According to a recent survey of 100 fintech product specialists by Pixels and Sense in partnership with Everly.eu, only 60% of fintechs are product-led. This means that the majority of fintech companies are not prioritizing their product offerings in their overall business strategy.
This is surprising, given the competitive nature of the fintech industry and the importance of having a strong product to attract and retain customers.
Why is being product-led important?
Product-led fintechs have an advantage over their counterparts because they are able to quickly iterate and improve their offerings based on customer feedback and market demand. This agility can give them a competitive edge and help them stay ahead of the curve.
Fintechs that are not product-led may struggle to keep up with the pace of innovation in the industry and risk losing customers to more nimble competitors. In order to remain relevant and successful, fintechs should prioritize their product development and make it a central part of their business strategy.
The future is not as dark as It may seem.
Whilst about 40% of fintechs don’t have a dedicated product budget, over 80%
are expecting to increase their product investments in the next 6-12 months.
Where will fintech companies invest in 2023?
Mobile banking apps are expected to provide consumers with the ability to perform all of their financial tasks. As such, smart players in the financial industry are adding more features to their apps to meet consumer expectations. However, it can be difficult to determine which features to prioritize in order to provide the best user experience.
Here are a few product ideas on what to focus on in 2023
Personal Finance Management
Help clients manage and save money by providing a seamless budgeting experience within your app based on accurate enriched payment data. This can provide added value for your clients by giving them a better understanding of their financial situation. Allowing them to make more informed decisions about managing their money and ultimately helping them achieve their financial goals. Additionally, PFM tools can help customers identify areas where they may be overspending, enabling them to make adjustments and save money.
Tracking of recurring payments
For banks, It can help better understand their customers' spending habits and identify potential issues, such as fraudulent activity or difficulty making payments. In terms of clients, tracking recurring payments can provide a better understanding of their overall financial picture. This includes any regular expenses that they may not be aware of. Additionally, tracking recurring payments can help customers avoid late fees or other penalties by providing them with a clear overview of their upcoming payments.
Operate discount programs and cross-sell based on the analysis of transaction data. Combined with interesting discount offers in the form of cashback when paying by card, ie without the use of coupons and loyalty cards. This feature will not only increase the engagement rate within the banking app but also provide new revenue streams.
Display of Enhance Merchant Data
In early 2021, Mastercard implemented revised rules for its card issuers in Europe. It is called AN 4569 Revised Standards for the Display of Enhanced Merchant Data. These standards require card issuers in selected countries to provide enriched payment data. This is a new requirement for all card issuers within the global payment network, with a deadline to comply by October 2023.
Green banking products and carbon footprint
Help clients become carbon-free and sustainability aware by providing carbon footprint measurement on a transaction level, to drive greener spending.
What will the future of fintech hold in Simon's view?
"At Dateio, we are committed to building strong partnerships and collaborating with other fintech companies," Simon added. "We believe that this is the key to driving innovation and staying ahead in the rapidly evolving world of fintech."
To learn why only 60% of fintechs are considered to be product-led, download the complete Fintech Product Benchmark Survey 2022 results report.