What makes a good Fintech CEO

The CEO is usually the founder or co-founder of small fintech companies. Typically, a founder’s business idea is inspired by a formative event, or even a failure, in their early professional lives.

A CEO is a principal authority that leads and manages a company after the board of directors of a company. The CEO of FinTech is often filled in two distinct ways. 

1. The Co-founder filling in the seat of the CEO.
2. CEO being appointed by a company’s board of directors.

What does a CEO in fintech do?

The fintech CEO leads and manages the finances of the company.

The leadership dimension involves making the team consistently perform highly, effectively and efficiently.

Managing a financial company requires using its resources-both human and material-optimally to run its operations smoothly and seamlessly.

In small and mid-sized companies, the CEO has to be very hands-on. Every decision and every operational process is under the CEO’s purview. In such an intensive role, the CEO must be an expert multi-tasker and remain very organised.

In larger companies, the CEO is a custodian of vision, values, culture, reputation, strategy, and performance. Here, the CEO’s role is to set the direction and get out of the team’s way. Even so, it constantly keeps an eye on the operations and business performance so that there is no slip between the cup and the lip.

Some companies have professional CEOs who report to the board of directors. In some other companies, the CEO may even be a director on the board or even play the role of its chairperson.

Steps to becoming a FinTech CEO

The key is having hands-on experience in fintech.

In small fintech firms, the CEO is frequently also the founder or co-founder. A founder’s business idea is typically inspired by a formative experience – or even failure – in the individual’s early career.

As the captain of a company, the CEO must be well-versed with leading and managing all functions. This essentially means the CEO must have ideally worked in all those functions before rising up to taking the leadership role. Or, at least, the CEO must have knowledge of how every part of the company works.

Make sure you are working in different roles in various functions in a financial company. The more varied your experience is, the more valued you will be in a leadership role.

What is important though is that you must nurture the attitude of being a continuous learner. Your thirst for learning alone will prepare you to be a top-draw fintech CEO.

Skill yourself with a master’s degree in finance

So, how do such experiences crystallise over time to produce the distinct set of qualities and skills required to be a successful CEO? This is a difficult question to answer because it is dependent on a fintech’s geography, line of business, and size. However, there may be some objective standards to which we can refer.

While hard skills like software development are important when building a fintech, soft skills like entrepreneurialism appear to become increasingly important for a CEO as the company grows.

Thinking of the future

Although there is no set path to the top of the C-suite, it is crucial to have a clear vision and be passionate about providing value to clients of all sizes. In any event, graft and even failure can be more beneficial than initially appears.

For the aspirational CEO of a financial company, the future is always about expansion and advancement. 

Investor movement

CEOs typically receive large compensation packages since they frequently perform such demanding and important jobs. Even so, it appears that the board’s perspective on CEO compensation is beginning to change. 

Because CEOs frequently hold such stressful and high-stakes positions, they are typically rewarded with large compensation packages. Nonetheless, the tide appears to be turning in terms of the board’s attitude toward CEO pay.

What Every FinTech CEO Should Know About Risk Management

It is extremely important for a FinTech CEO to understand risk management. Banking is, at its foundation, the business of risk management. Banks must be more than merely risk-averse. They operate in the business of controlling risk on behalf of others, which is why they exist. Banks protect our savings by ensuring they are not lost or stolen. They make loans and are exposed to the possibility of default. They make payments while risking faulty execution, delays, and currency changes. Banks supply a wide range of risk management tools, particularly to businesses. These tools allow firms to focus on their core competencies rather than predicting economic and political outcomes. An excellent illustration would be the sharp decrease in the worth of the pound sterling following Brexit.

Any FinTech CEO who wishes to collaborate or communicate with a bank must understand:

• The bank’s culture revolves around risk management.
• Working with new suppliers and technology brings with it new types of risk that banks must manage.
• Banks are increasingly turning to technology to assist them in risk management. FinTech and its younger sister RegTech have a great opportunity here.
• Banks are aggressively watchful of their capital, which is their most valuable asset. The manner in which a bank manages risk influences the capital amount that must be held as legal insurance against the bank’s failure. Banks pay a high price for tying up capital.
• Managing a business entails risk. Any CEO must understand how to handle the risks of his or her own organisation. (In reality, life is full with dangers, and we make risk assessment decisions all the time, for better or worse.) Even crossing the street is fraught with dangers that are handled differently by various people. Do you usually cross at a crosswalk, jaywalk, or await a green light?

In summary

You may work your way up the corporate ladder and become a Fintech CEO. But great CEOs have some remarkable attributes:

• They are non-stop learners.
• They are values-driven.
• They are organized and disciplined.
• They are powerful leaders: They unflinchingly take on responsibility and display an extraordinary sense of accountability.
• They have a good understanding of key performance indices.
• They inspire people.
• They value customers.
• They respect the interests of their shareholders.

As you can see, these attributes are what you cannot gain from either attending a specific academic program or from going to a particular school. A CEO is, therefore, born out of their learnings and experiences. 

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