“They can help you integrate technology. We know one of the reasons that many of the businesses in this space are operationally difficult to run because technology doesn't talk to each other. It's really irritating. And ultimately, customers are paying for technology not being integrated. So startups are way better at that and can be brave about regulatory models.”
Startups
Hancock believed startups could help advice firms modernise their business and help to deliver better customer outcomes but noted firms needed to understand these firms were in their infancy.
“We've got to remember that these businesses are babies and need dealing with gently because they're just finding their way. If you try to treat them like big incumbents with perfect cash flow, having done everything before, you are not going to get the benefit of that innovation. It's impossible when you're starting a business to get everything right the first time.
“There's the classic phrase, if you're not getting it wrong half the time, you're just not moving quickly enough. So you've got to remember that the businesses you're dealing with are babies, and need to be treated as such,” she explained.
However, Handcock pointed out that founders of startups also had a big role to play and needed to think about integration just as much as function, understanding how their ideas fit into the ecosystem of a firm they are pitching to.
“Founders also need to understand regulation properly. This is a role that I think a founder can play or a small business can play in going, 'I've read this, you don't have to and I'm going to teach you about it'.
“And frankly, if you're trying to sell to a regulated firm, without having done that, you're going to get unstuck very quickly, because at some point, you're going to sit in front of the head of compliance. If you don't know what you're talking about you are never going to sell anything. It might not be everyone's favourite task, but it's worth doing,” she added.
Handcock urged the audience to work with people who think differently and who are the ‘early adopters’.
She said: “Work with the people that are obsessed with customer outcomes, because actually you can transform the world together, if you pick the right partners.”
alina.khan@ft.com
