Fintech Past, present, and future Hult Blog

The world of fintech startups moves at relentless pace. A recent influx of digital financial products may be revolutionizing how we handle our finances; but in doing so, has shone a light on the differences between traditional banking behemoths and these agile young companies. Let us call it a work-in-progress; for as Hult MIB graduate turned fintech entrepreneur Nicolà ² Petrone explains, the collaboration between the incumbents and innovators is the only key to the growth of this sector. Nicolà ², born in Naples, launched a platform to enable such conversations between businesses, building on his international studies and an inspiring meeting in San Francisco. It’s called MEDICI: like the ancient Tuscan family, venture capitalist ante litteram. Nicolà ² was recently selected for the Forbes 30 Under 30 list in Italy. MIB graduate Nicolà ² Petrone recently made Forbes 30 Under 30 in Italy list Below, Nicolà ² speaks on the origins of the company, and the challenges of working in fintech circa 2019. Can you tell us how MEDICI came about? It all started in 2014, when I lived in San Francisco. At a networking event I met Aditya Khurjekar, a veteran of the fintech industry, who had recently founded and led to exit an important event company (Money2020). Over a lunch that lasted hours, Aditya told me about the opportunity to create an international platform, a market network, to enable the fintech ecosystem of startups, financial institutions, investors and regulators to better work together. The ecosystem was growing rapidly, and the financial sector was at the gates of profound change. I liked the idea a lot and the opportunity was tangible. From San Francisco I moved to Charlotte, North Carolina, where I spent about a year dedicated to the design of the platform and the initial go-to-market in the States. After acquiring part of the company, I moved to Europe to start operations in a completely new and completely different market.  At the same time MEDICI also took shape in India, where we were in effect the first mover for an initiative of this kind. Many people ask us why the startup is called MEDICI. The ancient and powerful Florentine family inspired us, being one of the first banking companies and among the first venture capital companies in Italy. In 2015 MEDICI was live with 10000 profiled fintech startups, 50 investors, and more than 30 client banks. Today MEDICI employs more than 50 people in the U.S., Europe, India, and Singapore, and collaborates with around 100 banks worldwide. Explain what  MEDICI does, and why? MEDICI has evolved a lot over the last four years following the evolution of the market in the different countries. We started in 2015 as a deal sourcing platform for investors and banks. Every month we talked to dozens of financial institutions and hundreds of fintech startups. Without having planned it, we were acquiring unique insights on the innovation strategies of the major players in the industry. In 2016 we started to monetize this asset through a business unit entirely dedicated to digital transformation projects. What has changed in fintech over the last five years? The sector has evolved at unexpected speed and we have had the privilege of following that transformation from an international perspective. In a short time we realized that everything that happened in the U.S. arrived in a successive wave in Europe after 12-18 months, and in Asia a further six months later. We’ve seen change in the way in which financial institutions work with startups. The collaboration between incumbents and innovators is the key to the growth of this sector. I try to summarize the four main phases: Banks + fintech: an evolution At the beginning of 2014, banks perceived the need for open innovation to keep up with the rapid innovation coming from the world of startups. The fintech ecosystem was growing fast, and following its developments was a challenging task for the incumbents. An ad hoc function was needed. In 2015 the banks created the first innovation teams and forged partnerships with business accelerators such as Plug and Play, 500 Startups, Y Combinator, and many others. This channel of engagement highlighted emerging players with whom to potentially form partnerships, and helped start the long process of cultural change. In 2016 the situation changed. Many accelerator collaborations were struggling to contribute substantial concrete development to the partnerships with fintechs. The return on investment was limited, and innovation departments started having problems justifying their KPIs. Thus began a new phase of collaboration between banks and fintech. Innovation managers realized that the problem did not lie in the initial phase of the innovation process (scouting activities and engagement of startups) but in their ability to create solid case studies to bring collaborations to a concrete proof of concept. We define this phase as â€Å"sell-in†. Innovation process flow Banks mobilize in different ways to support the sell-in. Some internalize acceleration models, and use them as vehicles to align their business with innovation projects. Others create innovation functions legitimized by the CEO. This favors an alignment from the top and rapid, lean, and scalable management of strategic partnerships with startups. The result of these measures was seen in 2017, when the number of partnerships between banks and fintech increased exponentially. 2017 demonstrated strong collaboration between traditional institutions and emerging fintechs In 2018, these models evolved further. Acquisitions and investments in fintech became the preferred vehicle for most advanced financial institutions. Fintechs continued to prosper in 2018 Do you have resolutions for 2019? What short-term goals has MEDICI set for itself? 2019 will be a year full of news for MEDICI. We will make an important investment in a B2C business line to bring our insights and data to the international fintech ecosystem. We will consolidate our Asian VC fund (launched in 2018), and strengthen our business line dedicated to the creation of corporate accelerators. There will also be important news on the Italian side, but I cant tell you any more for now! Thank you Nicolà ², and all the best! Inspired by Nicolà ²s journey into fintech? At Hult, learning about breaking disruptive technologies and the gamechangers harnessing their potential is built into each and every program. Find out more by downloading a brochure. Hult offers a range of highly skills-focused and employability-driven business school programs including a range of MBA options and a comprehensive one year Masters in International Business. To find out more, take a look at our blog How innovative business models can reshape an industry. Download a brochure or get in touch today to find out how Hult can help you to learn about the business world, the future, and yourself. Hult Rotation offers you a chance to study in a truly global way. Our rotation program allows you to study and be immersed in some of the finest cities in the world. 📠¸: @jasminmanzano . Hult Rotation offers you a chance to study in a truly global way. Our rotation program allows you to study and be immersed in some of the finest cities in the world. 📠¸: @jasminmanzano . Each year, Hult seeks to enroll a talented and ambitious incoming class from all over the world. We look for diverse students with a wide range of experiences, perspectives, and interests—students who will thrive in our unique educational atmosphere. Are you ready for a truly global experience? 📠¸: @iambrunadiniz . Each year, Hult seeks to enroll a talented and ambitious incoming class from all over the world. We look for diverse students with a wide range of experiences, perspectives, and interests—students who will thrive in our unique educational atmosphere. Are you ready for a truly global experience? 📠¸: @iambrunadiniz . We’re excited to start 2020 on a ranking high! Hult is proud to have been placed #28 in Poets Quants 2020 rankings for Best Undergraduate Business Schools in the US. Taking a huge leap of 32 places from our 2019 position, we’re also very happy to have secured top positions in key categories like: life-changing experience, practicality of the degree, and global immersion. . With five global campuses, a student body of over 130 nationalities, and a learn-by-doing approach—Hult offers a student experience like no other. . We’re excited to start 2020 on a ranking high! Hult is proud to have been placed #28 in Poets Quants 2020 rankings for Best Undergraduate Business Schools in the US. Taking a huge leap of 32 places from our 2019 position, we’re also very happy to have secured top positions in key categories like: life-changing experience, practicality of the degree, and global immersion. . With five global campuses, a student body of over 130 nationalities, and a learn-by-doing approach—Hult offers a student experience like no other. . â€Å"I’m from an engineering background and needed a whole new skill set for the industry I wanted to switch to. I learned a lot about myself and how I deal with being out of my comfort zone. I learned both soft and hard skills, from how to work in very diverse teams to key accounting metrics and strategy. I was surprised by how weak I was at certain tasks in English or how strong I actually was in other areas. Hult gave me opportunities to try new things and meet people from places I never thought I would have friends. . My internship experiences gave me the chance to broaden my view of different cultures and different companies. I had the opportunity to work and live with people whose values differed from people in my home country. I thought that this would be difficult, but it gave me the chance to reflect on my own values and assess if they were a result of my home country environment or if they were intrinsically mine. . Diederick ter Kulve (@diederick.terkulve) Netherlands Masters in International Business . â€Å"I’m from an engineering background and needed a whole new skill set for the industry I wanted to switch to. I learned a lot about myself and how I deal with being out of my comfort zone. I learned both soft and hard skills, from how to work in very diverse teams to key accounting metrics and strategy. I was surprised by how weak I was at certain tasks in English or how strong I actually was in other areas. Hult gave me opportunities to try new things and meet people from places I never thought I would have friends. . My internship experiences gave me the chance to broaden my view of different cultures and different companies. I had the opportunity to work and live with people whose values differed from people in my home country. I thought that this would be difficult, but it gave me the chance to reflect on my own values and assess if they were a result of my home country environment or if they were intrinsically mine. . Diederick ter Kulve (@diederick.terkulve) Netherlands Masters in International Business . Say a big hello to our Bachelor of Business Administration program cover star, Elisa Orus Plana âÅ" ¨ . â€Å"I’m excited for the future—especially that I cant predict whats going to happen. Maybe Ill end up in Mexico working for a trading company or maybe in Africa, developing my own business. Everything is possible, and the options are constantly changing. I love the idea that Im never going to be stuck doing the same job until the end of my life if I dont want it to be like this. . Hult really supports me and my ambitions and truly believes that we deserve to be considered as professionals as well as students. Here, I get to express not just my opinions but all elements of myself. From my creative side with the Fashion Society to my finance and business sides in Trading Club and the Management Consulting Club. We get a different type of learning here. Not just essential knowledge and theory, but practical skills and mindset. The school is always evolving. We’re encouraged to innovate and to always look for new ways of doing traditional things. We learn how to be more confident and become aware of how we can impact our environment. The school aims to help you become a better version of yourself and to stand out from the crowd.â€Å" . Elisa Orus Plana French Bachelor of Business Administration Class of 2021 Say a big hello to our Bachelor of Business Administration program cover star, Elisa Orus Plana âÅ" ¨ . â€Å"I’m excited for the future—especially that I cant predict whats going to happen. Maybe Ill end up in Mexico working for a trading company or maybe in Africa, developing my own business. Everything is possible, and the options are constantly changing. I love the idea that Im never going to be stuck doing the same job until the end of my life if I dont want it to be like this. . Hult really supports me and my ambitions and truly believes that we deserve to be considered as professionals as well as students. Here, I get to express not just my opinions but all elements of myself. From my creative side with the Fashion Society to my finance and business sides in Trading Club and the Management Consulting Club. We get a different type of learning here. Not just essential knowledge and theory, but practical skills and mindset. The school is always evolving. We’re encouraged to innovate and to always look for new ways of doing traditional things. We learn how to be more confident and become aware of how we can impact our environment. The school aims to help you become a better version of yourself and to stand out from the crowd.â€Å" . Elisa Orus Plana French Bachelor of Business Administration Class of 2021"> During the final days of 2019, you probably reflected on what you’ve accomplished this year—and even this decade—and what you’d like to achieve in 2020. Let us know in the comments below. During the final days of 2019, you probably reflected on what you’ve accomplished this year—and even this decade—and what you’d like to achieve in 2020. Let us know in the comments below. â€Å"The first time we did group work on the program, I went head-to-head with a colleague. It taught me a lot about how I see people, how people see me, and how conflict can be resolved in a kind and productive way. The best feedback you get, when delivered constructively, is the most critical because it really feeds into how you lead. I’ve completely reversed my leadership style—the result is so much richer and more powerful when you lead from behind and lead with strength. . Studying in tandem with working, whilst challenging, gave me the perfect platform to directly apply learning concepts into my business environment, the competitive landscape, and the real-estate industry as a whole. When I started the program, I was very happy in my corporate role. But my courage and aspirations grew to the point that I took on a whole new direction. Having my career coach, Joanna, as a sounding board allowed me to really be strategic and get to know myself. She coached me thro ugh all the interviews, the research, and the questions. It went in parallel with what I was doing academically and after six months everything just clicked. . I went into the EMBA knowing I had nothing to lose and I’ve come out with everything. Great strength, global friends, amazing learning, mentors from professors, a job I love, and the knowledge that I can set my mind to achieve anything and with the right support and resources I’ll get there.† . Kashani Wijetunga British, New Zealand Sri Lankan Associate Director Senior Strategy Consultant CBRE EMBA Class of 2019 . â€Å"The first time we did group work on the program, I went head-to-head with a colleague. It taught me a lot about how I see people, how people see me, and how conflict can be resolved in a kind and productive way. The best feedback you get, when delivered constructively, is the most critical because it really feeds into how you lead. I’ve completely reversed my leadership style—the result is so much richer and more powerful when you lead from behind and lead with strength. . Studying in tandem with working, whilst challenging, gave me the perfect platform to directly apply learning concepts into my business environment, the competitive landscape, and the real-estate industry as a whole. When I started the program, I was very happy in my corporate role. But my courage and aspirations grew to the point that I took on a whole new direction. Having my career coach, Joanna, as a sounding board allowed me to really be strategic and get to know myself. She coached me thro ugh all the interviews, the research, and the questions. It went in parallel with what I was doing academically and after six months everything just clicked. . I went into the EMBA knowing I had nothing to lose and I’ve come out with everything. Great strength, global friends, amazing learning, mentors from professors, a job I love, and the knowledge that I can set my mind to achieve anything and with the right support and resources I’ll get there.† . Kashani Wijetunga British, New Zealand Sri Lankan Associate Director Senior Strategy Consultant CBRE EMBA Class of 2019 . â€Å"It was now or never. I knew that I’d have likely stayed in my neighborhood for years to come if I didn’t take this opportunity. I’d not lived or studied outside of the U.S. before. So I left my job as a global strategist at an advertising agency and moved halfway around the world. I’ve come back a more culturally aware, well-versed person. I’ve realized that everything is a learning experience and an opportunity for growth. Ill definitely carry this mindset with me into the future. Technology and social media allow us to be different people in several places at once. Im excited to see how I can establish myself in whatever city Ill be lucky enough to call home and still maintain deep connections with people all over the world. I’m inspired by my classmates every day. Hearing some of their life stories and how getting this degree fits into their greater mission has been very humbling. My biggest challenge has been finding the ‘right’ path for me. There have been rooms Ive felt like I shouldnt be in, but now Im proud to feel as though I truly belong, wherever I am.† . Dwayne Logan, Jnr. American MBA Class of 2019 . â€Å"It was now or never. I knew that I’d have likely stayed in my neighborhood for years to come if I didn’t take this opportunity. I’d not lived or studied outside of the U.S. before. So I left my job as a global strategist at an advertising agency and moved halfway around the world. I’ve come back a more culturally aware, well-versed person. I’ve realized that everything is a learning experience and an opportunity for growth. Ill definitely carry this mindset with me into the future. Technology and social media allow us to be different people in several places at once. Im excited to see how I can establish myself in whatever city Ill be lucky enough to call home and still maintain deep connections with people all over the world. I’m inspired by my classmates every day. Hearing some of their life stories and how getting this degree fits into their greater mission has been very humbling. My biggest challenge has been finding the ‘right’ path for me. There have been rooms Ive felt like I shouldnt be in, but now Im proud to feel as though I truly belong, wherever I am.† . Dwayne Logan, Jnr. American MBA Class of 2019 . Happy New Year, Hultians! . Happy New Year, Hultians! .