EBRD’s Approach to FinTech Success

Alexandre Monnier, Principal Banker, Private Equity - EBRD

The latest episode of FinTech Focus TV brought the energy of FinTech Connect 2024 straight to viewers, as Ian Bailey sat down with Alexandre Monnier, Principal Banker, Private Equity at the European Bank for Reconstruction and Development (EBRD). Recorded at the bustling ExCeL Centre in London, the conversation provided a deep dive into the transformative work of EBRD in the FinTech sector and emerging markets. From growth equity strategies to advancing sustainability and digital transformation, the episode was packed with insights for anyone navigating the rapidly evolving FinTech landscape.

The Role of EBRD in Emerging Markets

Kicking off the discussion, Alexandre Monnier introduced viewers to the European Bank for Reconstruction and Development. Founded in 1990, the EBRD was initially established to support the privatisation process of companies in the Eastern European bloc following the fall of the Berlin Wall. Today, the institution has expanded its reach to over 40 countries, including regions in Central Europe, North Africa, Central Asia, and, as of 2025, Sub-Saharan Africa. With plans to extend operations to countries like Kenya, Ghana, and Iraq, the EBRD continues to drive economic development and innovation in emerging markets.

Monnier emphasised that while the EBRD operates as a commercial bank, it retains a strong focus on development. Its mandate has shifted significantly since its inception, now allocating 50% of annual investments towards green financing initiatives. This commitment to sustainability is complemented by efforts in financial inclusion, gender equality, and the digital agenda—priorities that are shaping the future of global FinTech investment. By balancing its commercial objectives with developmental goals, the EBRD showcases a model for how institutions can drive both profitability and social impact on a global scale.

Monnier shared historical insights into the EBRD’s founding, elaborating on its early days helping the Eastern European bloc transition to a market economy. This process was crucial for stabilising and developing the region after years of economic turbulence. Over the decades, this experience has honed the EBRD’s ability to foster growth and provide tailored financial support to businesses in other emerging markets, each with unique challenges and opportunities.

Private Equity and Growth Equity in FinTech

The heart of the conversation explored how the EBRD supports FinTech companies. Monnier explained the structure of the institution’s investment strategy, noting that 90% of its funding is allocated to debt and 10% to equity. Within the equity division, the focus is further split between funds and direct equity. Monnier’s team, operating within the financial institutions sector, concentrates on direct equity investments in non-bank FinTech companies, such as those in payments, embedded finance, and alternative lending.

Highlighting the importance of growth equity, Monnier revealed that the EBRD typically invests at the growth stage, with amounts ranging from €10 million to €200 million. These investments often fall within the sweet spot of €25 million to €75 million, allowing the bank to act as a minority shareholder while providing significant support. This strategy enables the EBRD to help scaling FinTech startups expand their operations, enter new markets, and innovate in areas like SaaS, cybersecurity, and regtech.

Monnier elaborated on the complexities of equity investment, explaining how the EBRD’s hands-on approach helps companies refine their strategies, build robust business models, and achieve long-term growth. He emphasised that growth equity is not just about injecting capital but also about providing expertise, network access, and mentorship, which are critical for startups navigating competitive markets.

Driving Inclusion and Sustainability Through FinTech

Beyond financial investments, the EBRD’s projects are guided by a unique framework called “transition impact.” Monnier explained that this framework assigns grades to each project based on their potential to drive resilience, competitiveness, and inclusion. For example, the EBRD’s recent investment in Vodeno, a banking-as-a-service provider in Poland, included a partnership with Geek Girls Carrots, a non-profit mentoring women in IT. This initiative not only supports gender diversity but also aligns with the EBRD’s mission to promote inclusion in the tech industry.

Monnier highlighted that inclusion goes beyond gender diversity, extending to financial inclusion—a critical issue in many of the regions where the EBRD operates. By supporting projects that enable underserved populations to access financial services, the bank helps create more equitable economic systems. Such efforts align with broader global initiatives to bridge gaps in access to technology and opportunity.

Green initiatives are another cornerstone of the EBRD’s strategy. Monnier detailed how 50% of the bank’s investments adhere to the Paris Agreement, demonstrating its commitment to sustainability. This focus on green financing has become increasingly important as FinTech companies seek to align their operations with global environmental goals while maintaining growth. By promoting sustainable practices, the EBRD is driving long-term value creation for businesses and the communities they serve.

Expanding Horizons in Alternative Lending and SaaS

As the conversation shifted to emerging trends, Monnier shared insights into the evolving focus of the EBRD’s investments. Initially centred on payments and embedded banking, the bank is now exploring new opportunities in alternative lending, such as buy now, pay later (BNPL) models and B2B financing solutions like supply chain and working capital financing.

Another area of interest is software-as-a-service (SaaS) providers that complement financial services. Monnier described how these companies are helping financial institutions modernise their operations, improve efficiency, and better serve their customers. With an eye on wealth management, cybersecurity, and regtech, the EBRD is strategically positioning itself to support the next wave of FinTech innovation.

Monnier emphasised the adaptability of the EBRD’s strategy in addressing market needs. As FinTech evolves, the bank’s focus expands to include cutting-edge technologies and business models. This proactive approach ensures that the EBRD remains a key player in shaping the future of financial services, supporting companies that are not only profitable but also impactful.

The EBRD’s Global Impact on FinTech

Throughout the discussion, Monnier highlighted the EBRD’s unique position as a development bank with a commercial mandate. By balancing profitability with purpose, the institution has been instrumental in enabling startups and scaling businesses to thrive in challenging markets. Its ability to combine financial backing with strategic guidance ensures that its investments deliver tangible results for both the companies and the communities they serve.

Ian Bailey and Alexandre Monnier also touched on the importance of accessibility in securing funding. Monnier encouraged FinTech entrepreneurs to reach out directly through platforms like LinkedIn or by contacting the EBRD’s financial institutions equity team. This approach reflects the bank’s commitment to building strong partnerships and fostering a collaborative ecosystem for FinTech growth.

Monnier provided practical advice for entrepreneurs seeking investment, emphasising the importance of clear business models, measurable impact goals, and scalability. These insights are invaluable for startups looking to attract institutional support and grow sustainably in a competitive market.

FinTech Recruitment and theAdvancing Talent Landscape

As a FinTech recruitment business, Harrington Starr understands the critical role of talent in driving the industry forward. Episodes like this one underscore the importance of innovation, diversity, and sustainability—key factors that shape the demand for skilled professionals in the sector. The EBRD’s focus on green financing, digital transformation, and financial inclusion mirrors the trends Harrington Starr observes in the FinTech job market, where employers seek candidates who can navigate complex challenges and contribute to meaningful change.

By supporting FinTech companies at the growth stage, the EBRD not only fosters innovation but also creates opportunities for talent development. The bank’s investments in areas like alternative lending and SaaS highlight the growing demand for expertise in these fields, making it an exciting time for professionals looking to make their mark in FinTech.

As FinTech recruitment specialists, Harrington Starr recognises the increasing demand for roles in areas like cybersecurity, SaaS, and embedded finance. Companies investing in these fields require not only technical skills but also strategic vision—qualities that Harrington Starr is uniquely positioned to identify and nurture.

A Glimpse into the Future of FinTech

The episode concluded with a forward-looking perspective on the future of FinTech. Monnier expressed optimism about the sector’s potential to drive positive change, particularly in emerging markets. By investing in technologies that enhance financial inclusion, sustainability, and competitiveness, the EBRD is paving the way for a more equitable and innovative financial ecosystem.

Bailey’s thoughtful questions and Monnier’s insightful responses made this episode a compelling exploration of FinTech’s evolving landscape. From the bustling corridors of FinTech Connect to the broader global stage, the conversation offered valuable lessons for startups, investors, and industry professionals alike.

Monnier also highlighted the importance of collaboration between public and private sectors in achieving long-term goals. By leveraging partnerships and innovative thinking, the FinTech industry can address pressing challenges and unlock new opportunities for growth.

This podcast episode resonates with Harrington Starr's mission as a FinTech recruitment business, emphasising the vital role talent plays in fostering innovation within the industry. Through Alexandre Monnier’s insights into the EBRD’s focus on fostering growth in FinTech startups and scaling companies, the episode reinforces the importance of expertise in areas like alternative lending, SaaS, and green financing—fields where demand for skilled professionals is rapidly increasing. Harrington Starr’s commitment to identifying and nurturing talent in these key areas mirrors the EBRD’s approach to supporting impactful companies, creating a shared vision of driving growth and innovation in FinTech globally.

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