4 Things Fintech Companies Should Know To Survive In The Market
FinTech is a term used to refer to Financial technology. This is business that primarily provides software-based financial services. Thus FinTech companies bridge the gap between finance and digital technology. In recent times, there has been a spike in the number of fintech startups. This is because Financial services by its very nature have ample opportunities for new technology solutions and digitalization. Most startups bank on disruption of existing traditional financial systems to gain entry into the market.
While there are startups that have succeeded in the Fintech space, there are much more that are struggling and are unlikely to create the impact that they were hoping to achieve. This is primarily because of their inability to effectively bridge the gap between finance and technology. Here are a few steps fintech startups can take to ensure they remain in business and are ahead of the pack.
Get The Right Investors
This is the most important aspect of any startup be it a fintech company or otherwise. Unless you have found the right fintech investors for your startup you are likely to end up in trouble. What brings investors to your startup is the promise of returns. However, if these returns are not as big as predicted or are not arriving at the expected pace, then investors can quickly get impatient. This can create a lot of pressure on the company to perform, sometimes even before it is ready to do so. Hence, make sure you have investors who understand your business and technological case and are supportive of your short and long-term vision. The more understanding they have of your domain the more patient they will be in case you are facing challenges or delays.
Watch Your Expenses
Even if you are very comfortable with the investment situation, you need to keep a tab on your outgoing expenses. The more frugal you are, the better you will be able to balance cost vs expected benefits and deliver on promised ROI to your investors. Innovation can sometimes prove to be very expensive and you should be prepared with contingency measures.
Respect The Rules
The finance industry has some of the most extensive regulatory measures. Make sure you understand and follow them. You do not want to run into any trouble in this regard as it can make or break your startup. Seek professional advice where necessary.
Have A Social Media Marketing Plan
Do not underestimate the impact that social media marketing can have on sales. It is vital for startups to have a social media strategy. You might even want to run it through your fintech investors. By utilizing social media effectively, you can build a community for your product even before it is released. Once your product is out, you can leverage social media to perform sentiment analysis and get a tab on customer feedback and response. Social media is a great way to reach out to customers in a more personal manner and have been used very effectively by many top companies for brand building.