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The three big challenges facing fintech founders
As large as the fintech opportunity is in Asia, it is also complex and full of pitfalls for even the most capable entrepreneur.
At Accenture's Fintech Innovation Lab Investors' Day at Hong Kong’s Cyberport on Wednesday — during which seven fintech startups pitched to an audience of prospective investors — Jonathan Allaway, senior managing director at Accenture, highlighted three of the key challenges facing fintech startups entering his company's accelerator program:
"Many founders underestimate the sheer demand in the market for their innovation. They have to learn to prioritize, and learn that adopting a less-is-more management approach is a good thing. That is probably paradoxical when there are entrepreneurs who want to capture as much market share as possible. But they can't physically do it given the scale of their business so they must always prioritize."
Balancing scale and innovation
"A lot of financial institutions want to differentiate and become bespoke. There is a tendency to take a startup's standard product that is already innovative and to try and make it unique to each instance it's applied it in. Founders will have to make management choices about how they can get standardization to scale and also keep innovating."
"Another challenge is that founders underestimate the importance of people in their business for pre-sale and post-sales support as the company grows and accelerates. One CEO told me he felt like the chief HR officer not the CEO, spending more time looking at people issues. But that is just a natural reality of being innovative and being in a market that is growing and investing."