The fintech industry has seen a sharp growth in the last decade. With the rise of digital platforms like mobile banking and AI-powered solutions, the industry is likely to continue growing at a rapid pace.
If a report by Boston Consulting Group (BCG) and QED investors is taken into account, the fintech industry is likely to generate a staggering $1.5 trillion by 2030, stating a clear acceleration into the momentum.
To keep up, app and web development companies for fintech are focused on building digital solutions that are performance-driven, feature-rich, and safe.
In the sections ahead, we’ll explore the key growth strategies fueling this revolution and how they’re reshaping the future of banking. In parallel, we’ll also explore motivating factors helping experts optimize their strategies.
Let’s begin!
Delivering Hyper-Personalized Experiences Through Smart Technology
The fintech industry is a competitive market, and retaining customers is one of the biggest challenges. The people are becoming more tech-friendly, and the fintech companies must leverage technology to offer a personalised experience.
AI is the key to achieving that.
The tech can be used to collect customer data from multiple sources, which includes their usage behavior, preferred products, etc. This helps the fintech company create an AIA-powered product strategy that suits the customer’s needs.
This also applies to AI chatbots, which can resolve customer queries fast and error-free.
Ensuring Regulatory Compliance in FinTech
A fintech company must ensure compliance with various regulations. The guidelines across regions are different and updated frequently.
These guidelines are often implemented as GDPR for EU countries, CCPA for California, PCI DSS for payment gateways, etc.
Keeping pace with the changing guidelines is a challenge for the fintech industry’s growth, but also a necessity.
One way is to use a single unified platform.
Build a platform that aligns with global requirements. Implement consent forms, keep things transparent, and use best security protocols — all of which are crucial considerations during fintech mobile app development.
Data-Driven Strategies for FinTech Success
Data analytics is a significant contributor to the growth of a fintech company. There are analytics tools to help fintech companies know about customer behavior, preferences, and market trends.
By analysing key data, fintech companies can optimise their products and services to deliver a personalised customer experience. Investing in data analytics tools can help the business grow faster, detect fraud, and offer customised services as per the needs of the customer.
Since the fintechs deal with sensitive data, they are prone to cyberattacks like data breaches and fraudulent transactions. This mandates them to ensure strong cybersecurity systems are implemented across digital products.
For instance, cloud-based contact centre solutions provide a multi-layer defence network managed by security experts, and are a good way to enhance data security.
Personalized Marketing Strategies for FinTech Growth
A fintech company can only grow by attracting new customers and retaining the existing ones. Target marketing is one of the best ways to keep hold of your customers.
By using data analytics, fintech companies can create targeted marketing campaigns.
Data will help the fintech companies personalize product advertisements based on the collected user behavior data across appropriate channels.
Retention rates can also be improved by personalizing products and services that suit customers’ needs instead of generic services.
Scaling Operations
Scalability is very important for a FinTech company to survive in a competitive market. AI and automation technologies can help.
These technologies make the process user-friendly, enhance efficiency, and help plan costs well.
Beyond that, AI-powered analysis also helps achieve better scalability. Then you have scalable and cloud-based solutions, which are a good way to manage the increasing data volumes and user traffic.
Outsourcing FinTech Services for Scalable Growth
Open banking, fueled by APIs, has unlocked new opportunities for collaboration between banks and fintech startups. For example, partnerships for digital wallets, Buy Now Pay Later (BNPL) solutions, and embedded finance accelerate product development and enhance customer offerings without needing massive internal overhauls.
Partnering with a banking business process outsourcing (BPO) provider to handle your end-to-end fintech operations can significantly boost efficiency and streamline workflows. It reduces the load on your fintech company and allows you to channelize your time and resources towards developing growth strategies.
Blockchain and Decentralized Finance (DeFi)
These technologies are rapidly transforming traditional banking. Many modern fintech companies have started to use blockchain for basic day-to-day operations like sending money to different countries and creating digital agreements (called smart contracts) that run automatically.
As a result, the fintech blockchain market is expected to reach $46.87 billion by 2030.
The traditional banks have been slow to adopt these tools so far, however, they’re now exploring how blockchain can help with things like safely verifying someone’s identity, turning assets like real estate into digital tokens, and making secure financial transactions.
It won’t be long before blockchain and decentralized finance become a regular part of every big and small financial instution.
Final Takeaway
FinTech companies have reshaped the banking sector. Modern banking strategies for growth revolve around agility, customer experience, cutting-edge technology, and inclusivity.
To sustain itself in the competitive environment, the industry must adopt a forward-thinking approach to provide a better customer experience, which is the sure-shot method for the company’s growth.
Collaborating with innovative companies that have expertise in specific niches is the key to unlocking growth. So once you have a plan, find them, compare, and connect!