RACI Matrix for a FinTech Partnership — a Point of View
As part of my FinTech Series, I felt the need to enable people with the Thought process of RACI matrix and its importance in a Partnership. This demands an organizational structure and a well defined process. Would like to scope it to Banking Industry.
A RACI (Responsible, Accountable, Consulted, Informed) matrix is a valuable
tool for defining roles and responsibilities within a FinTech partnership,
ensuring smooth collaboration and successful project execution.
Note: Below one is a generic RACI matrix and may need to be adapted based on the specific nature of the FinTech partnership and the organizational structures of the involved parties based on the Size of the organization and complexity.
RACI Matrix for FinTech Partnership:
As the new age and veteran Banks are entering into FinTech partnerships they need to re-organize themselves and run the partnerships in a constructive way.
Task/Activity # Responsible # Accountable # Consulted # Informed
— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —
Ideation and Strategy # Bank Innovation Team, FinTech Partner# Bank Innovation Lead, FinTech CEO # Regulatory Experts, Legal Teams # Senior Management (Both Sides)
Task/Activity # Responsible # Accountable # Consulted # Informed
Business Analysis and Requirements Gathering # Bank Project Team, FinTech Solution Experts # Bank Project Manager, FinTech Project Lead # Business Users (Both Sides), Technology Teams # Senior Management (Both Sides)
Task/Activity # Responsible # Accountable # Consulted # Informed
Solution Design and Development # FinTech Development Team, Bank Technology Team # FinTech CTO, Bank IT Head # Bank Product Managers, FinTech Business Analysts # Regulatory Experts, Legal Teams
Task/Activity # Responsible # Accountable # Consulted # Informed
Testing and Quality Assurance # FinTech QA Team, Bank QA Team # FinTech Project Lead, Bank Project Manager # Users (Both Sides), Security Teams # Senior Management (Both Sides)
Task/Activity # Responsible # Accountable # Consulted # Informed
Deployment and Go-Live # Bank Operations Team, FinTech Support Team # Bank Operations Manager, FinTech Customer Success Manager #Users (Both Sides), Marketing Teams #Senior Management (Both Sides)
Task/Activity # Responsible # Accountable # Consulted # Informed
Ongoing Operations and Maintenance # FinTech Support Team, Bank IT Helpdesk # FinTech Customer Success Manager, Bank IT Head #Users (Both Sides), Security Teams # Senior Management (Both Sides)
Task/Activity # Responsible # Accountable # Consulted # Informed
Risk Management and Regulatory Compliance # Bank Compliance Team, FinTech Legal Team #Bank Chief Risk Officer, FinTech CEO# Regulatory Experts, Legal Teams #Senior Management (Both Sides)
— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —
To effectively manage FinTech partnerships, banks may need to adapt their organizational structure to foster collaboration and innovation. I would like to suggest some potential models:
- Dedicated FinTech unit: Establish a separate unit within the bank focused on identifying, evaluating, and managing FinTech partnerships. This unit can house specialists in areas like innovation, business development, technology, and legal.
- Cross-functional teams: Create cross-functional teams composed of members from various departments like product, technology, risk, and compliance to work on specific FinTech partnerships.
- Innovation labs: Set up dedicated innovation labs to experiment with new technologies and partner with FinTech startups in a more agile and flexible environment.
- Pilot Programs: To setup the Training and development program to enable project stakeholders along with accelerators to integrate with Partners in an effective way.
The optimal organizational structure will depend on the size, culture, and strategic goals of the bank.
I would like to suggest, additional Recommendations:
- Clearly define roles and responsibilities within the partnership using tools like RACI matrices.
- Establish strong communication channels and collaboration mechanisms between the bank and the FinTech partner.
- Invest in training and development to ensure that employees have the necessary skills and knowledge to work effectively with FinTech companies.
- Foster a culture of innovation and openness to new ideas and technologies.
- Establish a collaboration model to build accelerators, investment opportunities and improve business functions.
By implementing these recommendations, banks can establish successful and mutually beneficial partnerships with FinTech companies, enabling them to leverage new technologies and drive business growth.