Growth is the key factor for success as an entrepreneur since the ability to grow fast determines who will be the next and new leading hot startup in the business arena. However, in fintech, incredibly fast growth in a short span of time can pose a significant threat to the newly established businesses instead of profiting them. So, what can happen to your startup if it started to gain traction in an incredibly rapid manner? Read on to find out.
Success is often measured by the speed of startup’s growth, the ability to recruit, and raise capital. Moreover, the capacity to grow is affected by the startup company’s employees, customers, competitors and other external factors.
The increasing need for fast growth among fintech companies can be alarming as outstanding levels of development within a company can only be advantageous when it’s a smart and controlled growth. However, that’s hard to come by. This is particularly the case for fintech entrepreneurs as they work within an environment of banks and regulations. They have to prioritize data security, risk management, and compliance, where attention to detail and efficiency is highly necessary to ensure successful management of their customers’ financial accounts.
Additionally, the banking sector imposes highly strict regulations to protect consumers and small business owners. However, early in June, Central Bank of Bahrain
announced new regulations to create a regulatory sandbox that allows fintech firms to experiment with new business models and products without violation of financial rules. This provides opportunities for Bahraini based fintech companies to expand and thrive within a controlled space. This also means that Bahraini startups can test out their ideas for a given period of time, and can choose whether to continue or stop depending on the results.
Moreover, the Economic Development Board of Bahrain plays a significant role in cultivating and encouraging the startup scene within Bahrain. Apart from its regulatory sandbox that it has launched with the CBB, the EDB also partnered up with fintech incubator and ecosystem builder Singapore Fintech Consortium (SFC), which also contributes to establishing a fintech ecosystem within the Kingdom. Investing within the fintech sector in Bahrain will enable the country to diversify its economy and at the same time drive growth and increase its productivity.
Caution and balance are critical for successful growth. While growing customer base as fast as possible is very important, selecting the right target market and profitable customer base is of more importance. In fintech, companies cannot afford to make mistakes that result from growing too fast. Thus, it’s always better to take it slow, figure out your growth levers, carefully monitor your startup’s progress, without rushing too fast. As the saying goes, “good things come to those who wait.”