This month’s Executive Insight section features Aaakash Moondhra - the Chief Financial Officer at PayU, a leading payment services provider. PayU capitalises on its payments heritage and expertise to deliver financial services in high growth markets, supporting over 200,000 merchants with over 250 payments methods and reaching a potential consumer base of nearly 2.3 billion people. What sets the company apart is that it builds FinTech services around the unique local conditions the company finds in its target markets. By making payments and other FinTech solutions as easy as possible for local populations, PayU hopes to have a real impact on the growth ambitions of its customers.

 In his 20-year career, Aakash has worked in range of financial and other roles at companies as diverse as Snapdeal, Andersen Consulting and AT&T, Bharti Airtel Group and Baring Private Equity. Here he tells us more about his role as a CFO and his achievements, while also offering a valuable insight into the FinTech industry.

You joined PayU in September 2015 - how would you evaluate your role over the last year? How has it impacted the company and its performance in 2016?

 It has been an extremely interesting journey and there hasn’t been a dull moment yet. On a tactical level, there’s been the daily cut and thrust of working with the wider company to beat our monthly financial targets.

At a corporate level, one of my main responsibilities is to help set the strategic direction of PayU. Over the past year, I’ve worked on several major initiatives which have put us in a good position to deliver on our growth goals. For instance, putting in place a unique, centralised and federated operating model across our existing disparate technology platforms, which will enable us to scale rapidly while also benefitting from cost efficiencies.

I’ve also supported the strategic growth of PayU through important acquisitions, such as Citrus Pay in India, which are critical to our move from being a payments business to delivering FinTech services across the growth markets we operate in.

Finally, one of my main tasks since I started at PayU has been to establish an even stronger operating discipline and to build a very objective and deadlines-driven culture. The project management mindset I’ve helped instil across the organisation puts us in a great place for 2017.

What is the achievement from the past twelve months that you are most proud of?

 In September, we acquired Citrus Pay, the Indian payments business. This is the largest all-cash acquisition in India’s FinTech history ($130m), making us India’s largest e-commerce payment process company; something we’re all very proud of. The deal is hugely important to growing our footprint in India, which is one of the most innovative FinTech markets in the world and one of our key focus markets.

On a personal level, I’m very proud of the role I’ve played in the transaction. This, of course, included financial and due diligence activities, integration of the two companies, developing a joint business plan and developing a process to support future growth; I also played a part in the relationship side of the deal, working closely with my counterparts at Citrus Pay to ensure it went smoothly.

Aside from that, my other achievements this year have been around enhancing our workforce. I’ve helped put in place a more focused culture and encouraged every member of the finance team to consider PayU as if it were their own business. The idea is to get everyone thinking like an entrepreneur to drive innovation and growth. This has been augmented by some great hires within finance across different regions.

What would you say are some of the challenges of being the CFO of a fast-growing company?

 The great thing about being in a fast-growing company is that every challenge is also an opportunity. There will always be barriers, but it is our role to convert these challenges into opportunities.

The main task is to get the balance of priorities exactly right. There are trade-offs to be made – high-growth against risk management for example, or investment against cash flow – but these can all be managed with the right strategic vision for the company.

Then there’s inorganic growth. Acquisitions are important for companies with big ambitions, but there’s a danger that M&A activity can get out of hand and deals are made for the sake of making deals. The CFO is essential here; taking a dispassionate view of every transaction and only allowing those with real strategic merit to proceed.

High-growth businesses also need to be nimble. In practice this means we must be able to zoom in and zoom out at the same time. Some issues demand a detailed examination, while most can be viewed from 60,000 feet. It’s exactly this requirement that makes working for a high-growth company so interesting; and if the skill can be mastered it provides an agility around decision-making that can help drive growth.

How is the role of CFO changing in fast-moving organisations?

 In recent years, the role of the CFO has started to transform. In the past, the CFO’s primary role was to help balance the books and ensure compliance. Today, the role is far more strategic; the CFO is tasked with keeping an eye on the macroeconomic environment and charting a course through turbulent markets.

Historically, the CFO’s relationship with business partners was ambivalent, particularly if financial considerations meant that the CFO had to block a project. Today, the CFO is seen as an enabler to innovation, working closely with every function to ensure the company is moving with speed. The CFO’s relationship with the CEO is also evolving. While still reporting in to the CEO, the CFO is also becoming a sounding board for the CEO’s ideas, and a good CFO will look to voice a different view to encourage debate.

That’s not to say the old duties have gone away. Indeed, in a world where business fraud feels like it’s growing and corporate hubris appears to be on the rise, it’s more essential than ever that the CFO is a beacon of fiscal responsibility.

How do you overcome the challenges presented by the ever-changing nature of the sector?

 The FinTech sector is a dynamic sector, and it can sometime be hard to know what’s around the next bend. Fortunately, most of the challenges we encounter can be overcome with common sense.

For example, as we operate in a wide range of geographies and markets it makes sense to have the right internal controls, processes, policies and communication channels in place. Similarly, it’s vital to stay on top of what’s happening in the markets in which you operate; being ready to make quick changes when required. It goes without saying that monitoring risk should be one of the key concerns of the CFO and a task carried out regularly and rigorously.

In my view, the CFO role is more about people management than it used to be. CFOs need to oversee talent, ensuring they have the right people in their team and then working to keep them engaged and motivated. The CFO also needs to ‘muck in’ with the business when numbers are in danger of not being met, and be ready to have those difficult conversations when business people sandbag their numbers. Concurrently, CFOs need to establish themselves as figures of trust and respect within the organisation. It’s a fine balance, but one any good CFO should be able to make.

Finally, let’s not forget the ‘KISS principle’ – many times we see issues that are made out to be more complex than what they really are. I constantly remind myself of the ‘Keep It Simple Stupid’ principle to make sure I get to the heart of issues quickly.

What do you anticipate for the global FinTech industry in 2017?

 In 2017 we will see growing levels of payments innovation coming from all corners of the globe, challenging that of the most developed markets.

At PayU we have first-hand experience of high-growth markets such as India, Latin America and Eastern Europe, and we are already starting to witness impressive payments innovation as governments and entrepreneurs capitalise on the smartphone revolution in these regions and citizens’ increasing access to digital channels.

That is one of the most thrilling things about my industry today: the continually shifting focus of innovation.

Linium, a world-class provider of business services that empower the entire enterprise, today signaled its expansion into the European market with the opening of its newest office in London.

With a strategic concentration on providing financial services consulting, the new location enables Linium to assist European companies in addressing a host of timely financial issues, including the impact of Brexit and challenges associated with regulatory reform. Key areas of focus will include Financial Markets and Equities; Business Change and Transformation; Management Consultancy; with further specialisms in Enterprise Architecture & Target States, Regulatory Compliance and KYC Delivery Models, Lending Services and Loan IQ, and Risk and Finance.

“We are delighted to expand Linium’s global footprint with the opening of our new location in the UK,” said Steve Shyn, Chief Strategy Officer and Managing Partner of Linium. “The presence of our London office will create opportunities to provide Linium’s consulting services in the European market, particularly across the financial services sector, where the need for innovative solutions to enable agility and technology growth has never been greater.”

With more than 16 years of experience, Linium’s consulting expertise in the financial services markets spans regulatory change, lending services including Loan IQ, risk and finance, business change and transformation, operational effectiveness, target operating models, cyber security, and robotic process automation. Linium’s proven capabilities are designed to assist the banking sector in navigating a myriad of evolving rules and regulations, mitigating compliance risks, reducing redundancies, and maximising operational effectiveness through tailored and innovative approaches that address critical issues and achieve results.

“I am hugely enthusiastic about what the future holds for Linium and our customers within Europe and beyond,” said Linium Managing Director Dylan Coffey. “With an outstanding track record and demonstrated specialist expertise, Linium is uniquely positioned to provide financial firms with the knowledge and delivery to enable them to outperform in today’s complex and evolving environment.”

The opening of Linium’s London office comes on the heels of work the company has completed for clientele across Europe. Most recently, Linium assisted a global UK bank in need of consolidating and moving all syndicate (agent) and participate (member) deals from legacy commercial lending systems into Loan IQ and decommissioning all legacy loan systems and sub-systems.

With over 2,200 successful engagements, including lending support and services to numerous Fortune 500 companies, Linium has been named to the Inc. 5000 List of Fastest-Growing Companies for the past five consecutive years. Linium’s growth is fueled by its premier solutions-based consulting, which enables companies worldwide to achieve operational efficiencies through modernization. In addition to financial services, Linium provides consulting in strategic planning, enterprise service management, operations management, enterprise performance management, human resource management, custom application development, and business intelligence.

(Source: Linium)

There are three key challenges currently facing the financial services sector: building trust with customers; embracing new technology; and challenging the challengers as more businesses look to diversify and offer new innovative products and online services. It’s an interesting time, and one where communications are critical.

To combat these challenges, all businesses have to think about the way they engage with audiences and tell their story. Financial services firms in particular need to be seen as human-facing businesses, which is why creating an emotional connection has become as central to a successful communications programme as the value-led product information you provide. In the past this has been far more common in the consumer marketplace.

From smaller start-ups to larger, more established corporate machines, both ends of the scale need help to do this in different ways. The latter often benefit from a focus on refreshing their communications approach and revisiting their market position, such as identifying more engaging and digitally-focused channels (vital given the current landscape of disruptive and challenger SMEs). The former, such as FinTech brands challenging the status quo, need help to build their brand and instil confidence in customers where the brand has a less supporting heritage to build a credible market position.

At Speed, we build a partnership and consultancy position with all our clients from the start to help them on their journey. Working with a wide range of finance and professional services clients, we are particularly adept at supporting organisations with a brave attitude to their communications who are looking to disrupt the market.

Our approach to communications is based on combining business brains with creative muscle. This means utilising intelligence and insight, alongside imagination and creativity. By combining these with the influence and connections we have with media and stakeholders, we create real impact for our clients.

The word impact is key for us. When approaching our work, we always consider the impact and how we can offer a return on investment. The bottom line is in fact a hugely important factor when it comes to external communications – how will our efforts support business development?

Thought leadership positioning to create brand awareness and reputational growth is central to this. From the start of a relationship, we believe it is important that we work closely with leadership teams to understand their challenges, and help to identify their vision, mission and leadership offer. Communications and marketing has an important role to play and should be driven from the top down, so we spend time with our clients to understand their business. We also take a deep dive into their marketplace to understand market trends, core competitors and key stakeholders so we have a clear view on market positioning plus barriers and opportunities.

Telling your business story in an engaging and emotional way allows you to connect with an end audience and demonstrate what you have to offer. Understanding audience groups by segmenting key decision makers and influencers to discover what they need and the challenges they face is key to this. This insight then informs the central narrative we create and the journey we aim to take a business’s various audiences on.

The truth is, it is becoming harder to stand out from the crowd. Businesses therefore need to be brave in their approach and willing to say something different, to have a point of view. This is particularly relevant in the world of financial services where everyone is vying for the same commentary space, to be seen as an expert commentator on growth, the economy, and of course – for the moment – Brexit.

Over the last ten years in the communications industry, we have seen colossal changes in the way we work and communicate; technology has been hugely beneficial but has also brought with it new challenges. We are no longer in a world where we simply push out content. We are now in a two-way discussion with audiences.

The use of social media channels and online content hubs have helped us to communicate news for our clients and provide commentary faster and more efficiently. These channels allow us to engage, have conversations and build emotional connections with audiences. And the speed at which this content is consumed is only expected to increase.

For me, remaining curious and relevant for our clients is key to helping them stand out from the crowd – with our business insight and intelligence we demonstrate this daily. When this is combined with creative thinking and channel knowledge, we are able to identify even more opportunities to deliver our clients’ stories to their target audiences in new and engaging ways. Together we are on an exciting journey and a strong partnership from the start is key to our joint success.

Commenting on the Chancellor’s package of measures to support UK fintech, including a £500,000 a year investment for fintech specialists, Warren Mead, Global Co-lead Fintech, KPMG, comments:

“The UK is a leading global force in fintech but we’re losing power to China rapidly and the announcements in the Autumn Statement will struggle to reverse the trend.

“UK fintech investment has seen a considerable decline throughout 2016 as investors keep a keen eye on the aftermath of the EU referendum and the UK’s changing relationship with America. In fact Europe has not registered a single mega-round (US$50m+ ) in 2016 while Asia has registered 12.* The rise of China is indisputable and picking up pace, four of the top five spots on this year’s top 100 fintech firms were held by Chinese companies.

“Across financial services we’re hearing people talk about technology investment but change is happening too slowly. If we look at banks, they invest just 1-2 percent of their revenue into research and development whilst in technology firms it’s more like 10-20 percent. When one of the technology giants like Google turn their attention to fintech in a serious way we will see dramatic change and it will happen fast. The question is whether Asia will be first? With the diversity of investments and widespread support for the growth of fintech hubs in the region, it’s a very distinct possibility.”

(Source: KPMG)