Ross Republic

Leading legacy institutions through a successful transformation 🏦 In our latest podcast episode, our partner Adrian Klee is joined by Anna Werntoft, independent advisor and ex-CTrO at Ikano Bank, to explore how legacy institutions can achieve successful turnaround and transformation programs. During the episode, we explore topics such as: ◼️ The need for transformation vs. continous innovation ◼️ How large-scale changes impact technology, culture and CX ◼️ Why radical transparency is key in ensuring organisational alignment Listen to the episode via 🎧 Spotify: https://lnkd.in/em8v_MSc Apple Podcasts: https://lnkd.in/ex_VzA9G Web: https://lnkd.in/ed9J-Wcw #transformation #strategy #innovation

Why the SME fintech battle Is far from over 💸 The SME banking landscape continues to evolve, as demonstrated by two noteworthy product launches yesterday: 🟧 After launching an SME savings account with a 3.3% p.a. rate, ING Germany yesterday introduced a standalone business current account that comes with a best pricing guarantee (usage-based pricing). 🟨 Holvi announced a new saver account to enhance its existing digital current account offering. Its new money market fund (MMF) aims for a return of 3.93% p.a., developed in partnership with infrastructure provider lemon.markets. So what? 🤓 It's great to finally see some product-level innovations again. While both press releases overly focus on democratization (facilitating access, better pricing), I strongly believe the next wave of innovation lies in delivering substantial improvements to cash- and workflow processes for SME clients, i.e. HOW the product simplifies current user journeys by 10x. In the coming weeks, I’ll be releasing an updated white paper on the future of digital business banking. The previous edition has helped many of Europe’s leading fintechs and banks shape their own business banking strategies and products. 🔔 Follow or connect with me on LinkedIn to stay updated on these insights!

Why aiming for strategic fit can put your growth initiatives at risk ❌ In my recent podcast with Nicolas Grilly, we explored a fundamental question: How should businesses balance leveraging strategic assets (like proprietary data, customer relationships, or brand equity) when developing new business lines? Leveraging these assets is often an important starting point, but we also discussed the risks of focusing too much on strategic fit. Too strict an alignment with existing corporate strategies can stifle innovation. Here’s why it matters: ➡️ Strategic fit can lead to “innovation theatre”: Falling into the trap of pursuing incremental improvements that align with current strategies—appearing innovative without truly transforming. ➡️ The “disruptor’s dilemma”: Companies like Kodak faltered because they were too focused on defending their core business rather than betting on disruptive innovations. In contrast, businesses like Amazon have thrived by allowing new ventures to deviate from their traditional models. ➡️ Innovation and risk go hand-in-hand: Corporate leaders often feel pressure to maintain alignment with established strategies to satisfy stakeholders. However, this mindset can prevent them from embracing more disruptive opportunities that could unlock transformative growth. Strategic fit should be a guiding principle, not a constraint. Breakthrough innovation often happens when businesses challenge their own strategies and take calculated risks on new ventures. What’s your take? How do you balance the need for strategic alignment with the freedom to innovate in your organisation? __ This is a snippet of EP44: Spotify: https://lnkd.in/eMZ5tKG4 Apple Podcast: https://lnkd.in/eyaRpdqS #innovation #growthstrategy #businessbuilding #disruption #leadership

Unlocking growth through Corporate Venturing: How Mollie's Embedded Finance strategy sets a European benchmark 🎯 What's happening 🔥 Mollie, the Dutch fintech company initially focused on SME payments, now serves over 200k small and medium-sized enterprises across Europe. Recently, they've expanded their services by introducing additional financial products, including lending services under the feature Mollie Capital. The strategic rationale 🤓 Why would a payments provider venture into lending? Firstly, there's a significant funding gap for European small businesses, especially in fast-growing sectors like e-commerce. Despite double-digit growth rates, these segments remain underserved by traditional banks. Brands that cater to SMEs recognize the need for accessible financing solutions to support their growth. Secondly, payment providers like Mollie already handle their clients' cash flows and possess transactional data. This positions them to offer underwriting based on real-time insights, leading to more accurate lending decisions. Additionally, they can facilitate loan repayments by collecting directly from the source. When expanding into new service lines, addressing the question "Why us?" is crucial. Mollie's differentiation: ➡️ Existing client relationships: Building on established trust and familiarity with their customer base. ➡️ Enhanced underwriting capabilities: Utilizing real-time payment data for risk assessment. ➡️ Efficient repayment mechanisms: Integrating repayments into existing payment flows. The power of fintech partnerships in Embedded Finance 🤝 Entering the lending market requires substantial capital and expertise in risk modeling and pricing strategies. Mollie partners with third-party fintech firms to deliver these services under its own brand. This collaboration underscores the role of strategic partnerships in advancing the embedded finance ecosystem. Two years after launching, Mollie Capital has disbursed over €100 million in loans. There is still room for further innovation—such as leveraging open banking connections to underwrite loans against a client's full spectrum of revenue streams. Interested in the future of European SME lending? Explore how embedded finance is shaping SME lending in Europe by checking out our latest white paper: https://lnkd.in/eCghQ7VK #fintech #corporateventuring #growth

"The problem with making small bets is that they don't matter regardless of the outcome." We've recently expanded the focus of the RR podcast to include viewpoints of companies directly impacted by recent developments in fintech and AI. In our latest conversation with Nicolas Grilly (CTO at Zacco, ex-VP Group Innovation at Husqvarna), we explored success factors of corporate venturing activities. ➡️ One key conclusion was that risk-averse corporate environments often lead to underinvesting in corporate venturing efforts; when actually new initiatives should be treated as opportunities to become the next business unit. Successful corporate venturing, therefore, starts with a clear view on expected returns and time scales, which in turn guide new portfolio initiatives. __ This is a snippet of EP44 with Nicolas Grilly: Spotify: https://lnkd.in/eMZ5tKG4 Apple Podcast: https://lnkd.in/eyaRpdqS

How industrial firms generate a return on innovation: In our forty-fourth episode, partner Adrian Klee is joined by Nicolas Grilly, CTO at global IP firm Zacco and ex-Head of Group Innovation at Husqvarna, to explore how industrial companies can achieve successful innovation returns. During the episode, we explore topics such as: ◼️ Common pitfalls of innovation strategies ◼️ How a clear growth ambition guides innovation activities ◼️ How to shift from minimizing risks to maximizing opportunities Listen to the episode now on: Spotify: https://lnkd.in/eMZ5tKG4 Apple Podcast: https://lnkd.in/eyaRpdqS

Why most companies don't have a product strategy: When strategy is done right, it shields internal teams from distraction and vanity projects. A good strategy first and foremost enables to say NO to anything that doesn't contribute to a focused set of goals or outcomes - your strategic bets. In reality, product strategy fails due to: 1️⃣ Lacking focus by having a long list of strategic projects 2️⃣ Executing these projects as a planned out box-ticking exercise When everything is important, nothing is. And if your product strategy is a detailed roadmap that you think will exactly bring you from point A to B, then it's not a strategy, but a mere plan. Hence, strategy is about committing to a very focused set of strategic bets and directing everything else the company does towards them. ____ This is from our latest podcast with Ken Knoll - listen to the whole episode via: Spotify: https://lnkd.in/g9Eg-tAn Apple Podcasts: https://lnkd.in/gftXAT7t

How can companies keep re-innovating to ensure they deliver the best possible solutions for their customers? One exciting shift is the product model, which is all about empowering cross-functional teams to deliver desired business outcomes. Above all else, it's about recognizing that "innovation" is not a project, but a continuous process: Spotify: https://lnkd.in/eBByrmrb Apple Podcasts: https://lnkd.in/eRFP_nkN

New podcast alert 🚨 In our forty-third episode, our host Adrian Klee is joined by Ken Knoll, product coach and interim CPO, to explore how companies can build, transform and lead successful product organizations that continuously discover and deliver high-value products for their customers. ➡️ How can companies build the ultimate sustainable advantage? The standard answer is evolving the business model and leveraging new technologies. But, exactly how can you do that? By moving away from moonshot innovation and stakeholder-led agenda setting, towards empowering teams to deliver mission-critical, high-value outcomes that truly drive business forward. In this episode, we explore the method of product organisation and cover the following topics: ⚫️ What remains of the venture building hype? ⚫️ What are the main enablers of transforming into a product organisation? ⚫️ How to ensure teams can balance "keep the lights on" type of work vs. exploring strategic bets? Listen now on: Spotify: https://lnkd.in/ev-nD-nW Apple Podcasts: https://lnkd.in/eRFP_nkN #transformation #growth #innovation

“Fintech lending is just subprime lending in disguise.” 😳 Ever since I encountered this phrase during an SME lending project, I have wondered whether data-driven fintechs can truly outperform the industry average in loan defaults. I'm extremely bullish on leveraging tech to improve SME underwriting and servicing, but recent developments have made me question: How is it that lending fintechs celebrate all-time high loan payouts every other week, while Europe faces a significant credit crunch and analysts predict increased defaults? 🤔 A recent example is Defacto, which has deployed €500 million so far: https://lnkd.in/e6EAnKaY Lending is easy, getting paid back is the hard part. October, once a top online lending platform, has just sold off its tech assets and ceased lending activities, citing interest rate risk and increased defaults. While celebrating total payouts is a testament to closing a real funding gap, it's a vanity metric. It would be even more impressive to see fintech lenders: ➡️ outperforming industry incumbents in default predictions ➡️ innovating affordability assessments beyond DSCR ➡️ promoting financial health 🤑 Check out my paper on why "lending leaders renovate in winter" by building next-gen lending products: https://lnkd.in/eAfmcY9b