The QED Matrix is a framework for different models of financial services institutions. It looks similar to BCG’s Growth-Share Matrix but focuses on mapping banks and FinTech companies.
The matrix reflects trade-offs in the design of financial services institutions on two dimensions. Resilience is a function of brand, capitalization, product suite diversification and other characteristics. Flexibility concerns both infrastructure and decision-making – and spans organizational design, technology, culture, talent, and other forms of flexibility.
None of these dimensions is unequivocally good, so each quadrant has different strengths and drawbacks.
Organizations can evolve over time, shifting within or between quadrants. Significant changes often are based on M&A activity (for example, the spin off of Capital One from Signet Financial Corp and the subsequent acquisition of several banks by Capital One), but companies can also evolve mostly organically (as in SoFi’s expansion into multiple product lines).