How can you overcome barriers to fintech adoption?

Influencing regulatory change is hard, especially if you are a small fintech. Unlike the the inspiring stories of Uber and AirBnB that took a 'do it and deal with the regulators later' fintech is in a different space. We often deal with regulators that have a focus on limiting customer harm before anything else. As a fintech vetran in one of the most regulated markets in the world, Australia, my advice is to swim between the flags. Don't implement anything in a way that looks to be against the regulators intentions. Instead seek to add value to the customer through more transparent and better priced offerings. Doing this will invite the regulators to engage with and listen to you.

Some of the key perspectives are: 1. Fintech's should provide clear and transparent information about their product and services (incl. fees, T&C). Avoid hidden charges or complex jargon. 2. Assure customers that their PII is treated with the utmost security and privacy. Strong data protection measures are vital. Regularly communicate the security practices to build "confidence". 3. Provide responsive and knowledgeable customer support ,and show customers and their needs are your priority. 4. Offer educational resources and tools to help customers make informed decisions. 5. Engage in Community Initiatives or support cause that matters your customers. 6. Maintain open line of communication with customers.

Customer trust can be maintained with: a) Strict Data Governance: Fintech companies must adhere to stringent data protection laws, ensuring the responsible collection, storage, and usage of customer data. b) Transparency and Consent: Transparent communication about data usage, coupled with obtaining explicit user consent, builds trust and mitigates privacy concerns.

Legacy systems were the bain of my life when working with large banks and FI's. The institutions that had not kept up their tech spend over the years were our prime customers as they had fallen behind in the eyes of their customers and their staff. But once we began to work with them the issue of legacy systems, integrations, legacy workflows and data accessibility become our problem as much as theirs. While there is no easy answer there are normally two paths. The first is to pick your battles, limit the scope to what is achievable while delivering value and then continue to break apart or build into legacy systems on an ongoing basis. The second option is to help your stakeholders build a case for broader system transformation.

Legacy systems will always be an issue for FIs and other businesses - and the rapid evolution of technology will continue to 'create' legacy systems in its wake. However, the problem isn't perhaps as acute as it once was. The only options used to be to 'rip and replace' or to 'bolt-on' new technologies - the former resulting in huge disruption to operations and the latter causing a Frankenstein's monster of platforms and solutions that are difficult to scale. Modular technology and APIs have changed this significantly - there are now many options for established businesses to update their legacy systems piece by piece - shortening and simplifying the digital transformation process. It's just about finding the right tech fit and partnerships

There's a lot we need to do as an industry to reduce the talent shortage and retain skilled people. Attracting candidates from adjacent industries is a good place to start - gaming, retail, telcos, digital goods, SaaS...relevant industries where technology and customer experience are paramount. Fintechs also need to understand the importance of diversity and provide the kind of working environment and culture that is attractive to diverse groups. Remote or hybrid working can really open up talent pools, for instance. Recruiting from schools and universities is also a great way to find talented individuals with great potential, provided you have the right training, support and leadership to nurture that potential.

In today's fast-paced world, mental health is of utmost importance. Fintech companies should prioritize employee well-being by offering mental health support, flexible work hours, and a healthy work-life balance. A supportive environment contributes to employee satisfaction and retention. They must also foster an environment of collaboration where ideas are shared freely. Encourage open communication and regular feedback. Creating a supportive workplace where employees feel heard and valued enhances job satisfaction.

While top talent is worth its weight in gold I don't feel that talent gaps are really an issue for good vendors and startups working with willing and open institutions and customers. Often experts in their field are strong learners so it is really a case of employing strong change management to help everyone understand the journey, context and business. In my experience great technologists have quickly picked up financial concepts and smart finance types have eagerly learnt about technology, systems and structures. Bridging the talent gap is not about always looking outside but about committing to build your people and your clients teams up.

When it comes to adoption, either of a new idea by an institution or a new offering by a client, too often perfection gets in the way of progress. I have heard many times that the new systems must to everything the old system did (or the humans currently do). But when you did into actual use rather than anecdotal it is often the case that if the system does 80% of current tasks but does them better, faster and with more availability then this would be a huge improvement on what is in place today. My advice is always to focus on what is most used by most customers or staff and what is most broken. Finding this sweet spot will deliver the greatest adoption ROI.