top of page
  • Olena

Fintech success strategies




While finance gurus argue about whether it is correct to say “FinTech or TechFi”, new technologies are actively changing the financial services market at all levels. Regardless of whether the focus of the company’s strategy is on high technology or on finance, there are general management principles in this area.


Laying the groundwork

When building a strategy for a fintech brand, two things need to be considered. First of all, companies that provide financial services online have been in the market for a long time. This sector is quite new and growing rapidly, but in the future it will continue to expand. That is why it is important to create a solid foundation with a long-term plan. Second, customer expectations are changing just as fast as technology. A feature that gives you a competitive advantage today will be just a standard requirement tomorrow. The attempt to meet the needs of consumers may lead to the emergence of new goals, but it is important to plan innovations by taking into account the main strategy, and not just go with the flow.

Understanding these key aspects should be at the heart of a company’s strategy. The management should not only be aware of the potential of new technologies, but also be ready to adapt to a rapidly changing environment. Of course, this is not easy, but there are also upsides: since the majority of fintech companies are still in the startup stage, there is an opportunity to build a more focused, customer-oriented and data-driven master plan.

The development of any strategy is based on three main components:

Analyse the current situation: it is important to correctly assess your starting positions, identifying both potential and weaknesses. Data analysis and understanding the target audience will help you present your customers with a product that meets their expectations.

Changes need to be planned in advance: monitoring the market and technological trends is a must. It is important to identify new opportunities in time and adjust your operating model accordingly.

Have a vision of future prospects: despite the constant changes in the market, you need a long-term plan, in order to understand where you want to be in one, three or five years.

In general, your strategy should include not only gradual evolutionary changes, but also significant leaps that relate to your long-term plans. There is no need to do everything at once; it is enough to stick to the priorities that have been correctly set.

Do not forget that the success of a strategy depends on the team – your project is only as good as the people who implement it. Therefore, think over your system of incentives and the involvement of the team in business processes. It is necessary to provide people with opportunities for internal mobility if you want to increase professional and personal growth.

Focus on the customer

Today’s client is the basis of any business strategy in the field of financial services. If the company has satisfied clients, this is a guarantee of high profitability. The main advantage of digital technologies in the field of finance is the possibility to implement a more personalised approach to customers, and this should be exploited to fullest extent. Any product based on consumer behaviour will always have a better chance than a cool idea that does not take into account people’s habits.

When creating a client-oriented business strategy, it is also important to understand that trust is one of the key factors in the financial services industry. There are no shortcuts when it comes to creating a reputation and gaining trust. However, by understanding the client’s needs and offering solutions that make their lives easier, you will succeed.

Partnership instead of competition

When giants like Amazon, Apple, Google and Facebook enter the financial services market, all that can be done to oppose them is to seek to create a better customer experience, reduce costs, use new digital solutions and improve the quality of service. The strategies of fintech companies may differ significantly, but the end goal is the same: improving people’s quality of life of. That is why it is better not to expend all your efforts on competition, but rather to strive to implement mutually beneficial cooperation with other participants of this ecosystem.

One of the most effective strategies in the fintech area is a partnership with financial institutions. When the focus shifts from competition to solving consumer problems, there is a greater chance of success. This is especially true for the small players who do not have sufficient resources to invest in innovations to improve their services.

In the coming decades, we will witness significant changes in the digital infrastructure of financial services. Big data, AI, cloud computing and even augmented reality will change the market and business models. Fintech leaders should become a catalyst for these changes and integrate future innovations into their plans today. When working on this, it is important to ask yourself not only “what?” and “how?”, but also “why?”. Only in this way can you identify new revenue streams and find effective solutions to business problems. Companies that can manage innovation as a continuous process will not only survive the market transformation, but thrive.

Comments


bottom of page