Fintech Insider Podcast by 11:FS
00:43:56 · Sarah Kocianski
[00:43:56] S3: In in mortgages particularly or just just kind of real fintech? Okay. I was gonna say, I have thoughts about mortgages, but this is not the time or the place to go into that. The... I think I think... So I think real time, again, to to go to the point that Val made earlier, real time needs to have context. Otherwise, real time is dangerous. So it's almost like saying, it's almost as simple as like saying real time buy now. Like, do you really should you really be buying this right now? Should you probably hang on, just stop and think for a minute. What is the context of whatever this purchase might be and whether that is, you know, buying that, you know, whatever it is you've seen online, that handbag or that top or that, you know, pair of trousers or whatever. Should we be buying that right now? What is the context for this, you know? Secondly, kind of personalization. The So that context needs to be personalized. So you need to know when you're making a real time offer of a product, when you're making a decision that somebody can accept something in real time, what is... Is it that right for them? Is that... Or is that just something you've made a snap decision that we've got this right now? You know, get it now. There's only 10. It'll be gone in five minutes or whatever it is. I think the... Some products, and this is... You know, people who know me and listen to this will laugh because I'm researcher and analyst. I always want to spend time looking through kind of, I don't like to make real time snap decisions. I like to take my time behind it. And then maybe I want things to happen quickly, but I don't necessarily want things pushed at me, and it goes, right. Do it real time now. Push this button, you can't get... Take it back. Like, if it's push this button and you can't take it back and you spent £20 and a pair of trousers, then that's that. But if it's push this button now and you can't take it back and it's a new credit card or... And you didn't understand the terms and conditions of that credit card or it's changing the terms of your loan, and that can go all the way up to one organization of any size, or it's changing the terms of your insurance. You know, change... Saying change your insurance right now. We can do it in thirty seconds for you.
00:45:48 · Sarah Kocianski, David Barton-Grimley
If you haven't given them the context and the time before that point to fully understand it, you can find yourself in hot water. And I think from a from a bank's perspective as well, one of the reasons that they hold back on doing things in real time is just because their systems can't handle it. They get to the end of the day and they think, my god, we... Some simple... We've lent more money than we have. Whoops. Now how do we fix it? So I think the, you know, that was that was a bit of a long and winding road, but I think the most important thing when you're doing anything in real time is that it must also have the point of context. And I think that's particularly dangerous as well, or that's particularly important, sorry, when talking about embedded. If you throw it embedded into the real time as well, then context is a 100 times more important again. [00:46:31] S0: You're right. Actually, sometimes decisions do take slower than than sometimes we we think or get excited about, when we think about fintech innovation. And I just wanna go around to the panel for the final for the final word. We've been talking a lot about real time data. We've been talking about contextual decisioning. What does the future of innovation look like? What's what's coming up next? Pranav, I'm gonna come to you first. Is it... Is... Are embedded solutions the answer? Is there anything else? What's next for you?
00:46:31 · David Barton-Grimley, Pranav Sood
[00:46:31] S0: You're right. Actually, sometimes decisions do take slower than than sometimes we we think or get excited about, when we think about fintech innovation. And I just wanna go around to the panel for the final for the final word. We've been talking a lot about real time data. We've been talking about contextual decisioning. What does the future of innovation look like? What's what's coming up next? Pranav, I'm gonna come to you first. Is it... Is... Are embedded solutions the answer? Is there anything else? What's next for you? [00:46:59] S2: I think more embedded and more AI. Those are the two areas where I see huge amount of opportunity for us as fintechs to do more. And I think in the embedded side, we we talk a lot about banking as a service, but in reality, I think that's only a real fraction of what embedded financial services can look like. And on the AI side, I think people have got very excited about some of the less interesting use cases, frankly. So the customer support type type use cases. I think there are really interesting use cases out there around the way in which you direct payments around the world, the way in which you enable people to interact with complex product documentation or data at scale. And I think we're only just scratching the surface of of what we can do in those in those fields. [00:47:43] S0: I agree. Sometimes people forget the boring, but the boring is actually exciting. The world is based on boring processes that that can be can be massively optimized. Valentina, what's next?
00:47:43 · David Barton-Grimley, Valentina Kristensen
[00:47:43] S0: I agree. Sometimes people forget the boring, but the boring is actually exciting. The world is based on boring processes that that can be can be massively optimized. Valentina, what's next? [00:47:53] S4: So I'm I'm sort of trying to think of something that not everyone else will have have mentioned. And I sort of think it's using all of those things. It's using AI. It's using embedded. It's using real time context, etcetera, to actually kind of go back, whatever, fifty, sixty years to relationship driven banking, more Main Street versus Wall Street. Because for customers of this size, the relationship is so important. If you want to cross sell as a bank, you need to have those relationships with the customers. If you're a business that wants to borrow tens of millions of pounds, you're going do it from a bank that you have a relationship with. And there's sort of this irony that we have relationship managers who don't seem to have relationships with anybody anymore, because everything's sort of centralized decision making. So I'd sort of say it's using a lot of the tools, technologies, new processes to go back a few decades in some ways with relationships. I think those are just so important for customers of this size. It's how you're going to build it's how you build that trust. It's how you know, get that customer to ultimately want to use more of your products and services, and stay with you for decades. [00:49:04] S0: Very interesting, in some ways, rewinding the clock. Sarah, echoing what the other two said, or what's next?
00:49:04 · David Barton-Grimley, Sarah Kocianski, Pranav Sood
[00:49:04] S0: Very interesting, in some ways, rewinding the clock. Sarah, echoing what the other two said, or what's next? [00:49:11] S3: I think building on them probably, there's two things for me. One is responsibility. And I use that term rather than ESG because ESG is a minefield, and it means many different things to many different people. But I think innovation needs to be responsible. I think you need to think about what impact it's going to have and on who. And that links to my other point, which is what people need to ask why more often. Why are we doing this? Then you can talk about the how. Then you can say we are doing it. Okay, how do we do it? We use generative AI or whatever. But the question that I don't think gets asked often enough is why are we doing this? Is this just innovation for innovation sake? And that takes you back, that takes you kind of deeper, I think, into the level of innovation that we talk about a lot and always have done at 11FS was what's the culture? Like what is the culture of innovation and how are you getting to your decisions and what is the process? And are you rethinking your processes? And that just kind of comes back around again to this question of like, are you doing it? If the answer is because everybody else has got one, that's not a good enough answer. [00:50:14] S0: And on that note, the big why, that wraps up today's discussion. Thank you so much for joining me, everyone. Where can people find out more about you and your companies, Pranav? [00:50:24] S2: Airwallex.com. [00:50:26] S0: And Sarah?
00:50:26 · David Barton-Grimley, Sarah Kocianski, Valentina Kristensen
[00:50:26] S0: And Sarah? [00:50:27] S3: I am still hanging around on X or whatever we're calling it today at Sarah Kochansky. But you can also find me at threads on the same handle and on LinkedIn. [00:50:36] S0: And Valentina? [00:50:37] S4: Yeah. You can find me on LinkedIn. And if you wanna find out more about Oak North, it's oaknorth.com. [00:50:43] S0: And you can find me on LinkedIn as well at david b g or on 11fs.com. Thanks for listening, everyone. And if you like what you've heard, follow our podcast and don't forget to leave us a review. It helps us to make it better and helps others to find the show. As always, if you want to join the conversation, find us on social media. Just search for eleven f s or Fintech Insider or email podcasts@11fs.com. Thanks very much and goodbye.