A Few Stories About Big Decisions: Why Every Company Will Become a Fintech Company

A Few Stories About Big Decisions: Why Every Company Will Become a Fintech Company

In the world of business, there are countless stories of individuals who made big decisions that shaped their careers and industries. These decisions often had a profound impact on their success and the way they were perceived by the public. Let's explore a few of these stories and discover the common points that connect them.

Henry Ford, the legendary founder of Ford Motor Company, knew that in order to build a cheap, quality car for the masses, he needed to win over investors and the public. He understood the power of advertising and decided to build the best race car in the world. In 1902, Ford's race car beat the reigning champion, bringing him nationwide recognition and the attention he needed to launch his vision. This story highlights the importance of sales and how it can make or break a business.

Similarly, actress Gloria Swanson was faced with a big decision in 1927 when she was offered a million-dollar movie contract. While it would have made her one of the highest-paid actresses at the time, she turned it down. Swanson understood that being the best wasn't enough. She wanted to be the only one, setting herself apart from the competition. This decision showcased her unique mindset and set her apart from her peers.

The idea of entertaining the masses was not limited to the world of entertainment. George Marshall, then Army chief of staff, once stated that the leader in a democracy has to keep the people entertained. While this may sound surprising, it reflects the importance of perception and public opinion. Marshall understood that in order to lead effectively, he needed to engage and captivate the public. This insight can be applied to various industries, where leaders need to connect with their audience and understand what they want.

When it comes to making big decisions, data and spreadsheets can only take us so far. There is a human element that plays a crucial role and can greatly influence the outcome. John F. Kennedy's father famously said, "The only important thing is what people think you are." This statement emphasizes the significance of perception and how it can shape the success or failure of a decision. It reminds us that the opinions and beliefs of others can have a significant impact on our businesses and careers.

Now, let's shift our focus to the world of financial services. The future of every company is becoming a fintech company. We are witnessing a monumental change in the industry, where infrastructure "as a service" is transforming the way financial services are provided. This shift is driven by the need for a core system that logs customers' money and integrates with various payment systems.

Take Propel, for example, a company that serves millions of families on Electronic Benefits. The founders of Propel had deep insights into this market, as one of them grew up on food stamps. They understood the challenges and needs of their target audience, allowing them to create a tailored solution. This story highlights the importance of understanding your customers and their unique circumstances.

In the world of banking, compliance with anti-money laundering laws is a top priority. Banks monitor sanctions and terrorists lists, as well as customer transactions, to prevent money laundering. However, this results in false positives and a significant amount of manual reviews. Shockingly, less than 3 percent of laundered money is actually caught. This reveals the challenges faced by banks in catching money launderers and how they adapt to exploit weaker points in the system.

One interesting approach to combatting fraud is the use of data analysis. By analyzing patterns and identifying anomalies, financial institutions can detect fraudulent activities more effectively. For example, fake social security numbers can be identified by examining loan application rates. This highlights the power of data and how it can be leveraged to prevent fraud and protect customers.

The disruption in the financial services industry not only benefits companies but also consumers. With new financial services companies emerging and established brands launching their own financial services, existing services are improving. This competition drives innovation and creates better options for consumers. It's an exciting time to be a consumer in the financial services industry.

As we explore these stories and the future of fintech, we can extract actionable advice that can be applied to any industry:

1. Understand your audience: Just like Henry Ford and Gloria Swanson, it's crucial to understand the needs and desires of your target audience. Tailor your products or services to meet those needs and stand out from the competition.

2. Prioritize perception: The opinions and beliefs of others can greatly influence your success. Pay attention to how you are perceived by your audience and work towards creating a positive image.

3. Embrace innovation: In a rapidly changing world, it's important to stay ahead of the curve. Embrace new technologies and adapt to industry disruptions. This will allow you to remain competitive and continue to provide value to your customers.

In conclusion, big decisions shape our careers and industries. Whether it's building the best race car to gain recognition or turning down a million-dollar contract to be the only one, these stories teach us valuable lessons. In the world of financial services, every company is becoming a fintech company, driven by the need for innovation and improved customer experiences. By understanding our audience, prioritizing perception, and embracing innovation, we can navigate the ever-changing business landscape and build successful companies.