Issue 10 2019

CEO MONTHLY / ISSUE 10 2019 11 The footballer turned Fin Tech CEO years. I was reading about the cashless society in Sweden with phone and electronic transfers and thought back to my childhood of running in a shop to buy candy and wondered how that would work with the next generation. How are they going to learn how to handle money and understand finances? [“I searched for solutions online and couldn’t find anything and that’s when I got the feeling that I’m the only person in the world that has this idea and if I don’t act now, someone else will come up with it.”] “I wrote down the functionalities that it ought to have to be an app and called a few Swedish banks to pitch it to them but although they liked the idea, they said no thank you. That’s when I decided to create it myself and found freelancers to do code and design it.” Haglund’s hunch turned out to be backed up by facts. There are 70% of adults worldwide who are financially illiterate and one in four teenagers are unable to make even simple decisions on everyday spending, according to the Programme for International Student Assessment (PISA) 2015 results, published by the Swiss Journal of Economics and Statistics in 2019. Haglund adds: “It’s hard to do a start-up and every day feels like I’m doing something new. I was taught a lot of theory at university but in reality, you make mistakes and learn from them. “There are so many different challenges but finding good people to work with is the most important thing. I found a good designer and as the company grew bigger, it attracted more talent. I have great people surrounding me that I can talk to about everything, which is extremely important. “Looking after a team of people has been the biggest challenge for me. Problems solving app functionality and features are easy compared to how you inspire people and grow your own company - that has been the biggest learning curve for me. Along the way, I read a lot of books about it and talked to more experienced chief executives to hear what they thought. [“What I have learned is that when something you are doing feels wrong for your business, you should do something about it. It always comes down to gut feeling.”] Haglund and his team succeeded in creating a virtual piggy bank where children can document and log their real-world earnings from pocket money and chores. Despite the lack of real money, Gimi data was developed with stringent security, protected with 256-bit encryption and never stored on a user’s phone, tablet or computer. It’s all about adults using the app with children so if a child registers as a user but does not connect to a parent within seven days, their account and personal data are deleted. The app, which is free to download and comes in 10 languages and currencies, was developed by talking to children about what they would like and understand. As a result, Gimi includes a financial advisor chatbot along with introducing children to the ideas of overdrafts and interest rates, teaching them how, in theory, leaving money in a savings account might accrue interest. It also provides parents with a step-by-step guide on what the recommended allowance for their child should be, and how to raise important talking points such as savings or spending wisely, like having conversations in supermarkets about which toilet paper to choose. Haglund adds: “People have got into the habit of spending on credit so they can buy now and pay later or buying things on their parents’ cards, but that’s how many have ended up bankrupt. The consequences of financial illiteracy and parents just handing over their cards are that many 18 to 20-year-olds are not able to pay their bills. “Gimi has so much more great potential in the coming years as a company and to help solve this social issue.”