Flinks : because data belongs to the consumer

This Montreal startup has a very simple business plan: enable the flow of banking data and make it easier to use, so that consumers receive the level of service they deserve. 

Some businesses are destined to change the face of an industry. Others are more focused on making it more responsive. This is the case with Flinks, which brings a solution of unprecedented efficiency to companies in the financial sector, and which is nevertheless effecting some change in the industry. We interviewed Yves-Gabriel Lebœuf, co-founder and CEO of this Montréal startup.

Q.    What is Flinks, and what does it bring to the market? 

YGL:    “Flinks” is short for “Financial Links.” The idea for this startup came to us while we were already running another software development company. In talking to customers, we noticed that the solutions available to Canadian financial institutions for aggregating and analyzing customer data were just not effective. The systems at that time had very low success rates, and left the institutions with unreliable data. In large part this was due to the fact that the Canadian market has unique features that are difficult for large international IT vendors to manage.

Q.    How did you decide to tackle this problem?

YGL:    We knew how to solve the problem, but before we even started the business we wanted to make sure that we would have customers - and a revenue stream. So we went to some potential customers with our proposal and were able to obtain some letters of intent. That confirmed that the market and the demand was there, and that this project was worth our time.

Q.    What role did the support of external investors play in your business plan? 

YGL:    In the beginning, we were able to start the company with some “love money,” i.e. start-up capital of our own and from family and friends. Then we realized that an injection of capital would allow us to accelerate deployment and move into new markets. About one year after the company was founded, a first round of financing led by Luge Capital and National Bank allowed us to raise $1.75 million. Four other partners - Innostart Capital, Panache, iNovia Capital and Conconi Growth Partners - took part in this round. In addition, last July, we secured over $16 million in funding to further stimulate the development of our data connectivity and digitization technology. I should also mention that we don’t consider obtaining venture capital an end in itself; above all, it’s a powerful accelerator.

Q.    What are the main challenges you face? 

YGL:    The first is the changing regulatory environment. Our entire offer is based on the conviction that the data belongs to the customer, not to the various institutions with which he or she does business, and that customers should be able to freely move their data or let it circulate. It’s a “power to the consumer” vision. In this respect, Europe is way ahead of us in terms of open banking. As for our second challenge, that will be to obtain massive capital injections if we want to compete at another level.

Q.    Do you plan to continue growing out of Montréal? 

YGL:    Absolutely. We will undoubtedly have an increasingly international reach, but remain based in Montréal. The government support we have here for innovation is a valuable competitive advantage. The established ecosystem also creates a talent pool from which we can draw at a reasonable cost.

Q.    How do you maintain a cohesive vision, given the pace of your hiring? 

YGL:    We have a fairly original process. As part of the hiring process we go over our “constitution,” which sets out our values and principles. We want people who will embrace our brand. We also want people who know what they need to do in a day in order to get results. They can work five hours a day or fourteen if they want, but what counts is results. They don’t even need to show up at the office most of the time.

Q.    We know that information technology is a sector where being able to recruit and retain staff is an issue. Do you find this is true?

It’s true that labour is in short supply, but since we allow telecommuting, we can go to them. This also allows us to foster the kind of lifestyle our employees want: many live in Montréal or Toronto, close to our offices, but others have preferred to settle outside the metropolitan areas. In today’s environment, all our employees are now working from home. This decision has allowed us to maintain our operations while controlling the risks that our employees and their families will be exposed to COVID-19.

That being said, I should add that our head office in Montréal is normally able to accommodate all our employees. Each quarter we organize what we call our Chapter, an event that allows all of our employees to come and spend a week at the office. It’s a team-building activity involving presentations by each department, speakers and opportunities to meet, such as our Friends of Flinks, a kind of cocktail hour where employees, customers, collaborators, investors and so on can rub elbows. This allows us to maintain our culture and ensure that we break down all the silos. In addition, although we may be a startup, we offer competitive employee benefits, some of which are not necessarily available elsewhere. 

At Flinks, dogs are just as welcome at the office as they are at home!