Nikolay Denisenko is the co-founder and CTO of Brighty app, a Swiss neobank that combines convenient crypto and fiat banking. Having started out as a Lead Backend Engineer at Revolut, Nikolay stands behind the creation of Revolut Business: the company's most profitable division. Today, he leverages his 10+ year expertise in applied mathematics, business process management, and app development to build «something impactful». In his exclusive interview for BRAINZ, Nikolay shares tips for fintech entrepreneurs — along with the lessons he learned while building a futurecorn for the European market.
You have graduated with a degree in Applied Math and started your career in Computer Science & Engineering. Could you tell us more about that time? What were your passions and the most exciting things you did? In my university years, I was passionate about different aspects of computer science, such as algorithms, compiler technologies, mathematical modeling, databases, and expert systems. I took part in research projects where I could apply this knowledge and skills to real-world problems. One of these, for example, involved mathematical modeling of the atmospheric spread of a pollutant from a source of pollution. I developed a C++ program to model pollutant behavior, which helped refine my design and programming skills.
My first experience with startups was at WayRay: an industrial deeptech company creating mixed reality navigation for the automotive industry, where I worked as the first back-end developer. This job helped me see how broad the scope of innovations is and how they change our lives — and became the first step to developing entrepreneurial acumen.
How did you come to entrepreneurship? What was the story behind it?
After several years as a programmer and developer, I yearned to do something more impactful. I joined Revolut and worked there for almost four years, as it made an impressive entrance as one of the leading Fintech unicorns.
At that time, I saw how cryptocurrencies were getting more and more traction, and the demand for user-friendly financial services was growing. I sensed the potential for creating a platform that seamlessly integrates fiat and cryptocurrencies, making it convenient for users to manage their finances through a single app.
That was when I met Roger, an experienced financial banker interested in blockchain and DeFi. Roger and I quickly realized that our combined skill sets and passion for innovation could make a significant impact in the fintech space. We decided to build a startup that combines all the best things the crypto space has to offer while dropping the unnecessary complications and jargon.
As a Revolut alumnus, are there any lessons you learned from your experience on how to build fintech unicorns? What knowledge did you apply while building Brighty app?
First, one should aim to solve real pain points, identifying and addressing your industry's issues. For one, Revolut's success stemmed from offering innovative solutions that catered to users' needs, such as low-cost currency exchange, budgeting tools, and seamless international transactions.
Second, it's essential (especially if you are a fintech startup) to meet the regulatory requirements within your target markets: by investing in legal expertise and maintaining open lines of communication with regulatory bodies to ensure compliance.
The third thing I’ve learned is, never stop innovating! The fintech landscape keeps evolving, with new technologies and competitors entering the market non-stop. To stay ahead, you should embrace innovation, continually improve your products, and explore new ways to serve your customers better.
This leads to the fourth lesson: be agile and adapt to market needs. Successful fintech unicorns, like Revolut, are known for their ability to quickly adapt to changing market conditions and user preferences — so make sure you iterate and improve your product based on user feedback and industry trends.
And fifth, building a solid corporate culture is key, so gather a team that shares your vision and is committed to the company's success.
Brighty app is on a mission to simplify the use of crypto and bridge the trust of traditional banking with the utility of a neobank – how successful have you been so far?
For 2023, we are focused on preparing for the launch of our app’s core features (EU IBANs, virtual/physical payment cards, and various other fiat currency features) to complement the already available cryptocurrency tools. Apart from that, we’ll keep on expanding our business activities in the DACH market.
Our long-term vision is to tackle the entire European market (and maybe to go fully global one day), creating a new-age financial product that offers the best of the fiat & crypto worlds.
How do you see the digital banking of the new age? Does the market still have room for new crypto neobanks?
The digital banking landscape is continuously evolving, driven by technological advances, changing customer preferences, and the growing adoption of cryptocurrencies. In the new age of digital banking, I expect to see several key trends and developments, such as an increased focus on user experience, the rise of AI-driven financial services, and further integration of blockchain and cryptocurrencies.
As I believe, digital banks will continue to prioritize seamless, user-friendly interfaces and personalized services to meet the demands of increasingly tech-savvy customers. At the same time, artificial intelligence and machine learning will play a more significant part in digital banking, powering fraud detection, offering personalized financial advice, and better risk assessment. And lastly, as the adoption of cryptocurrencies and blockchain technology grows, digital banks will increasingly incorporate these technologies into their offerings, providing services like crypto wallets, trading, and lending.
As for new crypto neobanks, the market still has much room for growth and innovation, especially in underserved markets and niche segments. As more people worldwide gain access to cryptocurrencies and become familiar with blockchain technology, the demand for crypto-focused banking services will likely increase.
Still, it’s important to note that new entrants will face challenges, such as increasing competition, regulatory hurdles, and the need to build trust among users. To succeed in this evolving market, crypto neobanks must differentiate themselves by offering unique, value-added services, prioritizing security, and staying flexible.
What challenges do the fintech app creators face in the EU?
There are several issues to consider when establishing a financial company in Europe, the first of which is the regulatory and legal environment. There is space for improvement in existing regulatory frameworks to assist the development, growth, and value of fintech projects. However, the EU’s MiCA might bring more clarity to investment and growth opportunities in the European crypto market.
Beyond that, customers in some regions could use a better grasp of risks, such as data security. These difficulties are beneficial for incumbent banks, who have a higher level of confidence among the people than fintechs. Regulatory variations also play a role here: for example, customer protection rules are stricter in certain countries than others.
To scale efficiently, European fintechs should be able to grow beyond their native markets. And last but not least, differences in languages, regulations, cultures, and, in certain cases, currencies can become obstacles, too.
What advice would you give startup founders looking to launch long-term, game-changing projects?
As I’ve noted before, it's crucial to stay adaptive to changes and market turbulence, embrace innovations and multitask, and solve real problems. Keep building, and don't settle for less than what you’re aiming for.
After all, we are in an ideal position to establish a fresh, equitable, diverse, inclusive, and groundbreaking financial system — thanks to the increasing acceptance of cryptocurrency, opportunities for financial inclusivity, changing regulatory environment, quick progress in technology, and the general shift in user behavior towards alternative financial services.
