Solving the user’s problem is the foundation of product development, the core of every value proposition. For years, achieving "product-market fit" has been a celebrated milestone, the point at which a product successfully meets a genuine market demand. But what happens when that market demand shifts and the user’s problem evolves into something new?
Financial services are filled with products that were once perfectly fit for their purpose, yet failed to adapt. They were built for a world that no longer exists. True resilience and market leadership in fintech demand a more profound approach.
It requires building not just for a static purpose, but for a purpose you anticipate will change. This means moving beyond a two-dimensional view of value—'fit for use' and 'fit for purpose'—to embrace a third, crucial dimension: 'fit for change'.
What does 'Fit for Use' truly mean in today's market?
'Fit for use' is the baseline. It’s the functional contract with the customer. Does the app open? Do payments go through? Is the interface understandable? This is about reliability, performance, and basic usability. It ensures the product does what it claims to do on the tin.
However, in a saturated market, functionality is simply the cost of entry. Consumers have come to expect seamless digital experiences as a default, not a differentiator. A product that is merely 'fit for use' is a commodity.
It competes on features and price, a race to the bottom where loyalty is thin and customers will switch for a slightly better offer or a smoother workflow. While essential, achieving this state is not a victory in itself. It is merely earning the right to compete. It's the foundation upon which value is built, not the value itself.
How do we elevate a product from 'Fit for Use' to 'Fit for Purpose'?
This is where strategy begins. A product becomes 'fit for purpose' when it moves beyond generic functionality to solve a specific, deeply understood problem for a defined audience. It is the difference between a tool and a solution. This requires a shift in mindset from "what we can build" to "what the customer needs to achieve."
The methodology for this is design thinking, which begins not with a whiteboard of features, but with empathy for the user. It involves direct engagement through interviews, observation, and data analysis to uncover the core frustrations and goals of a particular customer segment. A fintech product that is fit for purpose has a clear and compelling value proposition that resonates because it speaks directly to that user's context.
For example:
- A 'fit for use' budgeting app shows you charts of your spending.
- A 'fit for purpose' budgeting app helps a freelance graphic designer manage fluctuating monthly income against fixed business expenses, automating tax savings and predicting cash flow gaps.
Achieving this level of alignment is what generates initial traction, builds trust, and attracts investment. It proves that a company understands its niche and has created something of tangible value. However, in the finance world, that purpose is a constantly shifting target.
Why is being 'Fit for Purpose' today not enough for tomorrow?
The purpose a product serves is not static because the world it operates in is not static. A product perfectly aligned with market needs today can find itself misaligned tomorrow due to several forces:
Evolving Customer Expectations: As users become more digitally savvy, their expectations for personalisation, speed, and integration rise. The "wow" feature of last year is this year's standard expectation.
Technological Disruption: The integration of AI, machine learning, and big data is fundamentally transforming what is possible. A service that doesn't leverage these tools to offer predictive insights or hyper-personalised experiences will quickly feel dated.
Shifting Regulatory Landscapes: The fintech sector is under constant regulatory scrutiny. New rules around data privacy, consumer protection, or open banking can force significant product changes. A rigid product architecture can hinder compliance, making it slow and costly.
Economic Fluctuations: A recession might shift a user's purpose from investment growth to capital preservation. A product designed for a bull market may not serve the user's purpose in a downturn.
A product that is only 'fit for purpose' is brittle. It is optimised for a single snapshot in time. A truly resilient product must be 'fit for change'.
What technical and strategic principles define a 'Fit for Change' architecture?
Being 'fit for change' is an architectural and organisational philosophy. It's about designing systems with the explicit assumption that their requirements will change over time. This is not about predicting the future with perfect accuracy, but about building the capacity to adapt quickly when the future arrives.
Key technical principles include:
- Modularity via Microservices: Monolithic architectures are the enemy of adaptability. A system built from independent, loosely coupled microservices allows for individual components to be updated, replaced, or scaled without affecting the entire application. Want to swap out a credit scoring engine or integrate a new payment gateway? With a modular design, this is a targeted update, not a full-system overhaul.
- API-First Design: A robust suite of Application Programming Interfaces (APIs) is a non-negotiable requirement. It turns a closed product into an open platform. This enables seamless integration with third-party services, allows the business to enter new ecosystems, and ensures that, as new technologies emerge, they can be plugged into the existing framework rather than requiring a rebuild.
- Data Agility and Scalability: Future fintech solutions will be defined by their ability to leverage data. A 'fit for change' architecture is built on scalable, cloud-native infrastructure that can handle massive volumes of data. More importantly, it ensures this data is clean, accessible, and ready to be fed into machine learning models to anticipate customer needs and identify market trends before they become obvious.
- Configuration Over Hard-Coding: Building flexibility into the product from day one is critical. Wherever possible, business rules, product features, and UI elements should be controlled by configuration panels rather than being hard-coded. This empowers product teams to test new offerings, adjust to regional compliance rules, or tweak user journeys without a lengthy development cycle.
How does anticipating purpose shifts create a competitive advantage?
Companies that bake adaptability into their DNA don't just survive change; they capitalise on it. Building to be 'fit for change' creates several powerful advantages. It fosters resilience, allowing a firm to navigate new regulations or market shocks while competitors with rigid systems struggle to keep up. It drives innovation, as the modular architecture makes it faster and less risky to experiment with emerging technologies, such as generative AI or decentralised finance.
Most importantly, it builds profound customer loyalty. When a product can evolve alongside a customer's life, from their first savings account to their first mortgage, to their retirement planning, it becomes an indispensable partner. The customer doesn't outgrow the product because it is designed to grow with them. This transforms the company from a service provider into a trusted advisor, creating a competitive moat that is far more durable than any single feature.
How can we help?
Navigating this evolution from 'use' to 'purpose' to 'change' requires more than a technology vendor; it demands a strategic engineering partner with a deep understanding of the financial landscape.
At Ximedes, we specialise in building robust, scalable, and adaptable software that underpins modern finance. Our expertise in core banking modernisation, payments, and secure transaction processing is grounded in a philosophy of future-proofing. We design and build systems that are not only fit for today's purpose but are engineered to be ready for the inevitable shifts of tomorrow, ensuring our clients can lead the market, not just react to it. We’re always available for a chat.
