current crop of App Banks are going to turn into real businesses – you know those businesses that are self-supporting and whose revenues are higher than their costs 🙂
An Insuretch insider said to me “if there is one firm that is doing something truly radical in insurance its Laka”. Aha. So here we are – Laka on the LFP. Laka are re-slicing and dicing the paradigm that led to so much in lending/borrowing but has never really got out of the hanger in insurance – P2P. This despite the fact that the historic roots of insurance – and its current core model – rely on pooling risks.
Toby joins us today to revisit P2P insurance ab initio and to tell us how Laka are reinterpreting the paradigm to come up with some notable twists – not least of which if there are no claims in your pool in a given month you pay nothing. Oh and you don’t pay up-front either. Nor will you pay more than conventional insurance. And there are more differences as we hear in the show.
Since Anil and MarketInvoicewere last on the LFP, and no doubt as a direct result, they have gone from having done ~£1/2bn to ~£2bn and remain the Invoice Financing market leaders as well as having expanded their product range.
Anil joins us today to discuss all things cashflow re the vital financing of UK SMEs which account for 60% of employment in the UK and over 50% of GDP.
Many electrons have been agitated to produce patterns of light and dark on this topic. Which is probably more interesting aphenomenon than the average article on Open Banking. Ignore it we cannot however and uber-Fintech Guru (in the true sense, not self-penned LinkedIn encomium) Nigel Verdon, founder of Currency Cloud and now founder and CEO of Railsbank joins us to work out what is really going on and where challenges lie.
Nigel is no mere Fintecher with his own opinion. Way back in LFP024 Nigel shared his experience of 25yrs in Fintech – and hardcore fintech at that from doing the first online FX deal in 1992, through running digital markets at Dresdner Kleinworts to founding Currency Cloud. Since when he has VCed and now for some time been CEO and founder of Railsbank.
So someone with a very informed opinion. Open Banking is very much an evolving topic. So LFP060, an overview with Paul Thomalla at ACI Worldwide, is still #2 in the LFP all-time download charts. As recently as LFP087 Louise Beaumont argued that its not really about tech & reg but far more about strategy.
Which UK FIntech does $3trn of business per annum and are in 7 countries? Well I guess for readers on the website the pic above is a bit of a hint. David Mercer CEO LMAX Exchange joins us today to dive into the subject of marketplaces which have been a fundamental part of culture forever and a fundamental part of Fintech as a mechanism for connecting buyer and seller more efficiently.
LMAX Exchange’s claim is that they are leading the global FX industry transformation to transparent and fair execution. Sounds good but before we get around to that we look in depth at Marketplaces per se.
Which Fintech started in a basement in Stockwell, has done over £65bn of FX business, do over 1 million transfers a year with 600 staff in 7 offices, whose chairman is a former deputy Governor of the Bank of England and according to price comparison sites offer better prices than other Fintech FX players on virtually all sizes of deal?
Worldfirst as many of you might not have guessed (though those of you reading this online will have had a huge hint in terms of the banner above 😀
Jonathan Quin their co-founder and CEO for 14yrs joins us today to discuss the art and science of international expansion – a truly vital step if UK Fintechs are ever to move beyond a potential audience of 1% of the world’s population to far far more.
In this New Year Special I’ll survey the state of the art and present a report card for each of the main Fintech sectors – P2P, Bitcoin, Blockchain, Money, App-only banks, Insuretech, Digital I.M., Regtech, Payments and a deeper dive into the leading AI of 2017. We also examine the broader context for Fintech – namely US Tech Giants who had a seismic shift in 2017.
No awards as such this year but plenty of honourable mentions and a host of goodies for those of you in search of new ideas.
Data is the new oil ‘innit. Fintechs use it by the bucketload don’t they? Incumbents are slow off the blocks aren’t they? What if a lot of this is simply not true? What if its hype and spin? What is the reality?
We are joined today by Max Pell CEO of Validis a Fintech based in London and Austin Texas who seamlessy connect data in SME end systems to your hot sexy Fintech or solidly engineered incumbent. Clients include Barclays, RBS, most of the Big4 accountants and a number of Fintechs so Max is well placed to talk about what is actually going on.
What if the world isn’t as we have been led to believe? What if the reality is that many Fintechs are focuse don being marketing machines and are not that data rich? Eg and esp in P2P. Well that hooked me as I have long felt/intuited/been winked at that all these quotes complex unqotes credit models are not actually – er – complex.
What if the reality was that in new FS and old FS organisations have actually, away from the PR froth and hype, only started putting their toes in the shallow end let alone actually swimming?
What if (as Louise Beaumont was saying in LFP087) most organisations haven’t grasped the strategic implications of data?
Can we (as Snowden and more senior ex spy-industry have argued) have too much data? Can we then start to lose the wood in the trees?