How Kodak Changed the Fintech Industry
When it comes to fintech developers, they can drive your company to success. However, it’s up to you to keep the team inspired to make innovative code and applications. And one of the best examples of this is the rise and short fall of Kodak.
There are a lot of famous business stories of multiple companies such as Kodak and Xerox. These companies have fallen from their previous dominant positions because of their failure to implement or understand new technology that’s set to disrupt the industry.
Kodak didn’t replace their traditional film with digital photography despite creating tools for fear of eliminating their existing revenues. Xerox allowed Microsoft and Apple to get away after creating the foundation of the modern computer revolution after they didn’t fully support their Xerox Alto.
Xerox Alto was the first invented personal computers with a graphical user interface and an operating system. In fact, it had buttons to click on, ethernet networking, a mouse, and so on. However, the project was unable to achieve the same popularity and sales of their competitors.
The Xerox Alto scenario represents what happens when firms can’t see future business trends or technology. Leaving their developments in the research labs and not sending them to the engineering lab can be as detrimental as not developing them in the first place.
Banks who know this use fintech developers and technology firms to create solutions for them that they can either invest, buy, or license in. Smaller fintechs are used for external test bed firms so the financial institutions can work with new cybersecurity, mobile, processing, and multiple end-use applications.
photo/ Michael Jarmoluk via pixabay.com
Fintech’s History
FI’s are attempting to protect themselves from large fintech companies that might replace them within the following years. Banks are aware of the giants such as Google, Amazon, and Facebook can optimize their customer’s attention.
As the return on equity has dropped since its 2008 economic crash and the compliance costs increased. Banks have accepted that they can’t make in-house solutions for their organizations as they would during the 70s and 80s. This is due to them not using the non-operational budgets.
Meanwhile, the more tech specialist firms, without any institutionalized or legacy staff, could easily meet their customer expectations of its fast 24×7 fast mobile service in comparison to banks that have struggled to protect themselves from siloed operations.
The increase of customer expectation of a faster, better service has coincided with the rise of consumer and social media technology, context data, tracking and locational capabilities and so on.
Longer established processing firms and banking firms like Temenos, are starting to benefit from the Fintech firm. Although they focus on using backend solutions that provide customer and account ledger updates through SaaS solutions in the computer’s cloud.
Conclusion
Due to a constantly changing environment, fintech developers are a primary component to any team. When looking at the history of Fintech, we can see that it has grown in technology, innovation, and strategies. Ultimately, if a company is able to adapt to the changing customer needs, they’ll increase the chances of becoming successful.
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Author: Adam Edmond
