Fintech is increasingly getting well beyond providing the simplest of transactions and deep into the complex end of FS. Supply@Me Capital are listed on the UK Stock Exchange and recently acquired Singaporean firm Tradeflow Capital. They provide inventory financing by securitising manufacturers’ and trading firms’ inventory in a very interesting fashion leading to a new investable asset class and better funding for the businesses.
The LFP has covered various forms of Trade Finance in the past from financing suppliers to financing purchasers – in effect financing goods in transit – and all sorts of invoice discounting. However we have never before had a Fintech who promises to finance unsold goods in the warehouse.
In this episode CEO Alessandro Zamboni guides us through the evolving structures that Supply@Me provides via it’s platform – the motivation of which is once again to expand the range of capital providers to business by making previously uninvestable asset classes investable thereby providing a good deal for both parties and a turn for the platform in the middle.
Two topics this week… What are the major trends in Insurtech in the US, UK, Europe and China? Secondly Small Business insurance, general liability professional liability insurance and so forth can be hard to acquire at commercially sensible terms and thus many contractors or home repair folk end up giving up on potential work as a result.
Jay is a great guy to cover both of these topics – not only is he a successful serial entrepreneur having previously created Hailo (sold to Daimler) and eCourier (sold to the Royal Mail) but Thimble has already done $175bn of coverage (which sounds like a lot to me). They were recently named as Fast Company’s 2021 #1 Most Innovative “Small and Mighty” Company. Which is impressive.
Insurance is being sliced and diced into ever smaller pieces something which can only help the little guy and small businesses who have been so hard hit by governmental policies which for a year titled the competitive table massively in favour of BigCos. Thus we have yet another example that the apparently dull world of FS and insurance is actually the oil in an engine without which the engine cannot function. Or put another way fixing this problem is a great way to increase economic growth and improve the lives of both suppliers and consumers.
The recent report by Ron Kalifa, for the UK Govt to identify priority areas to support the UK’s Fintech sector and maintain the UK’s global reputation in re, gives us an excellent opportunity to zoom out from that to discuss The Past: why Fintech so successfully started in the UK; The Present: how well the Kalifa Report advances UK Fintech and move on to The Future: what will make UK Fintech successful going forwards.
There is perhaps no one better to discuss this long view with that Nigel Verdon who was at the centre of the digitisation of mainstream blue-chip FS in the 1990s and subsequently founded three UK Fintechs (Evolution 1997; Currency Cloud 2007, Railsbank 2016).
In all of this sectoral focus however we should not forget that all sectors are part of an economy as a whole and a Government balance sheet. Huge increases in deficits and expansion of money supply is unlikely unless addressed to promote a strong and stable country as a backdrop to Fintech activity and this remains by far the biggest risk to all UK citizens into the future. In terms of the current Kalifa report however, unsurprisingly he wasn’t asked to come up with a fiscal and monetary approach but more bottom-up measures.
Covering such a wide canvas of UK FS over decades this is more of a conversation than something to be precised. However major topics include: Continue reading →
Back in the day when business was more monocultural in many dimensions, and indeed today in more monocultural societies, “culture” was implicit and did not need explicitly defining. However in the modern, ever-more globalised, ever-more multicultural world binding together a group of people, possibly in different countries into one coherent entity is an ever-increasing challenge.
Keith Smith is a serial Founder who created a Fintech first in 1992 (this sounds like the earliest the LFP has ever heard about…), followed by four businesses in other industries until returning to Fintech co-founding Payability.
Keith thus has considerable experience of what works and what does not and a long track record in experimenting and finding ways to bind people together both within a company and at the same time “being able to think like your clients do”.
Naturally the challenge of corporate culture has only increased with governments reactions to covid – onboarding people into a culture for example being far more of a challenge when people don’t meet in the flesh.
Stocard are perhaps Europe’s most successful Fintech measured by numbers of users – they have over 60 million users of their App (which gets 4.7* on Google Play) and process an amazing 2 billion transactions per annum – a phenomenal achievement. Their users save some 2-5% on average on their shopping and in some countries up to 20% of the population use Stocard for their daily shopping :-O
But what are Digital Wallets? What are their use cases?
Where are Digital Wallets going in the future? Will they keep encroaching further into retail Financial Services as a whole?
There is perhaps no-one better placed to address these questions that Bjorn Goss, co-founder and CEO of Stocard who has roughly a decade on the case and, along with explaining shopping to me (which I clearly don’t understand as I am not getting these available savings) lays out a clear and credible ambitious vision for the future of the Digital Wallet.
Little more than a couple of decades ago IT was a very back office function in large FS organisations. Now it has completely inverted to become centre-stage in roughly every dimension of being in business, FS included.
Tony Clark, serial entrepreneur, founder and CEO of NextWave Consulting has over thirty years experience of large City FS projects and takes us on a tour of the all-encompassing challenges facing all large incumbent FS players in not just reacting to but in leveraging the digital technologies and digital ecosystem to ensure they are at the leading edge not the trailing edge of the 21stC digital revolution so changing business right now.
Tony’s premise is that FS institutions need a phase change of approach to successfully leverage change. Topics discussed include: Continue reading →
Venture Capital is nigh-on essential for many ambitious, big-build, fast-scaling Fintechs and Techs in general. Fund raising is essential. Thus how the VC market is evolving is of the utmost importance to ambitious firms and founders.
In this episode Josh Bell one of the founding partners of leading London-based European-wide VCs Dawn Capital who have raised over a billion to invest in growing businesses joins us to look back, look around now and look into the future. How can you best raise funds? Plenty of learn…
Capital-raising is an absolutely core-skill for entrepreneurs and their growing businesses – and every tech business de facto needs to grow (margins low and intense competition).
Peter Keenan, CEO and co-founder of merchants-payments provider Apexx Global, has raised capital in a total of five companies and thus talks to us from a position of considerable personal experience.
Most capital raisings most of the time for most companies are challenging processes. Thus all can benefit from hearing experiences and case studies – whether one has never done it, or whether one has done it many times.
The alignment of economic interests between buyer and seller is much spoken about but little done. Over two and half years ago when Tobi was first on the show he spoke about the idea of aligning Laka’s interests with their clients. Now we hear this narrative all the time but rarely is it deeply true.
In Laka’s case they do not take payment for the insurance but rather earn money when they pay-out on an insurance claim – the opposite of the insurance industry. Its a “back to the future” approach – back to the origins of insurance as being collectives, co-operatives of say Swiss dairy farmers up an alp bonding together for mutual (sic) support.
Well back then it sounded like a wonderful idea but one that would need careful paramaterisation. As with anything in life one needs to balance compassion for others with compassion for yourself – all too many teachers, doctors et al go into their profession to help people but come out of it decades later bitter and cynical. In the same way you can set up a company tomorrow that is totally focused on client-value (which many say of course but no-one really does) but if you are 100% on client-value then that’s zero value for your business and at some point you go bust.
In this episode we look at truly aligned Insurtech. How has the model gone? Is it widespread? Will it catch on? What does the future hold?
All Fintechs in one country will have long since sorted identity/AML/KYC and so forth. But what happens when they need to scale in other countries or even go global? Like many things in Fintech this was a hard challenge only a few years back. However now it is made much easier by the likes of Signicat who are physically in nine locations in Europe and alongside global partners such as Onfido can offer globally-scalable identity services. Which is a pretty amazing feat given how countries vary so much as we shall hear.
Today we are joined by John Erik Setsaas VP Identity and Innovation at Signicat and who has 25 years of experience in identity and thus understands the long view, the challenges and also the more recent progress at cracking some of these nuts as well as what the future may hold.
Tech never sleeps and every successive layer of out-sourceable services that are provided in Fintech mean that every new generation of Fintechs can provide yet more interesting and sophisticated services to customers and businesses.