Finnovating’s CEO in the MIT FinTech Conference

Finnovating‘s CEO Rodrigo García De La Cruz was invited to the MIT FinTech Conference 2022 to talk about Finnovating the pioneering Matching as a service platform. In this enterview we will go throw the topics he exposed in their participation:

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What excites you about the space, and tell us about things you’re working on.   

I’m a passionate of the technology this is why 10 years ago I decide to jump into the FinTech sector, leaving behind 15 years in banking (Citibank, Barclays and Santander) and come back to my engineer core.

To swim this wave, I launched and fail with different FinTech, I also invested in a dozen and defending the rights of the FinTech in front of the regulators cofounding and connecting FinTech alliances connecting +50 Europe and Latam countries.

I realized that I have to go forward and connect the ecosystem in term of business: This is why I create Finnovating, a B2B Matching as a Service platform that connects 70K FinTech, corporations and investors of the world.

 

Could you tell us about the segmentation of B2B FinTech and how to think about different kinds of players? 

Let’s think about how big this sector is:  following the data of our platform 70% out of the 50,000 FinTech have B2B business models. And between them, there are more than 2,000 SaaS companies following the Finnovating community.

So how can we classify them following their evolution:

1. the B2B and B2E embedded finance with services for SMEs/corporations,

• most of them are pure B2B SaaS business model: BaaS, Card, payments, compliance as a Service
• Others are B2E (Business to Employee) SaaS: payroll advance, bonuses and expenses management, employees’ program for engagement & benefits…
• And B2G (Business to Government) SaaS for public companies.

2. the B2C or B2B marketplaces: those that connect services providers with customers or companies: lending (Lendio), savings, Deposits (Raising), mortgages aggregators…
3. The transactional platforms (MaaS): Open platforms that connect and facilitate the collaboration between all the B2B FinTech and companies, like Finnovating.

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B2B is inherently fragmented by verticals that have unique needs.  How do players get scale in this ecosystem both from a product and vertical perspective?

The B2B is booming right now, there are more than 300 types of different vertical activities merging and melting between them. The challenge is the balance between create sustainable value to your clients in a pure digital way and scales these relationships.

It is necessary to compete on value ant not on price, as an important differentiation of B2C. You will be able to create more value to your clients and grow without expending to much in mk. Competing in prices is a looser strategy in B2B, except you are launching a platform where the winner takes it all.

 

 What are the operational hurdles that b2b FinTech have to get right and main failure modes to watch out for?

I have some good news. There is a great investor’s appetite for B2B FinTech and

• Bad news: More difficult to scale and digitalize the full process. More difficult to reach the final decision maker, it’s not about expending in mk.
• The secret sauce that is working in Finnovating: using very tested strategies of B2C to B2B, and build a brand that connects with customers on an emotional level. At the end, behind every company there is a person who decide.

 

What are the talent challenges and biggest skill gaps in the market?

There is a battle for talent. 10 years ago the main challenges for FinTech was the regulation. 5 years ago, the main problem was capital. Today the main challenge ising the right talent.  The best talent is chosen between a big corporation, working in the tech/FinTech side or becoming an entrepreneur. The talent is the key for the success of your FinTech, and the battle is going to last until we create human robots to substitute us.

 

Tell us a little bit more about Finnovating.

Finnovating is about the need that the SMEs, Corporations, Financial institutions and Governments need to collaborate with the B2B FinTech as an accelerator of their digital transformation. This is why we have launched Finnovating a pioneering B2B Matching as a Service (MaaS) platform that connects all X-Tech in the world (70,000 FinTech, InsurTech, PropTech…) with corporations (banks, insurances, associations, regulators…) & investors to reinvent the way of connecting, investing & doing business worldwide.

After only 9 months live, thousands of Finech, corporations and investors from 121 countries are being part of the platform doing business and reinventing the way of scaling the companies with a global impact.

 

What makes you happiest about launching Finnovating

Without a doubt, supporting thousands of FinTech to growth in a very sustainable way, helping them to scale in order to create a better society.

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