The fintech sector is constantly evolving, and it is very fast-lived. New technologies, like blockchain or artificial intelligence, are emerging all the time. With these new technologies come novel uses cases, which lead to new trends that need to be kept up with.
There are over 25,000 fintech startups around the world, so there is a lot of competition, and only the best fintech companies will manage to get ahead and stay there. That being said, there is a big payoff for businesses that succeed at it.
In 2019, 75 percent of consumers globally were already using some form of money transfer or payment service, with some consumers even using both. Further, the total value of global investments in fintech companies was more than $100 billion in 2020, so there is a lot of money in this industry.
So, considering the size of the fintech sector, what can companies do to be successful? While there isn’t any specific thing that a fintech company can do to guarantee its success, there are some trends forming at the moment that are going to dominate this decade.
Further, there are some basic aspects that any fintech company should have down.
Keeping it simple and efficient
The biggest goal of any technology-related company is the simplification of existing processes. Making apps and platforms as accessible and efficient as possible is important to gain users and enable growth.
This is especially true for risk-laden and volatile sectors, like the finance industry.
If users constantly have to deal with bugs and other difficulties, it will be hard to keep them around. Further, a bad user experience will erode trust before it is ever even built, and trust is probably the most important aspect of new technologies.
Widespread adoption of new technologies won’t happen if communities aren’t accepting of it, and trust is the major driver behind an accepting consumer sentiment.
Again, this is especially true in sectors such as fintech. Doing anything finance-related only always comes with privacy and security concerns attached to it.
So, if users can’t even be certain that the app or platform will work seamlessly, how are they going to trust that platform with their important information?
Considering how important a good user experience is, functionality, efficiency, and presentation are very important factors.
Staying ahead of the curve
Even if a product works perfectly, no one will be using it if there is a more advanced alternative that works just as well. Additionally, consumer expectations and demands are constantly evolving.
In order to stay successful, fintech companies will have to provide consumers with the products they are looking for.
For example, in Asia, platforms like WeChat and Alipay have already demonstrated that there currently is a change in general user sentiment and expectations.
Consumers don’t want to have to use a separate app for bank transfers, one for stock portfolios, and one for investing.
They want a one-stop solution that is provided by a company that they trust. These kinds of apps are called super apps.
That being said, at the moment, this trend isn’t as developed in the west as it is in the eastern regions.
However, this trend of users increasingly looking for platforms that cover as many services as possible will certainly also establish itself in Europe, and there are already fintech companies that are looking to get ahead of the curve because the future is looking bleak for small-scale solutions.
One such company that developed a new super app is NAGA, which is a social trading platform. With the launch of NAGA Pay, the innovative fintech company, which seamlessly connects social aspects with personal finance transactions and investments, is looking to conquer the market with its super app.
Just like other super apps, NAGA offers a range of products on its proprietary platform, ranging all the way from stock trading, cryptocurrencies, and investments to a physical VISA card.
Further, the platform offers a wide variety of information, allows for exchanges between traders, and has an auto-copy feature.
All in all, one of the most important qualities that a fintech startup can have is to be adaptable. Even if a company is doing everything right, things can change at any point.
Fintech companies that will be successful in this decade will all share the outlined qualities, and those that can most efficiently adapt to changing circumstances like consumer sentiment or market regulations will come out on top.