Why does the world love Lego? Lego is one of the most popular toys of all time. People of my generation love it, of my children’s generation and even youngsters today. The success of the recently released The Lego Movie is testament to its cross-generational appeal.
Lego has the ability to excite people of all ages because it offers unlimited building possibilities. As the bricks interlock in such a way, you can create whatever you like. You are limited only by your imagination (and the generosity of your parents to buy you a good set, of course).
So how on earth does this relate to the world of finance? Well, over the last few years the financial world has witnessed the rise of what we at Currency Cloud like to refer to as Financial Lego. Many technology firms are now out there to focus on particular segments of the financial value chain (e.g. international money transfers or payments processing), ‘optimize’ them (i.e. do it better than banks or other traditional institutions can) and then offer their services up to other businesses through their APIs (‘application programming interfaces’, essentially an easy means for technology to talk to one another).
Financial Lego is incredibly exciting for entrepreneurs and established firms alike because it means that they don’t need to build all the technology to support their big idea from scratch. They can enhance their offerings by collaborating with other businesses from the value chain.
Imagine you’re a kid looking to build a castle. But you don’t have anything to build it with. So you built it with dirt, stones and twigs because that’s all you have in the back yard. It would be rubbish and certainly not withstand rain, wind or the neighbourhood kids running past.
That’s what your financial company will be like if you’re an entrepreneur without a highly technical background, years of time, banking relationships, compliance understanding and a stack of money to develop your big idea.
With Financial Lego, you, the entrepreneur, can simply join together the best bricks in order to support what you’re business is trying to achieve. Working like this means you don’t have to worry about many of the complications associated with getting off the ground and up and running because someone’s already done that for you and can lend you the missing pieces.
Here are a few segments of finance where you can Financial Lego solutions:
Payments Lego companies share some typical characteristics. They all offer simplicity both in the sense of removing redundant processes in the value chain and by being easy to plug into. They all offer speed both in transaction time and ‘go live’ time. They offer transparency in pricing and business models. Finally trust is paramount to these firms. They all invest heavily in compliance and security so that their customers can rely on them.
Looking to change finance? With Financial Lego, it’s child’s play.