The Fintech 5 with Biju Kizhakhemadtil — SVP of Fintech Solutions at the Fidelity Center for Applied Technology

In this ongoing series of blog posts, we are introducing you to some of the sponsors, partners, advocates, and entrepreneurs who make up the unique Fintech Sandbox community, and without whom our small team could not provide fintech startups with access to critical data and resources, entirely for free.

The Fidelity Center for Applied Technology (“FCAT”) serves as Fidelity Investments’ hub for exploring emerging technologies and social trends that may shape the future of financial services. FCAT’s charge includes assessing, testing, and scaling concepts and ideas that advance Fidelity’s market leadership and enhance customer experiences. FCAT is a frequent sponsor of our events, including, most recently, Demo Day[s] 10 in April.

Biju Kizhakhemadtil is the Head of Fintech Solutions at FCAT, where he has spent most of his career. He is responsible for developing cutting-edge technology platforms that scale with the cloud and leverage AI to power new businesses. Biju engages and collaborates with innovative fintechs to co-create financial solutions built to drive financial wellness and access. He brings decades of proven experience across financial markets and the global fintech ecosystem, including granted patents in the fields of natural language processing and advanced trading.

Biju KK, Head of Fintech Solutions at Fidelity Investments

Question #1.  Biju, how does FCAT engage with fintech startups?

At FCAT, we have a long history of engaging with fintech startups and have developed some wonderful relationships over the years. FCAT engages with fintech startups by providing a platform they can leverage to help advance their solutions and innovative ideas. We are happy for fintech startups to collaborate in experiments, research, and simulations, which also brings innovation into our own business units. We look at emerging technologies three to seven years out to drive the future, and collaborating with startups is critical to understand “where the puck is going”. An example of this is our collaboration with Dogpatch Labs, who we work with to provide support and opportunities to startups, including expertise, resources, and access to a global network. Our research also prompts us to explore startup activity in particular areas of interest so we can develop informed insights.

#2.  What fintech problem or solution are you focused on or most interested in right now?

From a fintech perspective, I’m proud to say that one of FCAT’s core focuses is making investing more accessible for the average person. We’ve seen that financial services firms often use complex and potentially intimidating terminology, so we focus on helping these people overcome that barrier by simplifying language, providing education, and helping fintechs present information more accessibly. We do this by sharing knowledge and tools to help manage the risks associated with investing, which can help the average person move forward in their journey.

#3.  Do you foresee a role for either VR (virtual reality) or AR (augmented reality) in the delivery of financial services in the near future?

FCAT has a solid track record of exploring technologies as they emerge, and we have teams dedicated to exactly this. One of our core principles at FCAT is that we strongly believe that innovation happens at the intersection of technology and customer demands — and when it comes to VR and AR, we believe that these incredible technologies have the potential to open an entirely new paradigm on how we look at, understand and leverage data. For example, this might include 3D data visualizations and data interactivity to uncover new insights.  It’s clear that there is a demand for all things data-related and we are excited to research these technologies more.

#4.  What advice do you have for startups about partnering successfully with incumbent firms?

For a successful collaboration with incumbent firms, my first bit of advice to fintech startups is to try to ensure that you are partnering with a firm that has an innovative or entrepreneurial streak. I’ve found this to be important, as I’ve seen that firms sometimes look for collaborations based on a general managerial urge to see what’s out in the market, but that can lead to mismatched cultures and priorities.

My second bit of advice is to try to fit into the existing ecosystem with minimum friction. Keep in mind that incumbent firms have businesses that operate at an established pace, so it’s easier for a startup to integrate and adjust accordingly. Incumbent firms provide stability and scalability, so it is important to respect their approach and align with their ecosystem.

My final bit of advice is to make sure that you and the incumbent firm understand the problem that you are trying to solve. If your startup and your partner share a clear understanding and are on the same page, everything will be off to a great start.

#5.  If you could change one thing about the fintech ecosystem, what would it be?

I think we need to reshape the paradigm in which startup and legacy fintech firms interact. We often see problems emerge when one party sees the other as a hindrance or a threat — perhaps the startup is too idealistic or hasty, perhaps the legacy firm is too rigid or unnecessarily bureaucratic in its decision-making. But the reality is that both can and should learn from one another, and there is quite often a happy balance stakeholders can strike when appropriately leveraging both the startup’s entrepreneurship and legacy firm’s structure and collective experience.

Bonus Question! What’s the best career or life advice you’ve received?

Many years back when I was managing teams that delivered on “business as usual” projects, someone told me that it was critical to focus on the things that matter, no matter how unrealistic. This changed my perspective and outlook on how I managed my time and career. Since then, I have always looked for opportunities that allow me and my team to push the envelope of what we do as a firm even in the face of risks, failure, and limitations.

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