Today, the financial technology ecosystem is growing at an exponential pace. It is believed that the industry will hit the $1 trillion mark by 2030 with a global compounding growth of about 13-16%. This is good news for young fintech entrepreneurs as it signifies increased capital investment. However, despite the substantial continuous investments by governments and wealthy individuals, financial technology businesses face challenges in achieving sustainable growth.
Why Financial Technological Startups Are Not Achieving Future Viability ?
One of the reasons for this can be attributed to the lack of innovative business models at the early stages of the startup. Another reason can be the need for the proper skills of young entrepreneurs to balance the innovative startup side with the business side. This is a problem Kickstarter is helping solve. Kickstarter is a Fintech acceleration program that aims to guide young entrepreneurs to develop a robust business model by allowing them to meet and learn from industry leaders.
Tips To Achieve Long-Term Sustainability As Budding Fintech Business
Here are some of the tips on how Fintech entrepreneurs can achieve and maintain long-term sustainable growth:
Connection Between Ambition And Product
This is not just applicable to the Fintech space but to other business ecosystems. For a startup to achieve long-term viability, the entrepreneur must ensure their ambition is in sync with the product they are building. It is no secret today that some tech entrepreneurs make startups just to sell at their budding stages. Such entrepreneurs cannot achieve sustainable growth because they don’t believe in the idea enough to grow and nurture it. You need to link your ambitions with your product to develop a product that will change the world. This will create the drive to push your startup to achieve long-term sustainable growth.
Develop A Customer Centered Model
Achieving sustainable growth means putting your customers’ priorities above other things. This is to say that customers must be satisfied with the products and the customer service you offer. Achieving both can be tricky sometimes, requiring a business model driven by customers’ opinions and expectations. However, you can start by,
- Building a user-friendly platform ;
- Reducing the number of stages to complete a transaction ;
- Offering rewards for using your platform ;
- Emphasizing the safety and security of your products.
Building A Team With Experience And Talent
To build a good product, especially in the Fintech industry, you must work with talent and experience. Experience is essential because, in the tech space, only a few are familiar with the financial terminologies and skills needed to build a financial technology product. An experienced team will save costs as there won’t be any need for lectures or seminars on the financial industry.
Embrace Future Technology
Technology is the foundation of the Fintech ecosystem, which means incorporating the latest tech in your startup is imperative. This idea allows you to kill two birds with one stone. First, it helps improve the functionality, productivity, and efficiency of your business. Secondly, it boosts customers’ and investors’ confidence in your startup.
Embracing new technology can seem to be an expensive big step, especially for young startups, but it’s a risk that will surely pay off if you invest in the right one. When investing in new technology, such as AI, you must have a definite goal of how the tech will improve your product quality.
Every Fintech entrepreneur has an opportunity to achieve great success in the Fintech ecosystem. However, how to utilize these opportunities to achieve success both in the short and long term is what makes the difference.