07 Nov First Holland FinTech meetup report: “Fintech is the enabler of change”
The vibe was warm, the mood laid-back. 23rd October saw the kick-off of the first Holland Fintech meetup, the international network for financial innovation and technologies based in the Netherlands. Some 100 entrepreneurs, investors and those interested gathered to hear Peter Kwakernaak (AcceptEmail), Shikko Nijland (Innopay) and Radboud Vlaar (Orange Growth Capital) discuss the cutting edge of fintech. “Don’t rule out Holland!”
With its trompe-l’œil imitations of marble reliefs, the gilded Rockstart Spaces Ballroom, lavishly located at the Amsterdam Herengracht canal, reflected the wealth and status of its former seventeenth-century owner. The speakers’ minds were focused on one thing, however: disrupting the status quo of the world’s largest industry sector – financial services. With global investments in the sector reaching nearly USD 3bn last year, fintech is well-positioned and growing faster than any other segment of the tech industry. Meet today’s movers and shakers of the Dutch fintech market.
“We do need money, but we don’t need banks”
Don Ginsel, founder of Holland FinTech and host, kicks off by introducing Richard Wagenmakers, Head of KPMG’s Forward Thinking group and a member of KPMG’s Innovation Board and closely linked to the start-up network, digital consulting and early-stage technology team. Richard quotes Chris Skinner, the independent commentator on financial markets (www.thefinanser.com) who said back in 2010: “We do need money, but we don’t need banks.” Richard says fintech has the unique capacity to transform customer experience and service delivery for the benefit of customer satisfaction. Financial institutions will have to adapt to this new reality.
AcceptEmail: bill payments made easy
A seasoned entrepreneur with a track record of founding NetEconomy (now Fiserv) and MaXware (now Clear2Pay), AcceptEmail’s CEO Peter Kwakernaak takes us back to the early days in 2007. The ‘Acceptgiro’ credit transfer system used to be a Dutch household name, with an acceptgiro being accepted to pay all kinds of bills. In those days, 75% of all paper bills were re-entered into online banking applications instead of being filled in with a pen. Kwakernaak: “It involved re-keying data and sending it by traditional mail to be processed. This inspired us to do it differently and better.” However, commercial banks refused to support the initiative financially. Kwakernaak: “Whenever someone says ‘this is a bad idea’, it is the best motivation to start a new company.”
Recognised by The FinTech50
Today, in a 3-click process, an AcceptEmail is paid without manual data (re)entry, resulting in substantially lower DSO and lower collection costs for the biller. Kwakernaak: “The company got a real boost when it was recognised as one of The FinTech50 (http://www.fintech50watchlist.com).” Today, the billing industry is moving towards digitalization under the influence of SEPA and shifting to the business-to-consumer and business-to-small business sector – which really helped AcceptEmail. What’s more, billers, including all major Dutch utilities, are open for a multi-channel approach towards billing – giving customers a choice for payment. AcceptEmail is currently considering to export its concept abroad. Kwakernaak: “Remember to Think Global – which means: use one platform – but Act Local, which is still very true.” Website: www.acceptemail.com
“PSD2 drives the need for ID innovation”
“Payments in 2020 are not about money, it’s about the level of sophistication of identity.” Says Shikko Nijland, managing partner of Innopay, the leading strategy firm specialised in online and mobile payments and related transaction services. Its mission is to improve the transaction services industry in close, open collaboration with stakeholders. As an example, Innopay has been instrumental in conceiving, designing, launching and maintaining the Dutch e-identity trust framework called ‘eHerkenning’ (‘eRecognition’). This trust framework of e-identity providers is live for government and business markets since April 2010, identifying both entities as well as individuals. Innopay believes that e-identity is unnecessarily complicated and payments could show the way forward.
“Unbundling of payment and authentication”
Shikko Nijland presented some interesting perspectives on the payment transaction industry. One is the unbundling of payment and authentication. Another one: ‘European regulation drives the need for ID information’. One of the regulatory drivers is the second Payment Services Directive (PSD2) to regulate payment services and payment service providers throughout the EU and European Economic Area. According to Shikko, digital identity is the next big opportunity for banks and also for fintech companies. Digital identity is only just recently seen as a transaction service. Different solutions are emerging. Adopting a network approach to digital identity creates a completely new perspective – and Innopay will be on it. Website: www.innopay.com
8 major trends to watch
“Why financial services? In this sector, more than a trillion is made as annual profit and the sector is quite inefficient.” Meet Radboud Vlaar, partner at Orange Growth Capital (“OCG”), the fintech investment firm, operating from its offices in London and Amsterdam. Founded in 2013, OGC invests in high-growth companies primarily in EMEA, usually investing after the seed round. Its investments range from EUR 250,000 to EUR 10mn over the company’s lifetime and typically represents a minority stake of 15 to 25%. OGC’s investment portfolio includes companies such as Zurich-based Knip, Moni Technologies (www.moni.to), BUX (www.getbux.com), ZOPA (www.zopa.com) and Komparu (www.komparu.com).
Creating a financial ecosystem
Radboud highlights London’s position as the predominant place of fintech. “Here, the government facilitated seed phase start-ups by providing fiscal arrangements which helped to create a financial ecosystem.” In the Netherlands, angel phase companies are actually missing. On the other hand, the Dutch payment and transaction sector and trading platforms industry have high international esteem. As for trends, Radboud sees investment potential in eight areas. Some major trends include lending platforms, mobile, biometric security and cryptography, the latter ones particularly in relation to payment transactions. Check out the other trends here: http://ogc-partners.com/news-2/
“Fintech as the enabler of change”
In his concluding remarks Don Ginsel said: “As for today’s big gap in inequality, help is on its way through technology. In this process, fintech is the enabler of change. It has the power to disrupt supply chains, bridge gaps and make things less complicated for consumers.” He maintained that Holland Fintech aims at a similar profile in tune with the ‘Holland, gateway to Europe’ concept. Some of his objectives are to get the Dutch regulators on board, align with academia and with the London-based fintech ecosystem. Don Ginsel: “Don’t rule out Holland: we will team up with London and make our own mark!” See you soon at the next Holland FinTech meetup.
About Holland FinTech
Holland FinTech, founded by Don Ginsel, is the international network for financial innovation and technologies based in the Netherlands. The first Holland FinTech meetup was sponsored by KPMG and Rockstart. Website: www.hollandfintech.com; Twitter: @HollandFinTech
Tags: fintech, HollandFinTech, innovation, Amsterdam, KPMG, Rockstart, change
