Masterclass. What is purpose in FinTech? Financial Wellbeing? And how do we have more impact? | Monica Millares

Masterclass on Purpose, Purpose in FinTech & Financial Wellbeing for social impact, with Moni Millares

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And then that will create a culture that. It's about people who are trying to bring the best of themselves, which if you think about it, if you remember, that's what Simon said at the beginning, purpose is not just about adding value, but it's purpose is about being the best version of ourselves as individuals and as companies.

connecting the dots between [: 00:01:00

Hello, and welcome back to Purpose Driven Fintech. I am your host, Moni Millares, and this is a very special episode because it is the first solo episode of the show. So let me expand over the past nine months, I've been speaking with some of the brightest minds in the industry. That's founders, CEOs, product directors, experts, and I've gotten their views about how we can build purpose driven fintechs. I've understood their customers in much more detail, and we've got in depth in these conversations.

It's been. Over 30 episodes by now so I think it's time to step back and double down on purpose and say What have we found so far? In this episode, I'm going to cover four specific topics What is purpose? What do we mean with purpose? Number two What do we mean with purpose driven fintechs?

Number three, we're [: 00:02:00

It is an episode full of insights from speaking with all the experts. If you like the pod, then remember to share, like, comment, and reach out to me with ideas, questions.

e got from that conversation.[: 00:03:00

Reduced in a few minutes. So let's start with purpose. Many times we're referred to purpose to what's our individual purpose. In this case, we're talking about the industry. We're talking about a FinTechs companies as such. So the conversation is going to be around what do we mean with company purpose?

So according to Simon, company purpose refers to the value that a company brings to the world. However, if we think about a company, the construct of a company, it's a company has a mission. They are here because of a reason, but they don't do it on their own.

se is the unique opportunity.[: 00:04:00

Not just to add value, but for a company to bring the most value that it can, and for that value to be important and lacking elsewhere. Lacking elsewhere, it's a key word, because usually we talk about innovation, we talk about differentiation, and that is the key. Concept behind innovation and differentiators.

It brings value that it's important and it doesn't exist. It lacks elsewhere and Simon continues. There's usually an insight behind this purpose and a determination to bring that value or to solve a problem so when it comes to the company as such, Simon argues that purpose is the foundation for company growth and boosting company value as well as increasing employee productivity.

But it's not [: 00:05:00

However, impact is just a measurement of the effects of that value and that direction as such. He also argues that impact is what makes a purpose worthwhile, and it also makes it strategic why strategic? We know every product has a life cycle, and then as a life cycle, it's like you build, you introduce to the market, it gets mature, and then it declines, you close it, and then basically that's the life cycle as such. However, when that company is rooted.

On purpose and impact, [: 00:06:00

So the key question is, we already work in fintech that fintech is By its nature, it is very purpose driven, as in we're here to add value to customers lives to help them relieve from the stress of money however, how do we ensure that our purpose is strategic and it's driving the most value for our customers?

So Simon leaves us with 11 questions that we can ask ourselves to basically future proof our company

company purpose? We don't do [: 00:07:00

Number two, can we really say that that value matters beyond the industry that we operate in? In the case of fintech, I think it does because money touches absolutely every Single industry , we cannot live without money, unfortunately. so it is the value that we bring to the world. It matters a lot.

Number three, how do we translate this value or purpose? into value for all of our stakeholders, including customers, employees, suppliers, society, and shareholders. I love that since the very beginning of defining what's purpose, we are putting five stakeholders, customers, employees, Our suppliers, shareholders and the community as such society.

And that's the thing [: 00:08:00

And that is key. I think as we Build not only the company proposition and mission, but as we build any new product or service or experience or feature within our offering within our apps, we should be able to step back and say, Hey, is this really aligned with the value that we want to offer to our customers for us as a company?

iding us to be the best form [: 00:09:00

We can do, like, whichever type of thing that we can. But the key question is, is this the best that we can do? And that means that we, given that the best doesn't have a ceiling, the best doesn't mean the best title or the best money or the best performance. It is the best that I can give, that you can give, that each of us as a collective can give.

So by being, but by striving to be the best, the best version of ourselves, we keep raising the bar, which that's why I love that question. Number seven, is it a strong enough purpose? Good one, right? Then, okay, once we say, yes, it's a strong enough purpose, we're being the best version of ourselves, it's helping contribute to the well being of our customers, it brings value.

Value to stakeholders, it is [: 00:10:00

And do we guide our decision making process based on our purpose? This is a tricky question. In one of my very first interviews in my very first job in fintech. This is like many, many years ago. I was, it was not asked. It was part of the conversation that it was along the lines of, Hey, there will be moments when.

st interviews, conversations [: 00:11:00

our reason of being right and sometimes there will be conflict conflicted and, that is true. So that's why it is very important that our decision making is guided by purpose, or at least that there is an element of reflecting on our purpose as we. make decisions question number nine, how is our purpose reflected in the corporate culture, internal and external communications and employee engagement?

dentity as such our identity [: 00:12:00

So if we, while at the same time, I am not saying put your identity on work. No, no, no, no, no. It's more like be a purpose driven. professional as such, e. g. someone who strives to have value in a differentiated manner. so question number 10, how do we assess our progress towards achieving those strategic objectives and our purpose?

ur OKRs, but are we all as a [: 00:13:00

In this case, well being of the world. Financial well being of the world and question number 11. How can we involve all stakeholders, including our employees, customers, suppliers, partners in the process of defining, refining and implementing our purpose? This is also a key question because like many times purpose is driven, you know, like top down, but then it's how do we ensure that every single person who is part of the ecosystem understands the purpose?

Believes the purpose and like one of my colleagues could say feels it is not enough to understand it. How do we ensure that we all feel that purpose and that is going to be a massive difference. So that is part one of the conversation. Let's go to part two.

One of my favorite [: 00:14:00

So every single one of my guests acknowledges that this is an important question. So what I want to do in this segment is basically go through you. four to five guests, comments and insights when it comes to answering the question of how do we build purpose driven fintechs. And I am going to start with Norris.

years ago. [: 00:15:00

And the problem that we were trying to solve 10 years ago was Quote, unquote, banking is broken. People have a lot of stress with money and we can do better. So that is a reminder that since the very beginning of FinTech, at least the very beginning of FinTech in the UK. The industry has been purpose driven.

e, that's why I left the big [: 00:16:00

And there was a belief that we could move the needle and that we could do something about it. So since the beginning of fintech It has been a very purpose driven industry as such. So that was Norris. So then let me continue with, Gregory from Luck. I loved his answer because he says, Purpose driven businesses of any kind depend on three things.

like three elements that are [: 00:17:00

The first one being the founders. And then he does make reference to, Hey, there's so many founders in the industry that are extremely passionate about what they do, that they are obsessed with the customer solving the problem. However, there's a few that they are just doing basically lip service to the idea of having impact.

So we most. Ensure that, especially as VCs, right, as we, as an ecosystem, as we move forward, we need to ensure that the founders, that the people that we invest, the people that we are giving them all this money to go and run with this idea. That actually the motivation to make a difference, to have impact, to be purpose driven is really there.

And it's [: 00:18:00

plant trees. Then it is, uh, [: 00:19:00

Because if it doesn't, if customers don't care, even if they have a need, if customers don't care and it's not important to them, it will not fly. So that's element number two. And then elements number three. We talk about, , regulation. So one of the themes that comes very often in the podcast is regulation

's happening now, , in order [: 00:20:00

So those are Gregory words that I absolutely love. And then we'll hear more about Gregory later when it comes to financial well being. So then I want to then jump and talk. About Sarah's Sarah King, founder of she comes back to the topic of regulation. And she argues that of course, regulation is here to help keep people safe, to protect customers and to ensure that we're doing the right thing.

er them to really understand [: 00:21:00

So this is really important to make the industry more inclusive. And why do we want to make it inclusive? So that then we have diversity of thought, diversity of ideas, such that we can come up with better ways of serving our customers. So basically. In some places we talk about accessibility of financial services.

I would summarize this conversation as accessibility of, regulatory practices, where we define the word accessibility as easy to understand. Such that then we can basically innovate within the sandbox of understanding what, you know, like, what are the rules of the game as such. Okay, so I love Amanda's answer.

Amanda from [: 00:22:00

which customer voices we're going to listen to and elevate. I love that phrase because it's not the traditional speak with your customers, know your customers, do user research. It's like, Hey, go and speak with everyone, but to be very attuned to which, which voices are the ones that we really need to listen to.

points that customers have. [: 00:23:00

it's beyond just building the feature, building the product. But she adds, it's not just about listening to customer voices, but it's also about. Listening and elevating our voices as colleagues, as employees, as fintechers, . So she argues that for us to build purpose driven fintechs, we need to build a working culture where we're all empowered to be successful.

trying to bring the best of [: 00:24:00

So I thought that kind of like now we're connecting the dots between different, different, very, very different people across the industry.

I want to then continue the conversation , with the pod that I had with David Wachira in the U. S. where he serves, underserved immigrants. , so he expands. Not only on serving customers, but he talks about solving a community based problem or a society based problem. So this is us going beyond, hey, we're going to help people, , have better savings, or we're going to help people, pay back their loans better or manage debt better.

is more on like, what is the [: 00:25:00

There is a lot of violence. because of lack of money. There is a lot of mental health problems because of money. So when we are solving the problem of financial well being and when we're solving the problem of helping people that have stress with money, what we're doing is we're helping. Our communities and society live better lives because then we're helping people have less mental health issues.

more cohesive and united and [: 00:26:00

it's a fundamental issue of something that's not being actually solved in the market. Therefore, if just like, if we think about business basically, because there will be many people suffering of this pain point, the business Will basically grow and benefit for this. So what he's saying is look beyond the problem statement around a financial service and instead look at a community or society problem such that then we can find the problem statement beyond our industry referencing Simon's words.

And lastly, [: 00:27:00

llenging to build businesses [: 00:28:00

Founders, CEOs, founding teams, C suites, employees, like it doesn't matter what's our role, we can come very excited to join this company that it's purpose driven, but actually there's going to be a point that we will face challenges and we will face many, many challenges and then purpose. Purpose is going to be not just a differentiator that attracted us to work in this company, but purpose is going to be the reason why we stay.

that the question of purpose [: 00:29:00

ewed her at the beginning of [: 00:30:00

She's a psychologist and that's her area of expertise so, the premise here is, if we are in the industry of financial well being, we cannot really solve for financial well being if we don't understand it. And we hear this term of financial well being, we hear the term financial inclusion, it's terms that we're used to hearing all the time, but we need to start by defining them.

So happiness comes and goes, [: 00:31:00

at's driving my behavior? So [: 00:32:00

example, the first question [: 00:33:00

And then this is where the time. Element comes in place. We say, do you feel safe now in the present? And I can say, yes, I feel confident that now I'm managing my money well, but then the other aspect that comes in place to find out when it comes to financial wellbeing is time.

have a spare credit card? Do [: 00:34:00

It can be something like exactly like unexpected things happen and you feel safe that you can cover them, or it can be in the long term future that it's like retirement. Do you feel like you're on top of your retirement plan? Many of us are not. So it's adding building on Gregory's definition where we have the metrics and we have the feeling.

But then here it's very concrete, confident about. Your ability to manage your money on a day to day basis and that you feel safe on that day to day basis. And then we have the axis in the present and in the future. And then,

and then achieve these goals [: 00:35:00

How confident do I feel? And the other one is, do I have the freedom to make the choices that I want in life? And money is an enabler to do that. In the present and in the future my case. For example, do I have the freedom to go for a meal? Go out to a restaurant? Yes. Do I have the freedom to go and buy something new?

You know, like clothes. You're like, yes. Do I have the freedom to go and travel the world and leave my job and be in a sabbatical for a year or two? No, it's still no. Is that something that I can that I would love to do? Yes, eventually. But You know, like I'm still not in that financial position to do it.

hink it's, it's going deeper [: 00:36:00

So now let's wrap it up and do our summary for today.