FinTechs remain vulnerable to the pandemic, despite resilient 2020 performance. The market is slowly becoming crowded with commoditized offerings versus proposals for unique services. Large VCs seek differentiating FinTechs with a keen understanding of unique large-market issues and diverse offerings.

What are investors looking for?

FinTechs are popular, yet few are profitable. For long-term growth, mature FinTechs must follow a phased approach:

• – Diversify offerings and business models
• – Orchestrate an ecosystem or join multiple ecosystems to achieve scale
• – Monetize via a 360-degree approach to boost customer lifetime value
• – Expand into new markets while maintaining a competitive edge.

FinTech trajectory to diversify, orchestrate, monetize, and expand growth potential

As FinTechs chase profits, competition in the financial services industry heats up, putting intense pressure on incumbents. It’s no secret that customers are dissatisfied and frustrated with their primary banks.

Is there a silver lining? Customers continue to trust traditional banks. What’s more, 68% said they would try a digital-only bank operated by their primary bank. Incumbents need to leverage strengths (trust) while shoring up weaknesses (CX) to remain relevant.

Where do bank customers face friction?