Santiago Suarez, Addi | Fintech in LatAm, Growing as a CEO, and Managing a Crisis [Ep. 9]

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Few people in Latin America know as much about fintech as the guest of this episode. Santiago Suarez, CEO and cofounder of Addi, has not only been involved in important fintech roles in the United States and Latin America, but has been on both sides of the table as an investor and an entrepreneur.

Addi is the leading fintech for point-of-sale consumer credit in Latin America. This Colombian startup has raised venture capital from the funds Andreeseen Horowitz and Quona Capital. Before Addi, Santiago was VP of Corporate Development at Lending Club, a well-known fintech in the U.S., and was a part-time partner at Y Combinator focused on fintech startups.

What You Can Learn Today

  • Differences between the fintech ecosystems of Latin America and the U.S.
  • Recommendations for fintech entrepreneurs
  • Roles of a CEO

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Origin of Addi

  • [1:36] - How did Santiago arrive at the world of startups?
    • Yale University and McKinsey & Co.
    • Venture Capital in San Francisco, tech entrepreneurship, and JP Morgan
  • [3:22] - History and value proposition of Addi
    • Digitization of the economy and access to credit
    • Dream of creating a global technology company based in Bogotá
  • [5:05] - Does the availability of credit at the digital point of sale increase sales?
    • Limited access to credit and distrust of digital payment methods

Fintech in the United States vs Latin America

  • [6:55] - Differences between the fintech ecosystems of Latin America and the U.S.
    • Market size and competitive barriers
    • Specialization within the fintech sector
  • [9:19] - How did his experience at Lending Club and Y Combinator inspire the idea for Addi?
    • Importance of focus (doing less) and decision-making
    • Lessons from the history of Lending Club
  • [13:49] - Fintech verticals with potential in Latin America

Fintech Strategy in Latin America

  • [16:48] - Key aspects for thinking about and evaluating a fintech idea and strategy
    • Potential of the size of the business
    • Reality of the market to attack
  • [19:15] - Which fintechs in LatAm are executing their strategy well?
    • Nubank, Konfío, Ualá
  • [20:51] - How do they execute the key operations as a fintech?
    • Loans as a cyclical business
    • Importance of excellent execution and of high margins in the success of a lending fintech
    • Integration with commercial partners and UX as competitive advantages
    • The vision of a franchise: the Airbnb vs Booking case
  • [25:20] - Why collections and customer service differentiate Addi
    • No outsourcing of collections and an in-house call center
    • Stock options, incentives, and high compensation
  • [29:07] - Recommendations for fintech entrepreneurs
    • Focus and measured growth in lending businesses
  • [30:57] - What characteristics does Santiago look for as an investor in the founders and the business idea?

Growth as CEO and Crisis Management

  • [32:48] - Adaptation of Santiago as CEO and of the Addi team to rapid growth
    • Growth of current team members vs Recruitment of new members
    • Delegating as CEO
    • The roles of a CEO: fundraising, vision and strategy, recruiting, organizational chart, and motivation
  • [38:28] - Management of the COVID crisis in a fintech
    • Automation of loan collections
    • Reduction of staff
    • Negotiations with stakeholders and partners

Future of the Fintech Addi and Expansion Across Latin America

  • [42:06] - Addi’s product roadmap
    • Growing together with commercial partners
    • Expansion to Brazil and Mexico
  • [44:34] - Why Brazil before Mexico?
    • Size of the economy and installment payment culture
    • Access to partners through its investor Monashees
  • [46:26] - Loans at the physical point of sale vs digital

Tweet Round

  • [47:58] -
    • Recommended books: The Advantage, by Patrick Lencioni
    • An investor who has helped a lot to build Addi: Angela Strange
    • A change in the world of startups in LatAm: a greater number of technical founders
    • An entrepreneur in LatAm to interview: Alejandro Casas (Simetrik)

Episode Mentions

You can find Santiago on Twitter

Books recommended by the guest: The Advantage, by Patrick Lencioni

Venture capital funds: Andreessen Horowitz

Investors: Angela Strange

Entrepreneurs: Alejandro Casas of Simetrik

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