Most providers start by selling products and services to people and organizations who care. And hope to grow from there. In our case, to financial experts who care about accuracy and robustness of derivatives and risk analytics and white box principles to detect hidden traps and understand model and method risk.
Providers who want to grow start to make products efficient over time and emphasize on distribution. This is the classical process of diffusion of innovations. And, IMO, there is nothing wrong with this concept, although products and services are increasingly used by people who do not care too much about the differential advantages. In Cheap Innovation I have outlined that innovation and efficiency can be a strategy that opens immense opportunities, especially when reverting ...
But growing too fast bears the danger that people who don't care too much make products and services for people who don't care too much? And it is my strong belief that this is not only a wrong marketing strategy - it may become horrible in segments of complex systems for complex uses.
Financial instrument valuation and risk management are complex, when sophisticated deal types are involved.
This is why we are committed to stay a provider who cares making products and services for those who care. Our mission is not fast-growth and one of the main customer benefits, low-cost-of ownership, does not mean that we want to approach mainstream market segments.
With newUnRisk we drive ourselves to care even more ..... If new requirements in risk management force valuations of hundred of millions of single instruments, little errors can become horrible in interplay. So, mathematical finance difference and even better implementation techniques really matter.
This post has been inspired by another post in Seth Godin's blog.
