Putting the Fin in FinTech
by Tom McCole
Fintech companies are typically on the razor’s edge of payment technology advancements. They see solutions to problems with their future-facing vision and act on it. Fintechs develop and deliver new methods and better solutions of accepting and processing payments of all types. They create new products and services using the latest software tools and hardware advances to solve new and age-old problems alike. Recent innovation examples include AI, SoftPOS, open banking, real-time payments, and biometrics applications. Best of all, they create better efficiencies for both merchants and consumers.
Despite their product vision and technical prowess, fintechs often lack the business experience to capitalize effectively on their technologies. First and foremost, every project requires capital. When the friends and family seed capital dries up, external funding sources are needed to bring the product to market. This process mandates new skills and relationships that young fintechs often don’t have.
Today, raising capital is a challenging process even for large companies. Investors such as private equity firms, family offices, private investors, venture capital sources, or even potential customers use a different vernacular than heads-down technologists. They will want to know market segments, market size, market strategy and tactics, competition, revenue and profitability forecasts, headcounts, and the all-important exit strategy.
Most fintechs need help navigating the labyrinth of investor opportunities as well as the sales, marketing, and execution mandates for success. Fortunately, there is expert help available in the form of fintech advisory firms to aid in capital raises, business plan and strategy development, marketing tactics, and product delivery. FAs are deeply connected in the industry and will introduce and recommend their clients to senior industry executives to speed the sales process. Most importantly, FAs can provide the practical execution path that investors invariably demand.
The three fintech advisory firms listed here are highly recommended based on both their range of experience and their varied services:
Global Fintech Advisors offers private equity advisory services to fintechs for product launch, sales growth, and business expansion opportunities. They also provide tactical product execution and delivery experience to support a fintechs management team. Moreover, GFA can help develop professional due diligence materials for a successful capital raise or acquisition.
Managing Directors Sandra Blair and Michael Reed have decades of payment industry management experience and can be an invaluable source of advice and support.
Atlantic Fintech Advisors provides “Instant Payment Strategy” services using Real Time Payments and FedNow payment options for banks, billers, and fintechs. They develop risk management plans, perform market research for data-driven decisions, strategy and growth consulting, sales training, and payment vendor sourcing and optimization.
AFA is led by Peter Gordon, Founder & Managing Partner. Peter has vast experience in payments and banking technology serving in senior executive roles in banking, payments, and technology. Peter was also on the Steering Committee of the 2015 Federal Reserve’s Faster Payments Task Force.
Wellesley Hills Financial presents itself as an investment bank for a digital world, providing its services to value-added financial technology firms in the lower middle-market. They are focused on value creation and realization through all phases of the business life cycle: inception, maturation, and exit. WHF’s strategic advisory services include valuation analysis, fairness opinions, due diligence, and restructuring services. They also offer buy-side and sell-side M&A planning and process management services.
O.B. Rawls is a long-term payments industry veteran and has assisted and advised many young tech companies reach the next level.
Tom McCole is a veteran payment technology executive and business development consultant based in Atlanta. Tom@mmtmagonline.com
