How EU Fintech Companies Can Enter New Markets
Amsterdam is currently in the top five best European cities for fintech companies (based on demographics, talent and innovation, affordability and business environment, and green finance). TransPerfect’s financial services group understands how fintech companies can enter new markets, and can offer a unique perspective on the direction of the fintech space, including where fintech is finding a new foothold for growth.
The fintech market continues to grow; the current global market is valued at around €120 billion and expected to reach over €900+ billion by 2030. The stakes are high but so is the potential.
Despite the forecast for substantial, rapid growth in the industry, the strategic questions remain for any fintech company: what should be our next move? How do we reach our future audience? Do we need to change our offerings based on region or country? Are we focusing on the right markets? How do we engage with emerging markets? These are all valid questions.
Beating the Boardroom Sessions
New market entry depends on evaluating fundamentals of the business and preparing a healthy assessment. This can be done over several dedicated boardroom sessions where the team defines the market opportunity, business capability, and plan for execution. The result of these meetings should be a map of the route to success.
Session 1: New Market & Risk Assessment
- Research on market potential
- Research on potential markets and barriers to entry
- Research on regulatory perspective
- Risk analysis and decision making
Adyen CEO, Pieter van der Does, mentioned in a podcast that they were able to directly target high-end companies as a result of building a high-quality product. They created a culture within the company of working from 09:00 to 17:00, where everyone picks up the phone and talks, pivoting away from email. One of their biggest challenges was the lack of volume in payment, which they needed in order to scale and consider new market entry.
From Global to Local
The global perspective (and current position) that your organization holds is the natural starting point when evaluating barriers to entry. From there, assess differentiation factors and how to distinguish yourself in potential new markets, then weigh opportune investments or partnerships that would strengthen the offering or shore up regulatory gaps.
As an organization, doing something new, specifically entering new markets, requires partnerships to support new capabilities. When it comes to international markets, speaking the right language and supporting the localization implications at scale is a critical piece of the strategy.
Data enhances the conversation, allowing you to tailor the approach to new market entry. Following the first session, groups should next dive into the details behind the new market entry. With a new market goal and opportunity in focus, the next session should consider the set of content models and mixtures synchronized to your technology stack. This could be a user’s case for repetition: what did you do in the past, and is this fit for the market you are potentially aiming for? In short, determine the perfect fit for you. This might be speed, agility, or something else.
Session 2: Business Capabilities
- Market entry strategy
- Content matrix, model, and mixture
- Coordination, planning, and goals
- Partner and vendor selection
Did you know? Revolut appointed a CEO named Glauber Mota in Brazil to target the emerging market. Revolut aims to make Brazil a more financially inclusive country by offering their solutions that will allow Brazilians to do banking in 150 countries using over 25 global currencies.
Revision and Feedback
Finally, with the organization’s new market goals and capabilities/gaps assessed, the third session serves as a pressure test to map the path forward. Will our new market entry be successful? Are we aligned in terms of the idea and execution, and does this resonate with the results expected? In this session, you will determine details of the execution, and agree on the next steps.
Session 3: Revision & Execution Plan
- Results from Session 1
- Results from Session 2
- Tying the end back to the beginning
- Execution and final decision-making
In short, the ultimate goal is to make your new market entry as a fintech a well-planned journey, structured and coordinated around the organization’s product or service and supported by effective partnerships with suppliers.
Are you ready for your next move?
Email firstname.lastname@example.org to make your market entry future finance fit.