Fintech success takes more than great tech – 3 essentials for growth
What sets apart fintech firms that flourish from those that don’t? The fintech industry is booming, with an impressive 8.6% average growth rate continuing until 2024.1 But fintech success requires more than the right solution at the right time.
For over a decade, we’ve been at the forefront of fintech innovation and seen what it takes to gain traction in a crowded market. Here are three key components that help aspiring fintechs increase their potential to become tomorrow’s market leaders.
1 – The Right Strategy
Does your fintech solution resolve an unmet need, address a pain point, deliver a better customer experience, or solve an industry-wide challenge? Technology alone will not guarantee results. The right strategy is a critical driver in fintech success. Consider this example from an industry leader:
As head of fintech BM Technologies, Luvleen Sidhu is the youngest co-founder and CEO to take a company public. BM Technologies is a digital banking platform that provides products to consumers through a B2B2C (Business-to-Business-to Consumer) model.
In an interview with our CEO Steven Ramirez at Finovate, Luvleen explained how her company solved a major pain point for 735 colleges and universities. By disbursing financial aid, payments and other funds to students, BM Technologies provides a service that would be operationally demanding and expensive for the schools to offer on their own. Additionally, when students receive funding through BM Technologies, they can send the money to an existing deposit account or open a new mobile checking account with T-Mobile, another of the fintech’s partners.
Luvleen started out with a B2C strategy, but in 2016 had the courage to pivot when it wasn’t generating enough engagement. With its current B2B2C strategy, BM Technologies is now “among the largest digital banking platforms in the U.S.”2
2 – Power of Partnerships
Many banks and credit unions are struggling to meet changing customer expectations and new competitive challenges. Fintech partnerships often create win-win situations. Financial institutions can gain capabilities that increase efficiency and drive growth. And fintechs benefit with access to the FI’s customer base, payment settlement systems, regulatory infrastructure, and more.
Streamline customer service – using AI-powered chatbots to handle repetitive requests
Simplify and accelerate access to credit – with a modern, digital card application
Offer financial wellness advice to a broad base of consumers – via virtual coaching driven by AI
3 – Compelling Communications
With 10,605+ fintech startups in the Americas and over 26,000 globally3, it’s more important than ever to make your fintech stand out. You can do that through the power of compelling communications. For example, sharing thought leadership in targeted content marketing and social media enables your company to:
Communicate the positive impact of your offering – both for customers and a financial institution’s bottom line.
Build credibility with a strong fraud and security story – showcase how your offering addresses safety and security concerns.
Help banks and credit unions convey the value of your solution – provide them with creative content, such as infographics, videos, blogs and white papers.
Amplify your fintech success – How Beyond the Arc can help
Remember, fintech success is not built on great technology alone. Your company also needs bold leadership that applies the right strategy, forms powerful partnerships, and delivers compelling communications will help your fintech rise to the top.