MD Interview Series: Dr. Matthias Lange

After introducing the newest addition to the FinLeap Management Team Dr. Carolin Gabor, we decided to begin a series of interviews with the Managing Directors of the company. Thus, every two weeks, you will have the opportunity to read more about not only FinLeap, but also the people behind it. The first post of the series is with Matthias Lange who joined FinLeap in May.
Dr. Matthias Lange is one of the members of the FinLeap Management team. As Managing Director, he oversees Product Development and Technology for the company builder. Therefore, FinLeap has the ability to not only pursue the technological advancement of each venture, but also design a reinforced banking product. Bringing with him years of experience in digital business building and IT architectures combined with a PhD in information systems, Matthias develops new ventures from the new business models to the official launch. With a combination of rigorous innovation and great technology, FinLeap has the ability to provide new forms of banking services.

Today, we will interview him on joining FinLeap, building technology platforms, and helping the ventures.

FinLeap.com: What was the idea behind joining FinLeap?

Matthias: FinLeap has been growing over the last months to a portfolio of 9 startups and we have some further already in our pipeline. To keep this fast pace and – even more importantly – high quality, FinLeap has decided to expand the management team: an opportunity that I could not resist. I have always had a passion for startups but decided for a career in consulting first. Before FinLeap, I worked for eight years for McKinsey, where I have helped banks transform their back office and IT infrastructure as well as develop new business models for financial institutions. Now, I have the opportunity to connect the two worlds and bring my experience to our startups.

FinLeap.com: How did you find out about the company?

Matthias: A former McKinsey colleague brought me in contact with Jan and Ramin. When entering the FinLeap office for the first time, I remember, I was immediately caught by the energy and passion of the people working here. When I went back home that day, I said that if I change my job one day, I know where I would love to work. Then, coincidently, one thing came to another and today I’m indeed working here.

FinLeap.com: What is the most interesting part of the job?

Matthias: For me the most exciting part about my new job is that I have the opportunity to work together with a lot of creative and intelligent colleagues, who all have the desire to reshape finance. Digitization in the financial industry has just begun and we are at the forefront to shape how we think about and how we experience finance in the future.

FinLeap.com: How is working for big banks and FinLeap different when it comes to digital business models?

Matthias: To drive business model innovation, it is elementary to have a “trial and error culture” that allows the making of mistakes and learning from those mistakes. At FinLeap, a customer-centric, agile product development approach is the heart of every new venture which allows us to rapidly innovate and test new business ideas. I see many banks currently still being constrained in their old structures, and thus, not enabling such an approach. However, with many traditional banks starting to cooperate with FInTechs, banks start to find ways around their current constraints. They range from classical partnerships for example like our venture FinReach that provides SaaS (Software as a Service) products to incumbents to joint ventures.

FinLeap.com: What is the importance of having a state-of-the-art technology platform?

Matthias: One challenge that many incumbent banks face today is the complexity in their legacy back office systems. With the growing complexity in bank’s IT systems, it is hard to change at the required speed. A technology platform that enables such constant, rapid change in products and business processes is key nowadays. Bank and FinTech technology platform alike needs to cater to these needs with an IT architecture that uses state-of-the-art design paradigms such as micros services or SaaS (Software as a Service) whilst keeping security standards and regulatory compliance high. I think one of the challenges for FinTechs will be to maintain such a sound IT architecture as they grow and mature – else we will see soon the first FinTechs with the same legacy as we see them with big bank’s IT architecture today.

FinLeap.com: How do you plan to help each venture?

Matthias: I think the support needs of each venture will be very different depending on their business model and maturity. We provide a sound foundation to kick start a FinTech venture and in later stages even more individual support to grow and nurture the venture.

FinLeap.com: What do you think you’ll have to do to keep up with the changing Fintech trends?

Matthias: The FinTech space is constantly changing and it is hard to filter the relevant information – you can get easily swamped by all the mailing lists, newsfeeds, and startup events. I rely mostly on my network in both “traditional” banks as well as new FinTechs to help me filter the right information and identify trends early on.

FinLeap.com: What is some advice you can offer other Fintechs?

Matthias: I think many FinTechs underestimate the complexity of banking when they design their products – designing a nice customer-centric product is not sufficient. You need to also consider the operational and regulatory complexity that comes with the product early on to reflect and address it in the underlying business model and technological platform to be able to scale up.

Today, we will interview him on joining FinLeap, building technology platforms, and helping the ventures.

FinLeap.com: What was the idea behind joining FinLeap?

Matthias: FinLeap has been growing over the last months to a portfolio of 9 startups and we have some further already in our pipeline. To keep this fast pace and – even more importantly – high quality, FinLeap has decided to expand the management team: an opportunity that I could not resist. I have always had a passion for startups but decided for a career in consulting first. Before FinLeap, I worked for eight years for McKinsey, where I have helped banks transform their back office and IT infrastructure as well as develop new business models for financial institutions. Now, I have the opportunity to connect the two worlds and bring my experience to our startups.

FinLeap.com: How did you find out about the company?

Matthias: A former McKinsey colleague brought me in contact with Jan and Ramin. When entering the FinLeap office for the first time, I remember, I was immediately caught by the energy and passion of the people working here. When I went back home that day, I said that if I change my job one day, I know where I would love to work. Then, coincidently, one thing came to another and today I’m indeed working here.

FinLeap.com: What is the most interesting part of the job?

Matthias: For me the most exciting part about my new job is that I have the opportunity to work together with a lot of creative and intelligent colleagues, who all have the desire to reshape finance. Digitization in the financial industry has just begun and we are at the forefront to shape how we think about and how we experience finance in the future.

FinLeap.com: How is working for big banks and FinLeap different when it comes to digital business models?

Matthias: To drive business model innovation, it is elementary to have a “trial and error culture” that allows the making of mistakes and learning from those mistakes. At FinLeap, a customer-centric, agile product development approach is the heart of every new venture which allows us to rapidly innovate and test new business ideas. I see many banks currently still being constrained in their old structures, and thus, not enabling such an approach. However, with many traditional banks starting to cooperate with FInTechs, banks start to find ways around their current constraints. They range from classical partnerships for example like our venture FinReach that provides SaaS (Software as a Service) products to incumbents to joint ventures.

FinLeap.com: What is the importance of having a state-of-the-art technology platform?

Matthias: One challenge that many incumbent banks face today is the complexity in their legacy back office systems. With the growing complexity in bank’s IT systems, it is hard to change at the required speed. A technology platform that enables such constant, rapid change in products and business processes is key nowadays. Bank and FinTech technology platform alike needs to cater to these needs with an IT architecture that uses state-of-the-art design paradigms such as micros services or SaaS (Software as a Service) whilst keeping security standards and regulatory compliance high. I think one of the challenges for FinTechs will be to maintain such a sound IT architecture as they grow and mature – else we will see soon the first FinTechs with the same legacy as we see them with big bank’s IT architecture today.

FinLeap.com: How do you plan to help each venture?

Matthias: I think the support needs of each venture will be very different depending on their business model and maturity. We provide a sound foundation to kick start a FinTech venture and in later stages even more individual support to grow and nurture the venture.

FinLeap.com: What do you think you’ll have to do to keep up with the changing Fintech trends?

Matthias: The FinTech space is constantly changing and it is hard to filter the relevant information – you can get easily swamped by all the mailing lists, newsfeeds, and startup events. I rely mostly on my network in both “traditional” banks as well as new FinTechs to help me filter the right information and identify trends early on.

FinLeap.com: What is some advice you can offer other Fintechs?

Matthias: I think many FinTechs underestimate the complexity of banking when they design their products – designing a nice customer-centric product is not sufficient. You need to also consider the operational and regulatory complexity that comes with the product early on to reflect and address it in the underlying business model and technological platform to be able to scale up.