Navigating the Fintech Landscape: How Offshoring Can Help Business Owners Keep Up with the Evolving Industry
The Situation of Offshoring for FinTech
The Fintech industry has evolved into one of the most exciting and ambitious industries in the world today. It now plays a crucial role in a variety of business sectors, including banking, investment management, education, fundraising, and others. Hence, many companies have now been attempting to expand their working potential and redefine the boundaries of their previous financial processes with this emerging modern advancement.
When assessing how deeply this concept has permeated our daily lives, whether it be through the use of digital payment applications or virtual accounts, it is a no-brainer to see that the industry functions and opens a door to massive possibilities in the future.
The fintech industry has grown so immensely that the demand for its business process offshoring has now become an industry in its own right – enter offshoring for fintech.
The Problem
With a rising worldwide market value – now at $165.17 billion by 2023 – one can picture the hustle, stress, and commotion that fintech business owners face to keep up with the demands for technological services. When enormous workloads are taken into account, the likelihood of a successful organisation meeting daily expectations is significantly diminished. A high input rate – although preferred and more profitable – if not managed properly, can rapidly become a productivity nightmare.
The industry continuously skyrockets to prominence. As work continues to upsurge to keep up with the demand and competition, fintech business owners also catch sight of the following as shortfalls brought about by the rise of the industry:
- the influx of admin functions
When not handled properly, the influx of administrative work can harm the fintech business. This can divert resources away from business-critical activities that generate revenue or improve the product or service. This can lead to increased costs, delays in product development, and decreased customer satisfaction. Additionally, administrative tasks can be time-consuming and repetitive, which can lead to decreased efficiency and productivity among employees. This can affect the overall performance of the business, which could ultimately lead to decreased revenue.
Further, the enormous volume of data and information that must be gathered, tracked, and consistently updated for accuracy can significantly reduce daily productivity levels inside these businesses. As a result, this raises the possibility of disputed results, erroneous information, and inadequate records.
For Fintech businesses, accuracy in data is cardinal. When overlooked or mismanaged due to the unexpected influx of admin functions, fintech businesses may face penalties, fines, or even revocation of their license which will affect the bottom line of the business.
- weak marketing
Effective marketing campaigns help fintech businesses reach their target market, build brand recognition and credibility, differentiate themselves from competitors, and convey the value of their product or service.
Because fintech businesses are immersed in developing or improving their product, it is foreseen that they have little to no time to build inventive and new marketing tools – tools to effectively put the product out in the market. This weak area significantly affects fintech businesses as low-level marketing campaigns will not help to establish trust and credibility with potential customers, which can be especially important in the financial industry. This is because people want to feel secure when entrusting their money to a fintech company, or any company.
Low-level marketing campaigns may fail to convey the unique value proposition of the fintech product. This can make it difficult for users to differentiate the business from competitors. Moreover, it can lead to poor targeting, resulting in ineffective and inefficient use of the marketing budget.
Exciting new inventions can quickly become outdated in just a snap in this fast-changing and competitive corporate landscape. Because of weak marketing, many inexperienced fintech businesses don’t always see the light of day.
- evolving industry regulations
As regulations for fintech are still evolving and can be complex to navigate, compliance with regulations and oversight from government bodies can be more burdensome to fintech businesses than traditional financial institutions. The lack of knowledge, time, or experience in legal requirements and industry compliance can have a significant negative impact on fintech businesses. It can lead to non-compliance with regulations, which can result in fines, penalties, and damage to the company’s reputation.
Fintech businesses are subject to a wide range of regulations that govern how they operate. Failure to comply with these regulations can result in substantial fines and penalties, as well as the possibility of legal action being taken against the company.
Overall, fintech companies must dispense enough time and have a deep understanding of the legal and regulatory environment in which they operate, and to put in place robust compliance processes to ensure they are adhering to all relevant regulations at all times.
The Solution
For financial services providers, fintech offshoring is an efficient solution to counter the weak areas brought about by the industry’s upsurge. It can provide a range of benefits to fintech businesses allowing them to carry out both their essential, value-adding tasks and daily operations effectively and helping them to scale while ensuring compliance with the regulations.
Fintech business owners can efficiently acquire that crucial “helping hand” while keeping peace of mind and quality assurance by working with top-rated offshoring partners like Vault. Fintech offshoring can help businesses in some areas including:
- access to a wider skill pool of experts
No matter what your business goal is, fintech offshoring can help you achieve that goal. This business solution can gain you access to a wider skill pool of specialised fintech teams that can provide technical expertise in different areas relevant to your business. This can help fintech businesses develop and improve their products and services, as well as ensure they are of quality, secure and compliant.
Fintech offshoring can also help manage the influx of administrative tasks. This model provides fintech businesses with additional resources to handle tasks such as data entry, customer service, and financial analysis. Having your fintech offshore team can free up internal resources and allow companies to focus on core competencies and strategic initiatives. Additionally, fintech offshoring is also a cost-effective solution as companies can access a wide range of services at a lower cost while maintaining a high level of quality.
It is, however, cardinal to take your time in selecting an offshoring partner to yield your most desirable results. Vault has extensive experience in managing, supporting, and operating the very latest in financial services technology. This includes buy-now-pay-later, financial services software, and the latest in risk management modelling including artificial intelligence and machine learning tools. Our fintech team members keep up to date with the latest technology available to the industry and can bring new knowledge to the table when solutions are required.
Learn the best practices in choosing your ideal offshoring partner through this blog.
- marketing
Building your offshore marketing team can significantly help the end goal of a fintech business. Fintech offshoring, other than being a cost-effective solution, can help companies build powerful marketing teams. This business management solution can provide access to a wide range of specialised expertise and resources. By offshoring your team for marketing functions – such as market research, digital marketing, advertising, and others – fintech companies can tap into the knowledge of experienced professionals who can help them create effective campaigns and strategies. Additionally, offshoring marketing functions can also provide access to a global talent pool, which can provide a diverse set of perspectives and ideas to help them create more effective marketing strategies.
Fintech offshoring can also help fintech companies to quickly scale their marketing efforts and stay competitive without compromising their time for the actual development and improvement of their products and services. Lastly, working with an offshore marketing team can also bring new ways of thinking, and methodologies, and implement best practices.
Marketing online is no easy feat, especially with all the products and competition in the industry. It may be challenging for some companies to find somebody qualified and experienced for the role. Thankfully, the right offshoring partner can help you grow your marketing team the right way with the right people.
- legal matters
Fintech offshoring partners often have specialised legal and compliance teams. These teams have in-depth knowledge of the laws and regulations specific to the fintech industry. These teams can provide guidance and support to help companies navigate the complex legal and regulatory landscape. In essence, the lack of time, knowledge, and/or experience of some fintech companies regarding industry regulations can be countered by offshoring a dedicated specialist to identify and mitigate legal and compliance risks for companies, such as potential breaches of regulations or lawsuits.
By choosing to offshore these responsibilities, fintech companies will see an increase in productivity and completion rates. All the while also relieving the strongest team members of some of the workload so that they can focus on other, more crucial revenue-generating activities.
The First Step
Offshore your ideal fintech team from the Philippines with Vault.
Vault provides a customised experience to all our partners to make them efficient and more profitable. To begin, we arrange an initial consultation. This is to identify your company’s needs and document the number of team members required the budget, and the types of roles that will form the dedicated team. We then provide feedback and a plan as well as market research to assist with your decision.
Reduced employee costs, maximised revenue, and increased profitability are acquired advantages when utilising our amazing management team and industry-leading technology.
Grow your fintech team the right way, grow with Vault Outsourcing.