My institution wants to offer to our (existing or future) customers a new service. Do we need a partner?
We don’t believe that there is a hard and fast answer to this question. Below we provide a simple YES/NO question guide which you may follow:
1. Is my institution able to develop and deliver the service to the targeted customers?
If the answer is “YES “ → consider doing it yourself
If the answer is “NO / MAYBE” → consider Question 2 below
2. Is (are) there a player(s) in the market that is (are) offering / can offer the service better than you?
If “YES / MAYBE” → contact the player(s) and verify your answer to Question 2
If “NO” → consider Question 3 below
3. Can my institution learn on its own (via external help) or is there someone in the market in a better position to learn with me (via external help)?
If “YES, I can learn on my own” → consider doing it yourself
If “NO / MAYBE” → consider contacting the other player for partnership
In addition, we would recommend that it is worth identifying what type of partnership could be established, create a screening of the market and financial institution to identify the feasibility and potential. Please see a list of options below.
- Type of the partnership: partnership with service providers, supply-based chain, value chains with processors and manufacturers, etc.
- Market: population, potential partners and their industries, competitions, successful or non-successful showcases, specific legal issues and overall government regulation, etc.
- Financial institution: target segment, existing product offer, efficiency of the loan process, regional presence, implemented IT tools (for instance, loan origination system, CRM), etc.
In order to obtain more understanding about partnerships, possible schemes and approaches, we would like to share a few useful articles and reports:
A winning partnership: Financial institutions and strategic suppliers:
Marketplace vs platform banking – why the marketplace approach must prevail to better serve SMEs:
Establishing a Successful Partnership Between a Financial Institution and a FinTech:
How Financial Institutions and Fintechs Are Partnering for Inclusion: Lessons from the Frontlines