The operating model for online lending is key to successful business models.
In Finance, business models and key events are often driven by technology choice. In Finance 2.0, the same is true.
As Finance 2.0 players rely even more on technology than more traditional players, their choices will shape the future of their company for a long time.
Switching costs are very high with more integrated Finance 2.0 platforms and therefore choices need to be made thouroughly right from the start of platform developments.
Many online banking and peer-to-peer lending players have found themselves stuck in a non-competitive setting that hinders them from catching new market share and opportunities.
This is why we advise online finance companies to engage in a thorough functional definition process before entering the development phase.
Technology check list for successful Finance 2.0 operations :
- Avoid integrated, go with modular development
- Technology robustness vs. technology potential
- Capacity to integrate with other market players
- Applications that can be used by non IT professionals
- Be the best in what you develop: aim for a development that is right from the start, to avoid costly and continuous upgrades
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