3 Ways Fintech Supercharges Your Scalability

Today’s blog is looking at scalability for SMBs and how fintech is helping drive business 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 of data to enhance scale. In no time at all, tech behemoths like Google, Facebook and even Linkedin have acquired treble the number of customers that a traditional bank has in a quarter of the time. A quick example to show you how jaw-dropping all this is, Linkedin, a pretty niche social network that 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 ten times longer than Linkedin but only has 100 million customers.

The internet explosion can leave banks in the dust if Whatsapp and Facebook decide to get involved in the finance world - which seems to be truer by the day if reports are to be believed. Suppose these new fintech groups follow a model similar to the tech companies mentioned above.

Let's Get One Thing Straight

It's essential to define scalability properly; 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.

You need to have roughly three different factors in the back of your mind when thinking about scaling up your business.

Trust

So it seems that the 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 challenging 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 maintain trust. Things like chatbot-managed services and the ability to work from anywhere mean firms can still offer a customer-led experience whilst scaling up their businesses in the background.

Product

The quality of your product is the second factor to think about. If your product is poor, then no one will take you seriously. If a fintech start-up has a product that adds value, promoting the product effectively increases adoption rates, enabling businesses to scale. Offering a great product gives you leeway to scale up because you’re given freedom thanks to a great product.

Data

Thirdly, the use and application of intelligent data as a way of approaching risk assessment is now a vital component in scaling. Smart data can precisely determine risks, so you make decisions with all the facts, figures, and consequences in front of you. This 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.