# Cutting the fintech innovation cycle
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2019-02-27
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: Maximising FinTech Success Stories: Solutions for
Meta Description: Explore how businesses are revolutionising financial services with quick, efficient solutions to tackle traditional challenges in banking and payments.
URL: https://financedigest.com/cutting-fintech-innovation-cyclehtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/cutting-1736839132052-compressed.jpg)

**Tobias Neale**, Head of Delivery, [Contis](http://www.contis.com/)

There’s no shortage of FinTech provider success stories. Consumer brands like Monzo, Starling, N26, Revolut, and Finimize have made a big impact by tackling the bugbears of banking and finance and bringing new ways of managing money into the hands of everyday individuals.

Businesses looking to solve these same conventional challenges – for example, speed their financial activities and keep the cashflow moving in the right direction – have also been able to do so through some lesser-known but equally powerful choices.

![Tobias Neale](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/tobias-neale-450x676-1736839132074-compressed.jpg)

Tobias Neale

The trouble is, many brands have taken a long [time to build](https://www.financedigest.com/building-economic-resilience-in-tough-times.html "Building Economic Resilience in Tough Times") and their successors may well be nipping at their heels much faster than expected. In essence, the [FinTech innovation](https://www.financedigest.com/the-role-of-fintech-in-shaping-innovative-future.html "The Role of Fintech in Shaping Innovative Future") cycle has massively reduced, and it’s important to establish why.

Creating a [service or application for commerce and connecting with a payments provider](https://www.financedigest.com/unprecedented-constructive-disruption-to-drive-the-sleep-service-providers-market.html "Unprecedented, constructive disruption to drive the Sleep Service Providers Market") like Visa used to take months and years. However, nowadays there are schemes that can have an app connected to a global system and ready to make, [move and receive payments in drastically reduced time](https://www.financedigest.com/move-over-tina-its-time-for-tara.html "Move over TINA, it’s time for TARA"). The FinTech fast-track initiative is but one example, [enabling companies](https://www.financedigest.com/game-company-roblox-enabled-girls-sexual-exploitation-lawsuit-claims.html "Game company Roblox enabled girl’s sexual exploitation, lawsuit claims") to launch in as little as four weeks.

These initiatives have tangibly disrupted conventional standards by removing the [traditional barriers faced by start-ups in banking](https://www.financedigest.com/how-partnerships-between-fintech-start-ups-and-traditional-banks-herald-a-brave-new-world-of-opportunity.html "How partnerships between FinTech start-ups and traditional banks herald a brave new world of opportunity") and payments. Today, such programmes enable businesses to [test new concepts in secure](https://www.financedigest.com/london-police-say-queens-funeral-poses-biggest-ever-security-test.html "London police say queen’s funeral poses biggest ever security test") and fully API-configurable environments, helping to remove guesswork and laborious development cycles, so that the barriers between idea and market are not the mountains that the current big brands had to hurdle.

Inevitably, this presents more [opportunity for new market](https://www.financedigest.com/uv-disinfection-equipment-market-opportunities-demand-and-revenue-forecast-2025-tmr-study.html "UV Disinfection Equipment Market Opportunities, Demand and Revenue Forecast 2025 – TMR Study") entrants to arise and battle incumbents with greater regularity. The [market is opening](https://www.financedigest.com/eex-markets-to-remain-open-as-power-prices-soar-statement.html "EEX markets to remain open as power prices soar – statement"), and we’ll be able to see a much purer rivalry of ideas and services which, ideally, may be beneficial to all as it forces improvement and competition on any number of metrics: customer service, speed, agility, cost, service quality, and so on.

**Making it happen**

Aside from adopting schemes like the FinTech fast-track, a business would need to invest greatly in development and coding talent in order to achieve agile response times to [emerging market trends](https://www.financedigest.com/surgical-masks-market-emerging-trends-and-will-generate-new-growth-opportunities-status-2030.html "Surgical Masks Market: Emerging Trends and Will Generate New Growth Opportunities Status 2030") and keep up with competitors. Increasingly, this is not seen as a winnable battle, and so it looks like the [FinTech space will be split between those companies](https://www.financedigest.com/7-cyber-threats-fintech-companies-should-watch-out-for.html "7 Cyber Threats FinTech Companies Should Watch Out For") who have already invested heavily in their own infrastructure and talent (and can afford to keep this up, i.e. the [traditional banking](https://www.financedigest.com/fiat-republic-the-specialist-baas-platform-that-bridges-the-gap-between-web3-and-traditional-banks-announces-it-has-become-an-electronic-money-institution-emi-in-the-uk.html "Fiat Republic, the specialist BaaS platform that bridges the gap between web3 and traditional banks, announces it has become an Electronic Money Institution (EMI) in the UK.") sector to a great extent) and those who come up with the ideas and take a partnering approach to upskilling and growing ‘smartly’.

For the innovators and brainboxes behind great apps that are simple and easy to use, it is a sad truth that consumers don’t appreciate the complexity and the labours of love that went into their creation and still go into their upkeep. But as payments and e-commerce evolves as the [world becomes](https://www.financedigest.com/snowboarding-british-teenager-brookes-becomes-the-youngest-world-champion.html "Snowboarding-British teenager Brookes becomes the youngest world champion") ever more digitised, the plethora of options and features must be presented in a simple way. To do that requires not only the business knowledge to spot a challenge to solve, and the technical knowledge to understand how a solution should work, but also the [customer awareness of the psychologies and expectations](https://www.financedigest.com/how-omnichannel-cx-can-help-insurers-meet-customer-expectations.html "How omnichannel CX can help insurers meet customer expectations") that they bring.

New digital experiences that allow consumers and merchants to engage in seamless, simple and [secure digital](https://www.financedigest.com/taming-the-new-wild-west-how-biometrics-can-help-the-ecb-deliver-a-secure-digital-euro.html "Taming the ‘new wild west’: how biometrics can help the ECB deliver a secure digital euro") commerce don’t just grow overnight – but to compete, they need to make a splash and grow, and grow fast.

Most [businesses don’t have a limitless research and development](https://www.financedigest.com/impact-com-appoints-a-raft-of-new-business-development-representatives-as-the-technology-companys-client-roster-grows-by-more-than-50.html "impact.com appoints a raft of new Business Development Representatives as the technology company’s client roster grows by more than 50%") budget, hence the rise in programmes fast-track. Partnerships in FinTech do seem to be the way of the future and how small challengers leverage their [big idea to tackle big opportunities](https://www.financedigest.com/bae-systems-sees-big-opportunity-in-space-after-uk-satellite-bolt-on.html "BAE Systems sees big opportunity in space after UK satellite bolt-on"). In fact, PwC’s ‘Global [FinTech Report’, 2017, stated that 82 per cent of those surveyed expected to increase FinTech partnerships](https://www.financedigest.com/why-a-liberated-cfo-and-fintech-solution-are-a-dream-partnership-for-navigating-economic-uncertainty.html "Why a liberated CFO and fintech solution are a dream partnership for navigating economic uncertainty") in the following three to five years. They can see the writing on the wall: The [report also stated that 88 per cent of incumbents were increasingly concerned they were losing revenue](https://www.financedigest.com/chinas-tencent-reports-first-revenue-drop-as-gaming-regulations-and-covid-19-bite.html "China’s Tencent reports first revenue drop as gaming regulations and COVID-19 bite") to innovators!

The other [big change](https://www.financedigest.com/from-boom-to-bottom-and-now-big-change-renault-and-nissan-reshape-alliance.html "From boom to bottom and now big change: Renault and Nissan reshape alliance") behind the rise in faster FinTech innovation is the UK’s pioneering use of the regulatory ‘sandbox’, not so long ago in 2015. An approach now copied by many other countries, these sandboxes sped up FinTech the product development and launch cycle by allowing a safe period of testing of financial instruments.

The UK also jumped into [Open Banking](https://www.financedigest.com/four-years-of-open-banking-2022-may-be-the-best-year-yet.html "Four years of Open Banking: 2022 may be the best year yet ") in 2018, making great use of the EU’s PSD2 directive that aimed to inspire Europe to open banking systems to more innovative online and mobile payments and improve services for consumers across the market.

These various regulatory pushes have helped create a [fertile market](https://www.financedigest.com/organic-fertilizer-market-where-should-participant-focus-to-gain-maximum-roi-exclusive-report-by-future-market-insights.html "Organic Fertilizer Market | Where Should Participant Focus To Gain Maximum ROI | Exclusive Report By Future Market Insights") for start-ups. Now, given these have been in place for some time, it could be that the pace of [change creates](https://www.financedigest.com/entrepreneur-investor-dale-w-wood-shares-how-he-is-using-his-funds-to-create-change.html "Entrepreneur & Investor Dale W Wood Shares How He Is Using His Funds to Create Change") an even faster tempo as some brands have paved the way and it still remains to be seen who will follow.

Now, when it [comes to cutting](https://www.financedigest.com/when-it-comes-to-cookies-lets-not-cut-corners.html "When it comes to cookies, let’s not cut corners") the fintech innovation lifecycle, there are plenty more choices, but much less time to make it happen – and the winnings go to the most responsive players.


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---