BFC Bulletins Monthly News Digest
Tags Customer Experience Startups
For any business, a revenue model is important. However, it is even more crucial for FinTech companies as consumer confidence is easily-shaken by perceived actions that seem solely profit-oriented (e.g. high fees, pushing proprietary products). If FinTech companies are to succeed long-term, they must focus on creating trust with consumers as well as building a revenue model for investors. To this end, the ‘Breaking New Ground in Fintech: A Primer on Revenue Models that Create Value and Build Trust’ report was released examining the practices of 350 FinTech startups.
According to the report, the majority of these companies make money by charging consumers; however, they tend to go “above and beyond” in transparency, emphasizing value clarity by showing consumers products that are the best value for them and not the company. Some of these companies make money from third parties, but also focus on adding value. For example, an app that helps food stamp recipients make better use of their benefits also provides coupons from grocery stores and job ads. Another app targeting third parties helps employees take advantage of pre-tax benefits, helping them save money and be more productive. Ultimately, the FinTech sector is bursting with opportunities for socially-oriented enterprises that focus on more than just the “bottom line”. In the end, they are both gaining consumers’ trust and earning a healthy market share for their investors.
