Scaling a fintech startup isn’t easy in today’s highly competitive age. But there are four key ways to boost your success rate
London is great at fintech. But the deluge of founders innovating services that merge machine-learning with traditional financial systems comes with a price. Founders eager to break into the sector have to do more to stand out. That’s why we’ve looked into four simple ways that you can grow your startup.
(1) Predict the future and act
What’s the first rule of entertainment? Give the people what they want. And the same guideline applies to budding entrepreneurs too. Speaking exclusively with Elite Business, David Jackson, managing director at Altus Business Systems, the fintech company, said: “Successful fintech startups solve problems that businesses are either facing today or will face in the future. Being able to quickly and effectively develop these solutions is the hallmark of a competitive startup – but achieving this level of agility is difficult when a business is running a large code base for a complex system.” If you can do that properly, then you’ll compete with incumbent big brands faster than you can say “challenger bank.”
(2) Forget about one-size-fits-all systems
You know that freedom you get from pick n’ mix sweets? Well, something similar is at play when it comes to becoming a successful fintech startup leader. “When it comes to delivering an online digital experience to customers, the old view that a single monolithic system is best is no longer valid,” said Jackson. “Fintech startups should look at curating technology estates that feature components and services that come from a variety of vendors and in-house developers. This will increase the business’s agility and in turn its likelihood to survive and thrive.” So think less Percy Pig and more Candy King.
(3) Don’t be afraid to seek out support
As the rock grandpa Mick Jagger put it: “You can’t always get what you want but if you try sometimes you just might find you get what you need.” The lesson? Don’t be afraid to look for help. “In order to give your company the best shot at success, seek the support that is available to startups in the form of the incubators and accelerators to be found all over the country,” advised Jackson. “These spaces can offer something as simple as desk space but with this comes visibility, competitor awareness and the chance of securing seed funding. And however these spaces are run, they all bring with them the promise of training, mentoring and business support, which enables startups to flourish.” Rock on.
(4) Seize the day
Taking chances is never easy but when it comes to growing a fintech business, you should get ready to step out of your comfort zone when opportunities present themselves. “Harness whatever opportunities there are for startups: for instance, PSD2 promotes the development and use of innovative online and mobile payments,” said Jackson. “The use of public APIs should accelerate the digital transformation of banks and herald a new era of open banking.” He argued that this will provide startups with a lot of opportunities. “From payments to funding and investment, fintechs are perfectly positioned to uncover, understand and deliver innovative solutions to these broken business processes and customer experiences,” he concluded. Remember, it’s better to regret something you did than something you didn’t do.
Scaling a business is not without challenges. However, with these four guidelines under your belt, you should have a slight edge against the competition.