What Do the Most Successful Fintechs Have in Common?
Becoming a profitable and successful fintech company is difficult, even if you have a good chunk of funding available to you. According to the Wall Street Journal, about 75 per cent of venture-backed startups fail. So if most fintechs fail, what can up and coming startups learn from some of the successful industry players? Of course, a great product and service are essential, but we’ll explore three other factors critical to a fintech company’s success in this article.
It doesn’t matter how good your product or service is, if your company doesn’t have a steady stream of new clients, then you’ll fail. To achieve widespread adoption and massive user response, fintech companies must have a predictable way to acquire customers. That’s where a marketing strategy comes into action.
All successful fintech companies have a detailed and thorough marketing strategy that guides them in every business decision. This strategy will entail specific objectives and goals for building their brand and eventually becoming the leader in their niche.
The fintech space is becoming very competitive. The companies who have a well-defined marketing strategy will not only be able to separate themselves from the crowd, but are far more likely to record double-digit growth and increased market share.
As more and more companies begin to enter the fintech space, partnerships are becoming key in staying ahead in the crowded market. Irrespective of their size or location, fintech companies should be forming a wide variety of partnerships with distributors, technology vendors and players within fintech or other industries to help gain an edge.
The partnership between Revolut and CurrencyCloud is an excellent example of a successful collaboration. In 2015, banks refused to partner with Revolut because they did not want to provide bank accounts for money service businesses. Instead, they partnered with CurrencyCloud to offer a bank account set up across multiple countries. This partnership resulted in 160,000 new customers, and all of their customers saved around 30 to 40 euros on each large foreign transfer.
The most successful fintech companies partner with other companies to help save time and resources and improve product time to market.
Exceptional Customer Service
Many fintech companies now offer the same solution, so it’s vital businesses find a way to differentiate themselves from their competitors. One way successful fintechs do this is through exceptional customer service. By providing a more personalised and engaging experience, fintech companies can attract more customers and build a stronger following.
Transferwise is one fintech company that is achieving just this. Their focus on transparency and ease-of-use, along with superb online and in-app customer support has seen them build a very loyal following. In recent times, they’ve also launched innovative solutions like AI-powered chatbots to further their commitment to providing top-quality customer service.
Customer expectations are higher than ever before, and if fintech companies fail to match those expectations, they’ll simply switch to another provider that can. It’s now imperative every fintech company offers exceptional customer support to remain competitive.