Today’s blog is looking at scalability for SMBs and how fintech is helping drive businesses growth quicker than ever before.
Mixing the right cocktail of product, trust and data have the potential to not only surpass traditional finance firms but obliterate them. Fintech enables such a quick level of scalability because the groundwork is already there.
Look at the internet, it's the perfect example of the power data to enhance scale. In no time at all tech behemoths like Google, Facebook and even Linkedin have acquired treble the amount of customers that a traditional bank has in a quarter of the time. A quick example just to show you how jaw-dropping all this, Linkedin, a pretty niche social network has just over 400 million users and has existed for near enough 15 years, now compare this to HSBC one of the biggest banks in the world which has existed 10 times longer than Linkedin but only has 100 million customers.
The internet explosion has the capability to leave banks in the dust if the Whatsapps and the Facebooks decide to get involved in the finance world - which seems to be truer by the day, if reports are to be believed. If these new fintech groups follow a model similar to the aforementioned tech companies.
Let's Get One Thing Straight
It's important though, to properly define scalability, it's not just growing your business outright, it's about creating a business plan that makes the absolute most of your revenue whilst keeping your costs low. Scaling at a cost isn’t really what we’re on about.
There are roughly three different factors that you need to have in the back of your mind when thinking about scaling up your business.
So it seems that prospect of fintech scalability is a good thing. But the first factor you need to consider is the importance of trust. Scaling up business results in more of everything, which means it's increasingly difficult to retain that trusting front facing business ethic that won customers hearts in the first place.
Thanks to fintech, trust is easier to retain. The technologies developed by Fintech can help businesses scale and retain trust, things like chatbots, managed services the ability to work from anywhere means firms are still able to offer a customer-led experience whilst scaling up their businesses in the background.
The quality of your product is the second factor to think about - I mean it's pretty obvious, if your product is naff then no one is going to take you seriously. If a fintech start-up has a product that adds value, by promoting the product effectively it increases adoptions rates which enable businesses to scale. You see, offering a great product gives you leeway to scale up because you’re given freedom thanks to a great product.
Thirdly, the use and application of smart data as a way of approaching risk assessment is now a vital component in the process of scaling. Smart data can precisely determine risks, so decisions made by you are done with all the facts, figures and consequences in front of you which means that when you scale you know it's scaling for the long term. Data-driven scalability also means you can scale your fintech start up the way customers want, simple supply and demand, with data as the backbone to it all.
Product, trust and data are all great guarantors of scalability for your business. Thanks to fintech these three components are all made easier to achieve. So if you have serious ambitions about growing your business, fintech is the way to go.