Question

• What processes in a FinTech organization or a business can benefit from benchmarking? How?
• Are there challenges that may become present when trying to conduct benchmarking? What recommendations do you have to overcome these obstacles?
• Demonstrate how each of the benchmarking tools (Best Practices, Peer Benchmarking, SWOT Analysis, Collaborative Benchmarking and etc…) can be used to ensure success?

Answer 1

Benchmarking: are reference points that we use to compare our performance against the performance of others. These benchmarks can be comparing processes, products or operations, and the comparisons can be against other parts of the business, external companies (such as competitors) or industry best practises. Benchmarking is commonly used to compare customer satisfaction, costs and quality. Benchmarking can be used in different such as Process Benchmarking, Strategic Benchmarking and Performance Benchmarking.

These are the following Processes in FinTech organization that can benefit from Benchmarking as given below:

• Benchmarks help fintechs understand how they are performing against their peers.
• For investors, benchmarks can provide a basis of comparison during the valuation process, which is especially important for investors who are new to fintech.
• For associations and incubators, benchmarks can ensure their member companies are on track relative to peers and provide a basis for marketing the relative success of their members when searching for funding and investment partners.
• Lending professionals need tools and intelligence to make strategic pricing decisions that help them gain a competitive position. Lenders Benchmak Turnkey and data delivers actionable insight.
• Strategic banking analysis and “What If” Simulators.

These are the following challenges present while conducting Bencharking as given below:

• Data: Availability, Quality, Statistical Relevance: The  key challenge faced with benchmarking FinTech Process is data avaliability, having relevance and the quality of data is an integral factor that provides Benchmarking in real terms.

• Difficult to evaluate Qualitative data.

• Collection of information.

• A lack of Shared standards present distinct challenges.

Recommendation to overcome these challenges:

• Use of Quality and reliable Data.
• Contineous improvement in Process.
• Choose External standard with Industry leader.
• Collection and analysis of Data.
• Develop a Performance improvement Plan.

Benchmarking Tools such as SWOT analysis, Peer Benchmarking etc. can contribute to the success of organization as given below:

• Peer Benchmarking is a good first step in any strategic planning that helps us to understand ourselve and our competitors that provide competitive strategy against our competitors.
• SWOT analysis help us to understand our strength, weakness, opportunity and Threat available internally and external to the business. In compliance with this analysis we can benchmark ourself with importanat insight gain from SWOT analysis.
• Collaborative Benchmarking can be used as tool for strategic improvement for decision making purpose within a given industry which provides reliable information through collaborative approach.
• Best Practices in industry can be Bencharked for better process and higher performance.