Taskize’s co-founders John O’Hara (CEO) and Phil Slavin (COO) recently sat down to discuss what makes a fintech successful in Financial Services at the latest virtual Network Forum conference.
In this video, our co-founders explore this question from the viewpoint of both the bank and the fintech.
From the banks perspective, a successful fintech solution must produce a quick return on investment, be low risk and easy to deploy. It must be simple to explain – it should do one thing and do it really well, and be easy to run live pilots against. It must also be supported by co-founders and a company that can be trusted and is easy to work with.
Unless this criteria is met, any solution will struggle to get the internal backing and business case required to move from a good idea to implementation within the financial organisation.
From the fintech company’s perspective, a successful fintech first and foremost must understand that success is not just about the quality of the technology. The barriers to enter the banking industry are high, and it can take years to make meaningful progress. As such, it is critical to pick your business case carefully and understand the dynamics around it. Know who your first customer will be and make sure they are hungry for the solution you are providing. Ensure robust funding is in place and understand how you it will sustain you through the initial period.
It is also important to recognise that there is no way of shortcutting the banking process. Don’t be afraid of the 90 page master agreement or the extensive vendor management requirements. Also understand that banks like to try before they buy, and therefore you need a way of easily enabling the industry to test the product (ideally in production) before they commit to become paying customers.