Steve Streit on 8 Fintech “Must-Haves”
The tech startup world is famously competitive. But even by its rough-and-tumble standards, the financial technology niche stands out.
It’s one of those spaces that seems easy to break into until you’ve really wrapped your head around the challenge. By then, it could be too late for your idea.
What sets apart thriving fintech startups from those that never gain traction? Experts like Steve Streit, whose venture capital firm has supported successful financial technology companies for years, have some thoughts. They’re willing to give some of those ideas away for free — like these eight “must-haves” for any fintech platform looking to break through the noise.
- Crisp, Clean Branding
Crisp, clean and consistent branding is a must for any fintech app. Unless you don’t want yours to be noticed, that is.
The elements of a consistent brand include:
- A simple, recognizable color scheme deployed across all digital assets
- A consistent set of design elements, including color bands and accents
- Consistent fonts and text styling
- An easy-to-remember slogan or tagline
- A recognizable spokesperson (human or digital) or mascot (digital, and not necessarily human)
These elements should be as similar as possible on your website, social media accounts, and app. They’re especially important on your app, which is where most consumers will engage.
- User-Friendly Interface and Navigation
Your app and website should be user-friendly and easy to navigate. Users should be able to find information quickly and without navigating away from the pages they originally intended to visit. If you find your customer service team getting a high volume of questions about site navigation or app usability, conduct a root cause analysis and make the appropriate changes.
- A Clear, Compelling Value Proposition
Every brand needs a compelling value proposition. In crowded sectors like fintech, this is absolutely critical, as it could make the difference between widespread brand recognition and total anonymity. Make sure your proposition is concise, obvious, and realistic, even as it puts the best possible spin on what your brand offers.
- Reasonable and Easy-to-Understand Pricing
How you price your services will depend on their value in the marketplace, of course, but it’s important to be realistic about the possibilities.
Many fintech apps offer a limited-service free plan as well as higher-priced, more feature-rich service levels — an approach known as the “freemium” model. Others have moved away from offering free service indefinitely, or even limited-time free trials, the thinking being that the appearance of giving something away cheapens it. Only you and your stakeholders can decide which approach works better for you. However, whichever path you choose, make sure your pricing is appropriate and easy for users to understand.
- A Different (But Not Gimmicky) Approach
Your fintech solution needs to be bold and innovative to stand out in a crowded marketplace. However, it should also avoid gimmicks, such as excessive gamification, which could turn off some users. At the end of the day, more people appreciate straightforward demonstrations of value than anything else.
- Comprehensive, Customer Service
A lightweight, single-purpose app does not need a multi-person, multi-channel customer service team. However, a strong customer service presence is a must for any well-rounded fintech app built to deliver clear, compelling, unique value.
Moreover, even in a world where chatbots can answer many questions nearly as well as humans, customer service still needs a personal touch. Make sure your users know how to get in touch with a person on your team.
- Multiple Communication Channels to Meet Users Where They Are
Your fintech solution should be set up to engage with users and prospects through multiple channels. While the primary point of contact is likely to be in-app notifications, consider adding the following:
- Push notifications
- An active social media presence
- Thought leadership content, such as free guides or webinars
- Digital marketing campaigns, including paid search and paid social
- Influencer-led campaigns
- An email newsletter (if it’s done right)
- Ironclad Security
Digital security is costly, but it’s not optional in the fintech space. In fact, it’s a legal requirement. As a fintech leader, you must keep up to date on legal, regulatory and compliance issues to avoid possible fines, lawsuits, and loss of revenue.
That Killer App Is a Moving Target
If the financial technology industry’s competitiveness has a silver lining, it’s that it creates endless opportunities for entrepreneurs who want to do things differently. For years, fintechs have been all about disrupting the status quo, and in many respects, they’ve succeeded.
What does this mean for your fintech business idea? It means that if you have a great idea for a new platform or service that does something (or several things) a bit better than the incumbents, you can probably find people willing to bet on you.
However, it also means that you’ll need to move fast and execute well to have a chance of success. The killer app you’re working toward is a moving target, and it’s best to strike while the iron is hot.
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