The faster your company grows, the more likely investors are to place risky venture bets on it. If you’re in Fintech, it’s hard to break into the sector. After all, it seems there’s a new Fintech startup every day. You may be wondering what exactly it takes to grow and succeed as a Fintech startup. Here are are few tips for success:
- Build non-financial relationships with customers.
If you want customers to do business with your company over time, you have to make sure they like the people at your company. One way to achieve this is to host social networking opportunities among customers, a large number of whom are upcoming young professionals. SoFi, for example, hosts community events such as dinners, workshops, and happy hours in 55 cities throughout 30 states. This networking allows emotional bonds to form, thus giving the company more of an opportunity to offer products to its customers.
2) Mix Your Talent Pool
To have a Fintech startup that is bound for success, you will likely have to acquire some staffers who don’t come from the financial services industry. According the Arjan Schutte, founder and partner at Core VC, a Fintech startup needs to pull talent from different sectors because there is a lot of complexity and nuance to the way that specific systems work.
3) Create Affiliate Services
It’s a good idea to create a startup that isn’t directly targeting the conventional banking system. Chris Skinner, the industry seer, used two startups, Square and Simple, to exemplify this. Square didn’t directly attack banking, but rather found a solution to the friction around banking. Simple attacked the difficulties of finance with user interface. Neither app tried to replace banking, and that’s why they reached so much success.
Please continue on to the second piece on this subject, titled, “2 Additional Tips For Reaching Success As A Fintech Startup.”