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Fusing Futures
Fusing Futures

Season 1, Episode 7 · 1 year ago

Fintech Response to Climate Change: How does It Matter?

ABOUT THIS EPISODE

While fintech is slowly taking over the traditional banking sector, it faces a new challenge. Therefore, on this episode in the conversation with Lav Odorovic, a BOS alumnus and a founder of Penta, the BOS team will light up fintech's response to ongoing climate change.

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At the end of the day were all part ofthe Samicosystem, so the idea that any action you take orany decision you make leaves a certain impact on other habitants or theecosystem as a whole can be a bit terrifying, fusing futures light them up. Thedecision you made this morning about whether you'll walk to work, commute oruse your car, the decision on what clothes you're going to buy and wherethe decision about what you're going to eat today, it's all leaving a certainmark on a bigger picture. To me becoming aware of this isactually empowering.

You can start thinking abouttransforming your lifestyle and even transforming the way you do business inorder to do some good work for everyone and who better to talk about theecosystem and the impact of all members than the king himself or the lion sinceyou'll. Remember our first guest in this season. You will now notice thatwe have quite a few lions in our alumni herd in this fifth episode of our fusingfutures podcast. I'm delighted to welcome Mister Lav Odorovich, a fellowmember of the Bosh alumne network and founder of Panta, a platform for onlinebusiness banking. During my studies is at University ofWelgrat Faculty of Economics. I also had ha small startup and we werecreating ecommerce solutions and we exported them to Netlands so whichrequired to deal with banks and to both...

...make international payment and receivemoney and me, as I think, most of the entrepreneurs all aroundthe world experience how banks e were not really great partner for smallbusinesses. So this is in parts where frustration with being started, and itwas very interesting to see later on when we started building Pentha thatit's actually a global problem and pretty much the same everywhere aroundthe world. The industry you come from is popularlycalled fhintek, which is short for financial technology. Thinking about inwhat way your industry effects climb to change may be a bit mind boggling forstarters, but let's take a step back, look at the bigger picture and try tosee where Fintak fits when it comes to...

...climate change, thues Phintak in anyway affected. So before you ask me to talk about this, I was not even awareof what is t the real impact of Phintik on climate change. So so yes, yes, it does. Of course it'snot the same. If we talk about buildings that you know create forty orforty five percent of world emissions or transport or someone, so it's notthat kind of a sector. However they're, definitely some some positive effects, or at least Iwould hope so. Okay, let's know one from if to how what are the directeffects, they're really different ways how itaffects, and it's also very, very different across the world. So if wetalk about Africa, many people don't know, but peoplethere don't really have banks and banks...

...aron their mobile phones. So thisstarted twenty thirty years ago, even far before we in Europe, even you orwhat thinthic is so so yeah it's it started there andit' created a huge difference. So it's also not only thintec but inShurtec as well, so but t, hopefully it's okay to merge them at this moment.So farmers, for example, when they could buy crops, they could just sendan SMS with a cold. They they bought on the bag of crops, and this would meanthat they insure their crops, so the they would know their address and incase they would be a dryout or floot. Then they would get some money so and of course, nowadays, Whenmopesa andso many other innovative welfering in Africa. It's really allowing andhelping for farmers to get funs to produce, which would mean that there islocal food and doesn't have to be...

...transported and local communities agrowing. Can we already see that both customers and banks are becomingfocused on creating some added value, not just profit through theircoperation ill? Of course, when we talk about the more developed countries orEurope, differences are a bit different, so the people have some of them have developed a bit of feeling thatthey should somehow help slowdown the global worming and the fact climate change. So becausethere is this value in them, they are now products appearing which are suitedto that kind of customers, so, for example, with investments therare manygreen funds, so people want to place their investments into the funds whichare really caring about the environment theyare also, even even there is even abank in Germany,...

I know them they're called tomorrow andtr. Their whole value proposition is that you have a bank account with abank that cares about environment and also a bank which will tomorrow plant trees with every purchase. Youmake or many different things that they do so so you can. You can affect thechange. We all still have an elephant in theroom or an elephant in our ecosystem, which is you guest at the Covidnineteen crisis? How has this affected the fhintack industry, Covit Brod, changes across theindustries and across the world in Phientic as well. So, first of all, thevery clear benefit was that those businesses that are more digital couldreally do well. So we see now that, even though most of the stocks...

...are still down and the stocks whichwere really digital and who are scalable without human interaction areactually above the levels before the prisis, so in Fintic it has one positive effect.So, for example, if you reed to open account, you can do it without going tobranch which we mentioned already, but this is still possible in copied tetimes and it is not possible to do the same with the traditional Bak. On theother side. MANYPHINTEXS are facing the lower velations. It is mostly becausetill people are like using less payments, therare, less things movingin economy, people are going t less to restaurants or buying stuff and ar morehome, and so on. So there's also a bit of uncertainty for investors. However,I think in general, the PHINTIX and generally new technologies arebenefiting in Ha mid term from COPI. Ninety, I believe that...

...now it is really shown that we can relymuch more on technologe in general, in Thintech, but also in other areas likein in mhealt and in many other fields, and the people are more likely to trustthes services. You know when, at the hard times they were available whilewell, the usual ones were not so I I suspect and hope that this will evenincrease the adoption on the mascale and yes long term. It's. I don't reallysee us going back in time and you know going back o to the wastethings were, and this will definitely bring a positive effect to the climatechange and the world willemen. My daughter entered room enty talkingabout the lecture it Ta Student of economic should often come from the uni,either under the impression that heare...

...all doomed or inspired to Saintararl.On that day, she was in the mood of saving the world by spreading the worldefficient, transparent and automatic financial mechanisms. As a little girl, I was good at night.I know it's hard for some of you to believe it that I am librarian now, butI was good at all the oparations and you could not fool me with a changewhile buying uyce cream. So I was motivity to hear more from her. Sheplained that, thanks to all the emergion technologies wwere about toenter the cashless society, she kept saying about solutions that werealready in place. How we were going to rely havily on technology for being allsorts of pills, simply could not stop, which made me think about generationalgaps. whath sounded remarkable for generation said it frightened babypommers. Before I could even respond, she pulled up the bad, blanket andsnuggled down. This is going to blind...

...our realities as nothing before shesaid seriously. Iam going to be the first to explain. Pantha TENTA started withween fewpeople, none of whom ever worked in a bank. We had that idea that banking needs tobe different. We had no money but yeah. It was a bit of a crazy adventure. In the next three four years, wemanaged to be accepted to start a bood campphintech accelerator in London, which is one of the best programs in theworld. At least it was in the time and then from then then on e Rase, close toten million euros before Pantha was acquired approximately year ago,Banthese today employing more than...

...hundred people and many of them, if notmost of them, invelved with, and it's already providing services in Germanyand Etoy. Let's talk now about leading by example,how do you think that you and your team contribute to reducing seo to emassionsand fighting climate change? I personally hate paper and many bankswould require you to receive post. So when you make a transaction,they will send your report by post. So this was the first thing that we wereable to kill, but this was a very obvious one right. However, afterwards we we went on and trying to rethink everylittle bit of banking. How it's done, and probably the Mor the highest directeffect would be that we do not have any branches. So our customers don't reallyneed to go somewhere to do something. It's fully online, which is probablyobviouse in two thousand and twenty,...

...but maybe three four years ago we werethe first company in Germany to properly digitalize bank count openingfor businesses. So by that time, companies like an twenty six andRevolute, they were allowing this for retail customer. So, for example, foryou and me, but not for the companies, because this process was a bit morecomplex how to redesign the onboarding process, nobody was really thinking howto lower the seal to, but because we're thinking. Okay, there is technology,you don't have to go to a branch. You know we're already using sky, for Godknows how many years now it just becames obvious to find a way which isgood for business, so lowers he the cost and also lovers the friction more,more importantly for customers, but also has a positive effect on Seto. SoI think it's just naturally moving us there. It is more how we need to deal with this, tosurvive both in ecosystem and in...

...business. We need to improvise adaptingovercome, but does the evolution of businesses always have a positiveimpact in our environment? I believe that every good innovationwill naturally have positive effect, an se to so, or at least mostof those that I can think of, or that I have ben involved with so in innovation. We're MOSTL USAN, usingnew technologies and Dhey by the finithon need to be better with in indealing with environment. Finally, what is your key take for allthe fellow ecosystem members? We, as entrepreneurs have to be aware of the good change, we'rebringing and to communicate it, because this will bring. This will help us andtentify the target roups we are...

...addressing and it will make them easierto become our customers, but also we is a customer should really be demandingand not really doing stuff, just becauseit's friendly to environment, but also because there is a good synergy effact,because in my personal opinion, this is the only scalable way to go forward andreally make a difference. In the long run, using futures ligkt them up is BelgridOpen, school's audio podcast Nembers of Bosalamni Network Lavodorvich, GordonAboinige, Yellon shappage and myself. Orgnan pantage took part in making thisfifth episode. Alexrachich and Markomitrovich supported us bydesigning the sound and Oddu events...

...in order to stay tuned. Don't forget toclick subscribe at the apple podcast or any other application use for listeningto podcasts for more updates. Follow US an instagram and twitter.

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