Open Banking will succeed if firms take the Thin End of the Wedge approach

 
Guy Halford-Thompson
Anti-labour market reforms (called Hartz
Source: Getty

We see too many startups failing due to the disparity in size between them and much larger corporations they work with, due to inherent friction which is hard to overcome.

Over-commitment to projects is one of the biggest reason that startups fail. Because of over-commitment, a startup will often find itself having to dedicate a large proportion of its team to the project, and if not careful, can find itself in a position where the success or failure of the company is intrinsically linked to the success of the project. What is an industry-defining project for a startup is likely a small side project for the larger client.

The Thin Wedge Approach is an innovation methodology developed at BTL to enable us to work with clients who are many thousands of times larger than us, ensuring we are able to deliver projects that can cross the chasm from pilot to production, while not letting individual projects balloon out of control. The goal of the Thin Wedge Approach is to deliver the smallest possible product fully into production, while demonstrating how value can quickly be increased in neighbouring areas of the business.

Read more: The Blockchain Brothers: Meet BTL's Guy and Hugh Halford-Thompson

The Thin Wedge Approach ensures that project scope is always manageable by the startup (allowing it to cross the chasm to production) and it reduces the risk to the startup if the project does not succeed.

By applying this approach, startups are able to reduce much of the friction that is created when very large companies work with small startups, while at the same time allowing both parties to achieve their individual goals, at a much lower risk and cost. If startups, challengers, and disruptors are to take advantage of Open Banking then taking the Thin Wedge Approach will allow them to succeed.

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