Steps FinTech Companies Need to Take in Order to Survive
An article by Firoz Patel Last updated on Fintech Investors
The massive evolution and extensive use of smartphones have drastically changed the lifestyle and perspective of consumers. With the launch of various apps and services in today’s “all the time online” era- people can access their online account and handle all their financial transactions conveniently. This has opened wide business opportunities for enterprises which in turn call for the existence of perfect FinTech services.
FinTech Company is the name used for the financial institutions using smart technology to handle financial affairs and let online money transfers being processed in the easiest and convenient way a consumer may opt for. As it is just the beginning for the FinTech services, besides gaining the best output survival of FinTech companies is equally important.
Key To Survive
Talking about survival of the FinTech services in today’s dynamic industry, the success of these companies is dependent on 3 things: investment strategy, creative action plans to bridge the gap between finance and technology, and gaining trust.
Investment Strategy:
Most of the FinTech investors, whether private or institutional, look for a quick return on the capital they invest while shaking hands with a company. This results in technical organizations taking up irresponsible decisions including some shortcuts for quick growth and return that eventually result in failures.
This brings in the need of right set of investors. As a technology company would require adequate time to be master revenue generated, it requires investment with a lot of patience for actual returns. FinTech companies that have such investors will be able to sustain and grow however most likely the capital being invested will be less in such cases.
Creative Action Plans To Bridge The Gap Between Finance And Technology:
With the need of working with the patient, investors come in less capital disposal for FinTech companies. Rather than a big and fancy start up with huge investment, use of effective technology and optimum utilization of resources with comparatively less investment can lead to massive success. This strategy has worked well for a lot of organizations and so calls for a balanced approach.
Gaining Trust:
Trust plays a vital role for somebody to believe in you or doing business with. The easiest way to make people trust your company is to make some trusted influencers as your business partners. Connecting with already-trusted influencers and asking them for an endorsement can change the game easily. Besides online marketing via social media is always a win-win approach to obtain the customers.
All the major banks need to keep a close watch on the rise of FinTech startups and services. Silicon Valley has evolved as a revolution in the field of FinTech services. It has 15 FinTech companies offering financial services for all kinds of elements that banks may have as the matter of interest.
About the Author: Firoz Patel
In 2005, I founded AlertPay Inc. – a versatile and globally-used online payments solution. As Chief Executive Officer, I directed and oversaw the entire operations of the organization. I have successfully brokered the acquisition of AlertPay's strategic assets by UK-based MH Pillars.
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