What is the secret to fintech growth, and can incumbent financial service providers leverage these critical success factors to boost growth in their own businesses? Auckland-based fintech, Invsta, aims to answer these questions with their latest piece of research, “The Fintech Growth Model.”
This whitepaper aims to uncover the key elements that have enabled fintech and digital investment platforms to thrive, and provide practical tips for incumbents to integrate these elements into their own businesses. As we enter year three of living with the pandemic, the operating environment for Financial Service Providers (FSP’s) has been permanently altered, and leveraging areas of growth will become top priority for providers to remain relevant to today’s investors.
“Over the past 6 months or so, we’ve been involved in numerous projects and discussions with providers who are wanting to emulate the fintech experience – not just from a front-end customer experience point-of-view, but also from an operational standpoint,” explains Rachel Strevens, CEO of Invsta.
There’s no question that digital investment platforms have achieved phenomenal growth in recent years. While some may argue that it was purely the pandemic that fuelled this growth, this whitepaper highlights that growth was a product of three key elements, namely market-led strategies, digital-first processes and decentralised company structures.
“Many FSP’s are preparing their strategy development for the new financial year. Business growth remains a top priority as they look to navigate a new market that is dominated by digital experiences, changing customer value propositions and increasing competition” says Strevens.
We’ve recently seen two new digital investment offerings enter the New Zealand market, increasing the level of competition and further raising the digital expectations for incumbent providers. With a 26% increase in the number of fintech startups from 2020 to 2021, you really can’t avoid the fact that fintech innovation is here to stay.
“The market is rapidly changing, and we’ve been assisting our clients and the wider financial services landscape with their digital strategies and technology roadmapping. One thing that stood out for me was that there was this notion that rapid growth is not achievable for incumbents, which is simply not true. We wanted to bring this whitepaper to the wider New Zealand financial services sector in the hope that it’ll encourage innovative thinking to drive growth across the sector” emphasises Strevens.
The whitepaper provides a comprehensive list of questions to prompt effective strategy creation across four main areas: branding, bottom line, customer acquisition and customer retention. Identifying growth opportunities in each of these areas is key to creating sustainable growth and helping to foster a culture of innovative thinking and strategic leadership. Access your copy of the “The Fintech Growth Model” here.