http://idcee.org/p/kristo-kaarmann-transferwise/
Kristo Kaarmann is the co-founder of TransferWise, the international money transfer platform. The business allows regular people to access the real mid-market exchange rate by cutting out traditional banking fees altogether. It charges only a tiny, totally transparent service charge.
In the two years since it launched, the business has transferred over £125m worth of customer money and has attracted $7.35m from investors such as Peter Thiel and Max Levchin, co-founders of PayPal.
Prior to starting TransferWise, Kristo was a management consultant with Deloitte Consulting and PricewaterhouseCoopers. He worked with European banks and insurers to modernise their processes and systems. Stunned by their inefficiency, he teamed up with Taavet Hinrikus, then Skype's director of strategy, to develop an entirely new system for moving money across borders.
At TransferWise, Kristo is in charge of operations, development, and compliance.
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6. Why banking?
Banking is already a tech business
It is complicated but not hard
Opportunity is enormous $$$
People know not to like banks
ICDEE Kyiv 2013 - @kaarmann
7. How to transfer money unwisely?
$30 + 3%
$100bn+ yearly = 70% of
ukraine GDP
takes 5 days !?
ICDEE Kyiv 2013 - @kaarmann
8. How did we tackle the problem
Idea: crowdsource currency
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saved $15 million in bank fees
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raised $7.3 million – Peter Thiel, Index, IA
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launched in January 2011
team of 45: London, Estonia, Ukraine
Objective: make a $100bn business
into a $10bn business
ICDEE Kyiv 2013 - @kaarmann
30x
10. Lessons learned: trust
… but it is sooo hard!
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earn 11 out of 10 with every interaction
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social proof: customers, investors
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look and sound professional
ICDEE Kyiv 2013 - @kaarmann
11. Lessons learned: customers
Biggest asset for a startup
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Recommendation from a friend 10x better
chances to success than advertising
As a founder or exec you have to
speak with them routinely
ICDEE Kyiv 2013 - @kaarmann
12. Lessons learned: speed
Your only edge and best defence
The only focus is speed of growth
Fight the forces that slow you
down
ICDEE Kyiv 2013 - @kaarmann
13. Innovating finance – a checklist
People hate their current
product?
Your solution is 10x better?
Plan how to get customers
Focus on trust and experience
Be faster than the incumbents
ICDEE Kyiv 2013 - @kaarmann
14. We imagine a world where you can send money across
the world instantly for a low cost.
Anything is possible.
ICDEE Kyiv 2013 - @kaarmann