At a recent Fintech Finance Awards, hundreds of Fintech firms were chosen for the prestigious awards. Out of these, 18 fintech firms were chosen as winners observed Bahaa Abdul Hussein. These firms were exceptional in providing top-class fintech solutions in their respective sectors. However, an expert who was part of the event, put forward that, though they were exceptional in what they were offering, the challenge they were facing was their inability to scale globally. Why so? Is it because of the lack of marketing or funds, or is there something else? Let’s understand the reasons for their inability to scale globally.
Challenges Fintech Firms Face To Scale Globally
Here is a list of a few challenges that are responsible for hampering the growth of Fintech firms globally.
Fault In The Fintech’s Business Model
Often, fintech firms devise their business model catering to local needs. The lack of an international vision is the reason for its incapability to expand globally.
Market Experience
Extensive experience in the market is key to gaining the trust of local and global customers, be it any company. If the firm’s and the founder’s experience are not that impressive, it could severely affect the global expansion of the company.
Funds
Access to funds is key for fintech companies to grow within the region or elsewhere. Without funds, global expansion is difficult.
Regulatory Challenges
There are different regulatory frameworks in different parts of the regions. Some countries have fintech-friendly frameworks and some have frameworks that make it hard for fintech firms to expand in their regions. Having uniform regulation is the solution to this problem and without that global expansion can be difficult.
Cultural Differences
Cultural differences are often reported as a key challenge for global expansion. Every country is unique. It has its own way of doing things. It has a unique business environment. If the fintech firms are unable to blend in with different cultures of different regions, then global expansion is unlikely. Most fintech companies face this challenge.
Acquiring The Right Talent
In recent times, remote work has enabled many companies to hire people from different regions of the world. However, finding the right person for the job is still a major challenge for many fintech companies.
Conclusion
Many fintech firms offer excellent fintech solutions but are unable to scale globally. Lack of funds, cultural differences, getting the right talent, and regulatory challenges are the major reasons that have hampered their global expansion. Fintech companies who work on these can reach their global ambitions.
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