So nice to see you! Let me welcome you to the #1st edition of Pocket Change - a fintech newsletter made by the Netguru team.
But first, do you love #hashtags? If you do, send a word to your friends about the newsletter and tweet #PocketChange. If you don't, don't tweet, but send a word anyway.
This is the 1st issue, so expect changes and upgrades in the future. And feel free to share your feedback.
This week, you can read about:
✅ How a French startup paved its way to the $79m funding and its own language;
✅ The one global trend that is leading to a new wave of digital challenger banks;
✅ What Uber’s push into fintech may mean for Monzo and others
✅ Two charts to prove whether PayPal is flying or dying
✅ Why Africa is hot and who’s on the top 10 list in the region
✅ How to sell to fintech companies (it works with any other industry as well!)
Among the fintech crowd, PayPal looks like an old dog. Yet the company which was once treated only as a side dish to eBay is definitely capable of learning new tricks. See any signs of hiccups there?
PayFit is a fintech startup from France that has evolved from a simple payroll service into an HR platform used by almost 3,000 companies across Europe. PayFit recently raised a new $79 million funding round and in 14 months PayFit grew from 60 to over 200 employees.
In a rare self-written case study, Florian Fournier, CPO and co-founder at PayFit, shared:
✅ Why they decided to create their own language in the first place?
✅ How the company tries to ensure alignment of the product vision within all teams?
✅ What helped them realise that things considered as priorities (eg. a mobile app) turned out to be secondary for customers?
✅ How the new role - at the intersection of Product Manager, Product Designer and Software Engineer - was created?
✅ Why the product was split into two and then quickly merged again
✅ Some metrics and reasoning behind PayFit’s expansion beyond the French market
✅ Why the company is moving from a top-down approach (priority developments defined by product managers) to a bottom-up approach.
Financial literacy is trending. And industry unicorns are rushing to expand their customer base with youths and kids.
And there is a slew of startups focused on younger users - the likes of Greenlight, Hibbo, or Current.
Why does it make sense to focus on kids?
For one, to grow the brand as they grow.
“Schools don’t teach kids about money. We want to be their first bank accounts with spending cards, but we also want to teach financial literacy and responsibility.” - CJ MacDonald, the CEO and co-founder at Step, explained.
There are good numbers behind this reasoning - see more in our “The State of Banking for Families” report. There is a chance that you'll fall in love with Pockee, the proof-of-concept app for family banking by Netguru, too!
Yet, making money more relatable and redesigning children’s accounts are also on the corporate agenda. More in an interview with Dan Makoski, Chief Design Officer at Lloyds.
But financial literacy does not involve only the younger users. For instance, check Canada.
And there is this one Canadian startup, Mogo, which believes that globally this trend is leading to a new wave of digital challenger banks.
What is the opportunity that they see? Providing one finance app that makes it easy and engaging to get financially fit. Learn more on the conference call transcript.
Angel Santodomingo - EVP and CFO at Banco Santander at the Q1 2019 earnings call
“If it’s not a bank, it's going to be a fintech. If it's not a fintech, it's going to be one of the big communications or media or social media companies. Competition is going to be here, and it is going to be intense (...). We welcome that. It makes us better.”
Oh, and by the way. If you believe that Machine Learning in Finance is a thing (we do!), my friends at Netguru are organising free workshops in London.
12th July 2019 at Level39, London
Well, that’s pretty much all.
Hope you enjoyed this issue – Pocket Change is semi-regular, so the next one will appear in 2-4 weeks’ time.
I’ll be happy to see what you think.