Q&A with Jason Mikula
Fintech Advisor, Consultant, Investor @ Fintech Business Weekly
Hi, there!
Today I’m very happy to share with you my latest Q&A with my fellow “Dutch” FinTech and digital banking commentator, Jason Mikula. But first, a few things before we get started.
Be sure to sign up for his newsletter, Fintech Business Weekly, here
Follow him on LinkedIn here.
Let’s get to it!
Please tell us a bit about yourself, both at work and at leisure.
I’m an American from Chicago, who now calls the Netherlands home (Utrecht, specifically). I spent about 12 years working for various startups and banks in the US and UK. About two years ago, I pivoted a bit and now focus more on advising and consulting, primarily early- to mid-stage startups, but also the occasional more established company or bank that is seeking a better understanding of what is happening in fintech these days.
Leisure-wise, I love traveling and exploring other cities in the Netherlands and nearby countries. I’m a sometimes-cyclist (when the weather is nice) and am obsessed with my dog, a labradoodle named Lito.
How and when did you get into the FinTech space?
I got into fintech before the term was even particularly popular! Twelve-ish years ago, I had just returned from living in the British West Indies, and my skill set was primarily in digital marketing (paid search, SEO, affiliates, etc.) Freshly back in Chicago, I took a marketing role at an online lending company, which gave me an opportunity to build some of my technical skills while learning the different functions that make lending businesses work. From there, I went on to work in various marketing and product management functions to build and scale lending businesses at a number of other companies.
What made you start your newsletter and commentate on the FinTech space? And are there any other channels you are active and we can follow you?
To be honest, the newsletter was something of a pandemic hobby, originally. In 2020 (pre-vaccine), most things in the Netherlands were closed, and traveling internationally was challenging. Instead of binging on Netflix, I decided to channel some of that energy in a positive direction.
Looking at the banking/fintech media space at the time, you had mainstream business press, which only covered the largest fintechs, or “tech” publications, like TechCrunch or The Information, that cover tech broadly, but often lack hands-on experience or expertise in the nuances of fintech businesses (lending, neobanks, open banking, etc.) – I felt that, by drawing on my experience as a fintech operator, I could add a unique perspective.
People can subscribe to my newsletter, follow me on Twitter, and connect with me on LinkedIn.
What makes you so enthusiastic about FinTech? And do you have specific fintech segments you like the most?
I’m (still!) bullish on the opportunity for fintech to promote access and inclusion in segments often poorly served by big / establishment financial services companies.
I think the biggest opportunity is in developing markets. In the earlier waves of fintech, most of the investment was in Western countries with well-developed financial services infrastructure. A lot of the innovation, early on, was in improving UX – better mobile apps, fully digital account opening, etc. More recently, there have been more substantive developments, like cash flow-based underwriting, enabled by ‘open banking’ platforms like Plaid. But many fintech companies in developed markets are focused on taking market share from incumbents.
In developing markets, there are much larger greenfield opportunities. For instance, recent estimates show only 37% of adults in Mexico have a bank account, and cash still dominates as the most common payment method. Now, there are certainly structural reasons for this, but, for the fintech that can identify and solve barriers to adoption, that represents a huge, untapped market.
At the moment you are based in The Netherlands but do you still focus more on the US fintech market for your own research? Or do you also try to follow the European Fintech space more closely now that you live here?
It’s true that, despite living in the Netherlands, most of my time and energy has been focused on the US market and, to a lesser extent, the UK and Mexico. That is something I’m looking to change! I’m looking to follow and be involved in the European fintech scene more closely in the coming months. I’m always open to connecting with other folks in the space to exchange ideas. If you work in European fintech/banking, feel free to reach out to me to find a time to chat!
Which are the FinTech trends to watch out for in the next 6-18 months?
We’ve entered an interesting if a bit stressful period for growth/tech companies broadly and especially for fintech companies. With interest rates near 0% basically since 2008, the capital was (relatively) easy to come by, and cheap. That has changed.
VCs’ priorities have rapidly shifted from a “growth at all costs” approach – exemplified by companies like Revolut and Klarna in recent years – to a focus on profitability and sustainable growth. We’ve already seen some of the results of this, with once high-flying startups taking significant valuation cuts.
Unfortunately, I think we have another 6-12 months of pain ahead of us. We’re likely to see more layoffs, elevated M&A activity, and, yes, outright failures.
Honestly, I think this is an overdue “reset” for the sector. The pace of VC investment and the valuations of the last ~2 years were not sustainable. The return of some discipline to the sector, in the mid-to-long run, will benefit well-run companies with defensible business models.
What’s on your bookshelf/ reading list?
I recently finished “Principles for Dealing with a Changing World Order,” by Ray Dalio. While not fintech specifically, it is well worth a read for anyone looking to put what is happening in today’s macroeconomic climate in a broader historical context. The style of writing was a bit of a slog to get through, but definitely an insightful read.
Next up is Sophia Goldberg’s recently published “Field Guide to Global Payments.”
What’s one interesting thing most people won’t know about you?
I barely escaped a career as a lawyer… In fact, I was signed up to take the LSAT (the law school admissions exam in the US,) but decided at the last minute to skip the test. While I remain fascinated with legal and regulatory elements of the banking system, every lawyer I’ve spoken to or worked with over the years has validated my decision to skip law school and pursue a different path!