Why partnerships are key for growth in FinTech?
Growth Gateway: What Do Partnerships Mean in Fintech?
All successful companies have at least one thing in common: they are backed by a far-reaching network of strategic partnerships. Walking alone won’t be as efficient in almost any business, especially if you’re running a startup. At the same time, a lack of a well-thought-out, multifaceted infrastructure is one of the most hard-hitting challenges aspiring fintech firms have to face.
A few years ago, Mercuryo started building its payment infrastructure from scratch. From a small, ambitious startup, we’ve grown into a well-established company with over 1 million users and more than 200 partners. We’ve learned all the ins and outs of strategic partnership building from scratch and ready to share a few key takeaways.
Keeping Your Options Open
What do you think works better: mapping out a detailed plan and sticking to it, or keeping your options open? Today, if you want to achieve something extraordinary, you need to stay flexible and choose a dynamic partnership strategy. So what exactly does it mean?
Let’s say you’re running a crypto-related project. After a while, you might feel like your partnership opportunities are getting slim, but in reality, that’s hardly ever the case. All you have to do is look beyond your usual circle and search for new collaboration ideas, not limiting yourself in any way.
When we started planning our networking goals at Mercuryo, we realized that all kinds of projects could take advantage of our solutions, from fintech firms and neobanks to DeFi and NFTs. While fiat-to-crypto rails are perfect for classical crypto businesses such as wallets and exchanges, various DeFi platforms, dApps, and DEXs can also use Mercuryo’s soon-to-be-released Crypto SaaS service.
Crypto SaaS enables companies to manage crypto transactions without handling compliance, monitoring, or licenses. It allows their users to open a fully-featured bank account, turning these companies into neobanks themselves. Neobanks do not always have an option of selling cryptocurrency to their users, but Crypto SaaS solution allows them to operate with fiat and digital assets simultaneously.
Stay Active and Transparent
Your products and services will eventually evolve or transform over time, and so should your partnerships. Normalize revising your business relationships, regularly discuss new opportunities, and keep everything transparent, agreeing on the terms from the get-go. At Mercuryo, we’re practicing full transparency at every stage of relationship development, encouraging feedback, and offering our advice. A few years in the industry, we’ve gained deep expertise in payment methods, financial operations, global cryptocurrency legislations and often act as consultants for our partners. Along with that, our clients are free to offer their suggestions regarding our current products, or share their ideas of what services they would like to see. This way, we strengthen our partnership and improve the product at the same time.
Apart from being transparent, you would want to stay in touch and regularly update your partners on all the current offerings and products. The more effort you put into sustaining good relationships, the better your results will be.
While keeping the eyes on your desired outcome, focus on your partner’s needs first: after all, reciprocation is the final goal of any fruitful partnership. Mercuryo’s products are already beneficial to various market players as we offer essential services covering the crypto market’s demand for fiat rails. And yet we still collect feedback and use it to improve our performance.
At the same time, when looking into reaping benefits, consider alternative rewards too. Instead of focusing on the immediate profit, always think long-term. Your partners, more than anyone, can give your brand more visibility, raise awareness, and bring in new customers.
Start Building Your Network
Strategic partnerships often help spontaneously develop a wider network of connections, and in our practice, we’ve witnessed a few cases like that. We often come across clients looking to integrate some of our products like Widget or Fiat In&Out in accordance with all the legal requirements or simply searching for a trusted KYC provider. In this case, we always recommend SumSub, an automated compliance solution that we closely work with.
Concurrently, Mercuryo’s long-term partners often recommend us to their clients who might be or already are interested in our solutions. For instance, only a week after we integrated the Mercuryo widget with Bancor, the trending DEX protocol introduced us to Polygon, another decentralized protocol interested in adding our on-ramp functionality for its tokens.
The bigger your network is, the greater your possibilities (as well as responsibilities) get. Make sure to keep your partnership structure organized, set up the dates when you check up on specific companies, and ensure your communication is transparent. In the long run, the hard work will pay off.
Offline Events and New Perspectives
If you’re only at the very start of your network-building journey, you probably wonder how to land your first deal. In the world of fintech, conferences, forums, even hackathons are the networking gold mine. A couple of years ago, when offline meetings were still a thing, it was way easier to meet your potential partners. These days, things got trickier.
Although social media makes a perfect networking channel, nothing can compare to real-life events that unite hundreds or thousands of people bound by a common goal. And when you work with finance, offline meetings and face-to-face interactions are a must. They help with building trust and speed up the negotiation process.
Once offline events go back in fashion, consider visiting various fintech conferences and meetups. One real-life introduction can save you a vast amount of time that you would spend reaching out and establishing a solid connection with the right person via social media. And when you grow your network a little and become confident enough to break new grounds, why not organize an event yourself? Ensure to uphold the industry standards and make your gig stand out. We’ve tried it once and the results surpassed our wildest expectations.
The Bottom Line
In fintech, partnerships mean growth. Although the industry is still in its early days and lacks decent infrastructure, the networking possibilities are endless. Considering the specifics of this environment where most of the startups are ready to create together, strong long-term relationships are easier to achieve.
Fintech is all about infrastructure and cooperation. From payment systems to digital wallets and KYC providers, everyone is interconnected and happy to make some useful introductions. If you want to maintain solid relationships with all the key market players, prioritize your business relations, become an active, valuable member of the community, and stay flexible.