The Economist (paywalled) wrote last week about how some of the innovation forced upon corporates during the crisis will persist after it passes.
Currently large firms are being forced to reimagine innovation. They are moving fast to stay relevant, keeping innovation investment controlled to protect their liquidity, embracing outsiders for advice and finding new ways to monetise existing products.
This is encouraging.
Quoting a boss of a Fortune 500 firm: “We are learning more by testing than [from] months spent [with] analysts and endless meetings”.
This agile test and learn approach has long been the domain of the start-up often operating under the regime of Eric Reis in the Lean Start up.
Perhaps it is starting to dawn on larger corporations that there could be an opportunity to evolve faster.
Of course the article does not quote nor reference any financial service firm but in our mind working with a FinTech embodies many of the objectives and disciplines extolled in the Economist.
A FinTech requires relatively little of your capital to deploy, they can move fast, they are undoubtedly outsiders who think differently and they can offer new sources of distribution and ways to increase your margin.
Whilst not the whole solution to innovation, FinTechs offer some of it.
However the current route to adoption is far from easy.
Partly because of the larger regulated firms’ cumbersome approach and partly because of the vendor’s lack of enterprise-readiness.
We have long been writing about the need for a sea change in how banks and asset managers innovate. Perhaps if there is a silver lining in this very dark corona cloud it is that financial service firms will also seek out a path to innovate innovation.
#Adoptech assures continuous availability of vendor software services and facilitates the vendor’s state of enterprise-readiness.