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volume 9 • fall 2016
important. If the ntech’s idea
is compelling and I trust the people behind it and believe what they say, I’m inclined to listen, start a dialogue and see where it leads— despite initial product gaps.
You can’t underestimate the
value of trust.
GF: John, I have a question for you. In terms of banks evaluating tech providers, is it di erent today?
JD: Well, the trust part is constant, but there are more tools now to support empirical decision making. Sandboxes, for example, enable prospective buyers to play, evalu- ate and prove concepts before committing, so decisions are more informed, based on richer data. Because of sandboxes, banks have more exibility and ability to acquire incremental solutions.
GF: That suggests ntechs don’t have to deliver the whole product upfront, as we were discussing. Banks can evaluate what you have and accept the incremental value of your current solutions. But, again, smaller banks may not have resources for this approach.
Paybefore: With so much innovation in the nancial space, how does a bank keep up?
JD: Enlightened banks will rec- ognize they can’t do this all them- selves. Small and midsize banks, in particular, should consider bringing someone in—a consul- tant, perhaps—to help them nd their way.
It’s up to banks and ntechs to recognize and address the risks and opportunities
they face. The smart ones will gure out how to work with
each other for mutual gain. The others won’t, and we won’t be talk- ing about them in a few years because they’ll be gone.
—John de Lavis, Greenings International
GF: I’ll add, start with your strate- gic goals, then overlay customer pro les—including customers you have and those you want. That will lter out about 80 percent of the noise and help you focus on the needs of your bank.
Paybefore: OK, let’s get constructive. How do we get ntechs and banks on the same page so they can work together more e ectively?
JD: I take a Darwinian perspective. It’s up to banks and ntechs to recognize and address the risks and opportunities they face. The smart ones will gure out how to work with each other for mutual
gain. The others won’t, and we won’t be talking about them in a few years because they’ll be gone.
GF: Because platform technology is so distributed today, partnering is everything. Beyond just buying/ selling tech, banks and ntechs need to really work through how to release value from potential solutions. That kind of alignment will create the best environment for all.
JD: Good point. Keep your eyes open and be open-minded, and recognize the opportunities from networking and connecting.
Paybefore: Final advice?
JD: For banks, two pieces of advice: First, ask the right ques- tions and listen, and be open to clever young people who under- stand the zeitgeist. Second, have your ve- to 10-year strategy in place, communicate it and make sure all your decision making— including your technology deci- sions—align. For ntechs, just one: Believe in what you’re doing. You need the energy that comes from being a true believer to sustain you through the process.
GF: And, I have some for ntechs. One, recognize the value of trust, as John said earlier. Mutual levels of trust will get you to a place that creates value. Second, maintain a healthy paranoia about funding and cash burn, stay focused and humble, and do your best for your clients and their customers.
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