The fintech formula ?

Innovation in the financial sector from a bank perspective is probably more driven from regulation then from technology. Offcourse the innovation in technology as blockchain, artificial intelligence and the internet did give it a boost. But it is in essential the regulator that provide a sort of climate for corporates to create services.

The first formula (oldschool)

X marks the product where y is the customer = probably the money. (show me that money honey) thats what corporate usually call customer centric, but in reality is product centric. The way banks are organized makes it a bit difficult to create new model that is more customer centric. So the front end of a bank is customer centric the back end is definitely product centric organized.

Design thinking formula

X marks the problem where y is the customer = probably the solution. (so we love to solve your pain). The service design model gives corporates tools to start from a different perspective. This will guide the corporates in to making products that people could love.

Fintech formula?

X marks the product where Y could be the technology, P the product times the regulator. This is probably the one i could see as great driver to end up at the design thinking formula. If you are a manager and you read this, start with this exercise to understand your market, the changes on the road ahead of you, throw a dice at the future of which direction you think you should go. The second step I would suggest get your team on board and ask a great design thinker, to look at this formula from a customer point of view.

So what does the above mean?

T (echnology) + P(latform) x R(egulation) x Product

If you have a different way of looking at disruptive innovation in fintech, I really like to know :)