Fintech without Tech?

Everyday I meet enthusiastic Fintech entrepreneurs, who have started their Fintech Businesses focused on lending, wealth management, payments etc. Most of these entrepreneurs have business background like sales / marketing / product. In their hurry to launch the business, typically they start without Tech...

Few suggestions to improve the possibility of becoming Fintech powerhouse (I don't like the word disruptor).

- Get Tech Co-Founder On-board: Identify a tech cofounder to start the journey with you. There are phenomenal tech experts, who are still working in technology companies or banks. Take your time to get someone with enough skin in the game by way of equity.

- Create in-house development team: Core of any Fintech is essentially Tech IP. It may be worth your time to build a powerful tech team, which can build your MVP fast and first time right. Full outsourcing is highly avoidable. Full outsourcing if required, must be done with extreme care and with regular reviews (I mean daily!)

- Scan the market for tech partners: There are many pure play technology Fintech players, who can simplify a component of your business (like Digital Identity). It makes sense to partner with them, rather than building each component.

- Focus on AI / ML: Most of the product differentiation in future will be through Artificial Intelligence and Machine Learning. Work on getting this embedded in the culture of your organisation, even if your MVP may not have this on Day 1.

Technology is a big enabler and needs tremendous focus & energy. Do not make the same mistake as Banks and NBFCs have made for last many decades. They have looked at Technology as Support function (and a cost centre) and hence have not been able harness the power of Technology.

Get ready to create your FinTECH Powerhouse...