We have heard in the past that software was eating the world. We understand the power of AI to transform businesses and how disruptive blockchains can be in very specific domains.
However, lately we heard another more pragmatic and realistic view that every company will be a fintech company, but let me rephrase it and assure you that nowadays every company can be a fintech company.
Historically, B2C startups focused solely in doing one or two things right - putting customers at the centre and executing operations on their verticals with some competitive advantage in eCommerce, travel, logistics, FoodTech, ride hailing, PropTech, just to name a few.
However, with more demanding consumers and the need to introduce payments without breaking their user experience, many of these businesses have transformed their products to integrate with financial services.
What's more, companies are looking to have their own digital wallets, launch stored value facilities, give cashback, offer instalments or pay later options, etc.
For example, a food delivery app could turn into a super app with multiple offerings and incorporate financial products to enable consumers to transact and pay conveniently.
Such a company can look into offering a digital wallet service where consumers can use to top up or buy into subscriptions to hold cash (similar to a pay forward feature).
The higher assets under management allow the food delivery company to explore new business models by combining their pool of funds and diversify revenue streams from simple inventory and logistics management.
This increases companies' valuation and their positioning towards acquiring new users. Consumers are the ultimate beneficiaries here since there is more convenience for them at a lower cost.
This shift by companies is intended and in sync with global trends. Companies need to diversify their monetisation strategies and expanding into financial services seem a natural progression to own a consumers’ end-to-end journey.
The potential up-selling possibilities help build stickiness and increase customer lifetime value on their platforms.
After all, we are living in a time where fintech services are being commoditised, removing the technical barriers for businesses to jump in, plug and play different products and services to reduce time to market and stay relevant for consumers.
So, whether you are running an eCommerce, FoodTech, PropTech, etc. platform, you’ll need to eventually consider a shift towards embedding financial services within your offerings.
That’s why Finantier is here to empower anyone to become a fintech company - by connecting to our platform and enabling consumers to leverage their data to access your services.