Fintech represents one of the fastest-growing sectors in modern business. Profound advancements in neobanking technology and cryptocurrency platforms have yielded an unprecedented and exponential growth in consumer interest and increased uptake by established businesses. In 2021, investment in fintech increased by 144% on the previous year, to over $130 billion; the number of IPOs by fintech companies also increased, more than doubling since 2020.
Though the modern fintech landscape was born out of significant early investment in digital technology in the 90s, it could be said that the sector is naïve to navigating digital consumer spaces. More people are engaging with fintech businesses than ever before, but the various products and processes in the sector remain stratified and difficult to understand, limiting the growth potential of fintech businesses without a plan to address it. So, what can emergent businesses in a growing sector learn from successful digital businesses to secure retail success?
Customers and Competition
Competition is fierce in any market, and customer-facing platforms need to lean into that competition in order to earn and grow their customer base. A key example can be found in the US’ online casino industry, where prospective customers are offered welcome deals and sign-up bonuses. Bonusfinder US is a site that aggregates these deals in order for players to evaluate which service they’d like to sign up to; according to their recent evaluations, there are 19 online casino platforms that offer a welcome bonus for signing up. Having these offers presented in a clear way allows the customer to find the best option available.
Emerging fintech start-ups can learn from the competition and incentive marketing displayed by the casino industry. By offering an exclusive deal for signing up, or some kind of welcome bonus as part of becoming a customer, a new company can outstrip competition and rapidly build a customer base. For example, a new fintech venture might present an alternative banking solution with cryptocurrency integration. Offering new customers fee-free trades or purchases could make them a more enticing choice than an established lender.
Accessibility
Of course, one of the biggest issues plaguing businesses in consumer fintech spaces is accessibility — both to the product itself, and to the subject. Financial technology is a simple enough concept to understand, but its contemporary developments and applications are mired in complex explanations. As such, retail businesses and platforms in disruptive spaces like NFTs and crypto can appear obscure to potential customers that have never engaged before.
Many of these problems have been encountered by another growing area in tech, albeit in a slightly different form. Workplace collaboration platforms like Miro and Dropbox have become central to the running of the modern business, but also represent a paradigm shift in workflow that some employees might be less comfortable with. Intuitive UI design, coupled with simple and effective tutorial messaging, enables a wide variety of people to learn how to use the tool efficiently — a lesson to be learned by new fintech start-ups.
Marketability
This ease of access also bleeds into the marketability of a given fintech product or platform. How easily can it be condensed into a simple explanation, and how enticing could it be to someone relatively new to the space? Once again, some pertinent case studies can be found within tech, as marketing campaigns for new hardware and peripherals. Apple’s “there’s an app for that” slogan, launched in 2009, quickly became a viral marketing sensation, introducing new customers to a new tech concept in a simple, easy-to-understand message.
Fintech continues to be a promising sector for businesses, with ever-growing applications to a world embracing technology in new and exciting ways. As decentralized currencies become a more common way to transact, fintech platforms are well-poised to disrupt. They just need to stick the landing.
