Ternion is a licensed platform aiming to bridge traditional finance with the world of cryptocurrencies. Rudolf Medvedev shared his thoughts on the future of financial innovation with us.
Do you think traditional financial companies will ever get so innovative and tech-savvy that they will eradicate the young, disruptive startup culture altogether?
I think that will never happen due to the fact that growth is a double-edged sword: it is a big plus and a huge disadvantage at the same time. A small startup that rapidly grows becomes a slow elephant and slows downs on the innovation front. We hear the same being said about corporations that have sprung from a ground: now they bring fewer innovations to the market. And they are mainly focused on acquisitions, rather than on development from scratch.
A lot of fintech founders are ex-bankers. Do you need the killer instinct (and, crucially, connections) that a career in traditional finance often brings with it, in order to succeed in the space?
A bank is a place that you need to go through in terms of acquiring discipline and understating operations. It teaches you about the importance and fundamentals of structure. Those who have a banking background have drawn necessary conclusions that are applicable in the fintech sphere. It is not a necessary condition, but it brings you useful experience.
Are the odds stacked unfavourably against startups? Banks have more resources, but startups move better in the digital space. Which do you think has more staying power?
Coexistence is the key. Banks and startups need and complement each other. Both have their own niches and they will not replace each other. That’s why we have business incubators for startups. People are looking at how they can turn a $5,000 investment into a $500,000 one with incubation.