Visiting Money20/20 with the entire Sipios team, it is clear that FinTech is more demanding than ever.
Customer experience expectations are progressively approaching those observed for B2C digital products. In addition, go-to-market issues require drastically reducing the lead time to launch a new digital initiative.
The response from FinTechs and corporates is identical today: it is about moving away from a model where everything is built in house and approaching a vision where each major product functionality relies on the reference player in the FinTech ecosystem.
In this article, we describe the 3-step method we use at Sipios to architect state-of-the-art FinTech products.
Identify critical performances and major functions
Building an architecture requires to clarify :
Identifying critical performance is a key task that stems from customer analysis (go & see fieldwork, customer interviews in a second phase, as well as competitor analysis). At Sipios, this is not our first neobank, but we systematically carry out a complementary analysis in order to identify the differentiating elements of the product we are to launch. Here are a few examples of critical performances that are typically found in online banks:
Identifying the functions that enable these performances to be achieved is a more traditional Product Management task: it involves defining the main product functions. On the other hand, having previously determined the critical performances allows us to make sure that we do not forget any major function and especially to eliminate unnecessary functions. Again, some examples of functions on online banks:
Participating in trade shows such as Money2020 allows us to identify all the technological options we can rely on to architect a digital product. For each function, we build a "Technology Decision Record" that will benchmark and compare :
It is then possible to compare these different solutions (typically 3 external solutions, 1 internal solution and the custom build option) based on critical performance. For example, we evaluate technologies that implement identity verification based on :
Being clear on these criteria allows you to ask the right questions to the players rather than getting caught up in demonstrations that often mask the real hard points for the technology brick.
|Processing lead time
|Coverage of identity documents
A fictitious example of Technology Decision Record for the "Identity Verification" function
Each of these "Technology Decision Records" facilitates decision making and synthesizes the product architecture in the form of a synthetic diagram that can live throughout the delivery phase of the digital product.
This diagram allows to visualize simply if the solution built is :
An example of a product architecture diagram on a credit granting platform
This 3-step method is strategic for making good products, but it requires regular monitoring of :
Therefore... attend Money20/20 next year!