How to scale up your Fintech
For the majority of businesses in the fintech space, the market has already been proven.
In most cases there are now a number of fintech’s occupying the same space, so proving that your business has a market is not the main issue.
One significant issue for fintech’s, especially challenger banks, is that of pre-paid card platforms, as highlighted in a recent blog, but another significant issue is the potential scalability of your fintech.
Here are three ways to scale up your fintech or challenger bank.
- Ensure Your Base Platform Is Flexible:
Many fintech’s build their business models around a platform with the intention of entering the market as quickly as possible, without a thought for future development.
While this scenario may potentially save money and time in the short term, it could present serious issues for future development.
By building your fintech on a multi-functional platform, you will have the ability to provide additional features in the future. Current, and future, clients will be able to access features such as account management, whereas a single-use platform may require additional development and potential compatibility issues.
- Keep Up With Regulatory Trends:
Upcoming financial directives including the fourth money-laundering directive (MLD4) and the second payment services directive (PSD2), as well as overall business regulations like the General Data Protection Regulation (GDPR), show how quickly fintech’s need to respond to the ever-changing regulatory field.
In order to safely scale your fintech you need to keep up-to-date with trends in the industry, so you can react quickly to them.
Whilst most regulations have a significant time-frame between agreement and implementation, the quicker you react the further you stay ahead of the competition.
- Understand Your Strengths and Acknowledge Weaknesses:
With so many sectors making up the fintech space it is important that you understand where your strengths and weaknesses lie.
If your core skill set lies in one of these sectors, don’t try to save money by working on the other technologies. You are best to outsource or collaborate with other fintech firms to improve your offering.
For example, if your skill set is in customer offering and user experience, it’s very likely that designing and building an account management platform to work alongside your card will overstretch your resources and expertise. In this instance, buying a proven account management platform provides the stability required to scale, and reduces the time you need to get to market
As the sector faces significant challenges, businesses need to ensure their fintech solution is proven and rigid enough to withstand any potential threats, but also flexible enough to respond to regulatory changes.
If you want to hear more about how a built, but bespoke, backend fintech platform can help increase your speed to market, email us at email@example.com or call us on 020 7048 0470.