Fintech Insider Podcast by 11:FS
00:16:24 · Sarah Kocianski, Caroline Plumb
[00:16:24] S0: You can help. Know, I'll [00:16:25] S2: put you on my team. It's really lonely running a business. And I think accountants is just one of the key people that's kind of on your side and looking after you. So I think it's really extension of that service, but particularly around the areas that they know best, which is, you know, financial management, forecasting, planning, budgeting. You know, that's all the area that we can help accountants deliver on. Brilliant. And and that's [00:16:44] S0: not the only thing you've got going on because you were you were pitching this morning, were you not? [00:16:47] S2: That's right. So we were also finalists in the Nesta Open Up Challenge, which is the open banking challenge. It's really about helping transform SME finances by using banking data. So for us, using accounting data, banking data for that financial future is, you know, what we're all about. And so, yeah, fingers crossed for Nesta. So... [00:17:06] S0: When did when did we find out? When did [00:17:07] S2: the public go?... Beginning of December. [00:17:08] S0: Okay. Well, fingers crossed for you.... [00:17:09] S2: Thousand pounds. So it's... [00:17:11] S0: Just just to add to your pity. I mean, that's an interesting point. Right? We hear a lot about open banking and how good it's gonna be for consumers. But I guess it has the potential to transform life for for SMB financial services as well. Right?
00:17:11 · Sarah Kocianski, Caroline Plumb
[00:17:11] S0: Just just to add to your pity. I mean, that's an interesting point. Right? We hear a lot about open banking and how good it's gonna be for consumers. But I guess it has the potential to transform life for for SMB financial services as well. Right? [00:17:24] S2: It does. I I think it might be a sort of slower transformation. It's not gonna be kind of an overnight success. I think we've all seen that. But I think the ability to unlock that data is really important for SMEs. I think there are, you know, there are elements to open banking that makes it harder still for businesses, you know, multi authentication journey, you know, this turnover criteria cap at 6,500,000 currently. But I think what we'll see with kind of PSD two is the ability to lift some of those things. The APIs are improving all the time, and, you know, it's gonna head in the right direction. [00:17:54] S0: It's it's it's all it's all helpful, right, to building that ecosystem.
00:17:54 · Sarah Kocianski, Caroline Plumb
[00:17:54] S0: It's it's it's all it's all helpful, right, to building that ecosystem. [00:17:57] S2: Absolutely. I think this sense of trying to unlock data, whether that's in the cloud accounting platforms, whether that's in bank accounts, whether that's in CRM, I think what you're seeing is more and more data in the systems of records being unlocked. And that's why we think, you know, the last twenty years of software have really been about systems of record. You know, keeping data about a business, whether it's about its people, or whether it's about its finances, or about its customers, CRM systems and accounting systems. The next twenty years of software are gonna be about systems of intelligence that take all the data from the systems of record and do something meaningful with it. And that's really the space that Nervous sits. [00:18:32] S0: So, you know, great great guns for you to... So great space for you to grow into. Yeah. What else do you think that you'd like to see? So Xero is obviously, you know, it's it's it's platform and its partners is ever expanding. Do you think that there is space for more other financial services in there as well? You know, the importance of kind of adding in connecting what you do say to to to loans and to credit and all that kind thing? Do think there's there's still more space for that to grow there?
00:18:32 · Sarah Kocianski, Caroline Plumb
[00:18:32] S0: So, you know, great great guns for you to... So great space for you to grow into. Yeah. What else do you think that you'd like to see? So Xero is obviously, you know, it's it's it's platform and its partners is ever expanding. Do you think that there is space for more other financial services in there as well? You know, the importance of kind of adding in connecting what you do say to to to loans and to credit and all that kind thing? Do think there's there's still more space for that to grow there? [00:18:56] S2: Yeah. Absolutely. I mean, look, the space... SMEs have been underserved for so long. I mean, they've really been this unloved segment when it comes to lots of large businesses. And I think Xero really showed the way in what you can do when you show love to, you know, to SMEs. And I think that so much more can be built around how SMEs think about finance, how they manage their finance, how they optimize it. You know, I hate seeing people take really, really expensive or or wrong financial solutions for them or their business. And I think really having more transparency, more education, more insight around money helps people make the right decisions that are best for them. [00:19:32] S0: And that gets back to the advisory piece as well, doesn't it? Like, what what is the best loan for me? And the more data you have at your fingertips, the better you can recommend that. Right? So...
00:19:32 · Sarah Kocianski, Caroline Plumb
[00:19:32] S0: And that gets back to the advisory piece as well, doesn't it? Like, what what is the best loan for me? And the more data you have at your fingertips, the better you can recommend that. Right? So... [00:19:40] S2: Yeah. And I think... I mean, I don't know how accountants would feel about being financial advisors in terms of kind of credit or loans. But I think that ability to help businesses really understand what it is that they want, you know, are they looking to grow? What are their personal aspirations for the business? What is it that keeps them up at night? Because most businesses are built to drive brilliant customers for the products that they really love and love. So what are they really trying to achieve? And it's almost like human interpretation of what... Where are they trying to get to and how do we help them achieve that financially that I think accountants are particularly brilliant at. [00:20:10] S0: And that that is interesting because we've... I've spoken [00:20:11] S2: to people this day who've [00:20:12] S0: been talking about, you know, all this technology, all this automation that's coming into the cash flow and the accountancy space, but actually, what that leaves room for is the human touch. Yeah. And and small businesses actually need that more than consumers in some way. They need that human advisory piece.
00:20:12 · Sarah Kocianski, Caroline Plumb
[00:20:12] S0: been talking about, you know, all this technology, all this automation that's coming into the cash flow and the accountancy space, but actually, what that leaves room for is the human touch. Yeah. And and small businesses actually need that more than consumers in some way. They need that human advisory piece. [00:20:27] S2: Yeah. I mean, I think we see it as very much human plus machine. It's not human versus machine. It's more about kind of... And when we think about artificial actually one of things we talk about is augmented intelligence. So how do you take what you've got already and augment it? Sort of like superheroes, extra powers. [00:20:43] S0: Extra powers. So, you know, we we just talked about your your raise. You've talked... Given us a little bit an insight to what's, coming next. Is there... Is is is that your main focus right now? Is that growth, or is there a next level to the product maybe that that's coming? Is there anything you can tell me?