'Our Country Has the Best Fintech: Foreign Markets Do Not Have Such Management Technologies'

Fyodor Tikhonov, graduate of the HSE Tikhonov Moscow Institute of Electronics and Mathematics is responsible for internal analytics focused on large corporate businesses at Absolut Bank and also mentors startup founders, helping them adopt a broader perspective and successfully navigate the stages of growth. In this interview with Success Builder, he shares his experiences working in the financial sector, pursuing an MBA with his last remaining funds and immersing himself in the world of venture capital and startups, and discusses the upcoming changes in the field of education.

How did you get started in the banking sector?

I started before my graduation. A researcher at our department was engaged in mathematical modelling of economic processes. Under his guidance, we worked on solving the problem of optimal financial instruments portfolio selection based on Markowitz's theory and the Capital Asset Pricing Model (CAPM). We developed computer programmes with elegant interfaces that allowed users to visualise the behaviour of financial instruments on a two-dimensional plane and identify the optimal portfolios based on their parameters. Financial instruments generally exist in a multidimensional space, with characteristics that often follow nonlinear logic. However, people still want to understand how individual parameters behave. So, we created a visual representation tool for these portfolios.

My education and early work experience in finance helped me secure my first job at a bank, where I spent two years working in risk management and planned economic activities. Both of my first bosses were superb professionals. One of them developed convenient risk management tools that allowed us to analyse over 200 banks and numerous legal entities—issuers and counterparties—each month. During my work with them, there was not a single instance of non-repayment of interbank loans or delinquencies from counterparties. We also automated the planning and economic functions as much as possible. By the time I left that bank, only one person was needed to handle all the work in both areas, compared to the original 10 people!

What other responsibilities did you have at various banks?

My work at one bank coincided with a period when the Central Bank was actively regulating the market, frequently revoking licenses from banks. At that time, the market lacked transparency, and customers often used grey schemes that compromised their banks. To protect ourselves from potential compromise, we designed our management system to allow us to wind down operations entirely and settle with customers as fully as possible in case of problems. And this is exactly what happened: when it became clear that our bank was at risk of having its license revoked, the financial and operational management system we had developed using various mathematical methods enabled us to complete settlements with customers in less than a week.

I was then invited to the next bank to assist in developing a strategy and restructuring the bank's management system. I proposed several solutions, but the bank was not receptive to my suggestions. It was 2008, when the financial crisis began. I decided to resign and used my remaining funds to pursue an MBA in business at MIRBIS. Subsequently, this decision paid off. The theoretical and practical skills I acquired there helped me cultivate an entrepreneurial mindset.

Before Absolut Bank, you had worked at Solid, MDM, and other banks. What were your responsibilities there?

At Solid, I needed to overhaul the financial planning system and address ongoing tasks related to accreditation on the stock exchange, among other responsibilities. And at MDM, which was later acquired by Binbank, I worked as an internal auditor. This was a new area for me; previously, I had worked within interrelated fields such as financial markets, asset and liability management, and risk management.

But this time, I was tasked with conducting process audits. The Internal Audit Service reports to the Board of Directors, rather than to the current management. While internal audit is often viewed as having punitive functions, in reality, its approach is quite different: instead of focusing on punishment, it aims to understand the root causes of process irregularities, identify where information gets distorted, and pinpoint areas of process looping or duplication. Moreover, according to audit ethics, everything must be substantiated, and evidence must be provided to support one's judgment.

My experience working from an oversight perspective allowed me to view the structure differently and focus on enhancing overall process effectiveness, so that sometimes I advocated for changes before the board of directors.

Were you interested in seeing how things work at Western banks?

Western banks are primarily defined by a culture that remains consistent even when managers or key employees change. Culture governs the internal relations: whether it is acceptable to yell at employees, engage in backstabbing or shift responsibility, and whether individuals work for themselves or as part of a team. Human resource management processes, as well as risk and process management systems, are designed to align with the corporate culture.

Adopting Western culture could be beneficial, but there is also much to learn from practices in Russia. Our country has the best fintech. Foreign markets do not have management technologies such as those of Tinkoff or Sber. Interestingly, these Russian banks adopted many of their technology-building approaches from startup businesses.

What brought you to the world of venture capital and startups?

I was invited to teach a course in financial modelling at MIRBIS, where I had previously studied. Therefore, I started attending pitches and presentations from various startups. The networking environment revealed a completely new perspective to me. This market is interesting because people are open, active, and readily share information and ideas. I could describe them as 'non-aggressive leaders.'

When I started attending presentations, I was surprised by the narrow perspective on their field among startups going through various business accelerators. I realised how I could help them and went back to studying so I could do so even more effectively. There is a profession known as 'tracker' that was invented in Russia. Trackers use a methodology that helps startups avoid common mistakes and increases their chances of progressing from the idea stage to the scale-up stage. Unlike a trainer or mentor, a tracker does not impose personal expertise on the startup founder or dictate them what to do. Instead, a tracker motivates them by asking questions that help clarify their objectives and identify limitations. The advantage of this role is that it prevents the startup founder from shifting responsibility to an external player or consultant. By independently formulating their objectives, people achieve clarity as to what they truly want, while at the same time being on a fast track to building their entrepreneurial skills.

I recently contributed as a mentor to the Business Weekend accelerator in Moscow. This programme is part of a support initiative for small and medium-sized businesses. Someone I was mentoring won the competition. She came up with the idea to start a language school. However, she lacked understanding of how to develop a business plan, create a financial model, or conduct customer base research. Within two months, she advanced her project to the point where it won first place. I will continue to support her to ensure the project progresses from the idea stage to the establishment of a real business.

What are the most common mistakes made by novice startups?

Often, an entrepreneur's mindset is narrow. They can only see one solution and are completely confident in it. By the way, this is a classic mistake not only among startups but also among entrepreneurs in general. Very often, they perceive their business fantasies as reality, when in fact, they are just projections. This is a psychological concept where a person believes that everyone else shares their perspective, while in reality, the situation is quite different.

Therefore, it is crucial to conduct problem-focused interviews, understand Customer Development, and grasp what the client needs and their main pain points. Few understand the basics of marketing, leading to classic mistakes where people spend years developing a product, believing it will blow up the market. Then it turns out that no one needs their product because they failed to reach out to potential customers and ask: 'What are your pain points or problems? Do you need this or not? Does our product solve your problem?' The methodology of tracking helps avoid this negative experience. It is better to learn from others' mistakes rather than making your own.

Have you met any startup founders from HSE University?

Project-based learning implemented at HSE University and specifically at MIEM stands out as one of the best practices in the education market. I have been following the developments at MIEM. In addition, one of my former classmates now works at MIEM, and we have maintained close contact.

Last year, I attended all the poster sessions at the institute, reviewed all the projects, and was impressed by the high quality of their implementation. In my network, I recommend HSE MIEM as a platform for engagement. A business may request students to develop a specific product. And if they lack a clear direction, they can explore solutions through R&D (Research and Development) under the guidance of their mentors. There are numerous areas for engagement—ranging from the development of production automation systems to video games and video production, MedTech and HealthTech, cybersecurity, and Internet of Things, artificial intelligence, and education technologies. Students have developed amazing projects; they just need to learn how to package them properly and present them to the market. It is not just about developing these specific projects, but also showcasing the level of technological expertise the university can offer to external players, whether in the corporate or private sector.

In which area would you be willing to invest in a startup?

A startup, according to the classic definition, is a company or project that should grow a hundredfold within 5-7 years. Often, investments in startups occur at the pre-seed or seed stage, when there is, at best, only a Minimum Viable Product (MVP) and either no sales or very early-stage sales. And whether the project will take off is a big question mark.

According to a survey of startup funds investing in the Russian market, a project team's work and cohesion are highly valued. I have been observing some of the students whom I remember from the poster sessions, and I can see how they are growing, how clearly and precisely they define their objectives. In a few years, they may become the founders of unicorn companies, growing to achieve valuations in the tens of billions of roubles. These are the people I am prepared to invest in.

Do you have an idea for your own startup?

Each year, the world is moving at an increasingly fast pace. This is evident in all areas, not just in the business environment but also in science and education. Whereas companies once took 15-20 years to become unicorns with valuations in the tens of billions of dollars, some now achieve this in just 5-7 years, radically transforming the market. On one hand, it's great: the company has grown, and a new business has been created. On the other hand, it has captured market share from less effective players. From an individual’s perspective, the knowledge and skills that were valuable 10-15 years ago are no longer in demand in today’s market. As a result, people are compelled to study continuously across multiple fields to avoid being left without a decent job. It is crucial for everyone to maintain flexible thinking and be prepared for radical changes in the economy, politics, and social sphere. All of this will lead to the development of new forms of education that are not yet available in the market. These will be ecosystems encompassing virtual universities, personalised learning paths for individuals and families, team contributions, various roles (such as student, mentor, tracker), digital footprints, networking environments, and more. This is exactly what I want to focus on in the near future: creating a groundbreaking startup project that no one has done yet.