The financial technology (fintech) world has grown exponentially within the last few years, creating more convenience for consumers, small businesses, and web developers. Your fintech company may be in the start-up phase, or it could be further along in providing quality financial services using innovative technology. Despite the company’s current status, the competition is fierce in the fintech industry.
With the number of fintech companies rapidly growing, you should invest the time and money it takes to discover new ways to stand out. It doesn’t matter if you’re a solopreneur or a company with several employees.
Whether you have a small freelancing business or a large business with a strong portfolio, the core pain points for fintech companies are the same. Here are five ways to address some of the common challenges in the industry and help your company move forward.
Build A Trusted Brand
Whether your marketing involves business-to-business or business-to-consumer relationships, you know how essential it is to build trust in the financial services sector. Building trust is necessary for any business, but it’s a necessary foundational component in fintech services.
People generally do business with brands they know, like, and trust. As you’re building your brand, be sure it’s structured around trustworthy principles like honesty and transparency. Both personal income and consumer spending are steadily increasing, offering more opportunities to provide financial convenience.
Consumers are paying more attention to the purpose and core values behind a company’s brand. According to the 2020 Consumer Culture Report, more than 80 percent of millennials report that brand values are important to them. Base your company’s brand on integrity to keep businesses and consumers feeling good when using and offering your services.
Invest Heavily in Cybersecurity
Another pain point for the fintech industry is the fight against cyber crimes and maintaining consumer privacy standards. Depending on the type of financial products or services your company offers, you likely collect sensitive information from businesses and consumers. Although collecting personal information and processing transactions electronically is convenient, it also keeps both parties vulnerable to cyber attacks.
As you build a platform based on managing wealth or financial products, investing in cybersecurity can be the driving force that sets you apart from other companies. A secure platform is more important to consumers than the quality of the products and services offered. You can rise above the competition by establishing a secure platform with a strong defense against cyber criminals and the dark web.
Expand Your Services
Once your company has maintained a good track record with the services you offer, you can expand your services and surpass other fintech companies. As more opportunities become available, staying informed on consumer demand and what the market wants will distinguish you from the norm. You can gain insight on ways to offer more value to other businesses using online resources like fintech whitepapers or a Unit demo.
As you expand, networking with reliable third-party providers for banking-as-a-service can help you improve the user experience on your business website and mobile application. You can work with web developers who stay on top of the latest technology and then build it into your platform, providing a more innovative experience for your customers.
Personalize Your Marketing Strategy
A solid brand and high-quality product or service will not reach your target audience without a robust marketing strategy. Online services that involve financial technology have a complicated back-end process, but end users should have a seamless experience. Your marketing strategy should include digital content that communicates this impeccable user experience to ideal customers.
Your unique selling proposition will set you apart from the crowd, but effective digital marketing will point the right people in your direction. A more personalized marketing approach will help you reach and maintain more customers by building relationships and establishing trust. Delivering a steady stream of valuable and informative content can position your company’s brand in the center of the fintech stage.
Stay Informed on Current Regulations
The fintech industry will continue to grow and expand, creating a greater need for new laws and regulations. Staying informed and compliant with current legislation can keep your company on top. The requirements concerning licensing, inter-business relationships, and operational reports can frequently change, leaving some companies at a disadvantage.
The finance industry will always be heavily regulated to promote fairness and mitigate the potential for significant financial loss among banks and other businesses. Your company will need an expert legal team who can ensure your financial products and services stay in compliance.
The fintech industry is fast-growing as advanced technology continues to create new opportunities for innovative financial services. With growing competition, your unique selling point may not be enough to keep your company thriving. You can be sure to stand out by building a trusted brand with a personalized marketing strategy.
You should also allocate a large portion of your budget to cybersecurity measures. Once your company is doing well, you can grow by expanding your services while staying compliant with all regulations. Including these tips in your business model will keep your company ahead of its competitors, so you can focus on what you do best.