Fintech startups and established entities alike can have a great product or service, but successful international reach is out of reach for many providers.
It isn't as simple as launching a new app or cloud platform. There are regulatory hurdles, market differences and cultural nuances, product and service customizations, as well as operational complexities to navigate.
And many fintechs are constrained by limited budgets, limited experience, and limited understanding to effectively expand worldwide, thus they find themselves sitting on the sidelines, as savvier and well-funded competitors gladly take the global field.
But what if these sidelined companies could have a local presence in the countries or regions they seek to serve, without incurring all the costs - along with the risk and hassle - of setting up shop themselves in a new place they’re not familiar with?
That’s where the beauty of partnerships comes in, and Empaxis makes it possible for a fintech provider in one part of the world to establish a physical foothold in another.
And in my 30+ years in delivering professional services for multi-national organizations, including for the banking and financial technology sector, I am a big believer in “boots on the ground.”
Let’s say you’re a fintech provider in North America, and you want a presence in Asia-Pacific, a region that is seeing explosive growth in the fintech sector as a result of rising economies and customers who demand innovative solutions.
If you’re not physically there:
The right partnerships can help investment software and fintech providers in these very areas, providing those boots on the ground resources:
Having a physical presence shows a commitment to the region, instantly boosting credibility and legitimacy in the eyes of prospects.
And the right partner will already physically be in or near the places fintechs seek to serve.
The partner will have an office, local address, and local resources that companies can draw upon to support their global ambitions.
Setting up a new team by oneself in a new country is a huge undertaking, so why not leverage the work that a trusted partner has already done?
To support local customers, fintechs need local talent with the relevant skill sets.
And the partner with a local presence will understand the local work culture and know what it to takes to attract, train, and retain talented team members.
As the partner can tap into established networks to attract top talent and handle all HR responsibilities, ensuring the right team in place, that’s a huge burden removed from the shoulders of a company going at it themselves.
Setting up the necessary IT infrastructure from scratch can be time-consuming and costly.
Fintechs can leverage the partner’s existing infrastructure and provide ongoing IT support.
Fintech regulations vary widely across countries and regions.
The partner, already having an established presence in the respective locale, will have an in-depth knowledge of local laws and regulations, backed by legal counsel and auditors that have validated their practices.
All this helps companies avoid costly missteps and ensure compliance.
Deploying and maintaining your fintech platform in a new environment requires expertise.
And a qualified partner can more seamlessly handle activities like implementation, product or service customization, and ongoing support with respect to the needs of clients in the country or region served.
Building strong client relationships is crucial for success in any market, and virtual, long-distance connections can only go so far.
Even in the world of fintech, the human connection is still desired.
Having a local partner in or near the target market can represent your brand, and they can meet with clients virtually and in-person in the local time zone, and in the client’s preferred language.
Rather than fly long distances to meet in person, stay up into the wee hours of the morning to conduct calls, or deploy a partially effective AI chat bot, the partner is already there to provide personalized support and foster the trust and loyalty necessary to grow.
At Empaxis, we understand the unique challenges and opportunities of fintechs expanding into new countries and regions.
And through our global presence and partnership networks, we actively support tech providers in establishing themselves in new markets, be it the US or UK, Middle East or Asia-Pacific.
Our worldwide presence and established resources, just like those mentioned above, allow investment management software and financial technology companies the ability to establish a foothold in or near the desired markets.
As Director for Asia-Pacific at Empaxis, and in both my current and former roles, I have seen how much better fintechs, banks, and multi-national corporations perform when they ally with strategic partners for their technology implementations and related initiatives.
On part of Empaxis, we can provide:
All our processes and practices are in compliance with the laws in the relevant jurisdictions we operate.
And because Empaxis has already done the heavy lifting in establishing a global presence, fintech providers save a ton of time and resources not having to painstakingly attempt it on their own.
Leveraging a partnership with Empaxis, fintech companies can more easily focus on the necessary product development, sales, and marketing efforts needed to make it in the new locations.
In our last post, we talked about what fintechs lose without an offshore presence, and here we have focused on how they (and their customers) gain with a presence in the respective countries or regions they seek to serve, via partnerships.
Remote work and virtual connections may be the norm in this highly digitized and AI-driven world we live in, but the world is complex, and people still need human connections.
Products and services must be customized, clients must be dealt with according to linguistic and cultural preferences, and regulatory compliance is an absolute must.
Clients and customers like having the option to speak directly with a company and their representatives in a local context, and partnerships with those like Empaxis can make all of those requirements possible.
Ultimately, there is no need to test the international waters at great cost, and in potentially futile effort, all on your own when you can leverage partners and their boots on the ground resources.
Are you a fintech looking for a presence in APAC? The US/Canada? EMEA? Contact Empaxis to learn more.
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