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7 Lessons on Sustainable Growth From Top Fintech Companies

Subharun Mukherjee 18+ years of experience leading product strategy, Go-To-Market (GTM), new market entry, value-based sales, analyst relations, and customer experience programs. Expertise in Financial Services, eCommerce, on-demand services, and the SaaS industry.
7 Lessons on Sustainable Growth From Top Fintech Companies

Financial tech (fintech) companies and apps have been steadily gaining in popularity as increasing numbers of users discover the ease and convenience they offer for paying bills, shopping online, sending money, and managing expenses. In fact, 95% of new fintech app users complete at least one monetary transaction within the first month. The growth is led by top fintech companies such as Stripe and Wise.

Businesses and entrepreneurs can learn a lot from how fintech companies achieved such impressive financial growth. Let’s dive into the seven biggest lessons:

Lesson 1: Adopt a Customer-Centric Approach

Put your customers first. This means improving not only customer relations and experiences but also how you relate address their pain points. The customer should be at the center of your business strategy.

For example, Stripe’s value proposition lies in its seamless transactions. It’s easy to use and has dedicated customer support and online guides. It also uses social media and email newsletters to keep its customers involved.

Another popular fintech company that engages customers well is Albo, a Mexico-based challenger banking app. It relies on segmentation to ensure customers receive the right message at just the right time.

To adopt a customer-first approach for your business:

  • Design a customer-friendly user experience (UX) and features
  • Reduce the number of steps to complete transactions
  • Gamify your product by offering rewards or scorecards to engage users
  • Highlight your app’s safety and security

Lesson 2: Embrace and Leverage New Technology

In today’s fast-paced market, staying ahead requires embracing new technologies. Several top fintech companies now use artificial intelligence (AI)-powered solutions to drive innovation. For example, Robinhood utilizes AI algorithms to provide personalized trade recommendations. Enova uses machine learning for conducting credit assessments.

By leveraging the right technology, new businesses can automate several tasks to improve customer satisfaction. So, watch for ways to improve your existing tech:

  • Integrate customer relationship management (CRM) software to increase sales
  • Automate customer service with chatbots
  • Adopt cloud-based systems to streamline processes
  • Use machine learning to analyze large volumes of data and improve decision-making

Lesson 3: Collaborate and Form Partnerships

When done right, collaborating with other firms can widen your reach. You’ll also gain more market knowledge and strengthen your base. In other words, partnerships can bring sustainable growth to your business.

Here’s how you can seek new partnerships:

  • Network at conferences and conventions
  • Do a social media collaboration to tap into the partner’s audience base
  • Pool your services to reach international markets. For example, China’s Alipay collaborated with India’s Paytm to enable cross-border digital payments
  • Provide and seek mentorship from other entrepreneurs
  • Launch (or join) an affiliate program on a profit-sharing basis

Strong partnerships can unlock new markets for you. Collaborating with top fintech companies also gives you an opportunity to innovate and stay ahead of the curve.

Lesson 4: Utilize Data Analytics and Insights

Customer analytics can be a powerful tool in your marketing arsenal. Today, all business decisions are data-driven. So, you must leverage analytics to gain deep customer insights and make informed decisions that drive sustainable growth.

Another reason to utilize data is to offer personalization. Customers crave personalized experiences. For example, the average click-through rate (CTR) of in-app notifications is 24%. This means when a user is already in your app, they’re more likely to engage with a notification. It’s a good opportunity to create contextual, hyper-personalized notifications.

What’s more, Intuit and Fiserv use AI for customer segmentation. With this, they’re able to create personalized offers for each cohort and increase retention rates. DBS Bank also actively uses AI to understand user behavior and send personal recommendations.

Lesson 5: Build Scalable Business Models

If you’re already successful, you should now think about scaling. How do you grow your business without investing too much time, money, and resources? Let’s break down how top fintech companies do it.

Almost every big firm uses process optimization. New businesses can save time, money, and resources by making their existing processes more efficient. This involves identifying inefficiencies and streamlining processes. You can do this by automating repetitive tasks and eliminating extra steps.

Another way to achieve speed and scalability is to use open-source software and server-less architecture. This will free up your time and resources as you won’t have to own or maintain your own server and software. Open-source software is free to use and can give small firms a head start with their applications.

You can also use software-as-a-service (SaaS) solutions to accommodate increasing demand and expand your services without compromising quality. For instance, SaaS processes can automate client onboarding, manage data, and execute identity checks in a cost-efficient way.

Lesson 6: Prioritize Regulatory Compliance

Regulatory compliance is crucial for fintech firms to maintain credibility. Make sure you meet all regulatory requirements before launching the app. This way, you can build trust and create an environment that fosters long-term stability. It will also help you mitigate risks.

Data privacy and security are critical in financial activities and are among the top user concerns. Customers are wary of new apps for fear of scams and hacks. All the top fintech companies comply with both national and international regulations. Otherwise, you risk losing users or even getting your app banned.

Lesson 7: Continue to Adapt and Innovate

Many young people are switching from traditional banking to fintech apps, which offer more convenience. This gives you an opportunity to innovate and stay ahead of the curve. For instance, businesses can adopt low- and no-code platforms to create customized programs. This will save several months in development and optimize your go-to-market time.

Another emerging trend is to offer omnichannel customer support. Younger generations use different platforms and communication devices to engage with brands. So, it’s essential to establish a consistent presence across all your channels.

By fostering a culture of innovation and consistently introducing new features and solutions, you’ll be better prepared to meet evolving customer needs and seize new opportunities for growth.

Learn From Top Fintech Companies’ Apps in Our Benchmark Report

The fintech industry is growing exponentially. To claim a piece of the pie, you’ll need to innovate and adapt new tech to scale. But you’ll first need to understand how users behave on fintech apps.

We’ve collected valuable data that covers everything from average stickiness quotient to CTRs and conversion rates. Our all-in-one report will help you understand where and when to deploy your marketing strategy.

Download CleverTap’s Benchmark Report for Fintech Apps 2023 and start leveraging data for your growth.

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Fintech App Engagement Benchmark Report

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Last updated on August 7, 2023