Push Button X is an idea that has been around for some years now in tech circles. In Fintech it is still emerging as a framework for design thinking and resulting business models. I have found Push Button X is a simple, over-arching idea that can act as a guiding light for Fintech innovation.
What is Push Button X? It is a useful idea or framework where one core user action is linked to one result or value. For example, Uber famously had a founding mission of ‘Push Button Get a Ride.’ Its founders saw a long, protracted, inefficient supply chain in the existing taxi service industry. They sought to use technology to compress the supply chain, and deliver the highest value to the consumer. Namely, getting a ride as quickly and conveniently as possible.
We can thus refine the Push Button X idea as follows-
PBx = A+V
A = one core user action, and
V = the highest value sought by a consumer for a particular product or service.
Note the emphasis on the highest value sought by the consumer. Often in business, we get caught in up in the depth of our supply chains. We lose sight of the highest value to consumers.
In Fintech it is no different. For example, I attended a seminar recently by a software company looking to provide data and data correlations to aid investors. I asked the presenter, whether the data sets were derived from a clear, tested investing methodology, such as Pure Value Investing (PVI). His response puzzled me, and brought out his underling beliefs that in investing and in the financial markets, things are mostly random. This is the classic Random Walk idea espoused largely by academics over recent decades. Successful investors and traders, such as Warrant Buffett, Larry Williams and many others have consistently disproved Random Walk for a long time now.
If we apply the PBx framework here, we find investors do not just want data sets. Their highest value or outcome is a sound investing outcome or process. The data sets, if useful, are only one means to get to a sound investing outcome. That is, investors want: Push Button: Invest. They do not want Push Button: Data.
In the marketplace, there is already more than enough information, misinformation and other noise that can cloud clear decision-making by investors. If Fintech products are to provide long term value, strategically they must evolve and focus on the simple idea of Push Button: Invest. Or perhaps even higher, Push Button: Financial Independence. Perhaps this is the true genius of innovation and technology- the continued evolution of value.
“We’re witnessing the creative destruction of financial services, rearranging itself around the consumer. Who does this in the most relevant, exciting way using data and digital, wins!” – Arvind Sankaran.
By Lee Spano, Creatness International www.creatness.com