And “speak fintech” for banks.
Without a competent translator, bad things happen.
The words look the same, but the meanings are wildly divergent.
Fintechs speak like Daft Punk:
“Make it better. Do it faster. Makes us stronger… Work is never over.”
They show up at banks with a better mousetrap and brag about features, benefits, and “hockey stick” projections of financial impact.
The bank smiles and nods. Then nothing happens. The fintech is confused.
Banks start with the regulators in mind:
“What will it take to pass the next compliance exams & audits? What permissions do we need in advance? What policies, procedures, systems and controls need to be in place to support planned changes? How do we allocate our scarce capital & people-hours in ways that increase compliance, reduce risk, attract deposits, increase margins, lower costs, increase stock price multiples, reduce customer aquisition costs, lower attrition…. And how do we articulate our plans in a way that addresses regulator areas of focus?”
Fintechs are like construction contractors arriving at Pacific Palisades, ready to rebuild after a wildfire.
Banks are like the homeowners who would love a shiny new house… But need to think in terms of permits and inspections before committing to a project.
