Financial technology, or FinTech, has exploded in popularity. Today, some of the country’s fastest-growing companies are part of this industry. So, if you’re growing a company, partnering with a FinTech company could be beneficial. However, you have to keep a few things in mind before partnering with one. Here are a few ways to benefit from a FinTech partnership.
Dodd Frank and The Consumer Financial Protection Bureau
Above all, the biggest obstacle when you’re working with fintech companies is compliance. Since the government wrote laws to control them, fintech companies must play by the rules. Otherwise, they’ll put you at risk of getting huge fines, hurting your bottom line.
So, before you build a partnership with a fintech company, take some time to learn compliance. That way, once you’re ready to enter the deal, you’ll know what to expect. Preparing for the added cost of compliance won’t be such a burden if expected. So, you should make sure you’ve calculated how much it’ll all cost before doing anything.
Then, it won’t be so hard to improve your company’s performance. Since you’ll know how much to expect from compliance costs, it won’t hurt your company at all. Partnering with a fintech company would be beneficial to your business, as long as all that’s true, too.
Financial Compliance Affects Anyone Working in FinTech
Even if you aren’t a fintech company yourself, compliance still matters if you work with one. Before partnering with another company, make sure you’ve read about compliance issues. If you move ahead too quickly, you may not realize you’ve broken any rules, even if you have.
So, don’t rush into a partnership with a fintech company without doing any research. Otherwise, you’ll end up having to do a ton of legwork after starting the new venture.
Even if you’re in another industry, fintech compliance matters. As long as you’re working with one, you’ll have to play by the rules governing them.
You can handle it all by researching stuff online for the most part. The SBA lists a ton of regulatory information on their site, and you can access it from anywhere, too. So, that would be a great starting place if you’re unsure where to begin.
Hiring Affiliates Ensures a Steady Stream of Customers
Now, you should have a better idea about the potential costs of a fintech partnership. Still, you may need to see a few of the benefits of making it seem appealing. The main reason any company has partnered with one is to ensure a steady flow of customers.
Anyone visiting there will see you since you can put an ad on the fintech company’s site. Then, they’re way more likely to stop and see your page after finishing whatever they’re doing.
From there, you could refer business to the fintech enterprise, netting a referral fee. As such, the benefits would be flowing both ways, affecting you and the fintech company. That’s why it has been such a popular expansion route once a company is ready for it.
Partnering With a FinTech Company Could Open New Avenues
Another way a fintech partnership would benefit you is by making it easier for customers to buy. Since they would have access to the fintech platform, they may finance what you’re selling.
That’s the main benefit of affiliate marketing financial services. By getting people to use their platform, they’ll have more to spend at your store. Plus, you could net a fee from the referral, adding more to your revenue. Increasing your overall revenue sounds like a great deal if you’ve never seen it done. Plus, the reality is just as good as it looks on paper.
As a result, you’ll see more prospects converting into customers. Plus, after forming a partnership with a fintech company, attracting customers isn’t hard. Since they’ll list you on their website, more people will have a chance to see you.
Leveraging Online Marketing as a FinTech Company
Partnering with a fintech company has a few intricacies, but it’s worthwhile. As long as you’re building a business, partnerships like this are worth their weight in gold. So, don’t let the complex compliance issues stop you from moving forward.