Marco Hoekstra
Train Coach InterimPearl Laren Consulting
FinTech; is it the Tech or the People?
What is FinTech?
PWC gave it the following definition in their global Fintech report 2016: FinTech is a dynamic segment at the intersection of the financial services and technology sectors where technology-focused start-ups and new market entrants innovate the products and services currently provided by the traditional financial services industry. As such, FinTech is gaining significant momentum and causing disruption to the traditional value chain. In fact, funding of FinTech start-ups more than doubled in 2015 reaching $12.2bn, up from $5.6bn in 2014 based on the companies included on our DeNovo platform. Cutting-edge FinTech companies and new market activities are redrawing the competitive landscape, blurring the lines that define players in the FS sector
But let’s take a step back and see what is really happening here. A FinTech is often a small group of (young) passionate skilled people that come together to create something they believe in. They make their own choices and challenge not only existing models but also continuously their own work and the work of their peers. This behavior is uncommon in traditional financial services firms so you have to ask yourself is the disruptor the Tech or the People?
The Number 7
You might have heard of the book – the 7 habits of highly effective people by Stephen Covey. Are these perhaps habits of the People behind the FinTech’s? I can recommend this 7 minute youtube video explaining the 7 habits.
I have been fortunate to work with inspiring people that nurture company cultures that embraced that kind of thinking in the past. One of them explained his vision with the number 7. The companies that he invested in could not have more than 7 employees and if growth exceeded this number he always split the company in half. There were some practical reasons behind it for him. 7 would still feel like a family and thus the company would be treated as a home. They would organize themselves when it comes to cleaning the office, watering the plants but also jointly agree on a new hire. Base salaries where low but everybody would benefit from success. Also…, 7 people still fit around a large lunch table he always said.
The Cell
Another one I worked with used the "cell philosophy" from entrepreneur and visionary Eckart Wintzen (Eckart successfully used this model to grow his company to around 10.000 employees globally) Although this was from the mid 70’s until 1996, this model has proven to be successful over and over again under the right leadership.
Eckart's public life began by building an IT service providing company, called BSO (Bureau voor Systeem Ontwikkeling). BSO was not just a successful business, it also introduced an inspiring new way to organize a business: the ‘cell philosophy'. Eckart longed for an alternative to common management structures. He was convinced that it is most effective (and fun) to work with a maximum of 50 colleagues. The idea being that you work best with people you know and also that having the opportunity to take responsibility is the best motor for enthusiasm and quality. As soon as the 51st employee entered the company, the group would split to create two independent ‘cells'. This process went on and on. The holding company provided a system for reporting, as well as the ground rules (or ‘ten commandments') of the company. Also, the company logo and office furnishing were strictly dictated, so clients would easily recognize the different cells to belong to one organization.
FTP - Fin Tech People
STP is well known In traditional banks and insurance companies but perhaps the term FTP should be introduced to make the transition into the new reality successful! STP (Straight Through Processing) is a top priority with most banks and insurance companies to minimize costs as “they have to compete with new companies that offer coverage with just a few clicks on a smartphone” According to this article about the threat of Fintech. If you would follow Covey’s habits though…. this threat this should trigger pro-active behavior!
I’m not saying you don’t need the Tech you just have to ask yourself what comes first, the Tech or the People?
Marco Hoekstra - Als de klant het voor het zeggen heeft zijn zaken als respect, begrip, eenvoud en waarde creatie de kern. De succesvolle bedrijven die traditionele business modellen omver hebben weten te duwen combineren een klantgerichte aanpak met slimme software toepassingen in combinatie met een eigen bedrijfscultuur waar medewerkers met passie en ambitie het beste proberen te bereiken voor alle betrokken partijen in de keten. Ik train en coach graag mensen binnen het commerciële werkveld maar ook op het vlak van business culture asia. Ik combineer dat met interim rollen.
