From banker to fintech founder

Resplendent in an expensive waistcoat and shirt combo, Antony Jenkins looks very much the model of a successful banker.

I only mention it because the fintech entrepreneurs I tend to talk to are more likely to sport zip-up sweaters or t-shirts under their jackets, rather than the more formal outfits beloved of bank CEOs. But Jenkins has a foot in both worlds. After spending three years as CEO of Barclays Plc, he is now in the driver’s seat at financial technology company 10x.

Designed to offer (mainly) incumbent banks to match the agility and customer friendliness of technology-driven challengers, 10 X is part of the somewhat under-reported corner of the fintech market that provides solutions to institutions rather than consumer-facing brands. Jenkins describes 10X as business-to-business-to-consumer.

When I spoke with him via Zoom, I was keen to find out about the realities of moving from a corporate job to the less secure life of an entrepreneur.

After Barclays

Jenkins’ tenure as CEO of Barclays was relatively short – three years between 2012 and 2015, to be precise. During that time he oversaw a period of restructuring. His departure in was – according to contemporary reporting – down to a dispute with the board over the pace and manner in which the changes were carried out.

Still, it’s not usually difficult for corporate executives to find high-level roles within their industries, and Jenkins had a long career in banking that included time at Citigroup and various roles at Barclays itself. So why the jump to entrepreneurial life?

“I had a good run in corporate life, but I guess I’ve always had entrepreneurial aspirations,” he said.

Perhaps more importantly, his experience suggested to him that incumbents in the banking sector had a problem that needed a solution. They were relatively slow when it came to serving customers and launching new products.

“In my career I’ve had to launch a lot of products,” he says. “It could take up to seven or eight months.”

In contrast, he says that 10x – which is essentially a bank-as-a-service platform – can make it possible for the banks to reduce that period to weeks, among other things by collecting all the necessary data and making it available in real time. In this way, his aim is to enable large banks – often hampered by legacy IT systems – to compete with challengers.

Big Tech

This, he says, is crucial, not only because “neo” banks are nipping at the heels of their longer-established rivals, but also because big technology companies are also moving into the financial services market.

But why should banks turn to fintechs? They’re not short of cash, and they won’t necessarily struggle to attract digital talent – ​​they can pay the wages, after all – so why should they buy in technology? Yes, why would they look to fintech for answers.

“Banks are our competitors,” Jenkins acknowledges. “And I see many who do it for themselves. But it is difficult for incumbents to reform themselves.”

Similarly, you could argue that it is challenging for fintech outsiders to gain a foothold in the B2B or B2B2C market. The customer-facing fintechs can harness the frustration of consumers and build highly focused services without the limitations of legacy technology. B2B players pitch products and services into the heart of an industry that has its own way of doing things.

This is where people with a banking background have a potential advantage. They know the industry and its problems. At the same time, they can focus on developing solutions. “We’ve done nothing but work on this for the last seven years,” says Jenkins.

A business background also helps when it comes to financing. Jenkins was in the fortunate position of being able to put £1m of his own money into 10x before seeking funding. To date, from Series A to C, it has raised around £252 million.

A change of mindset?

But running a startup transitioning to a scale-up may require a different mindset. It’s not the same safety nets that you might find in corporate life. “There’s more accountability,” he says. “You know it’s up to your team and you to make it work. The highs are higher and the lows are lower.”

At the same time, there is a feeling of freedom. “You feel very unrestricted,” he adds.

To date, 10x has signed up six clients, including JP Morgan Chase, Nationwide Building Society and Westpac. The aim in the short term is to serve around 20 institutions by 2025 – mainly in levels 1, 2 and 3 of the banking market. Jenkins sees that as a realistic goal. “At that time we will be cash positive.”

Fintech remains the poster child for the UK tech ecosystem, but while challenger banks and financial providers continue to grab headlines, the industry itself is looking for new ways to compete. It opens up opportunities for b2b solutions that are experienced but not seen by consumers. An alternative career for bankers, perhaps.

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