4 common mistakes that fintechs make (and how to avoid them)

by | Jul 16, 2022 | Technology

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As the leading sector for VC investment last year, the fintech market will continue to attract newcomers, fuel growth-stage companies, and force incumbents to adapt. Many fintech companies are marching toward similar goals: disrupting age-old financial practices.

Having invested in startups in my previous role and building a fintech company for the last decade, I’ve noticed a pattern of common mistakes and missteps that often occur with newcomers in the industry, but at times are present with mature companies as well. To avoid the hindrance of companies’ viability and growth, leaders must take note of these common traps and mistakes during a fintech company’s early days and growth stage: 

Mistake #1: Great UI doesn’t equal a great service 

Enduring fintech companies offer much more than a digital interface. Product design and UX are just one – albeit important – piece of the puzzle that makes up your company’s value proposition, but the overall customer experience is dependent on a much wider array of factors. 

How quickly can customers move and access money? How predictable and stable are your services? How do you balance risk and compliance with introducing friction in your customer journey? Do customers have access to live support when they need it? Are customers’ data and money safe and secure? How well your company does on these fronts has much more impact on customers’ satisfaction than the frontend design of your app. 

This is a common pitfall because the past several years have stressed digital transformation and, as technology leaders, we’re inclined to prioritize it. But in fintech, and digital banking especially, the stakes are too high to overlook the critical infrastructure at the core of your offering. 

Remember: banks are services, not apps. So to compete with the incumbent banks and the front-running neobanks with these exhaustive risk, servicing, security and compliance cap …

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