Founders Losing Deals by Selling Technology, Not Integration

Startup founders are making a common mistake that leads to lost deals, particularly in regulated industries like fintech. The issue lies in companies selling their technology but not the solutions required for its integration.

Customers, especially large banks, are increasingly concerned about how new technology integrates with their existing systems. According to them, the technology's functionality alone is not sufficient. Key concerns include the resources integration requires, potential disruptions, and a lack of unified data management.

"Best-of-breed is great," said John Brady, who works in compliance at Candescent. "But it can reinforce the perception of just one more point solution for a financial institution. One more potential source of core disruption."

Brady emphasized that decisions are increasingly based on how the technology affects other systems. An easily integrated solution might win over a technically superior one if the integration costs are deemed too high.

Furthermore, companies must demonstrate clear model governance and regulatory compliance early on. Founders who have not built this in face difficulties progressing in contract negotiations.