When people talk about FinTechs, they mostly talk about bold innovations, visionary founders and dramatic growth trajectories. For promising start-ups, the conversation is often about how to scale quickly and smoothly.

The topic of boards is, at best, an afterthought. However, in researching the role of FinTech boards in the UK, we found ample evidence of their vital importance. Why do boards matter? Because having the right board members with the right skills and experience at the right time is critical for FinTechs seeking to reach the next level of growth, profitability and societal impact.

Yet, many high-potential FinTechs struggle to establish a strong board as they begin to grow. The transition from an exclusive focus on investment and financial matters to one that incorporates broader concerns (e.g., purpose, governance) and more stakeholders can be particularly difficult. And because discussion of leading practices for boards is rare, FinTechs haven’t learned from each other about finding the right advisors or setting the right priorities.

This research was born of a belief that with the right frameworks, coaching and knowledge sharing, we can, as an industry, improve the performance of FinTech boards and enable FinTech businesses to achieve scalable growth. Specifically, we wanted to identify best practices for building and managing boards across the typical phases of growth (e.g., seed, series A and B funding, C+ and initial public offerings). And we wanted to share examples of the successful outcomes that can happen when boards work well.

The data we collected, the conversations we had and our own industry experience confirmed our view that effective FinTech boards are a prerequisite for success. During our interviews, workshops and data gathering and analysis, we saw time and again that an effective board makes the difference between sustainable growth and frustrated potential, between market leadership and performance, and between a profitable and high impact purpose and a narrow focus on the bottom line. Optimising the performance of FinTech boards is a timely — even urgent — concern with the industry poised to enter its next phase of evolution and growth in tough economic circumstances.

Thank you to the industry experts and analysts who participated in our roundtable events and interviews or otherwise shared their insightful perspectives. And thanks, in particular, to the amazing panel of experts who were generous with their advice and guidance throughout our research. Collectively, we believe that the continuing strength of UK FinTechs bodes well for a more innovative and inclusive financial services environment and stronger economic growth. The benefits will accrue to many individual firms and their founders and investors, consumers who profit from better experiences and easier access to vital services and the overall UK economy.

EY (Ernst & Young LLP) and Innovate Finance are proud of our track record in collaborating in support of a thriving FinTech sector in the UK. We would be delighted to hear
your reactions to the recommendations in this paper, as well as any questions and insights about directors’ roles in the future of FinTech. Please reach out to us or the other contacts listed on page 35 of the report.

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