Innovation is a race. 37% of banks in Germany viewed fintech as a possible threat. In the financial service industry, legacy organizations and emerging fintech disruptors are competing in the same environment, for the same customers.

1. INNOVATION PACE
IN FINTECH.
04.10.2019

2. • Innovation is a race toward customer relevance.
• The competition is racing on high speed.
• Benchmark your innovation pace with your competition.
• Appendix
• Revolut & N26 Customer Value Canvases
• Revolut & N26 Feature Roll-out Timelines
AGENDA.
2

3. 3
In the financial service industry, legacy
organisations and emerging fintech
disruptors are competing in the same
environment, for the same customers.
37% of banks in Germany viewed
fintech as a possible threat.
CONTEXT..
Innovation is a race.
Source: Statista 2016

4. With diverse competitors in the industries,
different measures, methods, and strategies
are taken, trying to compete.
!4
CONTEXT.
Partnership and Ecosystem
leverages the diversity of
competition in the market and aims
to create more value for the
customer to stay competitive.
Open/ Multi- banking is a common
strategy among smaller, fast-
moving fintech companies, in order
to disrupt the system and have a
chance with the marketshare.
Digitalization is still till this day the
most critical transformation for the
majority of legacy financial service
organisations, in order to compete
and stay relevant.

5. No matter how much the starting points or
strategies of the companies differ from one
another, there is one similar goal for all
companies …
Customer relevance
!5
CONTEXT.

6. 6
THE COMPETITION IS RACING ON HIGH SPEED.

7. 7
To better understand the benchmark and their effort
on innovation towards customer relevance, we
examined the features/ improvement roll-out plans of
N26 and Revolut from the past 12 months.
* Revolut: Oct 2017- Mar 2019, N26: May 2017- Mar 2019
BENCHMARK.

8. 8
Based on the customer value canvas, a holistic view for all consumer
relevant proposition of the product, large and small customer-facing
innovations of N26 and Revolut in the past 18 months can be quantified
and categorized.
Core product functionalities and features
required for the said fintech company’s
pre-paid debit card offerings and online
banking.
Additional services that amplify the impact
and capabilities of the said fintech
company’s core banking products.
How the said fintech company
communicates its value proposition,
educates and engages with its customers.
CORE PRODUCT ADDED VALUE SERVICES
COMMUNICATION & CONTENT CUSTOMER EXPERIENCE
Additional features, services and
integration provided by the said fintech
company to enable easy-use and greater
adoption of products.
CUSTOMER
VALUE
PROPOSITION
BENCHMARK.
Examples of customer value canvas of N26 and Revolut can be found in appendix

9. 9Source: N26 Blog (2019), Revolut Blog (2019)
The Result: N26 and Revolut are innovating
on high-speed.
2.4
on average…
Consumer-facing innovations
are rolled-out each month.
BENCHMARK.

10. 10Source: N26 Blog (2019), Revolut Blog (2019), Bank Cler Zak Online Presence
Moreover, the innovation effort is focused on
customer relevance.
0.5 Core Product & Added
Value Improvements per
month
1.0 CX & Communication/
Content Improvements per
month
1.5 Core Product & Added
Value Improvements per
month
1.7 CX & Communication/
Content Improvements per
month
1.5 total customer-relevant
innovation per month
3.2 total customer-relevant
innovation per month
BENCHMARK.

11. 11
Innovation in the financial service industry is a race
towards customer relevance. In order to stay ahead of
the race, companies need to…
11

12. 12
Benchmark the innovation pace
with the competition

13. 1. Calculate and examine your current
innovation pace and innovation effort focus.
!13
NEXT STEPS.
Where do you stand in the race?
Assessment and acknowledge is the crucial first step
for any effective strategy and organisational change.
Calculate the current innovation pace together with
the product development team, and use the customer
value canvas to examine where the innovation effort is
focusing on.
Core product functionalities and
features required for the said fintech
company’s pre-paid debit card
offerings and online banking.
Additional services that amplify the
impact and capabilities of the said
fintech company’s core banking
products.
How the said fintech company
communicates its value proposition,
educates and engages with its
customers.
CORE PRODUCT ADDED VALUE SERVICES
COMMUNICATION & CONTENT CUSTOMER EXPERIENCE
Additional features, services and
integration provided by the said
fintech company to enable easy-use
and greater adoption of products.
CUSTOMER
VALUE
PROPOSITION
Customer Value Proposition

14. 2. Explore and analyze your existing resources,
processes, and structure for improvement.
!14
NEXT STEPS.
Do you need to benchmark the pace? Could you do it?
Exploration and analyzation within your existing resources
is the second critical step to efficient and meaningful
strategy.
Based on where you currently stand in the competition,
determine where you want to go, and examine not only the
human resources accordingly, but also the relevant
structure, process, KPIs, etc.
KEEP DOING:
Something that the team is doing well
and recognizes the value of it:
e.g. frequent collaboration and
brainstorming as a team
MORE OF:
Something already being done and you
believe will bring more value if done even
more:
e.g. splitting work into sub teams, more
frequent interaction with the Product Owner
LESS OF:
Something already being done with
some value but you would rather reduce
it for greater efficiency:
e.g. some stories were very good but too
big and should have been split into
smaller stories
START DOING:
A new idea or something that you have
seen working before that you would like
to bring to the table:
e.g. make more time for cross-team
knowledge transfer and inspiration
STOP DOING:
Something that is not bringing value
or worse, is getting in the way:
e.g. depending on third party suppliers to
recruits users for testing because it took
too long
Starfish Mapping

15. 3. Restructure and implement the necessary change
in the agile way.
!15
NEXT STEPS.
What is the best way to implement change?
Reconstruction and implementation might be the most
challenging, yet rewarding step toward an improved innovation
pace.
Implementing the necessary organizational changes in the
agile way will allow the team to quickly learn, adapt, and try
again— making innovation the usual business.
Agile Sprint Guide

16. SCHEDULE TODAY
STEFAN ERSCHWENDNER
Managing Partner
+49 151 6462 0729
se@lhbs.com
!16
Let us help.
A marketing & innovation firm, we work primarily
with legacy organizations to adapt their customer
value proposition to meet emerging customer
expectations.
Together with our clients we discover business
opportunities and deliver integrated customer offers
for products, services, experiences and
communication.
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