Investment Managers: FinTech Scouting & Solution Suitability

**Section 2**

FinTech Scouting

FinTech scouting is the ongoing monitoring and scanning of the FinTech universe to ensure an organisation understands the breadth of companies & solutions available, within a framework that assesses each of the FinTech's strengths and weaknesses.

The assessment should consider the ability of both parties to learn and adapt with regards the subject matter, nature of solution and level of change needed to achieve the value identified.

Target Areas

When scouting for a FinTech based partner or solution the best starting point is to ensure that the research areas are:

Aligned to business strategy
Centred around solving operational, organisational or client pain points
Clearly aimed at achieving well understood specific & valuable outcomes
Supported by a committed business sponsor

Problem Statements

Another key component for successful solution discovery is a consistent categorisation of focus areas. The articulation of a clear 'problem statement' and understanding of the organisational 'pinch points' is crucial to ensure technological solutions are encouraged, supported and implemented.

The Engine has created a taxonomy with clear value chain identification as well as asset/business class and technology. This hub allows firms to discover solutions active throughout the workflow and make initial assessments as to the suitability of the solution.

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Key Assessment Criteria

Key areas to consider as part of the solution assessment are:

1. The key benefits provided by the solution

2. Experience of the founders and team

3. Current and past client engagements

4. Balance of technology staff within total headcount

5. Access to capital and current runway

6. Interoperability with legacy platforms

7. Adherence to technical standards

8. Data security and privacy protection

9. Business and pricing model of the FinTech

10. Time to market, integration ease and solution agility

Key Takeaways:

1. Be clear on the specific business problem to solve

2. Ensure strong business sponsorship

3. Consistent, balanced framework to assess FinTech partners