What’s your global expansion strategy?
Global expansion is the ultimate objective for most fintechs. And if you really want to do it effectively, it’s best to consider your global expansion strategy in your early days. Based on our observations from consulting with FinTechs around the world over the past few years, there are a few highlights from the ones who did it right and successfully.
- Navigate the new landscape, including regulations, market research, cultural differences etc. as early as possible.
- Be open minded and tie in global expansion with your company strategy in the early stage.
- Understand your competitive advantage in a global market.
- Be realistic about the pace of your global expansion; it takes time and great patience. Reserve enough budget to support your implementation plan and allow for some failures.
A fireside chat in UK FinTech conference in April 2021, with executives from Strip and Wise reinforced the above highlights in even more granular level which give FinTech companies great reference to consider when crafting a global expansion strategy
- Make going global more than just a wish or priority. Make it a real goal with realistic metrics, deliverables and firm dates for each milestone.
- When you go to any new market, the number one question on everyone’s mind will be how you will provide local services and talent. This is something Strip learned firsthand when it ventured outside of the United States and opened a London office.
- Know the regulatory landscape to ensure you have the right licenses to do business in the region. You will also need to evaluate fixed costs related to complying with regulations and restrictions. Some regions make it easier. For example, if you launch in Africa, Nigeria or Kenya, you probably can operate across the entire sub-Saharan African region.
4. Above all, don’t feel that you have to go for the biggest markets first. There may be more attractive and accessible markets, with easier regulatory requirements or implementation guidelines. These faster, easier wins in smaller markets can help you navigate the same process as you expand globally.
Partner at LYSTAR GROUP
Tracy Lai provides strategic and business development solutions to executives, and entrepreneur. Her professional experience includes work at Fortune 500 companies including Intel and RBS, and startups. Her expertise covers business development, risk management, project management and investor relations, in Financial Services, FinTech, Innovation, Technology and Education. As management consultant and FinTech advisor, she holds multiple senior roles with focus on cross border and cross industry collaboration, including projects in US, Asia and Europe.