The Key to Fintech Success By: JT Martin

In the past decade, fintech has seen rapid growth in expansion with the innovation of technology and its adoption into our daily lives. Financial technology companies have become a defining industry that tons of companies are utilizing the services of as well as investing into. As fintech continues to grow and evolve, it will have to continue to change and adjust in order to continue to compete, succeed and thrive in the future.

A key factor that every fintech company needs in order to be successful is to have a niche or unique approach to accomplishing its goals. Especially when trying to distinguish among other technological firms, an innovative approach is what is going to separate success from failure. Fintechs need to not only identify and address a need within a financial institution or area but also a new and practical way of implementing it. This can be extremely difficult considering how many areas a fintech can focus on. Even though this concept may seem simple, it is a crucial element for all fintech companies to have.

Another key that is important to fintech companies to compete is to make sure their service is user-friendly. Even though the use of technology has increased dramatically over the past years, the simplicity of technology has remained a key factor in its success. This was seen especially through the covid-19 pandemic while businesses and consumers began to try to adjust to primarily operating and working on the computer. The simplicity and ease of fintech, especially in the cases of mobile banking and mobile payments, are necessary so that all consumers of all ages can understand and use it. As the world continues to become more technologically advanced, it doesn’t seem that the world wants technology to become more complicated to actually use. This practicality that fintech must have is a challenge, but without it, a great idea that is impractical or too difficult to use becomes irrelevant and useless.

One area in which fintech could see growth is through government agencies. With over 14 million Americans that don’t have a bank account, these people present a huge opportunity for fintech companies to service the government. Suppose a fintech could develop a way to better deliver things such as unemployment benefits or tax refunds and payments. If there was a way to provide a direct and simple method of connecting the government to people that are not banking and expedite government payment or tax services, it could be an extremely useful and widely adopted tool. Paper payments seem to be becoming a thing of the past, and if there is a way to make the government’s process of tax payments or other financial procedures more efficient, especially without requiring a bank account, it could soon take over the methods that are currently in place.

The advances and growth in fintech present very exciting opportunities for many companies to improve their business processes, but without an innovative approach and a practical way of implementing it, they will find it difficult to succeed.

Works Cited

“Three Trends That Will Drive Fintech Growth in 2021: Financial Services (FinServ).” FinTech Magazine, https://fintechmagazine.com/financial-services-finserv/three-trends-will-drive-fintech-growth-2021.

“What Makes a Fintech Startup a Success?: Financial Services (FinServ).” FinTech Magazine, https://fintechmagazine.com/financial-services-finserv/what-makes-fintech-startup-success.