08032023 Global, KONSTANTIN RABIN: We live in a time of global digitalization and everything is moving towards technology adaptation. Every business and every sector nowadays is involved with technologies in some way and for them operating without them has become impossible or unbeneficial. Among these companies, one of the biggest sectors that have managed to take full advantage of this situation is the financial sector.
World is growing at a rapid speed and globalization has taken front steps in today’s society. Because of this, the world of finance has started to adopt new technologies in order to satisfy the needs of the masses. We have seen developments of SWIFT that helped the development of online banking, shopping, transactions, trading, investing, and all other financial transactions. This was pushed forward with the introduction of cryptocurrencies and the developments brought forward by blockchain technology.
What determines the success of a fintech company?
This rapid development has created opportunities for new businesses and startups in the Fintech industry. With these new opportunities, a lot of Fintech startups have started to show up, with most of them disappearing within the first few months, while a select few go and dominate the industry. The reason these startups have become big, while most others died varies, but there are a few similarities that successful fintech startups show. Because of this, every fintech startup should consider these factors before starting their journey. These factors are the following:
Qualified staff
Fintech is a combination of multiple, already existing, sectors which means running this type of business requires a wide range of qualified staff. When looking for talent on the market, you can see that most of the talent you are looking for is already valued really highly, and acquiring this kind of staff will be challenging. Looking at every successful startup in the Fintech industry, you will see a few people that will amaze you with their knowledge and technical abilities inside the fintech industry. Because of this, when starting a fintech startup and wanting to aim for stars, you should make sure that people who work there know exactly what they are doing and are ready to face challenges.
Offer good product
Since the Fintech sector has become crowded with a very big number of startups, in order to succeed, you need to stand out by providing good quality products. You need to make sure that your product is helpful to the users and also of the highest quality. A recent example of this can be seen in the recently launched European fintech startup investfox, which made sure to help traders and investors navigate the complex market of Financial brokers and exchanges.
By providing high-quality reviews of the leading brokers and exchanges, investfox makes sure that people know which companies will satisfy their needs and which will be a bad fit for them. With detailed overviews of each broker, users are able to easily learn everything there is to know about each broker, and only after this commit to the one they liked the most.
Ability to grow
One of the biggest problems that most fintech companies face is the absence of growth potential. When launching a new startup, it does not matter in fintech or any other industry, the key component of success is always the possibility to grow into something big. When you succeed in delivering something, you might get ahead, but if this stops and you do not continue to grow, there will be others catching up. These other startups that manage to catch up to you will take a lot of market share from you. This will take you back to square one, where you are then competing to stand out, and once again only a select few will succeed.
Know how to operate
Another important factor that determines startups’ success in the fintech industry is whether they know how to operate in this market or don’t. You might be offering one of the most innovative products but fail to reach the desired audience or simply be left unknown. One of the biggest challenges of the fintech industry is the regulations that oversee a big part of the industry. Some startups might fail to reach certain regulatory requirements and fail to attain some necessary operational licenses to offer their product in the way intended. There is also a problem of not knowing how to approach the audience. Today fintech has become a mixture of both well-qualified and newcomer people and each of these groups requires a different type of approach. As a company, you should know who your target audience is and use what channels you should communicate with them and sell your product.
Implement some referral strategy
One of the best ways to gain customers is by giving your already existing customers a reason to invite their friends and family to the company as well. When mentioning referral strategy we don’t just mean offering them rewards for inviting people, there should also be more, something personal and special. When your users don’t stop talking about you and you are always inside their heads, you are doing something right, as these people are destined to bring others as well. But of course, simple referral programs are also necessary for the success in Fintech industry. With these referral programs, your users can start inviting a wide range of people into the platform through different means, if the rewards that they receive from the referral programs are good enough. But when doing so, you should make sure that your product is ready for mass use and that there are no major problems with it. When people referred to your startup don’t see a product worth sticking around for, they will leave as fast as they joined.
Final rundown
Fintech is one of the fastest-growing industries in the world. Because of this, more and more fintech startups start to show up each day, which causes increased competition and bigger challenges. With this in mind, every startup should always be prepared before entering the market and they should have a clear vision and the necessary people behind them. Talent is one of the most important parts of succeeding as a fintech startup, as qualified talent with vast knowledge and skills is able to create high-quality products. The importance of a good product is self-explanatory, as no one will use a product that doesn’t bring them any benefits or make things even worse.
The potential for growth is also something that every startup should evaluate before starting. Looking at every successful company, you can see that everyone tried to bring something new all the time and grow bigger than they currently are. To achieve this, the successful startup should also know how to approach this market and how to operate in a market that is relatively new but already very competitive. Everything can be followed with good programs offered to users who join, as they will get more involved with the company and help it attract new users.
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Bio and Author Name: KONSTANTIN RABIN (https://www.linkedin.com/in/krabin/) :
Konstantin is a seasoned technology and finance writer with over a decade of experience in the financial industry. He holds a Bachelor’s degree in International Business from the University of Groningen and has held top-level positions at major European brokerages and financial data aggregation companies, where he has contributed greatly to their growth and success.
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