Jack Zhang, CEO of Airwallex - A $5.5 Billion Powerhouse Solving Global Payments for Companies
Apr 9, 2024
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Jack Zhang, CEO & Co-Founder of Airwallex, a $5.5 billion powerhouse, discusses investing in a coffee shop leading to a global payments network, prioritizing leaders with tech skills, AI impact in finance, AI-powered financial fraud risks, and partnering with nearly 100 banks worldwide.
Airwallex CEO Jack Zhang leveraged a background in FX trading and engineering to create a global payments network eliminating intermediary banks, accelerating transactions and reducing fees.
Airwallex prioritizes leaders with strong technical skills and communication abilities, fostering a culture of multifaceted expertise and customer-centricity within the workforce.
Integration of AI at Airwallex optimizes software operations, customer support, and fraud prevention, enhancing efficiency and customer experience while addressing evolving risks in financial fraud.
Airwallex successfully navigates complex regulatory environments globally by maintaining transparency, regulatory compliance, and positive relationships with regulators across multiple countries.
Airwallex's strategic alignment with AI technology, global banking partnerships, and ecosystem fund drives innovation, scalability, and optimization in financial services, positioning the company for industry success.
Deep dives
Multi-Industry Experience Leading to Airwall's Inception
Jack Zhang, CEO of Air Walks, founded the company after identifying challenges in international payments while running a coffee business. His background in FX trading and engineering, along with a deep understanding of correspondent banking systems, led him to envision a global payments network that eliminates intermediary banks, reduces fees, and enhances efficiency. By connecting with local clearance systems worldwide, Air Walks processes over $7 billion in monthly transactions in real-time, anticipating to reach 80% of transactions this year.
Global Evolution and Licensing Challenges
Air Walks initiated with a global focus due to the limitations of the Australian market. Expansion required obtaining licensing in various countries like Australia, Hong Kong, UK, Europe, and North America, a process spanning years. Initially partnering with global banks, Air Walks gradually acquired direct licenses to build a comprehensive network connecting with banks in multiple countries. The company's go-to-market strategy prioritized expansions from APAC to global markets.
CEO's Engineering Background and Company Culture
Jack Zhang's engineering background influences a culture at Air Walks where leaders are expected to excel both widely and deeply in their roles. This philosophy requires leaders to be proficient individual contributors before assuming managerial responsibilities. The company values technical expertise and communication skills, emphasizing a dual focus on technology and customer-centricity across its workforce.
AI's Impact on the Financial Landscape and Fraud Prevention
AI's integration at Air Walks enhances software operations, customer support, and product development efficiency. The technology facilitates streamlined processes, such as onboarding, product knowledge dissemination, and automated customer service, creating a more seamless customer experience. Concerns about AI in financial fraud prevention have prompted continuous algorithmic improvements in identifying fraudulent activities, amid risks posed by deep fake technology.
Regulatory Challenges and Global Partnerships
Air Walks' global presence necessitates navigating complex regulatory environments across multiple countries, characterized by diverse licensing processes and compliance obligations. The company's transparent approach fosters positive relationships with regulators globally, ensuring adherence to laws and regulations. Collaboration with over 80 banks worldwide underscores Air Walks' strategy to provide efficient money movement solutions while maintaining regulatory compliance and transparency.
Scaling Business Operations with AI and Ecosystem Fund
Air Walks leverages AI to enhance various aspects of its operations, including customer support, product development, and fraud prevention. The company's ecosystem fund, Capital 49, aims to support emerging businesses within the Air Walks ecosystem, offering financial backing to innovative founders and facilitating growth. By strategically aligning investments with the company's vision of empowering global business operations, Air Walks seeks to optimize financial services and software experiences for its diverse customer base.
Optimism in the Future of FinTech and Business Expansion
Jack Zhang exemplifies an optimistic yet realistic outlook on the future of FinTech, emphasizing the industry's potential for massive growth and scalability. Recognizing the challenges of operating within a regulated, low-margin business sector, Zhang underscores the importance of scale and capital for creating a profitable FinTech venture. Air Walks' strategic positioning, scalability, and anticipation of potential industry growth positions the company for significant success in facilitating global financial operations.
Host's Appreciation and Call for Engagement
Miguel Armas, host of the podcast, expresses gratitude to Jack Zhang for sharing insights into Air Walks' journey. He encourages listeners to subscribe, leave reviews, and provide feedback for future episodes. The episode serves as a testament to the evolving landscape of FinTech and the innovative approaches adopted by companies like Air Walks in revolutionizing global payments and financial services.
Closing Reflections on the Future of FinTech - A Blend of Optimism and Realism
The conversation with Jack Zhang encapsulates an optimistic perspective aligned with the realistic challenges faced in the FinTech industry. Recognizing the intricate nature of regulated businesses and the necessity for scaling, Zhang emphasizes the potential for growth and transformative impact in the FinTech space. While reflecting on the multifaceted complexities of operating in global finance, the conversation underscores the blend of optimism towards innovation and a pragmatic approach to navigating industry challenges.
Miguel Armaza interviews Jack Zhang, CEO & Co-Founder of Airwallex, a global payments and treasury giant that moves $7 billion in monthly transaction volume and serves 100,000+ clients, including Brex, Rippling, and SHEIN.
Founded in Melbourne in 2015, Airwallex was last valued at $5.5 billion and has raised 900 million dollars from Sequoia, DST, Square Peg, Greenoaks, Mastercard, Tencent, Salesforce, and many more.
In this episode, we discuss:
How investing in a coffee shop led him to co-found a global payments network
Why Airwallex prioritizes people with great leadership skills who are also technical
The impact of AI in financial services
New risks of AI-powered financial fraud
Partnering with almost 100 banks around the world… and a lot more!
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Miguel Armaza is Co-Founder and General Partner of Gilgamesh Ventures, a seed-stage investment fund focused on fintech in the Americas. He also hosts and writes the Fintech Leaders podcast and newsletter.
