June 3, 2023•419 words
The problem with tech is that all these startups are founded by tech people with other tech people who are not experts or don't even at least hire an expert in the product or service that they're starting.
Fintechs are not founded by bankers and most don't even include or even consult with bankers. In fact they see themselves as fixing everything that is wrong with banking but it baffles me how you're supposed to do that without collaborating with banking experts. One thing about bankers is that they have thick skin when it comes to handling risk and compliance while fintech startups are blocking customers' accounts as if it were some kind of national hobby over the silliest things because they have zero tolerance or capacity for risk. A very effective way to dig your own grave and I'm certain that most fintech won't be around in the future. Either bought out by real banks or sent to oblivion by their own stupidity.
Then Edtech isn't founded by teachers and educators. Well some are, but most aren't. And it's not like private schools and colleges don't understand business. In fact they're pretty successful at making education a big money business but still Edtech doesn't involve these experts. Again re-inventing the wheel behind the idea that they're better than traditional education. And then they implode when they cannot deal with student related issues that are unfamiliar territory for non-educators. Not knowing that education is not only about curriculum and tuition fees but also about sociological issues.
And let's not forget Medtech. Again not founded by medical experts. Not doctors, not nurses, not by anyone who has ever stepped foot in a medical facility with the exception of being a patient. And once again the arrogance that they're better than traditional medical entities but handle liability and compliance issues like a five year old playing with matches.
The flame of hope for these startups are the many people from these traditional industries who are choosing by themselves to break into tech and seek out companies where they can use their existing skills. Bankers and finance experts who want to be in tech will seek out fintech companies. Educators will seek out Edtech companies and medical staff will seek out Medtech companies.
The only questions is how many of these companies will recognize the value in these applicants or will their resumes be flused down the toilet in alignment with their disdain for the archaic industries that they have come from?