“Build a great product in a big market that’s supported by a great team” – simple advice for Fintech entrepreneurs from Managing Director of venture capital group, Reinventure, Danny Gilligan.
There is no doubt that the opportunities for Fintech startups are huge – particularly from a collaborative perspective – but we still have some way to go before the Fintech movement reaches its full potential in Australia.
What’s Holding us Back?
“There’s a lot more opportunity for collaboration in Fintech than other industries, but I think policy settings can be improved to create a more compelling environment,” says Danny. “Fintech is a little different to some of the other technology-enabled industries. You have a regulatory framework, a significant existing financial services industry and there’s a great deal of complexity in the overall Fintech stack.”
He adds that “there isn’t enough Australian entrepreneurial talent focused on the Fintech space at the moment.” Although the startup culture in Australia is alive and well, he says too much talent is tied up in other startup sectors with less potential. While the prospects offered by Fintech are many and varied, it is essential that you “really know how you fit in to the overall system”.
Banks Need to Continue to Engage
Many Fintech startups are proving to be extremely disruptive to the traditional banking model, with the Peer-to-Peer lending offered by Reinventure-backed SocietyOne being just one example. Rather than resist the changes being brought about by alternative finance, banks need to embrace and engage with these startups – something they are starting to do according to Danny.
“There is an appetite for existing banks to engage with the startup community. It’s all about bridging that gap between banks and the ‘early stage’ community, and that’s really the role that the new Fintech hub Stone and Chalk will play.”
Where to Next in Fintech?
As an industry that is still in its early stages, the scope of opportunity for Fintech is limitless. Danny highlights big data as one area that is yet to be fully explored, and says the payments market is going to continue to evolve into ‘full stack ventures’. “I think we are still at the beginning of the bitcoin journey,” he added.
Hear more from Danny Gilligan at the Collaboration in Fintech Conference coming up in Sydney in June. He will be joining the panel discussion on the ‘Investor Perspective on How to Drive the Fintech Movement’. Book before May 8th and receive a $100 discount on ticket prices.