So many banks say they want innovation, but why do so many promising fintech deals still never make it to the end? My next guest has seen this problem from every side — worked with banks from the inside, scaled fintechs, and advised on regulatory deals. He is now investing in technology companies trying to sell themselves back into the system they once worked in. Michael O'Loughlin, US Ambassador for the MENA Fintech Association and Managing Partner at Argonautic Global. Michael, thanks so much for joining us. Banks consistently say they want innovation. Why do so many promising fintech deals still go nowhere?
Good morning. Getting that first meeting is the technology problem — that's what gets you in the door. But actually getting to a contract, that's the biggest issue. The person who enjoys your demo when you're in that bank as a fintech is often not going to be your champion to help it graduate beyond the demo stage. The technology problem gets you in the door — you've identified a problem, you have a suggested solution, the bank listens. Actually getting the contract, that's when it gets tricky.
Where do these deals usually break down? Is it ownership, integration, compliance?
Shiny things will always grab attention. But if you don't have a clear business owner — someone outside of an innovation hub who is actually going to fly your flag inside the institution — that's usually where it breaks down. Or if the business case isn't real or impactful enough. And if you get it wrong, if you just do a pilot thinking it's your Trojan horse to land and expand, what can happen is it becomes an expensive demonstration that eats into your cash flow and drags time away from other sales you could be doing elsewhere. Being able to say you're in discussions with a large bank is just the first step. The key is filtering out where the noise is and where the real sponsorship is.
What do founders often misunderstand about selling to banks specifically?
It's not all doom and gloom — if you have an idea that solves a real problem, that's genuinely positive. But many founders go to banks selling features, not end-to-end solutions. Banks don't necessarily want features. What they're missing is the confidence piece, the liability piece. What happens when things go wrong? Will this fintech be here tomorrow? Will they be here next year if we embed them in a critical workflow? That's what's really crucial.
Are banks themselves part of the problem?
Let's not beat up the banks. Banks don't really have an innovation shortage — they don't. But what they do have is an ownership shortage. You can bring all the great ideas into a bank, but without the proper champions carrying those ideas, finding the right workflows, and embedding them into real operations, it's just going to remain a good idea. Fintechs trying to sell in are struggling right now, and that's largely why.
Before you back a company selling into financial institutions, what are you specifically looking for as an investor?
We're looking for repeatable distribution. We want to know you have the right champions identified. We want to know you are embedded in workflows that matter — not just for one specific bank, but something you can lift and shift into banks nationally and globally. That's where the unicorn moment happens. Can you graduate beyond the innovation hub conversation? Can risk, compliance, and security buy into it? Because often it falls down in procurement — you can have the best conversations solving real problems, but procurement just doesn't align. And I'd always say take the elevator, not the stairs. Get the right senior representative in the bank, get them to understand what problem you're solving, and get them to sell on your behalf inside their organisation. That's crucial.
One piece of advice for a founder watching this who is trying to sell to a bank?
Prove that you can solve real world problems for the customers of the bank — for today and tomorrow. And then survive the institution. That's the key.
Thank you so much, Michael. Always a pleasure to have you here.
Thank you very much.
