Lessons for IFAs and mortgage brokers in the software world
Apple wanted a BUY NOW PAY LATER application, as posted before – known to techies as BNPL, and unsurprisingly tried to build it themselves. I mean, why not – is not that their way? They got in Goldman Sachs to help with the finance, and off they went with the build. A few years later, and they’ve called it off.
They plan to partner with Citibank instead, who already have the distribution and skill to do it. It is all about reputational risk. The risk of having the FCA in. We have seen the global player FNZ this year be slapped with a S166 skilled persons report by the FCA.
Now even firms like Apple are unable or unwilling to get a UK licence even just for credit terms at the FCA. Apple lost money building it, lost even more in getting rid of it, and now have reverted to “borrow” in order to go forwards. Partnership led solutions is the way forward.
BAT clearly has a vested interest to say this – our system is for hire – but the truth remains just as valid. Humans learn by copying. And it is only by hiring a great system that you can start to learn sufficient to build your own, or buy your own. You learn to swim from the shallow end.
The truth is we are working together and it is reassuring to know that even the mighty Apple needs to learn its lessons. You learn the nuts and bolts of the financial services industry from the bottom up – and in software this means by borrowing.