Imayan Digital
As a Bank or an NBFC Lender, you can leverage the power of financial technology to solve problems across your lending value chain and derive benefit through digital transformation. In this concise guide, we explore crucial factors for choosing the ideal fintech partners.
Analyze your key value creating activities - reaching prospective borrowers, applications, KYC, underwriting, disbursements, customer service and debt collections. Don't forget support functions - finance, HR, administration, partner relations and more.
Prioritize areas based on the potential benefits of solving.
Conduct internal workshops with each department led by external fintech experts. Apart from having external environment inputs, this ensures internal senior executive involvement and thoughtful contributions, preventing random inputs.
Further fosters ownership, reduces resistance to change, as employees support and actively engage in solving issues that they identified.
It is important to use these workshops and specific follow-up meetings, if required, to quantify the impact of solving each issue identified.
This guides prioritization and serves as a yardstick for measuring transformation success.
To achieve timely and successful transformation with tangible benefits, NBFCs must identify fintech startups closely aligned with their specific needs.
While impressive presentations and demos are common in the fintech space, involving a fintech consultant can help objectively pinpoint startups that have fewer gaps with the NBFC's identified requirements.
Explore multiple avenues to search for a fitting fintech startup:
Look for innovative approaches that can provide your NBFC with a competitive advantage
Keep in mind that only 30% to 40% of POCs attempted may succeed, so it's important to test promising solutions before making a final decision
Successful partnerships thrive on strong relationships. Regularly assess progress, address challenges, and nurture the partnership for maximum value.
It's equally vital to be an attractive destination for new startups. Celebrate successful partnerships, showcase case-studies on your digital channels, and create transparent avenues for startups to onboard for POC.
Congratulations! You now have a framework for selecting fintech startups for partnerships to solve your NBFC's problems.
The Author, Muthukkumaran K, is the Founder and Managing Partner at Imayan Digital LLP. Muthu comes with 13+ years of corporate experience and has successfully led Fintech projects for a leading Bank and an NBFC.