Building Fintech for Fintechs: A Self-Reflective Paradigm for Industry Innovation

by Danny Brewster, CEO, twentyone

When it comes to innovation, the fintech sector has always been at the forefront. However, we are now witnessing an intriguing trend that could very well shape the future of this dynamic industry: fintechs building fintech for fintechs.

As CEO and founder of Manchester-based startup, twentyone, I have a firsthand understanding of this development. I’ve experienced the challenges, celebrated the success, and now I’m keen to share the potential this new opportunity holds.

The Birth of twentyone

During my journey with FastBitcoins, I grappled with several pain points, particularly around interoperability, scalability, and compliance. The solutions in the market at that time either didn’t completely address these issues, or they were so generic that they weren’t a perfect fit for our niche needs. It became evident that we needed a tech-first, industry-specific solution.

“In essence, we turned the tables on the traditional approach to problem-solving. Instead of relying on external tech vendors who may or may not fully understand the complexities of our industry, we drew upon our firsthand experience to design solutions tailored to the precise needs of fintech companies.”

That’s when the idea for twentyone was born.

Unlike traditional fintech startups that aim to solve broader financial challenges, twentyone was built from the ground up with a specific focus: to address the unique obstacles encountered by fintech companies like us. It is essentially a fintech developing solutions for other fintechs – a product of our own experiences and challenges, a testimony to the evolving fintech ecosystem.

Innovating with Experience

With twentyone, we leaned into the power of innovative tech to create targeted solutions for our peers in the fintech industry. We focused on developing smart, efficient, and adaptable tech that can seamlessly integrate with existing financial systems. Ensuring that fintechs can scale while maintaining rigorous compliance standards.

In essence, we turned the tables on the traditional approach to problem-solving. Instead of relying on external tech vendors who may or may not fully understand the complexities of our industry, we drew upon our firsthand experience to design solutions tailored to the precise needs of fintech companies.

Evaluating the Fintechs for Fintechs Model

This self-reflective model of fintechs creating solutions for other fintechs has the potential to drastically redefine the sector. Through this approach, we are not only acknowledging and addressing the unique challenges our industry faces but also opening the doors to a new level of industry-driven innovation.

As fintech companies, we inherently understand the nuanced needs, challenges, and aspirations of our industry better than anyone else. This deep understanding is not just about financial technology or the market landscape; it extends to recognising unique regulatory pressures and navigating a vast supplier network built on layered legacy tech. Leveraging this perspective to create solutions means we are streamlining our growth paths, reducing our dependencies, and setting ourselves up for sustainable success.

Moreover, this model encourages a healthy cycle of evolution. As new challenges arise, they feed into the creation of innovative solutions, which in turn give rise to further growth and innovation – a powerful engine driving the future of the fintech sector.

Looking Forward

The ‘Fintechs Building Fintechs for Fintechs’ model is still in its nascent stages, but the potential it holds is immense. Companies like twentyone are only the starting point in this paradigm shift. We see ourselves as the third, or even fourth, generation of fintech innovators.

As more fintechs embrace this model, we can expect to see an acceleration in the rate of industry innovation, accompanied by a wave of more effective, custom-built solutions. This could very well be the precursor of a new phase in fintech evolution, marked by heightened collaboration, accelerated problem-solving, and self-driven growth.

In conclusion, the time for fintechs to step up as problem solvers for their own challenges is now – the era of the specialist its back. Together, let’s harness the power of our shared experiences to drive the impending tidal shift of industry innovation and redefine the future of fintech.