5 learnings for fintech success from the last 12 months

Marqeta has been privileged to work with a diverse range of fintechs and challenger banks across Europe in what has been an exhilarating journey of discovery and innovation. We wanted to share with you some of the learnings, and our Head of Europe Ian Johnson has boiled these down to five crucial considerations that will point you firmly in the direction of fintech success.

1. Speed is essential

Today’s rapid pace of innovation means startups and product development teams constantly need to keep an eye over their shoulders, as there’s a real risk of someone with a bit more agility nabbing your proposition. On top of this, ideas can become outdated before they’ve been anywhere near an API. And then there’s the ever-present pressure from investors to hit revenue milestones. However, whilst it’s vital to launch without delay, it shouldn’t be done at the expense of allowing time to understand the needs of your target audience to ensure proposition alignment.

2. Let your developers test the technology before you commit

There’s no shortage of processing ‘solutions’ for Fintechs but how do you know which one is really going to help your proposition go from drawing board to market? It’s critical that your development team has access to technology that gives you the ability to build, test and launch quickly and then evolve your proposition to meet ever-changing consumer needs. It’s also really important that your developers enjoy working with the platform. Take, for example, Marqeta’s Open APIs and instant-issue sandbox functionality. These are hugely popular amongst our customers, as they create the space to allow innovation and ideas to flourish.

3. Don’t sign up to a contract that could turn out to be a noose

One tragic reason Fintechs fall by the wayside is a failure to take a long-term view on processor contracts, which can often span up to five years. This can be impractical when it comes to the tech world as many propositions need to evolve significantly within a couple of years of launching. Being anchored to a platform that prevents future innovation is a dangerous place to be. It’s equally important to ensure that the right SLA agreements are built in to any contract, as this could influence the level of support you’re able to give your customers. And that’s a reputational issue.

4. It’s time to push back against outdated professional service fees

Business culture is difficult to change but when it comes to the world of financial technology change it must. Many startups are still hemorrhaging cash to partners who charge significant hourly or daily rates for relatively straight forward platform enhancements. At Marqeta, we’re railing against this business model by empowering businesses to develop new cards or launch in new markets on their terms, under a commercial offering that is designed to support startups and fledgling ventures.

5. It’s all about working with partners that support your culture

Fintechs talk the language of possibility. If you want to work with these brave new businesses, then you need to be ready to remove barriers and create the space for innovation. If a startup wants to build something unheard of, the right response is ‘we’ll help you to make this happen’. If that sounds like the culture at your business – it’s certainly the case at Marqeta – then the rewards are potentially limitless. Our culture is about speed and continually challenging convention. It’s why Fintechs want to work with us.

If you would like to discover the power of the Marqeta Open API platform and experience, sign up to your own private sandbox today in minutes.