Fintech Innovation Needs to be «Mass Produced»
In today’s rapidly evolving financial sector, the demand for innovative digital solutions is greater than ever. Leading banks are in a race to respond to customer demands, driving the need for «innovation factories» that can mass-produce novel solutions, as stated in FinTech Magazine. Bill Waid, Chief Product & Technology Officer at FICO, draws parallels between modern financial innovation and 19th-century invention institutions like Thomas Edison’s Menlo Park.
Waid emphasizes that just as Edison’s laboratory brought together top scientists, engineers, and mechanics to produce groundbreaking inventions, financial services today need a similar collaborative spirit. «Menlo Park was successful because it brought together a dream team of top scientists, engineers, physicists, mechanics, machinists, and draftsmen from all over the United States and Europe,» says Waid. «They worked as a collaborative team, sharing expertise, scrutinizing ideas, challenging assumptions, and pushing for better answers.»
For fintech firms, this collective approach can drive the development of next-generation, information-based products that better serve financial institutions. Waid notes the urgency of this transformation, highlighting a McKinsey & Company study where business leaders predicted that by 2026, half of their revenues would come from products, services, or businesses that haven’t yet been created. «The digital transformation gold rush is on,» he says, noting the significant investment in fintech innovation in the UK, which saw £5.1 billion (US$6.4 billion) in capital in 2023.
To gain a competitive edge, financial institutions must deploy enterprise decisioning platforms. These platforms unify existing resources and foster collaboration across the enterprise. Waid likens these platforms to Edison’s invention factory but emphasizes their modern advantage: cloud connectivity. «Instead of everything being under the same roof, it’s all connected to the same cloud,» he explains.
The benefits of enterprise decisioning platforms include enhanced collaboration, continuous innovation, and accelerated time to market. Waid adds a modern twist, highlighting the power of simulation. «Simulation gives companies the ability to quickly model decisions and strategies based on their real-world data before they are implemented,» he concludes. This allows for rapid testing and optimization, helping businesses to form consensus and devise effective strategies with clear ROI perspectives.