Beyond MVPs: Why BFSI Platforms Must Be Designed For Systemic Trust, Not Just Speed
MVPs are great for testing new consumer apps. But when applied to core financial infrastructure, they often fall short.
In today's Fintech and Digital Banking Ecosystem, speed has become a virtue. From hackathons to MVPs (Minimum Viable Products), the narrative is dominated by rapid experimentation. But in the BFSI sector, where public trust and regulatory rigor form the bedrock of operations, speed without systemic trust is a dangerous illusion.
It is time we shift our lens: from product-first to platform-first; from fast to foundational.
The Problem with MVP Thinking in BFSI
MVPs are great for testing new consumer apps. But when applied to core financial infrastructure, they often fall short. Why? Because financial platforms are not consumer-only experiences. They are trust infrastructures that must work reliably for millions, across jurisdictions, regulators, and risk paradigms.
A failed wallet or glitchy onboarding journey is not just a product flaw; it is a systemic trust failure. And in BFSI, trust once broken is near impossible to reclaim.
Case in Point: An Indian payments app faced operational freezes after concerns around non-compliance with RBI’s norms and applicable laws. The incident was not just a technical hiccup — it eroded user trust overnight.
Problem With MVP Thinking In BFSI
MVPs are great for testing new consumer apps. But when applied to core financial infrastructure, they often fall short. Why? Financial platforms are not solely consumer-driven experiences. They are trust infrastructures that must work reliably for millions, across jurisdictions, regulators, and risk paradigms.
A failed wallet or glitchy onboarding journey is not just a product flaw; it is a systemic trust failure. And in BFSI, trust once broken is near impossible to reclaim.
Case in Point: An Indian payments app faced operational freezes after concerns around non-compliance with RBI’s norms and applicable laws. The incident was not just a technical hiccup — it eroded user trust overnight.
Trust Is Not A Feature. It Is The Architecture
The highest-performing BFSI platforms of the future will not be those that scale fastest, but those that are:
Compliant by Design: Platforms that embed RBI’s evolving frameworks — Digital Lending Guidelines (2025), data localization norms, and Account Aggregator architecture — from the ground up.
Interoperable by Intent: Systems that do not lock in users but enable fluid integrations — across credit bureaus, Aadhaar, Digi Locker, and UPI rails.
Transparent by Default: Auditability is not an afterthought. Every transaction, decision, and data flow must be traceable, explainable, and compliant with regulatory requirements.
Regulation-As-Code: Compliance Lag To Compliance Velocity
One of the most exciting shifts is the move toward “Regulation-as-Code” — encoding regulatory rules directly into software. Think of it as auto-updating traffic rules for fintech superhighways.
Imagine:
Underwriting models that automatically incorporate real-time RBI circulars and KYC norms.
Credit engines that instantly adjust to customer-consented data through the Account Aggregator framework.
Global examples already exist:
In the UK, the Financial Conduct Authority (FCA) has launched initiatives such as Digital Regulatory Reporting (DRR) and the myFCA portal to help firms automate regulatory submissions, integrate compliance tasks, and access real-time regulatory updates more efficiently.
In Singapore, the Monetary Authority of Singapore (MAS) has been promoting APIs in financial services and collaborating on projects such as Project Mandala, aimed at embedding regulatory compliance protocols directly into cross-border financial networks.
India can leapfrog by building such capabilities into its core BFSI platforms — making compliance seamless, scalable, and regulator-ready.
Key Takeaways
Speed alone is not enough: BFSI platforms must be built on systemic trust, not just rapid rollouts.
Compliance-by-design: Embedding RBI’s evolving frameworks early reduces regulatory risk and increases operational resilience.
Interoperability and transparency: Open integrations and real-time auditability should be the core architectural principles.
Regulation-as-Code: Automating compliance processes will enable responsible and scalable innovation.
Disclaimer: The views expressed here are those of the author and do not necessarily represent the views of NDTV Profit or its editorial team.
