Ernst Rolfson from Finexio talks about various trends & challenges in the Fintech arena and How to Prevent fraud while using Cloud payment Apps.
1. Can you tell us a little about yourself Ernest?
Hey, I am Ernest Rolfson, from Orlando Florida. I did my graduation from University of London, Studied history and political economy, got into banking in sales and trading areas after the financial crisis made my way into the consulting industry, and eventually around payments and electronic payments, and very much a focus on the software side of payments and payments distribution.
2. How did the idea behind Finexio first come?
The idea behind the next to really came from working at a multibillion dollar software firm in the healthcare industry that was able to distribute payments for some of the largest health insurers. We printed and mailed about 55 million checks, a year for those firms more than 100 billion in payments volume and so. That was a very inefficient, I was working there to electronic file to spend and shift more of it onto the MasterCard network I started doing research on the space as a good strategist does and realized was pretty surprised that most of the industry in the United States around B2B payments was still majority done by check it was like $12 trillion at check, and so I felt very confident about the future growth of the market and the total market size to say, I think I can go and build my own, you know payments solution to address paper checks and and help corporates come to a digital future.
But the idea was really, how do you do this at scale and the idea was that the software that the corporations are using is the very best method of distribution. But also the very best method of service delivery and customer delight, which is why we’ve spent so much time within accounts payable and procurement.
3. What have been some of your biggest highlights/challenges?
Some of my biggest highlights certainly raise about $30 million of investment across five or so different investment rounds now with institutional investors has certainly been a highlight and a challenge. Throughout the United States and internationally, that’s also been a personal highlight.
As well seeing people grow and learn and be excited about the passion that I have about this business challenges I’m a you know, a startup I describe is getting punched doing a startup is like getting punched in the face over and over again, every day, multiple times a day, so I think it’s very difficult starting out when you have a new idea or concept and majority of people are more than happy to tell you how dumb you are and how it will never work so that mentally is challenging.
That’s extremely difficult. Also coven was very difficult as well, because you know the world didn’t really know what was going on, and that was quite an emergency situation to navigate. We did come out even stronger and just through tight management so those have been some of the ups and downs. I would say emerging technology within payables is all about API and all about embedded finance, how can you get payment solutions inside software because CFO no longer wants to work with banks and by bank products they want solutions. They want embedded misses. They want ease of use, they want automation and so software is eating the world, it has to all be done with software.
Given the current pandemic situation which, fortunately, is almost fully behind us now. Here domestically the top tips for global tech companies to secure their transactions and prevent fraud is about technology and process it’s about the human behavior component, there is no as I, as I tell customers no silver bullet around this.
Here domestically the top tips for global tech companies to secure their transactions and prevent fraud is about technology and process. It’s about the human behavior component, there is no as I, as I tell customers no silver bullet around these concentric circles. around this area but also use a number of third party databases third party api’s around fraud identity bank account validation as well as manually check and double check and have some controls there because that’s the only way it’s going to happen.
4. How do you see emerging tech play a key role in payable and payment apps?
I would say emerging technology within payables is all about API and all about embedded finance, how can you get payment solutions inside software because CFO no longer wants to work with banks and by bank products they want solutions. They want embedded misses. They want ease of use, they want automation and so software is eating the world, it has to all be done with software.
5. Given the pandemic situation, what are your top tips to Global tech companies to secure their transactions and prevent fraud when using cloud-based payment and receivable apps?
Here domestically the top tips for global tech companies to secure their transactions and prevent fraud is about technology and process. It’s about the human behavior component, as I tell customers no silver bullets around these concentric circles.
Around this area but also use a number of third party databases third party api’s around fraud identity bank account validation as well as manually check and double check and have some controls there because that’s the only way it’s going to happen so sad but true takes a lot of work.
6. How do you think technology is enhanced in the fintech arena, especially accounts for the pandemic situation?
Technology in the fintech area kind of knows how this has been enhanced during the pandemic situation, I would say I think the technology has already existed, to be honest, I think that there’s just been an increased demand due to urgency and due to You know pressures on the CFO to reduce costs drive efficiency increase automation and enable work from home and we’ve so we’ve seen wonderful adoption of Work from home tools things like zoom but but also digital payments are now.
The barriers of adoption are breaking down because the previous bears of adoption were just people not prioritizing it
, to be honest we’ve sent people to the moon. Back in the 60s, I promise it you could do all your payments electronic if you wanted in 2021 there’s there’s zero barrier there
7. With the cloud shift in every business, what do you think are the transitory v/s permanent changes from the same?
So, with the cloud shift and every business, you know, I think that these changes are really going to be permanent, to be honest, I don’t think that these are transitory, sure some people will come back to the office or, at least for several days a week. You still don’t need to send paper checks with people anymore by hand there’s no need for that. Every single thing you do with payments today in 2021 can be done with a robot period, so I think folks are waking up.
And I also think there’s a generational shift in executive leadership at corporations going on as baby boomers retire, where the iPhone generation and digital generation of which I am one of will be able to say you know what makes sense to do this with computers, instead of by hand the way we’ve done for 50 years so we’re certainly seeing that happening.
8. How is the impact of fintech used differently on individuals as compared to business one?
I think that we’ve been very spoiled as consumers on fintech investment and things like mobile wallets things like Apple pays things like virtual cards and travel booking and like this is technology investment that’s been made because we’re all consumers first, and we all make a lot of payments in the retail world. And so you can see why those things have been prioritized because you think of yourself, first, I think, as humans.
Now businesses are starting to have those same expectations of convenience security automation. Just digital delight, I would say that they get in their consumer life because most of us today have abandoned our personal checkbooks. I could not tell you where my checkbook is located. So, for example, I think you are going into the office. It’s like waiting a minute. Why is my experience in the office worse than it is, in my experience as a consumer and that’s the disconnect that’s getting really close down very quickly here.
9. How does your team inspire you and what is your inspiring quote in terms of financetech?
I think what’s been most inspiring with my team is how we’ve seen young people really grow and adapt through a company that has been growing at over 100% a year for the last several years and will continue to do massive dynamic change learning quickly.
Your job responsibilities title departments change once every six months, because of the nature of the business, and I really love that we’ve gotten folks like interns that has been able to grow when that’s all we could afford and now they’re growing and being their own individual contributors, or having their own teams, or having their own interns that’s really been so inspirational to see and is creating a big impact on us and our customers and I would say that.
You know, really, if you have a growth mindset and you have an open mind. And you’re putting that position, you can really do a lot of things and I think that’s really us as a fintech company and as an emerging player, we bring that culture and attitude with us in terms of everything that we do. We think really big and we roll with the punches as we evolve and scale and it just leads to good results for customers.
10. What is your advice to the start-ups and business owners in this critical condition?
Advice to startups and business owners in this critical scenario I mentioned earlier, I think covid is now waning fortunately. However, I think, through navigation there is just a really tight management control on cash flow and spending right, I mean any towards any downtime that’s what you have to do, but I would say the advice around looking to adopt tools that are no brainer ways to do more with less or save time and money. When you’ve got less than money to spend or less time to spend as well because you’ve got less people because you’ve made cuts that’s where the focus in an investment needs to be to navigate.
So carefully and that’s why I think that some of these accounts payable electronic payments solutions are gaining so much adoption these days so it’s one in the same, but we were a smaller business so we’ve navigated it. So I can speak from experience, because we’ve done all those things that I mentioned as well, so. there’s no physical paper coming or leaving my office, I can tell you that, so thank you so much, and appreciate this conversation and other conversations to come take care now.
