Disruptive Innovation Strategy

Banking-as-a-Service (BaaS) is a divisive concept. Instrumental in the rise of #fintech, but also behind some notable failures. However, not only is BaaS going nowhere, but it’s connected to a huge opportunity. Let’s take a look. BaaS is essentially the SaaS model in #banking jargon. It has revolutionized financial services by enabling them to move away from the traditional infrastructure, on-premises play to an agile software distribution model based on the cloud. BaaS is to a large extent the powerhouse behind the rise of fintech, as the majority of fintechs were originally built on the back of a BaaS model. There are two main reasons, why this proved so successful: —    it allowed small start-ups to focus their limited resources on the front-end (essentially on solving problems and on the customer relationship) by using the infrastructure and licensing of partners —    it did so on the basis of a flexible, pay-as-you pricing model they could afford However, #financialservices is a highly regulated industry with strict risk and compliance requirements, which are easy to fail. US-based Synapse is perhaps the most notable example: originally one of the first and leading BaaS players, it followed a full-stack model, meaning an end-to-end play that would take care of all the back-end stuff on a modular basis and rely on partner banks for the licensing piece. The model seemed to work well until Synapse collapsed under increased regulatory scrutiny, unveiling a chaos between the roles and responsibilities of the multi-layered model, that has not yet been sorted out. More than 10 million accounts were affected. Many voices have been quick to announce the extinction of BaaS as a whole, as a result. But it’s not the model that failed, rather than the implementation. Which is why the industry has been moving from a multi-layer, indirect model to a bank-first model where clients (fintechs) have a direct relationship with the banks (and not vice-versa) in order to mitigate the risk of their BaaS provider going out of business. The model is being transformed into a more efficient, more scalable, integrated end-to end set-up. At the same time BaaS is powering one the biggest revolutions that are disrupting financial services from the ground up: embedded #finance. There is a fundamental change in the way that we consume financial services: customers are no longer going to their bank but are increasingly making finance decisions in non-financial contexts: platforms, marketplaces, digital wallets, SuperApps or even directly at brands themselves. BaaS is the big enabler in this model: it is the bottom, infrastructure layer that feeds into the various embedded finance offerings on the outcome, front-end side. In this changing landscape, BaaS is one of banks’ biggest opportunities to ride the wave of #innovation. The how is a topic for a next discussion. Opinions my own, Graphic sources: Brankas & WhiteSight

Digital isn’t transforming business. It’s redefining what a business is. We spent decades thinking in clean categories: product vs. service, direct vs. indirect revenue, ownership vs. subscription. That framework worked when value was tangible and static. But when intelligence is embedded in the offering, those lines blur... • A machine isn’t just a machine if it continuously learns. • A service isn’t just a service if it’s powered by live operational data. • And the production data you used to archive for compliance? It can now be packaged, analyzed, and sold as insights that customers will actually pay for. The real shift isn’t adding technology. It’s re-architecting value. This revolution is captured brilliantly in the book: 𝐷𝑖𝑔𝑖𝑡𝑎𝑙 𝐵𝑢𝑠𝑖𝑛𝑒𝑠𝑠 𝑀𝑜𝑑𝑒𝑙𝑠 𝑓𝑜𝑟 𝐼𝑛𝑑𝑢𝑠𝑡𝑟𝑦 4.0: 𝐻𝑜𝑤 𝐼𝑛𝑛𝑜𝑣𝑎𝑡𝑖𝑜𝑛 𝑎𝑛𝑑 𝑇𝑒𝑐ℎ𝑛𝑜𝑙𝑜𝑔𝑦 𝑆ℎ𝑎𝑝𝑒 𝑡ℎ𝑒 𝐹𝑢𝑡𝑢𝑟𝑒 𝑜𝑓 𝐶𝑜𝑚𝑝𝑎𝑛𝑖𝑒𝑠. 𝐅𝐨𝐮𝐫 𝐏𝐢𝐥𝐥𝐚𝐫𝐬 𝐨𝐟 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐌𝐨𝐝𝐞𝐥𝐬: • 𝐃𝐢𝐠𝐢𝐭𝐚𝐥𝐥𝐲 𝐄𝐧𝐚𝐛𝐥𝐞𝐝 𝐕𝐚𝐥𝐮𝐞 𝐂𝐫𝐞𝐚𝐭𝐢𝐨𝐧: Value driven by tech, not just supported by it. Think smart thermostats optimizing energy, not just controlling it. • 𝐌𝐚𝐫𝐤𝐞𝐭 𝐍𝐨𝐯𝐞𝐥𝐭𝐲: New offerings or ways of doing business—like predictive maintenance or on-demand manufacturing. • 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐂𝐮𝐬𝐭𝐨𝐦𝐞𝐫 𝐓𝐨𝐮𝐜𝐡𝐩𝐨𝐢𝐧𝐭𝐬: Customer relationships built through apps, IoT, and connected services. • 𝐃𝐢𝐠𝐢𝐭𝐚𝐥𝐥𝐲 𝐃𝐞𝐫𝐢𝐯𝐞𝐝 𝐔𝐒𝐏: Unique selling points rooted in data and digital capabilities. But how do we map the revenue streams emerging from these shifting dynamics? I’ve come to see it through three essential components: • 𝐂𝐨𝐫𝐞 𝐕𝐚𝐥𝐮𝐞 𝐏𝐫𝐨𝐩𝐨𝐬𝐢𝐭𝐢𝐨𝐧 (What is being offered?) • 𝐕𝐚𝐥𝐮𝐞 𝐂𝐫𝐞𝐚𝐭𝐢𝐨𝐧 𝐌𝐞𝐜𝐡𝐚𝐧𝐢𝐬𝐦𝐬 (How is value created?) • 𝐑𝐞𝐯𝐞𝐧𝐮𝐞 𝐒𝐭𝐫𝐞𝐚𝐦𝐬 (How is value captured?) 𝐑𝐞𝐚𝐝 𝐟𝐮𝐥𝐥 𝐚𝐫𝐭𝐢𝐜𝐥𝐞: https://lnkd.in/ewhRUM28 ******************************************* • Visit www.jeffwinterinsights.com for access to all my content and to stay current on Industry 4.0 and other cool tech trends • Ring the 🔔 for notifications!

I worked with 70+ companies on circular business models. Here are the top 5 opportunities to make money in the circular economy⭕. 1. Create circular supplies and inputs:   🔄 Develop and provide bio-based and 100% recyclable materials; 2. Develop sharing platforms for the new economy: ♾️ Use the rising market demand for collaborative models for usage, access, or ownership - in huge industries such as fashion, construction or mobility; 3. Create product-as-a-service models: 💡 Innovate and disrupt the traditional market by offering customers the use of products through a lease or pay-for-use arrangement versus the conventional buy-to-own approach. 4. Retain value through product life & use extensions: 📲 Develop opportunities to extend the lifespan of a product; through remanufacturing, repairing, upgrading or re-marketing. Companies can therefore retain value and discover new sources of revenue with its products; 5. Turn waste into a new valued resource: ♻️Leverage new technology and biz models innovations to recover and reuse resource outputs; this eliminates material leakage and maximizes economic value (examples: closed loop recycling, industrial symbiosis or cradle-to-cradle designs). We all together can accelerate the transition if we get the economics right - and demonstrate the business potential. This is your chance to bring together purpose💟, impact 🎯 and financial success. --- What's your favourite circular business model and which ones should be added? --- 🙏🏽 Please spread the word or leave a comment! Credits for the visual: Circular Innovation Council #circulareconomy #businessmodels #innovation #enterpreneurship

AI is dramatically reshaping business models. This framework is the foundation of my new LinkedIn Learning course "AI-Driven Business Model Innovation". See below for a brief summary of the 6 domains of AI’s impact on value creation, together with the major driving forces and the capabilities required as business models rapidly evolve. Link to the course - free for LinkedIn subscribers - in comments. DRIVING FORCES 🧠 Driving Forces of AI Evolution We’re at a structural shift in business. AI capabilities are accelerating, costs are falling, and data is becoming a strategic asset. These forces are reshaping the foundations of value creation — demanding that leaders rethink not just what their business does, but how it evolves. SIX DOMAINS OF AI-DRIVEN BUSINESS MODEL INNOVATION ⚙️ Scalable Efficiency AI enables organizations to operate at a new scale — automating tasks, streamlining decisions, and amplifying productivity. This isn’t just about cost-cutting and efficiency — it’s augmenting talent for higher-value work and building systems that continuously learn and improve. 🎁 Enhanced Value Propositions AI enhances what you offer — and how it’s experienced. From smart, adaptive products to deeply personalized services, it allows you to deliver more relevance, utility, and meaning to every customer. The frontier of value lies in customer responsiveness and learning at scale. 💞 Shifting Customer Relationships AI transforms how we engage with customers — not just improving service, but enabling co-creation, building trust, and responding to individual needs in real time. The most successful companies will be those that become embedded in customers’ lives through intelligent, trusted relationships. 🏗️ Redesigning Organizations Organizations must evolve from static hierarchies to adaptive systems that blend human and AI capabilities. This means rethinking workflows, decision-making, and structures to be more fluid, responsive, and innovation-driven. AI is not a bolt-on — it enables dramatic reconfiguration of value creation. 🧑💻 The AI Agent Economy AI agents are becoming participants in the economy — acting on behalf of users, negotiating, coordinating, and executing tasks. This shift calls for new strategies, where businesses design for agents as well as humans, and where trust and interoperability become core to competitive advantage. 🌐 AI in Platforms and Ecosystems The most powerful business models today are built around data-rich ecosystems. AI turns data into action, unlocking new platform value and shared innovation. Success increasingly depends on how well you participate in — or build — dynamic, intelligent ecosystems. CAPABILITIES 🚀 Capabilities for AI Evolution Thriving in this landscape requires more than tools. It demands vision, adaptability, experimentation, and the ability to work across boundaries — human, organizational, and technical. These capabilities are the foundation of tomorrow's business models and success.

Re-Bundling the Bank 💡 Costs are growing for fintechs, but it's not just higher interest rates affecting their margins. Customer acquisition costs (CAC) are also on the rise and contributing to overhead. In response, some fintechs are seeking partners with existing customer bases. In June, for example, eBay and Venmo announced a partnership, allowing shoppers to pay for their purchases with their Venmo balance or methods linked to their Venmo account. Other fintechs, including big names like SoFi, have applied for bank charters. There is also a move to diversify revenue streams, illustrated by Robinhood’s reduced reliance on transaction fees for the bulk of its income. Both trends underscore a clear reality: As fintechs get squeezed, it is less viable for them to offer single, standalone products 💳 At the center of these moves is a focus on customer value. One effective way to reduce CAC is offering customers value on the financial side through products that help build savings or offer rewards. Another strategy is to add products to an existing customers base. Driven by their customers' growing expectations for digital solutions, Large Financial Institutions are increasingly partnering with, investing in and acquiring fintechs, leveraging the functionality and customer bases that fintechs have built in their specialized areas. Acquisitions such as JPMorganChase’s purchase of wePay for payments are one way for retail banks to add capabilities without building them in-house. At the same time, strategic partnerships can create efficiencies in customer acquisition. However, achieving a proper win-win in those relationships can be difficult to strike 🤝 Fintech partnerships are intended to be symbiotic, with tech companies like Chime providing a user-friendly front-end while a chartered partner bank such as The Bankcorp or Stride Bank, N.A. provides the FDIC-insured accounts and handles risk and compliance. This allowed fintechs to walk like a bank and talk like a bank while leaving the actual banking to someone else. In the last decade, deposits in fintech partner banks have skyrocketed, growing 9x faster than deposits in small US banks overall 🚀 Regulators are stepping up their oversight by issuing 50 severe enforcement actions in the last six months. A lopsided number of these actions are targeting partner banks. Startups are responding to the increased regulation by beefing up compliance talent and by reviewing existing processes, in some cases severing ties with partners. That opens the door to AI-native startups who can meet a high bar for regulation. Source: Silicon Valley Bank - https://t.ly/LfKVy     #Innovation #Fintech #Banking #OpenBanking #EmbeddedFinance #API #BaaS #FinancialServices #Payments #Lending #Blockchain #Compliance 

3 B2B SaaS marketing strategies that actually work in 2025. After 20+ years advising startups, scale-ups and global brands, I've seen marketing fads come and go. But these three approaches are delivering meaningful results right now: 1. Micro-influencer partnerships (not celebrity endorsements) The opportunity is partnering with niche creators who have 10k - 250k followers in your specific target market. Why it works: You're borrowing trust, not just attention. Most businesses mess this up by making it purely transactional. The "secret" is alignment – the creator must actually value your product. 50% of Hubspot's media is creator-led now. Clay nailed this by giving creators tools, templates and premium support, not just commission. Don't believe the "free marketing" myth. You're either paying with money or time. 2. Proper demand gen (not lead gen) Lead gen is an outdated assembly line approach. Modern demand gen is about producing high-value content that builds real relationships. The data backs this up: • 4x higher conversion rate • 26% higher win rate • 36% shorter sales cycle Cognism executed this brilliantly by: • Ungating their premium content (counterintuitive but works) • Targeting specific accounts with hyper-personalised messaging • Leveraging dark social (Slack, WhatsApp) despite measurement challenges • Integrating marketing and sales teams to target key accounts It's not about building a massive list of unqualified leads that inflates your ego. It's about fewer, more engaged prospects. 3. Founder-led personal brand This isn't about posting selfies. It's about the CEO/founder consistently sharing specialised, high-value content. Gal and his team from Aligned generate most of their pipeline through content on LinkedIn. Personal profiles get 5x more reach than company pages on LinkedIn. Company reach is progressively dropping. People buy from people –  creating connection in ways corporate accounts never will. The businesses that thrive in 2025 won't be the ones with the biggest budgets. But those who build meaningful relationships at scale.

In a world where markets shift faster than ever, one of the most consequential blind spots remains overlooked: the erosion of competitive advantage.    In recent research I co-authored with Matt Banholzer and Laura LaBerge, we found that most companies are not actively monitoring their industry’s competitive advantage. This research shows that organizations that systematically track their position within their key markets and use those insights to guide growth and investment decisions tend to outperform their peers.    Additionally, we found that the shuffle rate has accelerated for more than 60% of industries in the past decade.    So, how can leaders protect their edge? ➡️Develop a granular view of competitive advantage
 ➡️Tailor that view to each market ➡️ Avoid overinvesting in areas that do not improve competitive position
 ➡️Boost the return on competitive advantage by embedding it into strategic decision-making. ➡️Track metrics that signal shifts in the competitive landscape   Read the full article: https://lnkd.in/gvg2DY2y

Imagine managing the entire National Grid as if it were a single, real time video game. This is the power of a Digital Twin. It is a cutting edge concept rapidly gaining traction in critical UK national infrastructure. From our energy networks to our transport systems. It is the ultimate single source of truth. A digital twin is a living, breathing virtual replica of a physical asset or system. It continuously pulls in real time data from thousands of sensors, allowing engineers and leaders to: → Monitor performance with pinpoint accuracy. → Simulate scenarios like outages or traffic surges, without real world risk. → Predict failures before they happen, enabling proactive maintenance. The immense data engineering challenge here is extraordinary. It is not just about collecting information. But about harmonising vast, disparate datasets into a cohesive, real time model. This is where the magic happens. It is how we move from reactive fixes to proactive, intelligent management of the vital systems that power our nation. #DigitalTwin #NationalInfrastructure #DataEngineering

This Deep Dive edition of Fintech Wrap Up explores the great bank unbundling offering a comprehensive analysis of how the financial services industry has evolved through technological innovation and regulatory shifts. Analyses by Contrary Research, break down fintech's transformation into three major phases: Digitization – The transition from traditional banking to online services, driven by innovations like online banking in the 1990s and early digital financial tools. Disintermediation – Post-2008 financial crisis distrust in large banks and the rise of smartphones led fintech startups to disrupt traditional banking with digital payments and simplified infrastructure. Embedded Infrastructure – Platforms like Stripe and Plaid enabled fintechs to deliver financial services more efficiently, fueling the growth of Banking-as-a-Service (BaaS). The article also highlights how community banks partnered with fintechs to stay competitive, taking advantage of regulatory changes like the Durbin Amendment. Companies like Uber leveraged embedded finance to unlock new revenue streams and improve customer retention, while BaaS providers empowered non-bank companies to launch financial products faster and more affordably. However, the piece also underscores the growing regulatory scrutiny and compliance challenges in BaaS, stressing the importance of balancing innovation with regulatory compliance. #fintech #banking #baas Prasanna Thomas Richard Panagiotis Tony Nicolas Arjun Dr Ritesh Sandra

  The banking industry, a monolith of tradition and trust, is now facing a seismic shift. This isn't merely an evolution; it's a forced metamorphosis driven by the relentless march of technological disruption, the emergence of a digitally native consumer base, and a global demand for ethical, purpose-driven financial services. To survive, and indeed thrive, banks must transcend conventional models, embracing radical innovation and wielding branding as a strategic weapon to forge a new era of trust and relevance. Forget mere AI integration. We're witnessing the dawn of cognitive banking, where AI isn't just a tool, but a strategic partner. This means predictive analytics that anticipate customer needs before they arise, hyper-personalized financial advisory powered by deep learning, and even AI-driven ethical decision-making in lending and investment.  Can banks ethically deploy AI to create truly autonomous financial experiences, without sacrificing human oversight? DeFi isn't a fringe movement; it's a harbinger of a future where financial services are democratized and disintermediated. Banks must explore how to integrate blockchain technology and smart contracts to offer transparent, secure, and efficient services that challenge the very notion of traditional banking.  Can traditional banks leverage the transparency and efficiency of DeFi while maintaining regulatory compliance and customer trust? "Invisible" banking is just the beginning. The future demands immersive experiences, where financial services are seamlessly woven into the fabric of daily life. Think augmented reality financial advisors, virtual reality investment simulations, and gamified financial education platforms that engage users on a visceral level. In an era of heightened social consciousness, branding transcends mere aesthetics. It becomes a moral compass, guiding a bank's actions and communicating its commitment to ethical practices, sustainability, and social impact. The future of banking lies in building brand communities, where customers are active participants in shaping the bank's future. This means fostering open dialogue, co-creating products and services, and empowering customers to become brand advocates. Can banks relinquish control and embrace a truly collaborative approach to brand building? Breaking down cultural inertia requires a fundamental shift in mindset. Banks must foster a culture of radical innovation, where experimentation is encouraged, failure is seen as a learning opportunity, and disruptive thinking is rewarded. Attracting and retaining top talent is crucial. Banks must invest in developing a workforce that can drive innovation and adapt to the rapidly changing landscape. The future of banking isn't about transactions; it's about transformation. Banks that embrace this vision, leveraging technology and branding as strategic assets, will not only survive but thrive. #Branding #Brands #Banking #Talent #Technology