Even FinTech’s need to focus on digital transformation

The FinTech industry is booming across Australia and New Zealand. On the back of massive global growth in this space, the local sector now boasts around 850 companies in Australia alone. Even in the boom times, though, FinTechs still have to work on digital transformation.

As in any other industry, FinTechs need to deliver a superlative customer experience. They still need to drive operational efficiencies. Through it all, they need to build on security and compliance in an ever-evolving threat landscape. All this, while also dealing with issues unique to their industry – like the growth of cryptocurrency, neobanks, payment platforms and digital IDs.

It’s why, even though their businesses are built upon a solid digital foundation, FinTechs still need to digitally transform. The transformation never stops; it’s just that the priorities shift to meet new market, employee and customer demands. 

We recently spoke to Andrew Anderson, VP Revenue at Flare, an Australia FinTech success story, about their ongoing efforts around digital transformation. You can catch the full recording of our chat here, or read on for a quick summary of his key pieces of advice.

Transformation as a point of difference

Flare is a leading provider of HR software for employers, and advanced superannuation and retirement products for employees. They exist to help companies achieve their purpose, engage with their workforce and help employees become better off financially.

It’s been an extraordinary journey for this HR startup. Founded in 2015, Flare has grown to the point that today, according to Andrew, Flare technology is used by one in four workers starting a new job. By 2023, the company expects it will be one in two workers. 

When it comes to digitisation, Flare has focused on being a digital-first business from the outset. As Andrew said, “We have to practice what we preach. We can’t be telling HR teams to digitise contracts and policies, then ask them to print out our contract to sign.”

According to Andrew, digital transformation delivers a clear competitive advantage and unique selling proposition in the market. Behind the scenes, it means less admin, fewer mistakes, and faster turnarounds. 

“Digital solutions help keep our overheads lower and means we can implement change faster. We can make a change on our operations side, and all we have to do is change a DocuSign order form and implement it across the business. There’s no need to change the habits of all the people who are touching the forms across the business,” he said.

Flare uses DocuSign across a range of internal and external agreements. Andrew was most excited about a use case for consumers that the company built to help people secure vehicle financing much faster. The innovative solution, called Flare Cars, handles tripartite agreements between an employer, employee and third party to help people get behind the wheel of new company cars faster. 

“This has been the most exciting area for change for us, and it’s an absolute winner for all. Beyond competitive advantage, the importance of signing documents quickly can mean the difference between an employee getting a vehicle today or in weeks,” said Andrew.

But it’s not all smooth sailing for FinTechs like Flare. Andrew pointed to a recent KPMG study that found seven in ten CEOs cite ‘attracting and retaining talent’ as their top concern. The talent crunch, coupled with rising wage costs and an impending economic downturn, mean that FinTechs face a challenging road ahead. 

Ongoing efforts to digitally transform will help solve these challenges. Whether it’s a small fix to remove friction in an agreement process to help bring in more revenue, faster, or a more major overhaul of systems or processes to help cut costs, transformation will help companies like Flare – and all the other startups out there trying to gain a foothold – to thrive.

As Andrew said, it’s all about being smart. “It’s an interesting time for FinTechs. The free-flowing capital of 2022 is changing by the week … and we’re seeing a pivot from a ‘growth at all costs’ focus, to one where you have to be smart about how to distribute your product.  The goal is to get to market without spending a boatload of money,” said Andrew.

Transforming your agreements is a great place to start The digitisation of the agreement process is a cost-effective, high-impact transformation that any business can achieve now. To get started, have a chat with DocuSign about your business needs and how our digital agreement solutions can help.