An Interview With Jason Hartman
Work as a Team. Third party fintech providers could be considered competitors but also can be regarded as partners. We can democratize financial services to allow them to be part of our open platform serving a larger user base together. As long as the services meet regulatory requirements, we benefit from many efficiencies together like time to market, integration costs, customer acquisition and economies of scale.
Most of us take it for granted that we can open a bank or a credit card. But the truth is, according to the World Bank, close to one-third of adults — 1.7 billion — are still unbanked, and have no access to a transaction account. About half of unbanked people include women in poor households in rural areas or out of the workforce. What can be done and what is being done to promote more financial inclusion? To address this Authority Magazine started a new series about Companies Helping To Promote Financial Inclusion. As part of this series I had the pleasure to interview Nick Mellios of BlocPal International.
Nick Mellios has over 20 years of experience in the tech-start-up world. Nick is passionate about the digital transformation within the banking industry and creating solutions to promote financial inclusivity. This has led him to his most recent venture, founding BlocPal. BlocPal is a Canadian fintech company that focuses on making banking affordable and accessible in vulnerable communities around the world.
Thank you so much for doing this with us! Before we dig in, our readers would like to ‘get to know you.’ Can you tell us a bit about how you grew up?
My name is Nick Mellios, and I’m the CEO and Co-founder of Canadian-based global fintech company BlocPal International Inc. I’ve been in the tech start-up space for about 25 years and have been involved in multiple ventures within that time. After completing a BSc. in Mathematics and then an MBA, I landed my ideal job at Hughes Aircraft, which allowed me to combine my passions of tech and business. Building upon that experience, I started my first company in 1999, providing white label gaming solutions for Telcos and Cablecos. Over the past 20 years, I’ve built and scaled up technology companies across fintech, gaming, software encryption, back-office transaction management and payment processing. In 2012–13, I started learning about Bitcoin and blockchain. I saw how digital currencies and innovation in financial technologies could add value and address several challenges we face in business and society. This led me to want to learn more about the gap in the financial industry, which eventually led to the idea of BlocPal.
Is there a particular book that made a significant impact on you? Can you share a story or explain why it resonated with you so much?
I have two that have made a significant impact. The first is “The Alchemist’’ by Paulo Coelho. I enjoyed the author and found the book incredibly inspiring, with the central theme about pursuing your dreams by following what your heart desires. After learning about financial inaccessibility and affordability issues that many face in different parts of the world, I was determined and passionate to build a solution. This book continues to be a great source of energy and guidance for me as I’m pursuing my passion with our team at BlocPal.
The other novel that made a significant impact was “A Fine Balance” by Rohinton Mistry. I was about 26–27 years old when I read this book. It opened up my eyes to India’s caste system and global poverty and inequality in general, creating a profound and lasting impact on me that I often think about. When we made the expansion into India with mBnk, I had already developed an understanding of the obstacles surrounding India’s financial ecosystem and the challenges with social and economic inequality, making the work we’re currently doing with mBnk, even more meaningful.
Do you have a favorite “Life Lesson Quote”? Do you have a story about how that was relevant in your life or your work?
“It is easy to critique; it is hard to create.”
If there is a problem, let’s find a solution. Anyone can identify a problem, but the real people you want on your team are the creators, the ones that want to find a solution. This is how I try to build our team, finding those solution seekers rather than those only looking to point out what’s wrong.
How do you define “Leadership”? Can you explain what you mean or give an example?
I define leadership as being a problem solver and leading by example with your work ethic. You can’t hang on to the negatives. Instead, you need to take chances in your business and try not to make the same mistake twice. I try to lead by taking advice from all areas and working with the team to make calculated decisions together. By surrounding yourself with the right people, you will lead yourself and your company to success.
Can you share the most interesting story that happened to you since you began your career?
I have had a lot of things that shape me, but the failures are the ones that I remember the most because I have learnt so much from them. Back at the beginning of my career, we had an exciting business opportunity from a very large, well-established tech company. At the last minute, the tech company decided to execute on a different vision leaving us in a very challenging situation. This turned out to be a great moment for me in my life and my career, although it didn’t feel like it at the time. I learned an important business lesson on how to build a company. When we build software, we design to ensure redundancy and fail-over. Similarly, you should build a business to be fail-proof, not relying on any one partner or limited path and making sure you invest in long-term sustainable projects.
Ok, thank you for all that. Now let’s move to the main focus of our interview. Let’s start with a basic definition so that all of our readers are on the same page. What exactly is Financial Inclusion?
Financial inclusion is defined as individuals and businesses having access to valuable and affordable financial products and services that meet their needs — money transfers, payments, savings, loans/credit, insurance, etc. — delivered responsibly and sustainably. At BlocPal, we believe that everyone should have access to a wallet or transaction account as it is the first step toward broader financial inclusion. In countries such as India and Mexico, people are left unbanked and underserved. They are not provided with the same services as we have in North America despite these countries investing and developing national payment rails that are faster and more affordable than what we have available to us in North America.
What does it mean to be “unbanked”?
“Unbanked” refers to those who do not use or do not have access to any traditional financial services such as savings accounts, credit cards, or digital access to personal finances. In India alone, approximately 900 million people live in rural or semi-urban areas; of those 900 million, 840 million are either unbanked or underbanked. Access to banking services in India continues to be a challenge, with the supply of only 22 ATMs per 100,000 adults. Additionally, there are approximately 2 million Indigenous peoples in Canada, 15% of the population being unbanked. This makes it challenging to access financial institutions.
In early 2020, together with Shashank Joshi, BlocPal founded mBnk, a digital transaction platform that makes financial services more affordable and accessible, to offer the first-of-its-kind physical and digital (“phygital”) financial services marketplace. The launch of this financial services marketplace provides digital solutions to brick and mortar retailers in India, giving access to the unbanked consumers who can use this marketplace to deposit and withdraw funds, execute domestic money transfers, purchase prepaid credit cards, mobile and wallet recharges, micro-loans, insurance and other investment savings plans.
For the benefit of our readers, can you explain some of the typical reasons why a person might be unbanked? Why can’t they just walk into the local bank and open an account? Why can’t they simply open an account online?
Not everyone is given the same opportunities to access these services. Specifically, In India, a percentage of users are not literate and have difficulty with bank cards or how money is withdrawn or how to ensure funds are secure, etc. That is why inclusive technology is so important. As mentioned above, banking services in India continue to be a challenge, with the supply of only 22 ATMs per 100,000 adults. There is not enough supply to keep up with the demand. Through our partnership with mBnk, we have developed technology to ensure funds are kept secure without the need for an ATM or bank. With our biometric indications, we can provide access and ensure the person who holds the bank account is withdrawing the money by leveraging fingerprint devices and a national ID document number for example.
Financial illiteracy is a problem that can affect anyone, regardless of income or education level, and can infiltrate every aspect of life. Specifically, in India, only 24% of the Indian adult population is financially literate. In comparison to other major emerging economies, the financial literacy rate of India is the lowest. To mend the disconnect between financial opportunities and communities in underbanked regions, we look to drive the global digital economy.
Can you tell our readers a bit about your work to promote Financial Inclusion? Without saying names, can you share a story about a person who was helped by your initiative?
BlocPal has set out to be a leader in promoting financial inclusion. Recently, we launched the financial services marketplace with mBnk, which provides digital solutions to brick and mortar retailers in India, giving access to unbanked consumers.
BlocPal International has also partnered with OneFeather to launch the OneFeather App, a digital banking application. This technological advancement between BlocPal and OneFeather has helped provide tech accessibility for Indigenous communities and drive financial inclusion. Approximately 44 percent of Indigenous peoples live on reserves, making it challenging to access financial institutions. High transaction fees, administrative layers, and limited transparency are just some of these communities’ challenges. BlocPal believes in contributing to a financial world that is powered by everyone and open to anyone.
A story of how we are helping people through this initiative originates with my colleague and CTO of BlocPal, Vaibhav Sinha. In the early stages when BlocPal was just a concept, I met with Vaibhav, and we discussed rural India and the lack of accessible financial resources. This conversation really sparked our interest, and we wanted to create a platform supporting financial inclusion. We began to see a crossover with technologies and how blockchain and digital currencies were taking off, and that was where BlocPal’s vision was formed. BlocPal is currently being implemented in many communities worldwide to drive financial inclusion and literacy, such as India, Mexico and recently Canada. Through Vaibhav and our team’s help, we’ve created a platform for users to access banking-like products through mobile and web applications, card and fingerprint-based mini-ATM devices for retailers and other innovative solutions.
This may be obvious to you, but it will be helpful to spell this out. Can you articulate to our readers a few reasons why it is so important for businesses to promote financial inclusion?
Businesses need to promote financial inclusion to ensure that customers are empowered to communicate and transact more conveniently and engagingly. Developing inclusive initiatives will help increase financial accessibility that will aid in empowering and growing communities. Not everyone has access to financial services and therefore many are left without the basic necessity of easy access to their finances.
Ok. Here is the main question of our discussion. You are an influential business leader. Can you please share your “5 Steps Business Should Take To Promote Financial Inclusion”?
#1: Adapt to New Technologies and Platforms
Companies need to cater to the user to ensure accessibility. From currency to fintech solutions, companies must adapt to customer experiences and requirements all through having an open, inclusive platform.
#2: Research and Openness
Businesses must prioritize understanding what the needs are of their customers and the environment that they are in. The needs in India are different from the needs in Mexico, for example, which is why BlocPal customizes solutions for each environment. Businesses should take a step back and listen to understand the needs of their consumers and deliver a solution that’s specific to the needs in each location.
#3: Compliance
As a company, you must work as a team with regulators, authorities, and banks in a fully compliant manner to ensure no steps are being missed. Ensuring you’re offering fully compliant solutions is vital, as there are different requirements from third parties, jurisdictions, and services requiring specific licenses, regulatory approvals or permissions.
#4: Work as a Team
Third party fintech providers could be considered competitors but also can be regarded as partners. We can democratize financial services to allow them to be part of our open platform serving a larger user base together. As long as the services meet regulatory requirements, we benefit from many efficiencies together like time to market, integration costs, customer acquisition and economies of scale.
#5 Be Inclusive and Open-Minded
Having inclusive, open-minded colleagues around you ensures a positive working environment in a team and culture setting. In BlocPal’s instance, we employ individuals who want to make people’s lives better. If you don’t have that passion, you won’t have the drive that’s needed to work through critical challenges. Working closely with the right local teams, local subsidiaries, local partners, providing capital guidance, knowledge transfer and market strategy helps ensure success in order to grow.
You are a person of enormous influence. If you could inspire a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. 🙂
I genuinely believe we are all created equal, and everyone should have the right to education and financial services. One of my main goals when creating BlocPal was to promote financial inclusivity. I want to use technology to disrupt the traditional banking model to make financial services more accessible and affordable to everyone. Blockchain also represents an opportunity to provide financial technology in a more open, transparent and inclusive manner while maintaining high levels of security
Is there a person in the world, or in the US, with whom you would like to have a private breakfast or lunch, and why? He or she might just see this, especially if we tag them. 🙂
The one person that I would love to connect with would have to be Bill Gates. He is incredibly bright and successful. He has so much knowledge and experience in both technology and altruism, which aligns with BlocPal’s strategy of leveraging fintech to support financial inclusivity.
How can our readers further follow your work online?
Nick’s LinkedIn: https://www.linkedin.com/in/nickmellios/
BlocPal LinkedIn: https://www.linkedin.com/company/blocpal-international-inc/
BlocPal Website: https://www.blocpal.com
BlocPal Twitter: https://twitter.com/blocpal?lang=en
BlocPal Instagram: https://www.instagram.com/blocpal_official/?hl=en
This was very inspiring. Thank you so much for the time you spent with this. We wish you continued success and good health!
Nick Mellios of BlocPal International On How They Are Helping To Promote Financial Inclusion was originally published in Authority Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.