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 $175bn of coverage (which sounds like a lot to me). They were recently named as Fast Company’s 2021 #1 Most Innovative “Small and Mighty” Company. Which is impressive.
Insurance is being sliced and diced into ever smaller pieces something which can only help the little guy and small businesses who have been so hard hit by governmental policies which for a year titled the competitive table massively in favour of BigCos. Thus we have yet another example that the apparently dull world of FS and insurance is actually the oil in an engine without which the engine cannot function. Or put another way fixing this problem is a great way to increase economic growth and improve the lives of both suppliers and consumers.
Way back in the day LFP002 was with matchi.biz who were creating a marketplace to connect innovative firms with incumbents who needed that innovation so the idea of a connection function or market has been around for some time. As matchi.biz were acquired by KPMG in 2017 they were clearly not only successful at creating such a marketplace but did it so well that like a hoover hoovering itself up they got sucked thru their own portal too.
Can these concepts apply to enabling and empowering entrepreneurs? After all the most useful attributes for a founder are acquiring funders, good board members, advisors and/or mentors.
Markets sound like a good idea, albeit one that crony capitalism is forgetting. Markets operate best when what they trade is fungible – eg US$ or gold bullion of a certain quality. However as every marriage broker knows people aren’t exactly fungible – indeed they are perhaps the least fungible thing going. But all these swipe left and right apps seem to make a living for themselves and entertainment for the swipers with some success in the dating and mating game.
Roei and Connectd have set out to make a digital marketplace to add liquidity to the world of startups, investors and the hard-to-name yet super-valuable NED/Advisor/Mentor sector. This has naturally only been amplified massively in the world of lockdown. Historically the “well-connected” have had a head-start in life – can this change in the modern world and everyone be leveled-up?
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.
Andy Rear was until recently head of the innovative Digital Partners, MunichRe’s London subsidiary which pretty much invented Reinsurance (/Insurance) As A Service (which he covered way back in LFP074). In this episode he rejoins us to present evidence that Insurtech is actually changing an industry.
Andy himself is off to do Non-exec-ing and a PhD in Pensions behaviour and so this might well be his swansong podcast on the topic of Insurtech and as such an industry leading figure it’s a must-listen! Has Insurtech changed an industry – Andy lays out the evidence and you decide…
Payments are being revolutionised. One of the most fascinating examples is Ripplenet – Ripple’s approach to inverting the old model of slow large payments to super-fast, immediate, small payments (the general trend) which will change payments forever. Ripplenet “an internet of value” is used by over 300 Financial Institutions in more than 45 countries, as a next gen global payments infrastructure.
Marcus has over 30 years of experience in transaction banking and payment technology, including 12 years at HSBC, being a member of the Global Board of SWIFT and an independent non-executive director of CHAPS Co, the UK’s RTGS clearing company.
In this show we start with the super-big picture of how payments have changed over the centuries, how the challenge is not simply tech but how people and organisations relate to this before spiraling in to a schematic overview of the three layers than amount to Ripple’s solution. Continue reading →
Draper Esprit are one of London’s longer-established VCs and with investments in the likes of Revolut, Transferwise, Thought Machine, Seedrs, Crowdcube and Freetrade might know a thing or two about Fintech. Draper Esprit, like Augmentum who we had on the show last year are also a listed AIM and thus also can offer finance not tied to the cycle of underlying funds – the so-called patient capital model.
Vinoth not only leads Fintech investments at Draper Esprit but has had a long running interest in the sector being at a Zopa Party in around 2007/2008 long before almost every firm now on the scene existed.
In this episode he picks out the key developments in Fintech over the past decade and a half, some of the takeaway lessons that all businesses can implement, some of the challenges and ends with his prospects for the upcoming decade.
Marwan joins us to discuss global payments for small businesses. He has been in payments for many years and was first a founder in 2002 so speaks from long experience of both. Veem is a global payments network used by small businesses around the world which allows them to pay their vendors, suppliers and contractors anytime, anywhere.They do payments to 110 countries in 50 plus currencies, and have about 200,000 B2B customers.
One important way that Veem manage such a long list of countries is to use a unique “multi-rail” technology – basically having wired up a bunch of different conduits from bank to bank transfers at one end through the likes of card payments to via crypto currencies at the other. This enables them to have a broader range of options for any particular transfer and for the end-users enables them to have a much richer range of payments destinations.
One reason that as the Fintech revolution proceeds Fintechs can do more ambitious things is that there an increasing number of back-end service providers that they can plug into. In this episode Joanne Dewar, CEO of back-end payments services provider GPS – who work with 40 issuing banks globally, and operate programmes with 90+ APIs for over 100 clients (including Revolut, Starling Bank and Bo) in 60 countries in 150 currencies – joins us to share her experience of what drives success in this sector for both the B2C front-end companies and the B2B back-end providers. GPS is furthermore a rare example of a profitable Fintech – which are always good to talk to.
Back-end providers have been with us for a long time – Currency Cloud, who executed most of Transferwise’s FX transactions for quite some time were back on the show years ago.
Time moves on though and by now we have plenty of data where partnering/outsourcing worked well and plenty where it did not.
What are the key factors of success? How is it done well and why is it done badly?
So far Fintech has lionised technologies – APIs, Open Banking, AI/ML and so forth. But from a different perspective these are just glues to connect things that haven’t been connected before to make new propositions not previously possible. Although this has been touched on so far – marketplaces aren’t the best example – after all marketplaces are tens of thousands of years old.
In this episode we are joined by serial entrepreneur Sam O’Connor, CEO of Coconut to discuss convergence – the gluing together of components which were previously seen as different things.
Our smartphones glue together things we would have historically done in different places using different devices – camera, mp3 player, and emails for example, In the same way Coconut are focusing on micro-businesses into which all of us indies seem to need to fold ourselves these days and combining banking, accounting and tax in one place – items which historically would have been seen as different propositions.