Instimatch Global operates a platform for money market trading, thus digitising one of the last major markets in the financial industry in which business is still done mostly without the use of in-depth technology. The start-up is pursuing an ambitious and successful growth course, and network effects can already be felt.
When asked about the competition, Daniel Sandmeier, CEO of Instimatch Global, has a surprising answer. It is not US start-ups with a well-stocked warchest or large tech companies, but voice brokerage and the traditional dealing by telephone or chat room of the large financial information service providers. Although the financial industry is otherwise in the midst of digitalisation, money market transactions are still traded mainly bilaterally – with numerous other opportunities neglected.
Daniel Sandmeier and the 20-odd people who work for Instimatch today want to change this with their digital platform. The start has been successful, with the fintech firm currently handling about 100 customers from 15 countries. What’s more important, however, is that a certain momentum has already built up. “In the beginning, we had to convince each customer individually; now we are beginning to feel the network effects,” explains Sandmeier.
The platform brings together counterparties that would otherwise never meet, not least because the start-up has succeeded in expanding the group of counterparties both geographically and sectorally. “We started with banks; today, global corporates, insurance companies, pension funds, asset managers and even the public sector are also active on Instimatch,” says the CEO.
The larger and more diversified clientele leads in turn to improved returns. In addition, potential counterparties can be easily validated: customers are able to find all the necessary documents on topics such as KYC (know your customer) and AML (anti-money laundering) on the platform.
With this performance, it is not surprising that Instimatch Global has now received the Swiss FinTech Award and been recognised as Growth Stage Tech Start-up of the Year. In addition, the potential is at least as promising as the achievements so far.
Pursuing an ambitiuos growth course
Instimatch is currently active in western Europe, the UK and the Middle East. In addition to the headquarters in Zurich, the start-up already has offices in London and Doha. “We want to continue growing as quickly as possible,” explains Sandmeier, not least because the platform is a typical example of a ‘winner takes all’ model.
The company is currently moving into central and eastern Europe and plans to expand into the Far East with target markets Singapore and Hong Kong. At the same time, the team is working on partnerships with providers of treasury management and trading systems that will bring further impetus. The growth is financed in part by a family office based in Hong Kong, and two financing rounds have already been completed.
And the product side is also under expansion: distributed ledger technology (DLT) plays an important role and Sandmeier sees it as ideal for data back-up and management. Specifically, the team is working on a DLT-based solution that will allow intraday money market transactions. He comments: “I see clear use cases that cannot be implemented with traditional technology.”
(Stefan Kyora)
Picture: Hugh Macmillan, Founder (left), Damiel Sandmeier, CEO
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