In today’s fast-paced financial landscape, fintech is rapidly evolving, but the question remains: is corporate Australia ready to embrace this transformation? At the recent Intersect conference, industry experts discussed the challenges and opportunities presented by fintech adoption in the corporate world. Leading the discussion were Cameron Fredericks, Payment Partnership Manager at David Jones, and Anthony Fleming, Head of Growth at Teachers Health. They explored topics like payments, innovation, corporate collaboration with fintech companies, and the critical need for cybersecurity.
As one of Australia’s longest-standing department stores, David Jones has witnessed the evolution of payments firsthand. Cameron Fredericks shared insights into his role as the Head of Payments, which involves managing various payment methods, from traditional credit cards to new digital platforms like UnionPay and AliPay. Fredericks emphasized the importance of optimizing payment methods to enhance customer experience while supporting the company’s operational needs.
“Ultimately, our goal is to sell products and services, and payment touches every part of our business,” Fredericks explained. He also highlighted how David Jones is exploring new business models, such as reintroducing their previously successful Wine Club and potentially using subscription models to future-proof their payment ecosystem.
At Teachers Health, Australia’s sixth-largest health insurance provider, the payment process is just as critical. With over 193,000 memberships and 500,000 Australians covered, the vast majority of their members rely on monthly direct debits. Fleming pointed out that any change in payment systems could have a significant impact, and while fintech developments like Pay2 and the New Payments Platform (NPP) are on the radar, awareness across the organization is still growing.
“These systems are still being introduced to the conversation, but their potential to streamline payments and improve member experience is undeniable,” Fleming said. He stressed that fintech innovations could play a crucial role in overcoming challenges, such as avoiding coverage interruptions due to payment timing issues—a key pain point for their members.
Embracing Fintech Innovation: Are We Ready?
Despite the growing importance of fintech solutions, both Fleming and Fredericks acknowledged that awareness and discussions about these innovations within their organizations are still limited. Fredericks highlighted that while David Jones is keeping an eye on developments like Pay2 and digital IDs, there’s still a lack of profound use cases. Similarly, Fleming noted that regulatory compliance and risk management often dominate the discussions at Teachers Health, leaving less room for fintech-driven innovations.
That said, both panelists agreed that there’s a strong appetite for innovation within their companies. “Transformation and innovation are definitely happening,” Fredericks said, mentioning that David Jones is in the process of launching a new app, developing a data strategy, and enhancing their loyalty platform. However, the road to adoption is not without its hurdles, particularly in navigating legacy systems and ensuring alignment with corporate priorities.
The Role of Partnerships in Fintech Success
One of the key takeaways from the discussion was the importance of building strong, collaborative partnerships between corporates and fintech companies. “Show me you know me,” Fredericks urged, stressing that fintechs need to understand the specific needs and challenges of organizations like David Jones. It’s not enough to pitch a generic solution—fintech companies need to tailor their offerings and demonstrate how they can solve real problems for corporate clients.
Fleming echoed this sentiment, emphasizing that fintech companies should take the time to understand the unique ecosystem of their potential corporate partners before making a pitch. He advised fintechs to avoid jumping straight into the sales pitch, instead focusing on how they can help solve specific pain points.
“Don’t come in trying to pitch first meeting,” Fleming cautioned, sharing an example of how some vendors made the mistake of trying to teach his team about their own industry, which came off as offensive and misguided. Instead, fintech companies should engage in informal conversations, listen, and offer solutions that are tailored to the company’s stage of development.
While both David Jones and Teachers Health are open to working with fintech partners, navigating the procurement process can be challenging. Fleming explained that depending on the size and scale of the project, the company may go through a formal Request for Proposal (RFP) process or proceed through ongoing discussions and informal agreements. However, compliance and regulatory requirements are non-negotiable. Privacy assessments, data security checks, and outsourcing regulations all play a crucial role in determining whether a partnership can move forward.
Fredericks, on the other hand, shared that while David Jones also uses RFPs, they are keen to move quickly when they identify a pressing problem. He cited a recent example where they successfully changed their payment gateway and migrated 170,000 cards to a new token vault in record time, despite being advised against making such changes during their tech separation agreement.
“We can move super quick if it’s the right solution,” Fredericks said, adding that fintech companies that can take ownership of a problem and present a clear, actionable plan are more likely to succeed in building lasting partnerships with corporates.
Cybersecurity: A Growing Concern
With rising concerns about scams, fraud, and cyberattacks, both panelists agreed that cybersecurity is a top priority. Fredericks pointed out that economic pressures have led to a surge in sophisticated scams, making it more important than ever to protect customer data. “We need to be protecting every bit of our data and our customers’ data,” he stressed, noting that security should never be compromised in favor of convenience.
Fleming shared that the healthcare industry is particularly vulnerable, citing recent high-profile hacks that have affected major insurers. As a result, Teachers Health has implemented rigorous privacy and security protocols for any new vendors or fintech partners. “Cybersecurity is a very big area of focus for us, and we need to ensure that any potential partner can meet our standards before we can even start talking about a partnership,” Fleming said.
As fintech continues to evolve, the opportunity for collaboration with corporate Australia is clear. Companies like David Jones and Teachers Health are open to innovation, but fintech companies must be willing to invest in understanding their specific challenges, regulatory environments, and customer needs. Building strong partnerships and demonstrating real value will be key to unlocking the potential of fintech in the corporate sector.
Ultimately, while legacy systems and compliance requirements may slow down the pace of adoption, the appetite for transformation is strong, and fintech companies that can offer tailored, innovative solutions will find willing partners in corporate Australia.
