Xccelerating Fintech Innovation in Australia with x15ventures

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

David Birch Defines Metaverse

"The metaverse is going to be built with an identity layer and a value layer, making it a safer and more secure place to do business."

- David Birch

It's hard to cut through the hype and tripe of the Metaverse. In this episode Dexter Cousins chats to David Birch to define Metaverse and explore what it actually means for the future of money.

What they unpack is an exciting and tangible new internet that holds incredible potential for Fintech businesses, individuals, and society as a whole.

About David Birch

David Birch is an author, advisor, and commentator on digital financial services. He is the author of several books, including "The Currency Cold War", "Identity is the New Money" and "Before Babylon, Beyond Bitcoin." Birch is known for his expertise in digital identity, digital money, payments and the future of money.

"Tokenisation is going to be much bigger than Blockchain."

- David Birch

Metamoney: Payments in the Metaverse

David Birch defines the metaverse and its potential impact on financial services. He shares his journey of exploring web 3, the metaverse and digital identity writing a research paper and book on the topic with Victoria Richardson.

David explains the difference between virtual worlds, gaming and the metaverse, emphasising web 3 is essentially the infrastructure of the metaverse. What makes the Metaverse compelling is the concept of property ownership via tokenisation, digital wallets and digital identity.

David also highlights the potential for tokenisation leading to vastly reduced transaction costs and increased security. And a key reason why major banking institutions are taking tokenisation and stable coins very seriously. David also discusses the role of AI and smart wallets in shaping the future of financial transactions for society, acting as a personal financial advisor and handling every day transactions.

Key Takeaways:

David Birch is on a tour down under August 2023 and will be making appearances at Intersekt and a number of exclusive events (details below)

Thanks to PayEd https://payed.biz/ for bringing you this podcast. You can catch David Birch in person at the following events:

You can follow David's work -
visit www.dgwbirch.com
writing David's Books/Magazines/Articles
twitter David Birch

Brazilian Fintech Pismo Launches in Australia

"We are the most modern financial services platform on the planet."

Vishal Dilal, Pismo

Dexter is joined by Vishal Dalal, CEO International Business for Brazilian Fintech, Pismo. Pismo hit the headlines recently after it was announced Visa is acquiring the business for US $1bn.

Pismo offers Next-gen banking and cards technology through a truly cloud-native API platform. Pismo was founded in 2016 by experienced entrepreneurs and techies. They are a global company headquartered in São Paulo, Brazil, with offices in the United States and the United Kingdom. Vishal shares Pismo's plans for the region after they recently announced details of a partnership with Australian SME lender Grow Finance.

Dexter and Vishal also discuss:

- Pismo's rapid growth 🚀
- The rise of Brazilian Fintech 🇧🇷
- The attraction of Australia to Fintechs like Pismo 🤝
- How Australia is perceived as a Fintech nation 🇦🇺
- Does Australia have the best coffee in the world ☕️

About Vishal Dalal

☕️ According to Vishal, Australia has the best coffee in the world! As an Australian resident himself, he can confirm that nothing beats the coffee here. #FintechChatter

Vishal has a distinguished career in global financial services including stints with Citi and Barclays in London.

Vishal spent 5 years in Australia with McKinsey on major banking transformation programs. He joined Pismo in 2021 and is passionate about bringing Pismo's innovative technology to the Australian market.

For more information https://www.pismo.io/

Fintech Job Market Advice With Claire Alexander

Dexter Cousins is joined by Claire Alexander, founder of Coach Claire. She's here to share her secrets on how to navigate the fintech job market. 

About Claire Alexander

Claire is a Global HR and Tech Talent Executive, Career Coach and ex-Employment Lawyer. She's also the founder of Thinktechstartup, an HR advisory business supporting tech startups turning into tech scaleups. Claire was previously Global Head of talent for Fintech unicorn Zip.

A Break Down of the current Fintech Job Market

Claire shares her top tips on how to stand out in the job hunt, from engaging with potential employers online to the power of networking. We'll also be breaking down the pros and cons of LinkedIn's 'Open to Work' badges, the role of recruiters, and the art of approaching companies strategically. 

But that's not all. We're also addressing the tricky path of job applications and interviews. How do you follow-up without annoying recruiters? How do you handle rejection? And, most importantly, how do you determine your worth when evaluating a job offer? 

With Claire's expert advice, we discuss how understanding your motivations for wanting a job can aid in salary negotiation. This episode is an absolute treasure trove of practical, actionable advice – don't miss out!

Breaking New Ground in Procurement with Anility

Dexter chats to Patrick Connolly, the founder and CEO of  Anility, an innovative SaaS business helping procurement and contract managers to evaluate the financial health and corporate structure of third-party service providers.

About Anility

Anility is a software-as-a-service company that is innovating in the financial viability space. We produce reports that are used by procurement and contract managers to assess the financial health and corporate structure of third-party service providers that tender on public and private works.

Financial viability assessments are a mandatory part of most procurement processes. Our value proposition is to levearge technology to offer a faster, affordable and more user friendly solution than our competitors.

Find out more - https://www.anility.io/

About Patrick Connolly

With 10 years of experience in the financial viability space and 5 years as CEO of Anility, Patrick Connolly is a seasoned professional in the industry and a thought leader within the space. In his free time, Patrick challenges himself with ultra endurance events that test his mental toughness and help strengthen his entrepreneurial mindset.

Patrick sees a parallel between the sacrifice, resilience, and determination needed to succeed in these events and the qualities required to succeed as an entrepreneur. He combines his financial expertise with his well-rounded perspective to bring a unique approach to financial viability.

How to make the Fractional Executive concept work for your Fintech startup.

What is a fractional Executive?

I’ve recently seen the term Fractional Executive marketed as the panacea to a fintech founders growth challenges. And whilst the term seems to be gaining steam on LinkedIn, it is yet to fully hit mainstream.

Over the past decade I’ve been a big advocate for startups engaging executives on a project basis to deliver specific outcomes. I even coined the term ‘Gig Exec’ back in 2016.

The Fractional Executive - a short history!

The concept is not new, in 2008 I noticed a number of my network switching their title from 'Interim' to 'Consultant' and in 2012 from 'Consultant' to 'Virtual Executive'

Where a 'Virtual' or 'Fractional' Executive may differ from a traditional interim executive is they have asynchronous clients.

Sadly my research indicates that over 80% of founders were/are unhappy with the results when they engaged a ‘Fractional Executive’

On the surface it seems like a great idea, tapping into an experienced executive for a fraction of the cost. But there are some real challenges prohibiting successful outcomes. 

So if you are thinking of engaging or thinking of a career as a Fractional Exec, here are some thoughts to ponder:

10.1 reasons why Fractional Executives fail

1. Fractional execs charge time but are measured on outcomes

2. Fractionalised means your focus is on several missions, not on one mission. Which often results in conflicts delivering client outcomes

3. Startups are demanding, like babies - if you have 3 clients it's like having triplets - the challenges compound 

4. Fires 🔥 have to be extinguished immediately- a client can't wait for your scheduled day in the office or until you log on.

5. Our research indicates presenteeism is essential for the creative phase of company building. People need leadership and as yet the human race is still figuring out how we do that virtually. 

6. Mental exhaustion- startups present complex problems that must be solved under intense pressure. Multiple clients means multiple problems - again there is a compounding effect leading to rapid burnout.

7. People overestimate their ability to deliver and clients underestimate the size of and cost associated with the problem. This creates big expectation gaps.

8. Which leads to expectation gaps. A client will expect you to deliver the same outcome as a full time employee and usually expects the same level of commitment.

9. Lack of experience in startups. Many fractional execs come from corporate land where they are one dimensional and political. Under pressure they don't deliver, make mistakes and then blame other people or simply go awol

10. My Linkedin research shows less than 10% of fractional execs have more than 3 year's experience working this way. Startups have very different challenges in 2023 and many fractional execs may not have experienced these challenges in their careers. 

10.1 Trust or lack of - from board and founders

Here are my tips on how you make Fractional Executives work in fintech startups👇

Lakeba | Giuseppe Porcelli - Building a Successful Fintech Venture Studio

Dexter Cousins chats to Giuseppe Porcelli, the CEO and Co-Founder of Lakeba, a successful Fintech venture studio based out of Sydney.

Giuseppe founded Lakeba with a mission to conceive, create, and commercialise transformative ventures that reshape the future. Under his leadership, Lakeba offers a unique approach to technology investment, fostering disruptive ideas and turning them into profitable businesses.

Giuseppe's shares Lakeba's secret to spotting untapped opportunities which has led to the incubation and scaling of successful startups, across AI, blockchain, IoT, and other emerging technologies.

Dexter explores the Lakeba model from a B2B and B2C perspective and their approach to partnerships with major Australian corporations like Woolworths and Mirvac.

Find out more about Lakeba: https://lakeba.com/

James Foster on EzyPay's Expansion, Partnerships and Opportunities in Asia

"Our success is defined by what we decide not to do because there are so many opportunities." - James Foster


It's been two years since James Foster last appeared on Fintech Chatter. And it has been an incredible two years for Ezypay with 50% year on year revenue growth, going from 60-100 people and now operating in 9 countries across APAC.

Summary:

In this episode, Dexter chats with James about the challenges and opportunities of being a profitable business in the fintech industry. James highlights importance of focusing on solving customer pain points and making money, rather than chasing funding and growth for the sake of it.

James also shares insights on the impact of Payto, a real-time account-to-account payment platform, and how Ezypay is leveraging this innovation to improve collection rates and enhance the customer experience. He highlights the need for businesses to adapt and innovate while staying true to their core values and profitability goals.

About James Foster and Ezypay

James Foster is the CEO of Ezypay, a payment solutions company that specialises in supporting businesses with recurring customer payments. With over 27 years of experience, Ezypay helps merchants optimise collection rates, improve the customer experience, and enhance cash flow. 

James has led the company through significant growth and profitability, navigating the challenges of the fintech industry while staying focused on solving customer pain points.

Follow Ezypay: https://www.ezypay.com/


Key Takeaways:

  1. Being profitable and solving customer pain points should be the primary focus for businesses, rather than chasing funding and growth.
  2. Payto is a game-changer in the payment industry, offering real-time account-to-account payments and improved customer protection.
  3. Ezypay's success is attributed to its ability to focus on its niche market, make data-driven decisions, and adapt to the evolving payment landscape.
  4. Doing business in Asia requires understanding the unique cultural and regulatory differences in each country, as well as being open to learning from failures and making course corrections.

Chapters

00:00:00 About EzyPay

00:14:17 Navigating Complexity and Collaboration Across Locations

00:18:05 PayTo Impact and Benefits Australia

00:25:00 Expansion Strategies and Challenges in Asia 

00:40:45 Opportunities for Australia in Fintech

Decoding Remote Work - Tips on Productivity and Performance Management

Mark Lewis of Crewmojo shares his hacks on making remote work effective for startups and scaleups

Making remote work, work!

In the age of remote work, organisations are challenged to maintain productivity and engagement while navigating the complexities of virtual work environments. This insightful interview Mark Lewis from CrewMojo chats to Dexter Cousins about the evolution of performance management as we spend more time leading our employees from afar.

The traditional model of performance management has been disrupted by the shift to remote work. Employees no longer operate in close proximity, and feedback is often delayed or nonexistent.

As we navigate the choppy waters of remote work and productivity, Mark offers valuable insights. We debate the challenge of managing remote workers, the shift from daily face-to-face interactions to asynchronous communication, and the importance of carving out a clear divide between work and home life.

They also ponder the role of leadership in setting clear expectations and helping to grow their teams, the disconnect between high and low performers, and even the potential of a four-day work week.

Mark and Dexter explore the evolution of performance management within hybrid work models, and how to build a mutually beneficial relationship in your organisation. The chat dissects the power dynamics between employers and employees, and discuss how to get work done effectively as if there was no hierarchy. Looking at the design of a flexible work policy, Mark highlights the importance of aligning individuals, teams, customers, and company, and how to negotiate in a way that benefits all parties. Join us on this insightful journey, where we rethink traditional work norms and discover new paths to productivity and staff engagement.

Chapters

About Mark Lewis

Mark is a people focused entrepreneur with a passion and curiosity for discovering new approaches to traditional ways. He likes a good challenge and has a need to continually improve himself but he really gets his kicks when he sees the team around him truly succeeding.

That's why Mark started Crewmojo, Performance development for the modern workforce. The Crewmojo platform helps leaders engage and motivate  employees with a real-time continuous approach to employee performance.

Previously a co-founder of IP Payments which rapidly became the go-to organisation for complex corporate payment solutions. In 2015 IP Payments was successfully acquired by Bambora Group, an entity of Nordic Capital.

To find out more about Crewmojo go to: https://www.crewmojo.com/


Australian Fintech News - July

Dexter Cousins is joined by cohost Simon Lee of Patona, our newest member of the Fintech Chatter crew, to bring you our new monthly Fintech News show.

As England and Australia thrash out the most hotly contested Ashes in decades a Geordie and a Kiwi are bringing a Baz ball approach the Fintech News!

Dexter and Simon discuss the biggest Australian Fintech News:

- Parpera and Prospend on the Wise Platform
- Revolut launching in NZ
- The state of Aussie Fintech funding
- Why so many Fintech CEO's are resigning

Plus Dexter and Simon quiz themselves on their command of the Aussie language!

Join us every month as we discuss the latest news, insights, hiring, firing, capital raises, product launches and more.

Brought to you in partnership with Patona - The #1 platform to hire, manage and pay teams

The Impact of Generative AI on Startups - Sam Zheng of Curious Thing

About Sam Zheng

Sam Zheng is the CEO and co-founder of Curious Thing, an AI startup that specializes in automating phone calls for businesses. With a background in statistics and actuarial work, Sam has extensive experience in the AI field and has previously co-founded another AI company called Hyper Anna.

"Start with your most painful problem, analyze that, and identify whether AI is your solution."

- Sam Zheng

About Curious Thing

Curious Thing started in July 2018 after the three founders asked each other, “What if we can make an AI curious?”

Seeing the limitations of today's intent-matching AI framework, they sought to build an AI that is designed to ask open-content questions and derive insights from people.

Today, the platform allows businesses to redefine how they communicate with their customers through proactive engagement. Curious Thing has processed over 3 million minutes of AI-human conversations and the team has grown to over 30 members.

Episode Summary

In this episode, Sam discusses the current craze around AI and the impact it is having on various industries. He also shares his journey as a founder, from his previous AI company to his current venture. Sam talks of the importance of solving real problems with AI and the need for a pragmatic approach. He also discusses the evolution of AI technology, particularly in the field of natural language processing.

The conversation touches on the potential impact of generative AI on jobs and the workforce, as well as the role of creativity in the age of AI.

Dexter and Sam also explore the challenges of transitioning from a CTO to a CEO and the importance of continuous learning and development.

Key Takeaways:

Fintech Partnerships | Anthony Jones of Visa

Visa's Anthony Jones Discusses Fintech Partnerships and Global Expansion Opportunities with Dexter Cousins in this new series of Fintech Chatter Podcast.


Visa's Head of Digital Partnerships for Australia, New Zealand, and the South Pacific, Anthony Jones, joins Dexter Cousins on Lets Chat... - a new series where we bring in the experts to discuss key founder challenges.

Anthony talks about Visa's role in the fintech ecosystem, the company's focus on digital partnerships, and their support for non-bank financial institutions and scale-up fintechs.

They also cover global expansion of fintechs, the challenges they face, and the importance of market fit. Anthony shares insights on Visa's involvement in the crypto space and their interest in digital assets. He emphasises the need for fintechs to have a strong product-market fit and to consider partnerships and outsourcing to navigate challenging market conditions.

"We've seen some amazing innovation out of the Australian market over the last five or six years."

Anthony Jones - Visa

About Anthony Jones

As the Head of Digital Partnerships for Visa Australia, New Zealand and South Pacific, Anthony and his team focus on Visa’s new-to-market partnerships including neobanks and fintechs, as well as the client co-creation process.

Anthony is responsible for leading Visa's strategy on collaborative product design to deliver market-leading payment experiences for clients. As part of this, he works with Visa’s global team to develop the next wave of digital and data-driven payment capabilities.

About Visa

Visa is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement.