The fintech industry has faced some challenges in the past several years. Rising interest rates have increased the cost of financing for early-stage financial technology companies, while economic uncertainty has reduced the availability of angel and venture funding.

In this environment, it’s more important than ever to ensure your fintech startup stands out.

Seasoned investors like Steve Streit, whose venture capital firm backs several fintech enterprises and other early-stage businesses in the broader finance ecosystem, know this better than most. They bring decades of experience covering numerous business cycles—from the dot-com bust to the Great Recession to the recent upheaval caused by the COVID-19 pandemic—to bear when advising their portfolio companies. 

They won’t publicly share everything they know, of course. But they’re willing to provide some general advice for fintech startups charting their own course through uncertain waters. Here’s what they tell fintechs looking to set themselves apart and gain traction in a crowded, competitive marketplace.

1. Invest in a Sleek, Professional Logo Design

This advice applies to just about any consumer-driven industry, but it’s especially important in crowded, price-sensitive ones like financial technology. Consumers and small business owners are more brand-savvy than ever before, so your company must stand out with a crisp, coherent presentation.

That presentation begins with an eye-catching yet professional-looking logo. Using one of these affordable logo generators won’t cost much, and no graphic design experience is necessary. But it does need to be one of your first orders of business.

2. Stake Out Relevant Web Assets Early

Another early order of business for your fintech is finding and claiming relevant web assets (like domains matching your company’s name and critical variations) before your competitors do. Getting this done while your company is still in “stealth” mode is essential because unscrupulous competitors could rush in to “squat” on those domains once they emerge.

The same thinking applies to social media assets as well. If you’re not careful, you could end up paying a ransom to free up those properties if the squatters are even willing to sell.

3. Make a Detailed Rollout Plan

Make a detailed rollout plan before you announce to the world that your startup is open for business. Your rollout plan will be narrower than a general business plan, which your startup should also have. It should focus on the sequence of events surrounding your emergence, including getting your website and social media accounts live, opening up sign-ups or downloads to a general audience, media outreach, and much more. 

4. Sign Up Early Adopters & Build a Waitlist

Before or immediately after your public rollout, sign up early adopters and open up your waitlist. These early sign-ups will help your fintech startup during its next fundraising round, whenever it comes. In the meantime, they’ll also contribute to a sense of internal and external momentum that propels your team forward and creates “network effects” for mass adoption.

5. Don’t Rush the Minimum Viable Product

One of the biggest mistakes made by software startups, including those in the fintech industry, is rushing their minimum viable product out the door before it’s truly feasible. In other words, they focus on the “minimum” and lose sight of the more critical “viable” aspect.

If you don’t have direct product development experience, hiring seasoned product developers and managers as early as possible in your startup’s growth is a viable way to avoid this trap. With this internal expertise, you’ll have a better shot at creating a fully functional solution on the first try.

6. Focus on Specific Use Cases to Start (Unless You’re Solving for a Universal Pain Point)

Don’t try to do too much with your fintech solution. It’s tempting to address a wide range of use cases right from the start, what with not wanting to put all your eggs in one basket that may or may not work out.

But, like rushing a minimum viable product out the door before it’s feasible, this could turn out to be a trap. In a crowded, competitive industry, it’s better to do one or two things well than to try to do 10 or 15 things just OK. The second route could damage your reputation beyond repair before your company has a chance to prove itself.

7. Build a Robust, Responsive Customer Service Platform

Many fintech companies have a blind spot when it comes to customer service. Maybe it’s because they trust technology too much or have unrealistic expectations about their users’ ability to solve their problems. Whatever the cause, investing in a robust and responsive customer service platform can set your fintech apart by cementing its reputation for treating its users right.

Nail the First Impression

Seasoned venture capitalists like Steve Streit know how crucial it is to make a great first impression. They also know that many early-stage fintech companies are so focused on meeting the next milestone that they lose sight of this all-important goal.

Fortunately, nailing the first impression is mostly about getting the basics right. You’ll be on your way if you can implement these seven tips to make your fintech startup stand out. But remember: Do-overs don’t really exist in business. It’s up to you to get it right the first time.

Published by: Martin De Juan