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FINTECH
Client director
Finch Insurance Brokers & Employee Benefits
After working closely with a financial risk consultant who later became his mentor, Mark Robinson was introduced to the exciting world of fintech early on in his career. As new technology and finance capabilities have evolved, Robinson’s interest in the sector has continued to grow, and he has branched out into specialist fields. As client director at Finch Insurance Brokers & Employee Benefits, Robinson says he gets “a real buzz” from learning about new fintechs and their applications, as well as working with fintechs and underwriters to develop tailor-made policies to cover risk exposures.
IBUK: What are the biggest risks in fintech today?
Mark Robinson: Firstly, I think a major security event could still bring the sector to its knees. A major cyber attack leading to loss of confidential data could completely reverse the good PR that is around the fintech space at the moment. We only have to look at what happened to Mt. Gox in 2014 to see that an attack of this scale could seriously undermine the trust and goodwill that the banks and public have in the fintech space.
Secondly, and slightly relating to the Mt. Gox loss, I think that one of the biggest risks fintechs face is leadership. These companies tend to be run by incredibly smart tech entrepreneurs who may not necessarily have the correct skill set to run a business competently. My advice to founders of new fintechs is to take off the ‘blinkers’ and pay close attention to the finer – some may say boring – details which may not seem important now, but can cause catastrophic repercussions in the future if not given the correct attention early doors. Matters such as cybersecurity, insurance, marketing, HR, etc., should all be of paramount importance.
IBUK: What effect do you think Brexit will have on this sector?
MR: I guess it’s very much ‘watch this space’ until we know what the details of the Brexit deal are likely to be. Will Brexit make it more difficult for talented EU nationals to apply for fintech jobs in the UK? Time will tell.
I think Brexit could potentially make things more difficult for startups in the UK, as they may not have such an easy time collaborating with other fintechs in the outside world post-Brexit. I do think, however, that Brexit could present opportunities to regulatory technology, or regtech, companies. The uncertainty Brexit is predicted to cause will mean financial institutions will be looking to become compliant with changing regulations, and this is where the regtech companies start to boom.
