FinTechs are reimagining the entire
banking space by revolutionizing several processes and services. They
have made ‘finance’ seamless and quick while taking a paperless,
presence less and cashless approach.
At present, India comprises of 2000+
Fintechs, most of which are based out of Bangalore. With a sudden rise
and success of Fintechs in the financial arena, the question arises –
How have Fintechs navigated so quickly?
Here are some Fintech growth hacks-
Technology is the KEY- Though technology was introduced to
the banking system in the 1970s, it was dominantly a back office
tool. Fintechs revolutionized and placed themselves as “Digital
first” banks, a fairly new concept in India. They strategically
leveraged technology to their benefit and offered innovative
products and services that addressed customer problems and enhanced
Innovation at the forefront- While Fintechs introduced new
products and services for customers, they also continually upgrade
themselves with technology advancement for better innovation. For
instance, with the help of big data analytics, Fintechs analyse and
synthesize customer journey. This innovation has changed the
landscape of banking as it has enabled financial institutions to
offer customer centric services.
Using psychological tools- Fintechs do not wait for the need
to arise rather, they leverage technology to understand customer
preferences, needs, pattern, behaviour, etc. and create a
perception. For instance, Buy Now, Pay Later, a Fintech innovation,
allows customers to purchase today and pay on a later date. This
innovation has allowed customers to indulge in purchases and extend
Improvising customer experience- Fintechs have introduced a
contemporary style of functioning and generating business. By
shifting from a Capex model and reducing their Opex significantly,
Fintechs are passing the extra benefits to their customers.For
instance, Fintechs offer cashbacks, rewards, vouchers, discounts etc
to attract customers to transact with them while ensuring the
customers benefit as well.
Customer-centric approach- Until recently, financial
institutions followed a business first approach rather than a
customer first approach. Meaning, banking was more money centric
than it was impact centric. Fintechs introduced an alternative
approach by putting customers on top priority thereby, creating an
impact. Today, customers are swamped with options and benefits which
means, financial institutions require a unique selling proposition.
One-stop solution- Whether it is lending or smart
investments, Fintechs have revolutionized the financial ecosystem by
aligning technology with finance. They offer seamless solutions that
allow customers to transact, invest, insure etc. on one platform, on
a single click.
Strategically scaling up- Instead of cramming into already
exhaustive spaces, Fintechs are introducing fresh innovations to the
market. For instance, CRED’s Book Now, Travel Later offering- With
travel rules and regulations changing daily, CRED now offers a plan
that allows its customers to reserve hotel rooms today and pay as
and when they travel. Since this is insured by CRED, customers have
the liberty to travel whenever they feel safe while not missing out
on their choice of hotels.
Fintechs are slowly hacking customer psychology and launching
products and services that resonate with customer needs and
preferences. At present, although the regulatory framework does not
allow Fintechs to operate solely, they have successfully found a mark
for themselves through some unique hacks.