Community banks have a new fintech friend, thanks to Tampa-based Allison
When the word “disrupt” is thrown around in the startup world, it’s often used by a startup founder who believes their technology can dismantle an entire industry.
But talk to Brian Alvarez-Bailey and you will soon realize that he has something else in mind when it comes to “disrupting” the community banking industry.
“There have been narratives coming out that fintech could disrupt or displace community banks,” he told Hypepotamus. “I think this is all bullshit. I think fintech, like any other tool, plays a role in community banking. And I think community banking and fintechs can play in the space together. I think one without the other wouldn’t capitalize on a true opportunity. »
Alvarez-Bailey wants to bring fintechs and community banks together with her new startup Allison.
The low-code platform and SaaS startup helps increase custody opportunities for community banks and credit unions. Alvarez-Bailey describes it as a “virtual financial container” connecting fintechs with community banks.
“It’s about marrying the speed, efficiency and stability you get from building new financial technology with the stability and trust that comes from community banks and credit unions,” he added. “We don’t want to displace [community banks]. We don’t want to put them out of business. We want to grow them.”
Fintech startups often struggle to get off the ground if they cannot find bank sponsorship. On the other hand, community banks often lack the infrastructure to bring in new fintechs.
Addressing the community banker’s pain points is something personal to Alvarez-Bailey. Not only did his grandmother work in a community bank for many years, but he himself worked in the FinTech remittance and financial services world before starting Allison.
Alvarez-Bailey spoke with CEOs of community banks and realized that their biggest pain points after Dodd Frank are the costs of their internal compliance and legal maintenance. Many of these institutions have been consolidated – or shut down altogether – over the past 15 years as the financial regulatory landscape has changed.
New city, new high-tech problems
Alvarez-Bailey may be relatively new to the Tampa Bay area, but he’s already making waves in the local startup scene.
After building his career in Austin, he fell in love with Tampa after a visit in early 2020. “To me, it had an Austin 2010 feel,” he told Hypepotamus. He was also already really impressed by those moving in the startup environment, like Lakshmi Shenoy at Embarc Collective.
He recently took home the top prize at regional Black Founders Demo Day. He will continue to represent the Tampa area at Black Founders Demo Day in Miami next December.
Alvarez-Bailey is one of a growing number of fintech entrepreneurs building in Tampa — an industry supported by a wave of newcomers to the city and the growing startup infrastructure supporting finance, HR and insurance-focused businesses.
“I am a person who sees problems as opportunities. And the bigger the problem, the bigger the opportunity,” Alvarez-Bailey told Hypepotamus. “That doesn’t necessarily mean I think I can solve the whole problem, but I argue that if you solve enough of it, there will be ecosystems built around that solution that has solved the bigger problem. Allison is really part of a bigger solution that eventually will happen in the next five or ten years.”
