How can you navigate fintech ecosystems?

Fintech is broad, so be prepared to explore. Start by understanding the financial sector landscape and the problems that exist. Identify the problems that can be solved with technology and the ones that cannot. Do this by talking to people and immersing yourself in the market. Experience the solutions, talk to users, get feedback, and gain first-hand experience.

The fintech ecosystem is wide and deep, in other words a fintech is normally built through a collection of partnerships serving both the customer facing and non-customer facing products and technology. The best way to navigate it it through desk research, building an industry network of fintech professionals and attending fintech events. The industry is highly interconnected and once you know people in the industry it is relatively easy to navigate as people are keen to help.

Navigating the fintech ecosystem demands a multidimensional approach. Begin with thorough market research to understand user needs. Collaborate with diverse stakeholders, leveraging their expertise. Innovate by developing solutions that provide value and foster trust. Adapt to regulatory changes while ensuring data security. Scale strategically, reaching wider audiences. Continuous learning and adaptation are key, allowing you to chart a successful course through the ever-evolving fintech landscape.

For me the key starting point here is understanding that everything is changing in Fintech on pretty much a daily basis. It is a classic example of an environment where asking questions and talking to people is absolutely the right way forward. So networking, asking questions, reaching out to people is the right way forward. There is no such thing as a silly question.

Fintech is one of the closest niches to the end customer, that person who opens the bank account and uses it on your phone, the retiree one who needs to check his savings... fintechs has to evolve with people and is also able of making people give different steps. Here, the competitiveness is a super benefit to the customer.

Having been partner in two different fintechs, it's necessary to understand that there's no obvious strategy. Not saying about pandemic, I'm referring to the many aspects around financial system: big players, money/money/money, billions of potential customers (not all of them interesting to the financial institutions but all needing them), innovative solutions, slow regulation's change and more. Studying about fintechs is a daily routine because it's changing everyday, not always for best. Some regulators make fintechs give steps back. My perception is to help fintechs to adopt solutions and work on different sources of income. Diversify your money source is necessary if not mandatory.

In our strategy sessions, we walk through the day-to-day experiences of potential customers. We identify their pain points and create solutions that address them in the most effective way. The more specific we are about the customer journey, the better. We start with one solution and add more as needed to ensure that the solution remains relevant to their lives and the ecosystem.

The assistant's value proposition in fintech navigation lies in its ability to provide timely, accurate, and comprehensive information on various fintech topics. It can explain complex concepts, offer insights on trends, and even suggest strategies for understanding and capitalizing on fintech innovations. This assistant is a reliable guide for individuals seeking clarity and guidance in the complex world of financial technology.

Strategic partnerships help you with many things: A. License and Regulatory compliance: fintechs usually require licenses, which are expensive. A good place to start (in jurisdictions where this is allowed) is to leverage an existing license to provide your service. This allows you to play, at a relatively low scale, till you understand the market, raise money and get your own license. B. Better value proposition: the kind of partnership you’re able to strike will go a long way to affect the kind and quality of services you are able to provide. Generally, it is important to consider the partnership and its strategic promises for your business - especially as a startup fintech.

Partnerships are fundamental to make your fintech faster and bigger. Due to the heavy regulation system, many of the new features and services are hard to get in a quick way, usually, the best solution is adopt a partner's API, feature or other service considering they already obtained the legal procedure to operate it. For those who believe in can navigate alone in the fintech's ecosystem, they are absolutely wrong and this type of ego, can make anyone falls.

It is important to stay proactive in understanding and complying with evolving regulations and standards. One needs to establish a dedicated compliance team or department to monitor regulatory changes and ensure your organization's adherence to them. On top of it, it's also advisable to utilize data analytics and insights to make informed decisions. Harnessing the power of data can help you identify emerging customer needs, market trends, and potential areas for improvement in your products and services. :)

When it comes to the fintech world, instead of just learning from what people tell you, think of it as a way to keep growing and improving. Imagine feedback as the engine that keeps your fintech business moving forward in a world that's always changing. Don't just gather and study feedback like it's homework. Picture it as a live update that helps you make decisions and take action right now. Instead of double-checking your guesses and ideas, see feedback as the heartbeat of your business, guiding your plans to adapt and get better. Sharing feedback isn't just passing on information; it's like creating a loop that connects everyone in your fintech world. You're not just a piece; you're part of a team where everyone shares ideas.

It is a known fact that the incumbents are slowly but steadily catching up with the FinTechs, and we should not differentiate between them anymore. On the other hand, FinTechs are fragile babies that are highly dependent on regulations (usually in favor of the lobbies), fundraising (they burn money like no other business model), protectionism policies, and last but not least, the old-fashioned banks. The forthcoming recession will slow down the development and will clear the stage from the unsuccessful players. With that being written, I think that the FinTechs will remain to be a sandbox playground for POCs of some strategies, but they will not replace the incumbents anytime soon