Lemonade co-founder and CEO John Findlay says the 28-person company has barely scratched the surface of the massive U.S. financial services market, which includes thousands of banks and other institutions such as credit unions.
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An Ottawa startup that helps financial services companies and their customers adopt digital technologies has joined a U.S.-based accelerator in the hope of making inroads in the lucrative wealth-management industry.
LemonadeLXP specializes in software that teaches staff and customers of financial institutions how to make full use of online banking services, such as depositing a cheque by taking a picture of it with a smartphone.
Using techniques like game-based learning, role-playing scenarios and video “walkthroughs” that give step-by-step explanations of banking processes, the firm’s subscription-based platform aims to turn bank employees into “digital experts” as financial institutions look to maximize their returns on their ever-growing investments in online technology.
Lemonade’s offerings have struck a chord with financial institutions pushing to go digital in a hurry, particularly in the United States. Founded in 2018, Lemonade now boasts a client list that includes TD and dozens of U.S.-based financial institutions.
However, Lemonade co-founder and CEO John Findlay says the 28-person company has barely scratched the surface of the massive U.S. financial services market, which includes thousands of banks and other institutions such as credit unions.
“There’s no reason we can’t have 30 per cent market share down here,” the affable Findlay said during a recent interview from Texas. “There’s really no company doing what we do specifically.”
Even though there’s still plenty of territory to conquer in the banking space, Lemonade is branching out.
After its banking division saw an uptick in digital adoption after deploying the software, for example, TD asked the Ottawa company if it would work with the banking giant’s insurance branch. Lemonade has also been asked to implement its software at mortgage companies and investment firms.
While the wealth-management space presents a big opportunity for Lemonade, tapping into the industry comes with its own set of challenges. Though mortgage firms and investment houses are intertwined with banking, they have their own regulations and workflows.
So when Findlay and his team were offered a spot in an Arlington, Tex.-based accelerator designed to boost growth for so-called “wealthtech” startups, they jumped at the chance. The 12-week program, called the Founders Arena WealthTech Accelerator, began earlier this month.
“Frankly, we know a lot about banking and a lot about fintech,” Findlay explained. “We don’t know that much about (the wealth-management business). This is an opportunity for us to not only learn about the industry, but make some contacts and get some introductions from people.”
As part of the program, Findlay and his staff will meet with leaders of technology companies that serve the wealth industry to get a lay of the land in which Lemonade hopes to gain a foothold.
“It’s really kind of the thin end of the wedge of getting into the industry,” he said. “It’s an education for us.”
As is often the case in the topsy-turvy world of entrepreneurship, Findlay’s path to this point was hardly a straight line.
While working as a corporate trainer in the late 1990s, Findlay became fascinated with the still-fledgling Internet. As he clicked on banner ads that typically redirected viewers to boring websites, he figured there had to be a better way to engage the consumer.
