Euroclear is one of the world’s largest financial clearing houses and securities custodians serving thousands of financial institutions globally. Formed by banks in 1968 to be a neutral third party that makes financial markets work, they settle over €790 trillion dollars of transactions annually and hold €30 trillion dollars of assets on their systems.
Euroclear’s Chief Product Officer had identified Trade Finance as an interesting area and engaged Door to identify and validate if there were potential opportunities. TradeFinance is the practice of using invoices as a financial instrument to help with cashflow, raise capital and manage supply chains.
Working closely with the Director of Product and Innovation and stakeholders, we devised a discovery approach appropriate for Euroclear’s role as a neutral player in the financial system. One that would build momentum with market participants across the ecosystem. We began by developing a set of hypotheses about the pain points and opportunities in trade finance and turned them into visual models. These were then used to inform and catalise in-depth research and analysis across market participants including trade banks, investors, corporates, fintechs and industry experts.
What emerged was a very different picture to the one initially envisaged. Rather than being untouched by digital, Trade Finance was in fact an area ripe with innovative start-ups tackling a plethora of market frictions.
By mapping innovation activity and understanding pain points across the ecosystem we were able to crystallise a clear opportunity space for Euroclear. A role that only an organisation like them could fulfil and that would unlock huge potential for market participants.
The research participants were invited to come together as a group to hear and discuss the results of the research. We were able to validate our updated hypothesis of how Euroclear could help the market work better. The research participants were then invited to form a market engagement group to inform and test potential solutions; a key ambition for the discovery approach.
We created a proposition for a new trade platform, including high-level architecture. We explored different use cases, developed business models and produced revenue forecasts which indicated the potential for a transformative new business unit for Euroclear.
As a result of the two phase engagement, Euroclear identified and validated with customers an opportunity to transform trade finance. And in doing so create a new business unit. The market engagement group formed during the engagement comprised of over 15 trade banks and enabled Euroclear to build support for an industry wide pilot.
Market and User Research
"Door’s application of disciplined and design led thinking to a strategic problem led to an engagement and outcome that was superior to the standard product of strategy consultancies. In particular, their focus on really understanding customer needs and thinking about the solutions that would address those needs led to a much deeper level of insight and provided a direct link between the strategic opportunity and the products needed to enter the market.”