Coming out of two big fintech conferences this month (Insuretech Connect and Money 2020), it’s clear that fintech is evolving – but it’s not clear which evolutionary approach will dominate. Startup innovation seemingly bifurcates around a choice: to either build towards either a distribution advantage or a data advantage in the insurance industry.
In 2020, I wrote about the unique attributes of a successful fintech company, or the “3 Ds” :– distribution, data, and delivery. I argued that successful startups had at least one of the three, and particularly one of the first two: distribution or data. The best had more than one. Some even had a trifecta of all three.
But which of the Ds is most important? Which will lead to more consistent multi-billion-dollar startup outcomes?
Let’s start with a few considerations. I promise I will provide an answer at the end of the article.
Is the customer hard to reach?
Some customer bases are easy to reach via easily accessible channels like social media or online…