In an interview with Financial Services Review, Mr. Felipe Izquierdo, Senior Manager of Corporate Strategy at Remitly, discusses the emerging trends in the world of corporate strategy and finance and shares his insights into effectively navigating them.

Felipe is an Angel Investor and Operator currently working on Corporate Strategy for Remitly (NASDAQ: RELY), a high growth Remittance Fintech on a mission to transform lives with trusted financial services that transcend borders. Felipe is also an experienced venture capital investor, currently a part of several VC syndicates and a judge for pitch competition meetings. His investment experience is focused on connecting emerging markets and supporting early entrepreneurs.

Felipe Izquierdo built a distinguished career working in strategy for blue-chip companies privately and through Boston Consulting Group. He holds an MBA from Columbia University, which has enhanced his ability to develop and implement high-impact business strategies.

Felipe has consulted for both public and private companies, leveraging his experience as an investor to drive growth and value creation across a range of industries. He has successfully applied his expertise in banking, telecommunications, private equity, NGOs, consumer goods, and other sectors, aligning strategic insights with business objectives to deliver sustainable results.

Building a Career from the Ground Up

I graduated with honors from IU University in Spain and began my career in consumer-facing private equity before transitioning to consulting, motivated by a desire to learn from top thought leaders.

"Success in corporate strategy hinges upon three key skills— flexibility, analytical skills and strong people skills"

During my tenure at Boston Consulting Group, I developed strategies across various industries, including airlines, private equity, telecommunications and nonprofits like Save the Children. The work spanned acquisitions, digital strategies, cost optimization and fundraising.

Entrepreneurship and angel investment caught my eye during this time and I pivoted to pursue them both individually and in partnership with Global Founders Capital.

A master’s at Columbia Business School followed and finally, I joined Remitly, a late-stage fintech firm focused on cross-border financial services. As part of a three-person strategy team, I oversee the company’s long-term vision, investment decisions and organizational design to guide growth, profitability and align leadership to maximize value creation.

Trends Shaping the Fintech Industry

Corporate strategy and finance should be viewed from a dual perspective— functional and industrial.

Functionally, there’s a growing emphasis on total shareholder returns, emphasizing value creation that benefits both shareholders and customers. This involves understanding the broader impact of stock prices, dividends and customer relationships, particularly in industries that serve global communities, like remittances. Balancing growth and profitability are crucial. Since the current market is biased towards profitability, the focus should be on making short-term decisions with long-term impacts. Additionally, the integration of technologies like AI, machine learning, and open banking into operations is increasingly important.

From an industry perspective, especially in fintech, two major trends stand out. First, fintech is maturing and becoming commoditized, leading to increased M&A activity as companies seek economies of scale. Second, companies are reevaluating their value propositions, either by expanding services organically or through acquisitions, to deepen customer relationships and further integrate into their supply chains.

Technology-Enabled Strategy Development  

A three-pronged approach consisting of machine learning, scenario planning, and stress testing is utilized to inform strategic decisions at Remitly.

Machine learning models are essential for evaluating customer lifetime value (LTV), helping to monitor and optimize variables like operating profit per customer, net of acquisition costs and health metrics by geography and behavior.

Scenario planning and stress testing, on the other hand, help us evaluate pricing, customer acquisition and market dynamics. These models predict financial impacts from competitive pressures, currency fluctuations and other external factors, guiding our strategic decisions on cash management and overall financial health.

Rapid Adaptations for Continued Success

The turnarounds and readjustments that happened as a response to the COVID-19 pandemic are a good example of how our company adapts to global shifts.

We accelerated digital transformation, enhanced customer support, and significantly increased our fraud prevention measures. Service reliability was enhanced by optimizing partnerships with banks, drug stores and mobile wallets. Despite the rise in fraud, we ensured secure, immediate transactions, maintaining trust and service continuity during the crisis. This strategic flexibility allowed us to navigate the challenges without compromising customer satisfaction or profitability

Understanding the Evolving Industry

Over the next five to 10 years, the corporate strategy and finance landscape will see several key changes. First, companies will be more intentional about their strategic models, balancing internal consulting with chief strategy officers driving direction.

Additionally, corporate strategy will move away from finance as automation reduces the burden of reporting and accounting increasingly integrate with operations. As a result, the focus will shift to generating insights, aligning teams and fostering collaboration, requiring stronger people skills and a shared strategic vision across organizations.

Secret Sauce to Success in Corporate Strategy

Success in corporate strategy hinges upon three key skills— flexibility, analytical skills and strong people skills.

Flexibility in terms of assimilating information and using it to generate actionable insights is key to quickly adapting situations. This is crucial in consulting, where the industries you collaborate with will vary quickly.

Analytical skills help you maximize results efficiently, often referred to as the 80/20 rule—delivering 80 percent of the outcome with 20 percent of the effort. It involves a continual analysis of action plans and strategies to effectively achieve value creation.

Corporate strategy and finance involve a significant focus on people skills, including relationship management both within and outside the organization. Daily interactions with the C-suite require effective communication across different perspectives and terminologies. The goal is to align diverse viewpoints into a cohesive understanding of the business, regardless of one’s career stage.

For those seeking practical experience in these avenues, consulting is a good starting point. It offers exposure to diverse industries and hones the ability to adapt, analyze and manage relationships effectively. Consulting provides valuable skills and experiences fostering adaptability and client-focused problemsolving. Additionally, pursuing an MBA can further enhance one’s professional network and build connections that can last throughout your career.