The decision to take your FinTech Companies global is fraught with opportunities and risks. You’ll feel the pressure to make the best choices with regards to a number of issues. Here are 5 major ones to contemplate.
Get Comprehensive Insights into the Regulatory Environment of the Country
As one of the world’s most highly regulated industries, financial services have to contend with multiple barriers to entry, the most challenging being the different regulations related to tax, labor and employment. Though some countries, such as Switzerland – which recently issued a FinTech regulation with lower regulatory provisions – and London – which currently has the friendliest FinTech regulations – are making it easy for firms to expand globally, other FinTech hubs are yet to follow suit.
The counsel of an experienced local adviser is valuable in making informed decisions and avoiding any breaches that could result in monetary loss. An understanding of the implicit cultural best practices of the foreign country is also necessary to ensure that you don’t take any ethical missteps along the way.
Brainstorm on the Ideal Localization Model, Aligning it with your Capabilities and Vision
Let’s discuss localization in the context of the business structure you want to adopt and how you can plan your online presence.
It’s advisable to invest time in assessing the advantages and drawbacks of various business structures that can help you scale up to overseas markets within a targeted timespan. In this case, the maxim ‘start small, dream big’ may not apply to all FinTech companies.
As far as your website is concerned, it’s essential to offer your overseas audience localized websites accurately translated to their native languages, with the same look and functionality as your original website. This consistency will also be helpful in keeping website development and maintenance costs low.
Familiarize Yourself with Local Customs and Cultural Nuances
Navigating the local language and customs of a country is one of the biggest challenges faced by FinTech companies on a global expansion drive. Besides becoming familiar with local cultural customs and references, your human resources team may also want to initiate cross-cultural training that enables global teams to interact effectively and harmoniously with one another.
Relationship-building needs to be a priority; by encouraging mutual trust and respect, it can help drive productivity and efficiency, which in turn can support your revenue goals in a meaningful way.
Access to Qualified Talent
Surveys and reports indicate that start-ups in the FinTech sector are unable to meet their need for suitable talent to move full-speed ahead with their operational and strategic goals. Evaluate the demographic characteristics of the local labor force, such as educational and experience levels, to ensure that you don’t have a tough time recruiting the right talent in overseas markets. Your hires should serve as assets to your FinTech company’s expansion and, not end up as liabilities.
Pursue Strategic Partnerships
A Gallup poll has revealed that people view banks to be the most trusted institutions for protecting their personal data. If you plan to expand to a country that has traditionally regarded banks to be a symbol of stability, you can explore the possibility of partnering with an established bank to build trust for your FinTech company and scale up at a faster rate.