All banks destroy fintech. The negotiations goes like this:
1. Are you cheaper than my salary?
2. Can you implement POC really fast?
3. Can you do the impossible I have not been able to forever?
The outcome is either:
A. Oh good, here is “seed” (less than actual cost) money. Now dance!
B. Read more about play free indian dreaming pokie machine. Let’s see if we can replicate it ourselves in the first place and assign your cute little start-up to oblivion.
The actual on-boarding of start-ups into traditional banks as accelerators is abysmal, the exception, not the norm.
Technology fintech/techfin/startups have to decide if at the end of the day they are either:
A. An IT company with a product to sell, in which case they should just sell to banks the old fashioned way, or
B. A disruptor, in which case they need to focus on breaking every rule and building scale to the point the banks come to talk to them and not the other way around.
The myth of fintech as a phenomenon was over a long time ago. But the music is still playing and the noise is still too loud for this to sink in.
PS: The regulators? They are not your friend.
Emmanuel Daniel
#fintech #banking #acceleration #startups
Well said. In the same vein see the punchy response from a start-up in HK (called gini) last year to the HKMA’s CP on open APIs:
http://blog.gini.co/en/ginis-response-to-the-hkma-consultation-paper-on-the-open-api-framework-for-the-hong-kong-banking-sector/