Fintech Insider Podcast by 11:FS
01:27:36 · Will Farnell, Stuart Gregory, David M. Brear, Sarah Kocianski, Pranav Sood
[01:27:36] S6: Yeah, I [01:27:36] S15: I think if you look at international payments like they aren't gonna cost 3%. They're not gonna cost £10 a payment and they're not gonna take two or three days. Like, the the trend is towards instant international payments, international payments that are nearly free. There's no reason it should cost so much to essentially send ones and zeros, right, like around the world. So, I definitely think that that trend's coming and and we're excited about that because that's going to enable, small businesses around the world to do trade way more globally. [01:28:05] S10: And I think that will mean everything, right? You know, the amount of businesses that go out of business because of the inability to actually plan forward and see these things actually happening and you know, somebody paying late can happen for various different reasons but having all of these different processes in place to stop that cash flow problem becoming the death of your business is is a huge thing, you know? [01:28:26] S0: Yeah. I I think the key that that we've all agreed on here is it's all about choice. It's all about having the options to pay as and when you want and to receive money as and when you want. So that actually concludes the second part of our show. We are racing through [01:28:37] S10: time Thank here [01:28:39] S0: you so much to our guests. Where can people find out more about you? So, Pranav, can people find you on Twitter? [01:28:44] S7: At GoCardless or gocardless.com. [01:28:46] S0: Perfect. And how about you, Stuart?
01:28:46 · Sarah Kocianski, Stuart Gregory, Megan Caywood, Hannah Dawson, David M. Brear
[01:28:46] S0: Perfect. And how about you, Stuart? [01:28:48] S15: Yeah. Transferwise.com or if you're here at Zerocon, come and find us, stand over there, get some free transfers for your clients. [01:28:54] S0: Wait. Wait. Wherever transferwise are those... No? [01:28:57] S5: They're not hiding. No. [01:28:58] S0: They've run away. Alright. Thank you so much, gents. I a big round of applause? So, we're going to move on to the final part of the show. We're going to talk about access to credit and to capital. To talk about this, we have two fantastic CEOs who know what they're talking about in this space. So please welcome, Anil Stocker, CEO of Market Invoice, and Hannah Dawson who is the CEO of Futurely. Hello. Hi. You bought your own drinks? Do you need a drink, Anil? Are you good? [01:29:29] S16: No white wine. Don't want Wonderful. Put any pressure on [01:29:32] S10: So as the panel, and I'm sure many of the audience know today, 85% of small business lending is funded by UK big banks. However, the tide on that one is kind of changing, not one thing to do a pun around tide, but I'm sure the tide guys will appreciate that anyway. So, however, with the likes of the investment and the partnership that you guys have done with Barclays, this might start to see the tide changing, shall we say?
01:29:32 · David M. Brear, Anil Stocker
[01:29:32] S10: So as the panel, and I'm sure many of the audience know today, 85% of small business lending is funded by UK big banks. However, the tide on that one is kind of changing, not one thing to do a pun around tide, but I'm sure the tide guys will appreciate that anyway. So, however, with the likes of the investment and the partnership that you guys have done with Barclays, this might start to see the tide changing, shall we say? [01:29:58] S3: Yeah. Absolutely. Look, I think there's so many great fintech companies out there doing different types of lending and I think what we've done is is really done a really great big partnership with Barclays, which we're announcing today to accountants. So Barclays will be selling our invoice finance solutions as part of their kind of core lending product to their 1,000,000 small businesses here in The UK and also there'll be funding on the platform. So it's the first time that a big bank will be relying on a third party credit model, our credit model that we've developed over the last five years. So, you know, it's a great referral and funding partnership and I think one of, you know, first of many to come. [01:30:34] S10: And and how did that come about? Because that's a... This is and obviously, you know, me and you have talked a lot before, but you know, Barclays changing and and being in that situation where they're they're... I I always think the amount of emotional intelligence that's required to believe you don't do everything yourself and everything being perfect and and partner, that's that's a big step.
01:30:34 · David M. Brear, Anil Stocker, Hannah Dawson
[01:30:34] S10: And and how did that come about? Because that's a... This is and obviously, you know, me and you have talked a lot before, but you know, Barclays changing and and being in that situation where they're they're... I I always think the amount of emotional intelligence that's required to believe you don't do everything yourself and everything being perfect and and partner, that's that's a big step. [01:30:55] S3: Yeah. I think banks are going through quite a bit of soul searching. So they're thinking about their product set. They're thinking about the customers that they serve. They're debating whether they should build themselves versus partner with fintechs and I and I think that, you know, Barclays have actually been, you know, they're they're ahead of the game and they're thinking far into the future and they they recognize what they are today, what they can do, and what they could achieve by partnering with fintechs. And I think you'll see a lot more as we've discussed today, a lot more collaboration between the likes of zero, the likes of fintechs, the likes of banks. And that coming together of those three main parties could be very powerful. [01:31:27] S10: Yeah. And, Hannah, do you guys are spending a lot of time helping small businesses manage, figure out where their cash flow situation is? Like how does that fit into the scenario around lending? [01:31:38] S16: Yes, so first step for us has been to try and make sure that small businesses actually have a plan. They really need to work with one. [01:31:45] S10: It's amazing how many don't, isn't it?
01:31:45 · David M. Brear, Hannah Dawson
[01:31:45] S10: It's amazing how many don't, isn't it? [01:31:48] S16: Yeah, it is. It's astonishing. And so we're working really hard and again, a little award winner today, So partner app of the year, really working with our accountants in the zero sphere to ensure that that is step one. You wouldn't advise your best mate who's about to start a business to not go into business without a plan, would you? So let's ensure that that's step one, but what we've been working on, we're kind of opening the kimono here a little bit, but the last year we've been working on a new platform to really try and drive easy decision making, but also to close the loop because it's really, really important that you just don't just go, hey, you're going to be screwed in three months. You know, let's give them a solution at the same time. So that's absolutely what the platform will do. [01:32:30] S10: And and that's a that's a big thing, you know, being in a situation where you're not just, you know, sorry for your loss at the scene of the crime. You know, the crash has taken place and we're here [01:32:38] S16: to Yes, make sorry. Bye. [01:32:39] S10: Yeah. So, you'd like not being the ambulance, trying to be the people preventing the problem happening in the first place.
01:32:39 · David M. Brear, Hannah Dawson, Becca McClure, Caroline Plumb
[01:32:39] S10: Yeah. So, you'd like not being the ambulance, trying to be the people preventing the problem happening in the first place. [01:32:45] S16: And I think that's the really important thing about the ecosystem that Xero has created is that when you're talking Carrie about joining ecosystems together, it's really important that, you know, we start as a product. We will be a platform with our own ecosystem and then working together with, you know, other providers that we can close that loop. It's so important to be that time and place because small business has not got the resource for the analysts, for the in house CFO, those sorts of things. They're, you know, running on a wing in a prayer often and just want to understand look this is where I'm going. You've told me these are the assumptions that I've got now I've got a solution for it. [01:33:22] S14: Yeah, and you've got the accountant in the middle of that that's trying to put these all these things together. I think what would be really helpful too for Xero is potentially I think for an accountant it can be quite daunting with all these new sources of funding coming up and it's helping the accountant navigate that. You've got brilliant tools like futurely that help them understand where they, you know, help them help the client understand where they might have issues, but then it's understanding what might be the best kind of sources of funding. Absolutely. [01:33:55] S2: It's a bit