By FintechOS · July 07, 2022
8 minute read

Money20/20: no-code incumbent digital transformation

Money 20/20, Teo Blidarus, FintechOS CEO, talks no-code/low-code incumbent digital transformation

Our CEO and co-founder, Teo Blidarus, was thrilled to speak at Money20/20 Europe a few weeks ago. Alongside his successful panel appearance, Teo was interviewed by both The Fintech Times and The Paypers about no-code/low-code incumbent digital transformation, FintechOS’ success, and what the future holds.

The prestigious Money20/20 event was held in Europe on 7 to 9 June 2022. Our CEO and co-founder Teo Blidarus was thrilled to be invited to be part of a panel on open source banking, utilizing his expertise learned from ensuring our platform is as secure as it can be.

Hosted by Aliya Das Gupta from Sygnum Bank, the panel discussion considered how many in the industry feel the new agile, digital age of open source creation could increase the threat of fraud and cyber attacks. Thankfully, with the right secured platform, open source banking will thrive.

The Fintech Times interviews Teo Blidarus at Money20/20

Besides the panel, we were all excited to see what our colleagues in the industry had been up to while we were all kept separate during lockdown. Likewise, we were thrilled to have the opportunity to present the progress we’ve made in building the future of financial services with our no-code/low-code high-productivity fintech infrastructure (HPFI), and best of all, for Teo to be able to share this with both The Fintech Times and The Paypers.

Powered by HPFI, the FintechOS platform doesn’t just help banks and insurance companies, but allows any organization to become a financial services company. From incumbent banks and insurers, to retailers, telcos, and agriculture and utility companies – any organization can offer financial services through the FintechOS platform.

That’s why we’re not only catering to banks and insurers, but ecommerce retailers and other companies as well. There’s a clear need for large financial services organizations to undergo a digital transformation, but there’s also a vibrant embedded finance industry that we believe will win out, despite the current pressure of a coming recession.

Teo Blidarus, CEO and co-founder, FintechOSEmbedded finance is running way faster than traditional finance. At FintechOS, we are serving both incumbent players, like banks and insurance companies, but we’re also generating nearly half of our revenue with non-banking financial institutions.

Teo Blidarus, CEO and co-founder, FintechOS, speaking to The Paypers at Money20/20

Money20/20 highlights the need for agility and the importance of embedded finance

Everything is online nowadays. Customers are increasingly expecting the latest technology across all their contact points with their banks and insurance companies. Likewise, they’re becoming frustrated with providers who aren’t offering Apple and Google-level digital experiences as standard. In fact, according to a PWC survey, 41% of customers would switch provider due to a lack of digital capability.

70% of digital transformations fail

This is frustrating for established financial services providers, as research shows 70% of digital transformations failed in the last few years, with hardly any return on investment. Expensive and complicated transformation projects are eating into profits and still failing to keep up with consumer demand.

Meanwhile, fintech and insurtech disruptors are starting up with the latest tech and already impressing young consumers with exactly the kind of digital experiences they’re looking for. These startups are pulling more than their fair share of the market away from their larger competitors, and things are looking bleak.

It’s worth remembering, however, that while profits may be eroded, they are still very much present. Established banks and insurers may have lost some market share, but they’re hardly going out of business.

The future for incumbents is not as bleak as it seems

Key players in the industry still have the size, resources, and momentum to weather any storm, with or without a digital transformation. They still have money, they still have customers, and they still have their reputations.

These industry incumbents may not be up there with the neobanks and insurtech challengers, but they’re still offering great customer experiences, even if they are a little low-tech. That customer experience, however, is just the tip of the iceberg.

It’s as if customer touchpoints are the summit of the ice, poking above the water. Hidden in the depths beneath, is legacy technology that could be fifty years old. The customer never sees it, but it’s clunky and slow, and expensive to maintain. Not to mention, you may not be losing customers, but are you losing staff who don’t want to work with these outdated tools?

Spreading the word on HPFI at Money20/20

As we said, incumbents aren’t going out of business, but they can very much benefit from updating their technology. This is for two reasons:

  1. Customers may be satisfied with low-tech, high-service options for now, but as Gen-Z come of age, they’re going to expect new technology eventually
  2. Industry incumbents who do succeed in digital transformation will see dramatically reduced costs and increasing agility, compared to their competitors

FintechOS HPFI technology is the solution, offering both a way to create and launch new digital products for customers without the need for a full digital transformation, and also a full-stack technology solution that incorporates your legacy systems into a new, efficient, automated ecosystem.

What FintechOS offers is the ability to not only hyper-personalize those customer journeys with no-code/low-code interfaces to better cater to existing customers, and win over new ones, but also the chance to automate those back-end processes that are taking so much resource, time, and money.

It’s all about no-code/low-code

This includes no-code/low-code product creation. New products allow financial institutions to create innovative new products as soon as they identify new opportunities, rather than riding in on the coat tails of more-agile disruptors who tend to establish themselves in a space before incumbents can enter it. All without a digital transformation.

The key to this is our no-code/low-code interface. Large, established banks means large teams, many different siloes, and huge amounts of red tape. This all slows down innovation and makes your organization unresponsive to both the market and what consumers actually want.

Supertankers and speedboats

It can feel like you’re on the bridge of a banking and insurance supertanker with a swarm of fintech speedboats running circles around you. Of course, when a storm sets in, you’ll keep on sailing while the smaller, more-agile disruptors will be at risk; and there very much is a storm on the horizon for the economy right now, as illustrated by the plunging valuation of Klarna.

Teo Blidarus, CEO and co-founder, FintechOSIf you look at the experience of someone launching a new product or service into the market, even with older technological advancements from the past, it’s a tedious and risky process. There’s a dichotomy between technical people and more business-oriented people. People are still operating with heavy infrastructure and big timelines. At the end of the day, nine months passes and you launch something that’s already obsolete.

Teo Blidarus, CEO and co-founder, FintechOS, speaking to The Fintech Times at Money20/20

Established banks aren’t at risk, but there is still an opportunity for them to be as nimble and speedy as their smaller competitors. The secret to this is small teams of digital makers. Extending the analogy, it’s like being on the bridge of a supertanker, but having your own little speedboat as well.

Of course, the barrier to doing this is that the small, innovative teams you put in place to create new products for an evolving market would still normally be reliant on technology teams to implement their innovations through a traditional process. With no-code/low-code HPFI, it’s different

Joining the digital makers at Money20/20

With a no-code/low-code interface, anyone can learn to build, launch and iterate innovative financial products quickly, without needing technical support. We provide templated products called Accelerators that are all ready to go as soon as the platform is implemented. All your team of innovators need to do is customize it to the needs of their market.

Established banks can move from lumbering through heavy infrastructure to having a vehicle that empowers small teams to navigate complexity with refreshing agility. It isn’t a guaranteed success, of course, but we provide the tools you need to create something great quickly, easily, cheaply – guaranteeing the best return on investment.

Teo Blidarus, CEO and co-founder, FintechOSWhat we’ve seen at FintechOS is, when we empower these teams of what we call ‘digital makers’ to build these highly differentiated, data-driven products and services – to navigate all that complexity – a lot of the agile mindset that says ‘just focus on the customer, constant improvement, fast beats perfect’, it just becomes easier to achieve as a state of doing business.

Teo Blidarus, CEO and co-founder, FintechOS, speaking to The Fintech Times at Money20/20

Move faster, save money, remove complexity, and innovate more easily – that’s what the FintechOS platform empowers financial institutions to do. That’s why we’ve won over 40 worldwide customers in just three years.

Looking ahead with FintechOS

Over the next 12 months, we want to capitalize on the experience we’ve gained with these customers and further tailor our solutions for markets beyond Europe. We’ve already gained our first US customers and we’re growing rapidly in that market.

The future looks exciting.

To see more of The Paypers interview with Teo, watch the video, and keep an eye out for The Fintech Times interview going live next week.

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