Episode•November 24, 2022•15 min

FinTech 101 with Tristan Pelloux | Ep. 171

Tristan Pelloux joins Tiffany this week to talk all things FinTech! Tristan shares his journey starting out in financial services and how his interest in FinTech came to be. About Our Guest Tristan is a Director at Strategwhy, a management consulting firm which provides independent guidance and advice to business leaders and founders across the world. Truly passionate about innovation in financial services around the world, Tristan is also the founder and Chief Pencil Officer of Fintech Review, an online media platform on the Fintech industry. Connect with Tristan LinkedIn: https://es.linkedin.com/in/tristanpelloux/ Twitter: https://twitter.com/fintech_review Facebook: https://www.facebook.com/fintechreviewnet Connect with Tiffany on Social Media Facebook: Money Talk With Tiff Twitter: @moneytalkwitht Instagram: @moneytalkwitht LinkedIn: Tiffany Grant This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 - https://op3.dev/privacy

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Key Takeaways

1
Fintech emerged organically for Tristan through banking strategy work, leading to the creation of Fintech Review as a platform to channel his passion.
Started in financial services before fintech was trendy at the end of 2014 in London
Began in corporate strategy for a large UK bank in summer 2015, focusing on innovation and new technologies
Launched Fintech Review in January 2020 to write, interview industry professionals, and share strong opinions
2
Wise (formerly TransferWise) stands out as a top fintech company due to its strong business model, competitive pricing, and successful US expansion.
Started as a money transmission business; now offers bank accounts for individuals and businesses
Beats competition on price while maintaining excellent service quality
Successfully expanded from Europe to the US, a challenge where many fintechs fail due to high costs
3
Current market conditions are causing a 'reckoning' in fintech with reduced funding, leading to consolidation and failures among weaker players.
Massive slowdown in fundraising after years of high investment in fintech startups
Only companies with solid business models and clear paths to profitability will survive
Crowded spaces mean not enough market share for all entrants, forcing some into liquidation
4
The retail neobank space is overcrowded while business banking/financing and personal debt solutions remain underserved.
Too many challenger banks launching with no differentiation or niche focus that's too narrow to sustain
Business lending needs innovation beyond requiring three years of activity for approval
Personal debt issues lack major fintech players tackling the root problem at scale

Intro

Tiffany welcomes Tristan Pelloux to discuss all things fintech, from industry trends to standout companies and market dynamics.
Tristan Pelloux is Director at Strategwhy, a management consulting firm, and founder/Chief Pencil Officer of Fintech Review, an online media platform covering the fintech industry. He previously worked in corporate strategy for a large UK bank.

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– Tristan's Journey into Fintech

Tristan shares how he entered financial services before fintech became trendy, moving to London in late 2014 and starting corporate strategy work at a large UK bank in summer 2015. His interest grew organically through exposure to innovation and new technologies in financial services.

He began writing research papers, working with fintech companies on partnerships, and eventually launched Fintech Review in January 2020 as a platform to channel his enthusiasm through writing, interviews, and opinionated content.

– What is Fintech Review?

Fintech Review covers business topics like the effect of interest rates on fintech companies, company reviews, and interviews with industry professionals. The platform features strong, opinionated takes rather than neutral coverage, ranging from basic finance explanations to complex topics.

– Favorite Fintech Company: Wise

They started as a money transmission business... now they've evolved and they're providing bank accounts... They're beating the competition on price, but the service is still super good.
– Tristan Pelloux

Wise successfully expanded from Europe to the US—a challenge where many fintechs fail due to high costs. Tristan and Tiffany both use Wise for international payments, praising its ease, low cost, and reliability.

– Current Fintech Industry Trends

The current environment is slowing fundraising after years of high investment. This leads to fewer new businesses, but benefits the industry by filtering for companies with strong models. Weaker, unprofitable companies will struggle or fail, resulting in consolidation and some liquidations.

The market has too many players in some spaces, meaning not enough 'food for everybody'—a natural correction is underway.

– Overcrowded vs. Underserved Fintech Spaces

Retail neobanks/challenger banks are overcrowded—new entrants often lack differentiation and target niches too narrow to sustain. In contrast, business banking, accounting integration, and business lending remain underserved, with few solutions addressing the needs of early-stage companies or those without years of operating history.

Personal debt is another major unsolved problem lacking major fintech attention at scale.

– Where to Find Tristan

Listeners can find Tristan at fintechreview.net, subscribe to his weekly newsletter, connect on LinkedIn, or follow @fintech_review on Twitter for ongoing fintech commentary.

Resources

Topics

FintechBankingStartupsBusiness StrategyFinancial ServicesNeobanksBusiness LendingIndustry TrendsWiseFundraising