Here's how you can navigate the common mistakes when responding to failure in Financial Technology.
Navigating failure in Financial Technology (FinTech) can be daunting. You're not alone if you've felt the sting of a project gone awry or a product that didn't meet market expectations. The fast-paced world of FinTech is rife with challenges and setbacks, but how you respond to failure can set the stage for future success. By understanding common mistakes and adopting the right mindset, you can turn potential disasters into valuable learning opportunities. Remember, resilience and adaptability are key in the ever-evolving landscape of financial technology.
When a failure occurs in FinTech, it's crucial to promptly acknowledge the mistake. This isn't just about taking responsibility; it's about starting the process of learning and recovery. By recognizing where things went wrong, you can begin to dissect the issue, understand its root causes, and prevent similar errors in the future. It's easy to play the blame game, but this often leads to a toxic work environment and hinders progress. Instead, focus on creating a culture where mistakes are seen as a natural part of innovation and growth.
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Mahesh Patil
Acknowledgement is most important and so is honesty. In most incidents I’ve been part of, it’s places where the team or individuals who made mistakes were forthcoming and shared all they knew to the best of their abilities in a blameless away. Having the right account of what happened can be key to solving incidents quickly. A lot of this also boils down to leadership, trust and culture in teams and organizations.
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Anshul Chaudhary
Project Manager | FinTech | Digital Lending | MBA | Digital Marketing | Delhi Technological University
During my time at Taplend India, leading the development of our digital lending application, we faced a significant setback with our risk engine. An overly conservative algorithm led to an unexpectedly high rate of loan rejections. This error highlighted a flaw in our credit risk model. We immediately informed stakeholders and conducted a thorough root cause analysis. We revised the algorithm, improved our data models, and implemented iterative testing to balance risk and approval rates effectively. This experience taught us the value of transparency, meticulous documentation, and fostering a culture of learning from mistakes. By acknowledging and addressing our error, we improved our processes and ultimately enhanced our product.
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Sourabh Gour
Keen Learner / Freelancer / Stock Market Trader / Investor / Entreprenuer / Talks about Startups and Finance / Engineer
When faced with failure in Financial Technology, it's crucial to avoid common mistakes like blaming others, ignoring the problem, or giving up too quickly. Instead, take responsibility, analyze what went wrong, learn from the experience, and adapt your approach. Emphasize communication, transparency, and collaboration within your team to foster a culture of learning and growth. By staying proactive, humble, and resilient in the face of setbacks, you can turn failures into valuable lessons that drive future success.
Once you've acknowledged a mistake in your FinTech endeavor, the next step is to thoroughly analyze the causes. This involves a deep dive into the processes and decisions that led to the failure. Was it a technical glitch, a misjudgment in user needs, or perhaps a regulatory oversight? Understanding the multifaceted nature of FinTech failures is essential, as it often involves complex systems and regulations. Your analysis should be methodical and data-driven, aiming to uncover not just the obvious issues but also any underlying problems that may not be immediately apparent.
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Mahesh Patil
5 whys is an excellent way to uncover potential reasons. It’s also important to capture the causes in a blameless way, blame creates a toxic culture and also discourages people from sharing information. It can help to start by making it clear that failure is inevitable and that is how teams learn and improve.
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Anshul Chaudhary
Project Manager | FinTech | Digital Lending | MBA | Digital Marketing | Delhi Technological University
During my tenure at Taplend India, we encountered a significant issue during a major update to our customer journey flow. Post-deployment, user drop-off rates increased dramatically. We conducted a root cause analysis and discovered that a new authentication step was too complex, leading to user frustration and abandonment. We quickly communicated the issue to stakeholders and rolled back the update to reassess the process. By simplifying the authentication step and conducting user testing, we successfully reduced drop-offs. This experience highlighted the importance of user-centric design, thorough testing, and prompt issue resolution to enhance overall user experience.
After pinpointing the causes of failure, it's time to adjust your plan. This could mean revisiting your business model, reevaluating your technology stack, or restructuring your team's approach to project management. In FinTech, where compliance and security are paramount, it may also involve strengthening your risk management strategies. Be flexible and open to significant changes; sometimes, a pivot is necessary to align with market demands or technological advancements. The goal is to forge a path forward that minimizes the chances of repeating past mistakes.
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Anshul Chaudhary
Project Manager | FinTech | Digital Lending | MBA | Digital Marketing | Delhi Technological University
At Taplend India, we launched a new feature aimed at streamlining loan approval processes. However, soon after deployment, we noticed significant delays and bottlenecks. Realizing our original plan was flawed, we quickly adjusted by revisiting our workflow design. We identified redundant steps and inefficient processes, then streamlined the workflow for better efficiency. By promptly adjusting our plan and involving the team in brainstorming solutions, we mitigated the issue. This experience taught us the importance of flexibility and the willingness to adapt plans based on real-world feedback to ensure project success.
In the wake of failure, decisive action is vital. The FinTech industry moves quickly, and hesitation can compound problems. Whether it's implementing new protocols, adopting different technologies, or shifting strategic focus, ensure your actions are prompt and aligned with the lessons learned from the failure. This demonstrates to your team and stakeholders that you're committed to improvement and capable of navigating through adversity. Remember, timely action can also mitigate financial losses and help regain customer trust.
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Anshul Chaudhary
Project Manager | FinTech | Digital Lending | MBA | Digital Marketing | Delhi Technological University
At Taplend India, during the development of our digital lending app, we faced a critical error in our backend system just before launch, causing data processing delays. Recognizing the urgency, I acted decisively by halting the launch and assembling a task force to diagnose and resolve the issue. We identified a database query inefficiency, optimized the query, and rigorously tested the fix. This swift decision prevented a potential launch failure and safeguarded user trust. This experience underscored the importance of decisive action and quick problem-solving in maintaining project integrity and user confidence.
Learning from failure is a continuous process in FinTech. Encourage your team to share insights and discuss what went wrong openly. This collaborative approach not only enhances collective understanding but also fosters a culture of continuous improvement. Invest in training and development to fill any knowledge gaps that may have contributed to the failure. By advancing learning within your organization, you build a more resilient and knowledgeable workforce capable of tackling future challenges in the FinTech space.
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Anshul Chaudhary
Project Manager | FinTech | Digital Lending | MBA | Digital Marketing | Delhi Technological University
At Taplend India, we launched a feature that unexpectedly led to user confusion and a spike in support requests. To advance our learning, we conducted user interviews and usability testing, discovering that our interface was not intuitive. We integrated this feedback, simplified the design, and added helpful prompts. This not only resolved the confusion but also significantly improved user satisfaction. This experience taught us the importance of continuous learning and actively seeking user feedback. By embracing these practices, we enhanced our product and better aligned it with user needs, demonstrating the critical value of ongoing learning in product development.
Finally, when you overcome a failure and find success, amplify it. Share your comeback story with your team and stakeholders to boost morale and reinforce the idea that failure isn't the end but a stepping stone to success. Highlight the specific strategies that worked and how they can be applied to future projects. In FinTech, where innovation is celebrated, showcasing your ability to bounce back from adversity can enhance your reputation and inspire others within the industry.
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Mahesh Patil
Continuous improvement is key, capture learnings from the current failure and follow through any of the key steps you identified. In case of failures in future you can review how the past improvements helped as well what may have been missed that caused the current failure.
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Wasim Khalil Ali, Mcs, PgMP, PMI-ACP, PMP, PRINCE2P
🔷fintech passionate | 20+ Years Directing Cross-Functional Excellence in Project Management, Strategy, and Business Transformation | Expertise in Agile Methodologies and Program Management | Project Manager
Legal and Compliance One of the most common risks in Fintech projects Is navigating the complex landscape of legal and regulatory requirements. Staying compliant with ever-evolving regulations demands constant adaptability.
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