Mark Macduffie joins Dexter Cousins on Fintech Chatter to discuss Downsizer, a platform that helps homeowners and retirees with enough equity in their current house buy their next house with zero cash deposit.

Downsizer solves the problem of housing affordability by qualifying retirees and downsizers using their proprietary technology to prove that they have sufficient equity to buy their next house. The platform aims to simplify the process for downsizers and help free up 1.7 million households in Australia.

Downsizer Helping Retirees and Homeowners:

• Downsizer helps homeowners with enough equity in their current house buy their next house with zero cash deposit.
• The platform solves the problem of housing affordability by qualifying downsizers and retirees using their proprietary technology.
• Downsizer aims to free up 1.7 million households in Australia and have a cooling effect on the housing market.
• The platform uses a blend of digital technology and a financial instrument to simplify the process for downsizers.
• Downsizer is in pilot phase with mortgage brokers and is partnering with real estate agents to handhold downsizers through the process.

About Mark Macduffie

Mark Macduffie is the co-founder of Downsizer, a unique blend of digital technology and a financial instrument that helps homeowners with enough equity in their current house buy their next house with zero cash deposit. 

Mark brings a wealth of knowledge and expertise to the Downsizer team.  A digital, data and innovation executive with 30+ years of experience delivering products and solutions in five countries across multiple business and financial sectors. 
 
Find out more: https://www.downsizer.com/

Dexter Cousins recently interviewed Ben Webster, the founder of Insurtech AGILE Underwriting, (a Lloyd's cover holder, MGA, and Insurtech company) on Fintech Chatter. Ben has been a pioneer in the industry and has built a reputation for his expertise in niche insurance markets. We discuss AGILE's unique approach to insurance, the challenges of distribution, and the future of the Insurtech ecosystem.

AGILE Model: Niche Insurance, Diverse Portfolio

AGILE specialises in niche insurance products, focusing on areas that are often overlooked or under-serviced by traditional insurers. Ben explains, "We work in really niche insurance markets, such as pilot personal accident insurance, wedding insurance, scaffolders insurance, vacant land insurance, and many more." This approach sets Agile apart from the mainstream insurance industry, which tends to focus on more common products like home and motor insurance.

When asked about the decision to focus on niche markets, Ben explains, "There are a lot of reasons for this, but one of the main ones is the diversity it provides. During the COVID-19 pandemic, while our travel insurance business suffered, our diverse portfolio allowed us to ride the wave and come out stronger. Additionally, at the heart of every insurance policy are similar fundamentals, such as insured parties, coverage periods, and events covered. Once you have these fundamentals in place, the individual rating factors for each product are what vary."

Overcoming Challenges in Distribution

One of the biggest challenges for any Insurtech company is distribution. Ben acknowledges this, stating, "Once you have the pipeline of finding capacity and building a product, the hardest problem is distribution." He goes on to explain that launching a product can take 18 to 24 months, and even after all the hard work, it can be met with silence. To overcome this, Agile has developed strategies to validate products early on and ensure there is a market demand. Ben also emphasizes the importance of brokers in their distribution strategy, as they play a crucial role in reaching customers.

The Entrepreneur Flying Under the Radar

Throughout the conversation, it becomes clear why Dexter Cousins considers Ben one of the most under appreciated entrepreneurs in the ecosystem. His ability to navigate the challenges of the insurance industry, his focus on building a strong company culture, a track record in bootstrapping and growing businesses and his resilience in the face of adversity are all qualities that set him apart. Ben's experience in the industry, from his early days at WorldNomads.com to his current ventures, has shaped his approach to entrepreneurship and has earned him the respect of his peers.

The Importance of Finding the Right Talent

Finding the right talent is another challenge that Ben has faced throughout his entrepreneurial journey. He explains, "Insurance is an incredibly siloed industry, and there is a gender imbalance in senior positions. We hire specialists, but we also look for generalists who can work across departments. We invest in training juniors to develop a well-rounded understanding of the industry. However, finding the right people is not easy."

Dealing with Failure and Moving Forward

Ben's journey has not been without its share of failures. The impact of the COVID-19 pandemic on his previous venture, Insured By Us, was particularly challenging. He had to make difficult decisions, including letting go of a talented team. However, Ben's stoic mindset and focus on what he can control helped him navigate through the tough times. He emphasises the importance of learning from failures and using them as stepping stones to future success.

The Future of Insurtech

Looking ahead, Ben believes that the Insurtech ecosystem needs to evolve at a faster pace. He highlights the need for regulatory changes to make it easier for startups to enter the market. Ben also sees potential in parametric insurance, which simplifies the claims process by providing predefined payouts based on specific events. He believes that this approach can help bridge the gap between insurers and customers, making insurance products more accessible and transparent.

In conclusion, Ben Webster's journey in the Insurtech industry is a testament to the resilience and innovation required to succeed in a rapidly evolving landscape. His focus on niche markets, commitment to building a strong company culture, and ability to navigate challenges have positioned AGILE as a leader in the industry. As the Insurtech ecosystem continues to grow, Ben's insights and experiences will undoubtedly shape the future of the industry.

Note: This article is a transcription of a conversation and includes direct quotes from Ben Webster. The views and opinions expressed in this article are those of the speaker and do not necessarily reflect the official policy or position of Fintech Chatter.

Welcome to another Fintech Shot brought to you by Fintech Chatter, the show for all things Fintech Down under. In this episode, we are joined by Toby Norton-Smith of x15ventures to discuss the Xccelerate program and its focus on advancing Australia's transition to net zero. x15ventures is the venture arm of Commonwealth Bank, and their mission is to build, buy, and invest in ventures that can scale through access to the assets of CommBank. With a portfolio of eleven companies, x15ventures is making significant progress in the fintech space.

The Xccelerate program, which has been running since the launch of x15ventures, is designed for earlier stage ventures that are not yet ready for the heavy handling involved in plugging into ComBank's distribution network. The program helps these startups explore the potential for enterprise partnerships and provides guidance on becoming enterprise-ready.

The Opportunities and Challenges of Partnership with Banks

Partnerships with major banks are often seen as the holy grail for fintech startups, offering access to a large customer base and potential scale. However, Toby Norton-Smith cautions that there are trade-offs involved in such partnerships. He emphasises the need to set realistic expectations and highlights the regulatory scrutiny that banks face, which startups must also adhere to when working with them. Norton Smith explains, "You effectively sign up to the same standards of risk management and compliance that banks face."

He also acknowledges that not all startups are ready for or interested in corporate partnerships, as some founders prefer to build their ventures independently. However, for those who see the value in such partnerships, Norton-Smith believes there are significant benefits to be gained. He notes that corporates, including banks, have an appetite to do more in the climate tech space but often need help with measurement, traceability, and finding the right solutions for their specific industries. This presents an opportunity for startups to provide the expertise and tools that corporates require.

Accelerating Australia's Transition to Net Zero

This year, the Xccelerate program has a specific focus on climate tech and aims to help advance Australia's transition to net zero. Norton-Smith highlights the nascent nature of the climate tech market in Australia, with over 200 startups established since 2020, the majority of which are still at the seed or Series A funding level. He sees a significant need for investment and customers in this space, which corporates, including banks, can help address.

Norton-Smith explains, "There's a huge requirement for capital to be deployed into the economy to help in a shift towards net zero. Banks obviously have an interest in doing that well, but they can't do it if they don't have partnerships with players who can help with measurement, generation of credits, traceability, and all the things that are needed to ensure that capital is deployed effectively."

Profiles of Startups and Founders for the Xccelerate Program

The Xccelerate program is open to pre-Series A startups that are looking for more than just investment and are open to the possibility of working closely with corporates. Norton Smith suggests that startups in the climate tech space, particularly those with a focus on measurement, traceability, and industry-specific solutions, would be a good fit for the program. He encourages founders to apply and emphasises the value of the application process in sharpening their own propositions.

Success Stories and the Commitment to Fintech Innovation

Last year's Accelerate program saw the success of Paytron, a fintech startup that was later acquired by OFX. While Norton Smith acknowledges that x15ventures cannot take credit for Paytron's success, he believes that the program played a role in preparing the startup for corporate partnerships. He shares that success does not always mean plugging into ComBank's customer base but can come in various forms.

Norton-Smith reiterates x15ventures' commitment to the fintech community in Australia. He highlights their role in providing over 200 jobs for talent and partnering with fintech companies, both consumer-focused and B2B2C. He also mentions the increasing investment from Commonwealth Bank, which demonstrates the alignment of interests and the long-term vision for x15ventures.

Apply to the Xccelerate Program

The Xccelerate program by x15ventures continues to support early-stage startups in exploring enterprise partnerships and becoming enterprise-ready. This year's focus on climate tech aligns with the growing need for capital and solutions to advance Australia's transition to net zero. It also aligns with our own research indicating ESG is a huge opportunity for Fintech startups.

With increasing investment and strategic alignment with Commonwealth Bank, the future looks promising for x15ventures and the startups they work with. With their commitment to the fintech community and increasing investment, x15ventures is well-positioned to continue to drive and support fintech innovation in Australia.

You can find out more about the program https://www.x15ventures.com.au/xccelerate