Financial Services
Evaluating the fintech partnership potential for maximizing revenue for a foreign bank in India
09 Jun 2023
Context
  • A foreign bank in India wanted to gain insights into the fintech landscape in India to identify partnership opportunities and develop a parameterizable framework for evaluating potential fintech partnerships and maximizing revenue from partnerships.
Approach
  • Partnerships: Developed a framework for maximum value creation for fintech partnerships.
  • Potential mapping: Post development of the framework, for all partnerships, took management data and client estimates
    • Used these input values and assumptions (macro assumptions and client-centric operational assumptions) and developed a tool that can give the estimate for growth and market potential for the next few years.
  • A data-driven model was formed using the framework, assumptions, and data for evaluating the potential of fintech partnerships.
  • Growth strategy: Overall target potential was broken down into specific products with the realistically achievable targets.
    • The target was further broken-down product-wise and then customer wise.
  • Resource estimation: Estimated the resource requirement, capex requirements, partnership requirements (across products), and manpower requirement of the organization for the next five years to achieve the desired market size.
  • Manpower estimation: Estimated the requirement of the new Relationship managers, the opening of new branches, and hiring of the working staff for the next five years using client-centric operational assumptions like manpower productivity.
Praxis value delivered
  • Delivered a comprehensive analysis of key market players and market size in the emerging Fintech space.
  • Developed a real-time operating model to evaluate fintech partnership potential, quantifying the percentage of potential value realized by the client from the partnership.
  • Provided the client with operational projections for their financial estimates over the next five years, including manpower estimates.
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