As the globe shifts, the landscape of Fintech for the enclosure will be affected — from the network startups work in, to the business models firms set up, to the clients they target. Tamir Zoltovski (co-founder of Moneta International UAB) identifies important factors driving these changes.
Technology platforms invasion:
While conventional financial institutions are continuously positioning themselves as digitally innovative, we are observing only incremental growth around the world. Many banks in rising markets have not been able to figure out how to collaborate with Fintech startups yet and have shown an incapability to go at it alone. But outside of conventional finance, we have seen firms providing financial services in many of our markets — particularly in large tech platforms.
The firms will continue to get bigger into Africa, Asia, and Latin America. As they do, we anticipate that small business and consumer lenders, along with digital payments firms, will have to discover ways to remain significant in their markets. However, Fintech startups should not consider technology platforms as a competitive risk as they may offer an opportunity too. As technology platforms make an entry in new markets, existing Fintech startups provide out of the box and locally related acquisition targets for growing platforms.
More Fintech options for customers:
Fintech for enclosure startups are functioning in an increasingly crowded space. Gone are the days when the client had restricted choices. Thus, it’s getting more costly to get customers online and getting more significant for companies to focus on the appropriate acquisition channels. This will entail finding win-win solutions with channel partners who have straight contact with clients and are looking for their own ways to build a powerful value proposition.
Fintech have to do more:
While the idea of Fintech was an unbundled globe, where consumers could choose what they needed from an ‘A la Carte’ menu of apps and websites, many people yet have a desire for an all-in-one solution. So, Fintech firms are making moves to increase their offerings beyond their primary use cases — giving insurance on top of credit, business management tools plus payment solutions and a lot more. This re-bundling build challenges for Fintech firms as they consider new tactical directions — when should they provide these new lines. How do they develop the internal abilities to offer these services? To whom do they provide them? Eventually providing services that are more comprehensive may help solve the retention challenge faced by Fintechs. We are continuously seeing new digital banks emerge, providing better customer services across all of their financial needs.
Everything Digital isn’t Always the Response:
Customers are varying as technology becomes cheaper, quicker, and more readily accessible and customer attitudes to this technology and financial services are now generally shifting. These changes create tremendous opportunities for Fintech for the inclusion of startups to accomplish more of the underserved, but it will need startups to take a more nuanced glance of their specific consumers’ needs and preferences. As customers have become more comfortable with using technology, things are slowly changing. Fintech companies have to balance new digital technologies with proper human interactions to engage, educate, and support their consumers.