More and more companies of this type are emerging and the market becomes more competitive. With these strategies you can attract more customers.
The fintech sector continues to climb positions. Its incorporation into the market has radically changed the way we handle our money, manage accounting, request a loan, invest, and pay off our debts.
According to the 100Fintech ranking prepared by the international firms KPMG and H2, the world’s largest fintech companies are based in China followed by countries such as the United States, Germany and the United Kingdom, while Mexico ranks 13th as the country with the most developments of financial technology throughout Latin America, according to a study by Finovissta.
“The growth of financial technology companies is so accelerated that, once they find their purpose, they scale so fast that traditional banking has been threatened, which has caused it to seek alliances with fintech to conserve and increase its number of customers”, says Sebastián Medrano, managing director and marketing director of Coru.com.
Here are four characteristics that make a fintech grow rapidly and outperform its competition.
Invest more in sales and marketing
Do not skimp when it comes to financing campaigns in networks to attract potential customers. According to the capital investment firm, Edison Partners, fast-growing companies spent twice the budget on sales and marketing than lower-growth ones.
Hand in hand with a correct marketing and advertising strategy is that the greatest number of leads or leads can be reached, either by financing an adwords campaign that allows people to find us when they consult information about credit cards or mailing campaigns with Attractive offers for the human eye.
Improve the user experience
Retaining a customer is crucial to boost the growth of the startup, and most large fintechs invest a lot of money in their infrastructure. They tend to increase the number of vendors to serve users, and constantly innovate on their platform to make the user experience simpler.
Being technology, the processes are simplified and the high dependence on it is a trial-error environment. This is how companies can fully adapt to the market in which they enter, generating the relevant changes according to the financial regulations of each country and retaining the advantages of the initial product.
Offer credit plans on your products
This type of services is handled by Qudian, the third largest fintech in the world, according to the 100Fintech ranking. The company offers laptops, smartphones for students in China through monthly payment plans. Using technologies such as Artificial Intelligence (AI), he manages to customize a loan that is accessible to the millions of young people in that country. In this way customers can flexibly choose a range of payment options and time periods.
“The secret is not in the product, but in the offer of personalized credit plans that make it economical to acquire a product, in the case of Qudian, they used technology enabled for data management that gave them the option of addressing hundreds of millions of young consumers in China who need access to a small credit for their discretionary spending”, adds Medrano.
The startups that generate alliances with traditional banking institutions obtain benefits, since instead of facing them as competition they do so as allies, which allows to offer a greater quantity of products both by fintech and by the bank.
“Before it was necessary for companies to invest in large corporate buildings and offices in all places where they planned to serve customers, which caused a conflict of zero financial inclusion by not investing in marginalized areas”, said the manager. However, the fintech model allows users to know and use the products remotely without the need to go to a branch. This supposes a saving and allows the offer of services at more accessible costs.
Also published on Medium.