While Fintech did not start overnight, it did take the global market by storm over the last two decades. And considering the evolution of Banking and Tech, one will see that Fintech was an inevitable result. One way or another, we would have arrived at Fintech innovations.
As humans, we are wired to continue to look for something better, a better way, and seek more understanding. This curiosity, matched with passion, has always resulted in a step forward. Well, in some cases, two steps backwards. Thankfully, in Banking and Technology, it gave us Fintech.
Fintech emerged at a period when the financial market needed to break out of the traditional transactional model and its limitations on value exchange in commerce. Nevertheless, the continued success of Fintech is not only because it provided a solution to these problems but also because it created opportunities/markets that we did not even know we needed.
As a Fintech Company, we believe Fintech's emergence and growth hold valuable lessons that can be applied to every industry -emerging and already existing. The projections in the Financial space based on the outlook of the last five years show that Fintech will remain relevant for a long time to come. At a time when Tech innovations are disrupting established business models, it is a great idea to look up to Fintech for lessons on growth and continued relevance. Here are a few lessons from Fintech:
Customer Experience: this has continued to be a selling point for Fintech companies. Fintech solutions are primarily about how they can make it simple, easy and accessible for people. Their products, services and organizational structure are built around the customer. Fintech companies are openly crazy about how their customers experience them, and it has continued to open them to more customers.
A New Market: many fintech products are built to reach the unbanked or underbanked. They cater for people who don’t have available alternatives or places with no available alternatives. They target a new market/under-supplied market which is why they thrive and grow fast. In business, when you are the first one there, you have a better chance of getting the largest share.
Service Transparency: before the emergence of Fintech, regular people didn’t know how the financial market worked. If they tried to enquire, there are more than enough words in the financial register to discourage them. Fintech simplified the process and the explanation of the process. What every Fintech company does, they tell you enough to understand it, and that has helped them gain the trust of many customers.
They also have a culture of transparent pricing, affordable pricing, and no hidden charges.
Be Innovative: a closer look at Fintech companies will show you they are different, which is why they are all thriving. Fintech companies are powered by innovation. They all have something extra, new or different to offer. And it makes them appealing to customers of varying needs, which creates a healthy level of competition in the industry. Of course, a house divided against itself cannot stand.
Focus on a solution: an average person interacts with two to three fintech apps. Why? Because they need different services for them. Fintech is broad, and each company knows better to carve a niche and break grounds from there. It helps them become effective, focused and distinct in the mind of customers.
Strategic Partnerships: Fintechs are not out to replace the banks, at least not yet. The banks remain the seat of all financial activities, and the Fintechs have continued to grow side by side with them.
Partnership is an essential ingredient for success, so choose partners that will foster your growth. Do not spend your time and investment trying to replace who you are supposed to work with. Adopt a system that allows you to co-exist with existing industries or businesses, penetrate the market, gain trust and work your way up from there.
When considering Fintech, there is a tendency to limit it to financial operations. However, Fintech is at its core a business. It is profit-oriented, it is growth-oriented, and it is success-oriented. The lessons it offers are relevant to any business/industry.