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This year will be celebrated. The 10th anniversary of the fintech event.
Companies such as E*Trade, Rocket Mortgage and TurboTax began disrupting the established financial services sector before 2012, but that year marked a turning point that dramatically changed how most people manage their money as fintech became an ongoing movement.
If you are a fintech startup, you will face four main competitors in the next decade:
- Traditional financial firms offering a more “super app” experience with robust member benefits and benefits;
- advanced decentralized financial protocols that can offer financial products involving real-world assets;
- Increasingly, conventional financial products sold by non-financial organizations;
- Government-issued CBDC in many (but not all) countries.
Your organization needs it so true Strong value to compete with competitors in all four categories.
This gives most organizations two options over the next decade. One way is to specialize in a few products or services that consumers consider to be valuable on their own, despite strong competitive ecosystems. Alternatively, you need to develop a comprehensive strategy to compete and build a compelling set of products, services and benefits.
How can fintech startups prepare to compete in the next decade? Here are four steps you can take to stay competitive.
If your technology infrastructure is outdated and unable to meet your future needs, any corporate strategy document will remain virtual on paper.
Your technology stack must support the cutting edge of fintech.
A fundamental step in any long-term strategy for the 2020s is upgrading your organization’s technology stack to support future needs. You need advanced cross-product automation, sophisticated AI assistants, more integration with external entities such as the crypto ecosystem, and a modern technology infrastructure that supports non-financial benefits/benefits.
The process of upgrading your technology stack varies by company type. If you work for a large bank that still implements COBL, the first step is likely to be a large investment over several years to transition to a modern and streamlined technology infrastructure. If you’re a relatively young fintech company, you generally have a lot of “white space” to design your stack. The challenge for small companies isn’t decades of technology debt; Rather, it’s about optimizing limited engineering resources to build the best technology stack possible.
Modernizing technology infrastructure is a difficult and expensive proposition. Generally, the best way to gain company leadership in such investments is to highlight what competitors are doing to help them understand the competitive threat.
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