Leading A FinTech Firm Under Ethical Principles
It is not enough to possess an ethical style of leadership, but also aim to inspire your team with these ethical behaviours too. Below are the five concepts which a firm must put in place to install ethical behavioural characteristics in its actions. They are to be followed by all, especially those are the top of the firm.
>> Honesty and Truthfulness
Closely aligned to the concept of Ethical Leadership, is Authentic Leadership. The latter refers to leaders motivating those around them through genuine connections, openness, and real interest people’s opinions too. It is basically showing genuine respect for others. The FinTech sector has been quick to recognise the poor levels female representation and it’s great that discussions are being had about this area. How can finance and FinTech become more inclusive of a diverse array of people? How can the sector listen to the various voices in society to produce appropriate products?
>> Fairness: Equitability
One of the downfalls of the current financial system is that it provides a set of bland, beige products marketed to all. This is completely different to the FinTech sector which provides niche highly targeted products at affordable prices. Why pay larger fees than necessary for currency transfers when you can go to a product which focuses on that need specifically and it’s better than your current bank or other vendor?
>> Transparency and Adaptability
As many countries rush to legitimise FinTech business models, it is important that the field continues to demonstrate transparency of its practices. Within the UK, the government’s favourable and knowledgeable stance on FinTech has come as a result of transparency between the business community and government. There will be countless changes to come in reaction to the changing environment, but by remaining transparent, the sector can avoid the problems of the financial services of old which was too inward facing.
>> Promote Community Interests
Though a huge benefit of the FinTech movement has been increasing financial inclusion, it has yet to push this further through voluntary programmes. FinTech will prove access to financial products; make them cheaper and more easy to use. We predict there will be increased focus on improving financial learning at the adolescent and school ages too. This is a perfect example of where gamification of financial concepts like saving, budgeting and interest rates could prove vital.
>> Demonstrating Consistency
It is not often a singular act which creates lasting change, but continuous efforts to do better and form habits. FinTech firms must learn from the many mistakes of the ‘old guard’ financial services and strive to do better. All the components are not sufficient to make a change if there is no consistency. They must not only be a part of the firm’s strategy and culture, but also its rewarding structure i.e. performance appraisal systems and bonus schemes.