Should Fintech Companies Localise Their Products and Procedures?

Author: Eddie Scott
Published: February 22, 2021

With the world fast heading towards global connectivity, the Fintech sector seems to be on a promising path. True to this, the industry is on the right path with research indicating potential growth totalling to $305 billion by 2025.

However, just like in any industry, Fintech and adaptation for different markets should go hand-in-hand to ensure it reaches full potential. The sector already runs different from the legacy systems commonly found with traditional financial institutions, and this calls for localisation services to come into play. 

Understanding the need for Localisation in Fintech

Fintech companies stand out with their use of dynamic technology, fast-growing pace and tech-savvy employees. As such, the companies also get to conduct their operations in totally different ways that are different from traditional institutions. As a result, its language adaptions need to be expansive to cater to its global audiences.

But, there’s more to why Fintech should care about localisation. Here are five reasons that show why localisation matters for the Fintech industry.

1. Better Payment Services and Systems

Already, almost 70% of senior banking executives consider Fintech a critical choice for the future of banking. That means the finance sector expects to rely on Fintech to boost its future growth.

Localisation can help this type of technology to make financial services more accurate and efficient. How? Well, issuing invoices, channelling payments and getting communication to customers are the leading areas that will gain with localisation to the native language.

2. Boost Rate Of Approval

The localisation of a Fintech product significantly reveals a company’s ambition to be there for all its customers regardless of language or geographical barriers. That increases a business’ credibility score among the customers who stand to benefit the most from the personalised user experience.

As a result, the success from the credibility builds you a reputation for the brand in many ways. Primarily, there is the building of trust among your customers which is vital since they depend on you to handle their finances.

3. Greater Convenience For All

In the world of Fintech, convenience is the ultimate goal to achieve for the sector players considering the sheer number of transactions and individuals in the industry. As of 2019, Fintech investments worldwide hit 33.9bn USD, a showcase of how much is at stake in terms of transactions.

When done correctly, localisation stands to excel and offer greater convenience for both the customers and the business also. For example, with professional language experts, a Fintech business can understand its target audience from the start.  This is plus the convenience of getting to adapt and tailor-make your content to reach your potential customers.

4. Better Regulatory Compliance

According to PWC research, compliance ranks as one of the top challenges to Fintech growth. However, localisation comes in to play an essential part in getting a Fintech business to achieve local compliance. For starters, localisation will help provide all of the business information in the native language, putting the business in favour of the local public and authorities.

You would also have to consider that localisation puts the Fintech business with the odds in their favour. Chances are communicating in the native language allows for authorities and individuals to read and understand all the necessary information regarding the Fintech company.

5. Moving Forward

With globalisation, localisation is bound to become an essential part of the growth and expansion of the Fintech industry. Already the fintech adoption rate stands at 56% for the banking and payment systems working under SMEs with more growth on course. Rightly so, this is a showcase of why Fintech should care about localisation if the goal is expansion and development to a global reach.

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