Introduction
FinTech is a vast sector as the industry combines aspects from both the finance and the technology side of it; meaning there are many ways to succeed against its KPI’s (Key Performance Indicators). In this week’s blog post we reflect on how success is measured within FinTech and what it takes to be a successful FinTech company in such an exciting industry that is growing at a rapid pace.
1. Maintaining Customer Satisfaction
One factor that ensures success within the FinTech sector is maintaining customer satisfaction. This is essential as in the nature of online banking there must be a trust-based relationship between the company and the client to ensure that they will be a returning customer. This can be achieved by finding out the specific needs of the client and meeting their demands as well as offering unique customer service advice that would help the company stand out. Ultimately, in the long run, this would maximise the lifetime value of each customer.
2. Opportunities for cost reduction
Maintaining a low cost base can help any type of business as it helps them save on areas that are not too badly off and focus to invest in areas that need attention. For instance, with the rise of AI (Artificial Intelligence) systems, they could potentially replace some areas within customer service roles which would make systems more efficient as well as cost effective. Solutions like these could be the way forward with the growing use of AI in businesses.
3. Marketing
A company’s marketing is another vital metric to measure successes within this industry as it is what gains more app users which draws even more potential users. With the use of targeted marketing, not only does it maximise the outreach but helps the company become more recognisable as well which is why it is such an important factor when ensuring a FinTech company’s success.
4. Company Aims
The aims of a FinTech company plays an equal role in what measures success as this is what draws a potential customer to be a future client. Having clear, focused and ethical aims not only highlights the credibility of the company but also how it’s trying to make a difference within society. Ultimately in FinTech, this can be seen as a crucial deciding factor on whether a potential customer decides to use a company’s services.
Conclusion
To conclude, from looking at some key performance indicators used in the FinTech industry as well as other factors, it is evident that there are many ways to measure success in FinTech as its not so linear.
