The early 2020s showed us that a wide variety of companies can incorporate fintech solutions and create financial products with agility, all thanks to approaches like embedded finance and banking as a service. Additionally, the moment a product is launched in the market, or time-to-market, has also been accelerated with these new technologies. Companies now achieve their objectives much faster than in previous years.
We will tell you how you can speed up your time-to-market to launch your financial products and services in just a few months.
The term time-to-market refers to the time it takes to launch a product or service to the market: from the conception of the idea and its development to when it is actually available. The concept is quite recent, but companies have always considered time-to-market, regardless of the products they offer or the segment they target.
As various sectors become more agile by introducing technological solutions such as APIs, Artificial Intelligence, and other advances in automation, markets become increasingly dynamic and push for faster deliveries. Furthermore, considering competitive advantages, the first to enter a market has more and better chances of positioning than its competition.
In this post, we will focus on how to optimize the time-to-market for digital financial products.
Launching a new financial product, such as a card or an account service, used to be a long process: often, it was necessary to start from scratch or even create a bank and have an internal development team.
Today, all the technologies and innovations we mentioned earlier increasingly shorten the launch period for businesses. For example, the technological infrastructure services of a banking core can be used by companies in other sectors to develop their own financial services quickly, securely, and by easily integrating the structure of the partner company through an API.
Regarding this, our Director of Business Development in Brazil, Daniel Rojtenberg, spoke with the Brazilian media outlet Exame: "In the past, to create financial operations and services, one literally had to create a bank. That took at least one or two years, including the creation of cards, digital accounts, interoperability of networks, etc. Today, any company with a technological base can launch a banking operation in a few weeks."
And it's not just about isolated technological advances: fintechs have shown the market that there can be simpler and more profitable business models than traditional banks and financial institutions. Among them, solutions have become popular that outsource the necessary regulatory licenses to launch accounts and payment services, such as BIN sponsorship, which outsources and accelerates the granting of licenses with card brands.
To have a good time-to-market, meaning fast and of quality, it is necessary to work with good planning: understand the target audience, develop a solid business plan, be flexible, and have a scalable model based on increasing demand. Let's delve into this below.
In summary, gaining a competitive advantage is the most important objective in the pursuit of speed and agility. Few companies have the resources to launch a super complete, innovative, and ambitious financial product or service quickly. However, a company that manages to get to market quickly with a good scalable structure for its business is already a step ahead of the others - because it is already addressing a gap that existed among its potential customers.
A study conducted by the consulting firm Gartner with tech companies showed that revenues generated from new products represent an average of 30% of a company's total sales in three years. This figure is quite impressive, isn't it? Additionally, you gain other advantages when you launch a financial product at the right time, for example:
Efficient management and greater ease in achieving revenue targets and the performance KPIs expected by the company;Better payback periods and return on investment (ROI) expected for this product;Lower risks of delaying and wasting project investments;Opportunities to position oneself with quality in the market to develop new projects in the future.There are many possible strategies to launch the most varied products and services to the market. But, regardless of the chosen method, the most important thing is to have a strategic vision instilled by the company and the project to be developed.
Bruno Ferreira, lead of our Business Development team in Brazil, highlighted ten fundamental points for any company in the financial sector to work prioritizing their time-to-market:
Clearly define the target audience, understanding their needs and desires;Conduct market studies to evaluate competition and demand for the product or service;Develop a solid business plan with clear objectives and a launch timeline;Ensure the availability of sufficient funds for the development and launch phase;Work on a scalable business model that can grow quickly in response to market demand;Automate processes whenever possible to maximize efficiency and minimize wait times;Adequately allocate resources and efforts, prioritizing activities that have a direct impact on the product launch;Maintain clear and fluid communication within the team so that everyone is aligned with the project's objectives;Be agile and flexible to adapt to market changes and customer needs;Focus on launching the product as soon as possible, without compromising quality.The different stages of the process can help achieve these points. For example, starting with simple trial versions, like the famous Minimum Viable Product (MVP). These initial versions allow for feedback and the development of improvements before launching the final product. It is better to correct errors that could compromise quality before hastily launching the product to the market.
Speaking specifically about the world of financial solutions, there is a timely trio of elements that will give you a rapid and quality time-to-market:
Partnerships: look for technology infrastructure partners that offer banking as a service and embedded finance solutions, and prioritize security mechanisms;Automation: supported by specialized Product and Integration teams in APIs, which automate the integration processes that used to take a lot of time;Licenses: outsource licenses for regulated products, such as different types of cards.The formula is simple: with focus, innovation, and strategy, you arrive first and go further.
Journalist and Master in International Relations from Rio de Janeiro. He was a reporter, editor, producer, and researcher before joining our Marketing team. Curious and playful, he compares himself to a sponge: wherever he goes, he likes to absorb, learn, and experience what each place uniquely offers. He loves music, books, pets, cooking, social issues, soccer, and tennis.
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