A rush of new customers is a good problem to have.
Yet this moment poses several major challenges for fintech companies in the middle of a scaleup. Parallel concerns emerge about maintaining customer relationships, handling (and securing) data at scale, and how even to shape the company’s growth trajectory.
In order to strategize for this moment of growth, fintech CEOs should ask themselves the following three questions.
Growth depends on numerous factors, many of which are outside of a company’s control. This fact was driven home during the COVID-19 pandemic, when new users flocked to digital banking tools because social distancing had restricted our ability to make in-person transactions.
Growth in the fintech sector is either driven or limited by technology. For many companies, the tech that got them to their last stage of growth is insufficient for the next stage, whether that’s because certain tools have become obsolete, new regulations have come into effect, or simply the new surge of users has overwhelmed existing infrastructure.
This becomes an assessment of capacity:
If you cannot confidently say “Yes” to each of those questions, then it’s worth looking into how a software development partner can provide that needed capacity quickly.
A lesson many financial companies learned during the pandemic: When demand for services grows quickly, so too must data management. This means scaling fintech companies must also scale their ability to store, protect and analyze data.
That can be a daunting task, particularly for companies that already lack the resources to leverage all the data they collect, or don’t have the analytics capacity to conclusively know what data points are most relevant to company growth.
Here are a few tips for upgrading data-management capacity:
It’s easy to get lost in the minutiae of system upgrades and software development, so frame any decision around what consequences it will have on customer retention.
The best fintech companies value their customer relationships because they understand that recurring revenue is the lifeblood of their businesses.
Here are three tips to help you frame your tech decisions in the context of customer satisfaction:
Images by: Campaign Creators, Blake Wisz