There are many parallels to be drawn between the worlds of Bitcoin and FinTech. In fact, Bitcoin is its own form of FinTech and there are quite a few things both industries can learn from one another. Finding the perfect bank partner, for example, is a struggle experts in either industry are all too familiar with. There is a silver lining, however, as there are some steps companies can take to smooth the process.
A Bank Partner Is A Means of Learning
From an onlooker point of view, forging a partnership with financial institutions may seem like an end-goal for companies active in either FinTech or Bitcoin. Nothing could be further from the truth, however, as this is just one of the many steps along the way of building a successful company. Ensuring one’s finances is only a small cog in a much larger machine, albeit, an important one.
There are many things startups can learn from banks as the people in charge of financial institutions have seen their fair share of failed and successful companies over the years. Having a good idea or product is important, but a lot more is needed to gain any mainstream traction and become a successful entrepreneur.
When bringing together two completely different organizations, interesting things are bound to happen at some point. FinTech and Bitcoin companies are focusing on bringing financial solutions to people all over the world, but their banking partners are their main competitor in that space. By sitting together and talking strategies, new solutions can be formed that are beneficial to all partners in this relationship.
At the same time, banking partners can learn from the ideology and vision of aspiring entrepreneurs as well. Our society is in a constant state of evolution, and learning from each other is a key element to creating success. Collaborative innovation, as this term is coined, is the right way forward to creating a new world.
That being said, there is a good reason banks are very cautious when it comes to partnering with startups. There are so many crazy ideas and hypes in existence today and, sometimes, it’s hard not to get caught up in the enthusiasm. Keeping in mind how the average success rate for startups is hovering around 10%, every decision has to be weighed carefully.
Scalability Remains A Critical Point For Startups
Forging ahead and creating a successful company takes much more than a strategic bank partner and guidance. Startups need to focus on how well their service can scale on a global level as, without proper scaling, there is no point in launching that particular service or product. Not all startups have the means to ensure scalability is not an issue, and asking for help is nothing to be ashamed of.
This is especially true in the FinTech and Bitcoin sectors where various companies are heavily reliant on traditional financial infrastructure to make things happen. Learn from the industry experts who have used and developed this system over time and ask their help and guidance when needed. Granted, there are a lot of improvements to be made to the legacy system but startups need to take things one step at a time.
This is especially true when it comes to international scaling, where traditional financial players can be a great ally. Both parties can learn from one another, exchange ideas, and come to a form of collaborative innovation in due time. Coming up with new solutions does not happen overnight and a clear understanding of how the current system works goes a long way to coming up with new ideas and concepts.
What are your thoughts on collaborative innovation with banking partners? Let us know in the comments below!
Images courtesy of Shutterstock, Medspark, Orange Financial
Also published on Medium.