 | 1. Develop a clear strategy and business case
Pursuing a simple ‘me too’ approach or focusing on deposit gathering without a cogent asset strategy is not a road to success. Pick your spots and focus energy and resources to win in the marketplace and deliver strong business economics. |
 | 2. Design a differentiated, client needs-driven value proposition
Create and don’t extract client value by addressing clients’ needs through a combination of client experiences, tailored products and services and value-based pricing. Design journeys that satisfy and delight; and develop supporting processes with the customer in mind. Develop an authentic brand that creates a connection with clients, communicates what you do, and creates trust and inspires loyalty; deliver the brand through actions and client experiences to differentiate in a crowded marketplace. |
 | 3. Understand available implementation options (build, buy or partner) and adopt a disciplined stage-gate approach to de-risk execution
Not every firm needs to own a bank; a number of successful Fintechs have executed effective strategies through carefully structured relationships with bank providers and best-of-breed technology partners. There is no one right option, the best choice for each firm will depend on a range of factors including its starting point, level of ambition, strategic and cultural fit, availability of resources (human capital, capital and investment dollars) and risk appetite. Focus proprietary development on differentiating capabilities to accelerate time to market and achieve required operational efficiencies. Rapidly prototype concepts to test and refine propositions and build conviction before migrating from design to execution. |
 | 4. If you decide you want a digital bank, bring in the expertise needed to run it
Many FinTechs have struggled to gain approval for a banking license due to a lack of understanding of the complexity of the process, a lack of credible, senior banking talent, and an incompatibility between a ‘fail fast, fix it’ culture and the ‘don’t break it’ banking regulator mindset or lack of deep banking expertise. To succeed, ensure that you are prepared for a robust and structured process and that you have the employees and advisors necessary to both prepare the application and run the bank. |
 | 5. Always put the customer first
Make sure not to lose the “customer first” aspect over time, particularly as you scale — and design the operating model accordingly. Some large organizations got into major troubles for failing to do so. |
