3 Ways Fintechs Embrace Leadership to Supercharge Growth

The fintech industry has been growing for years, and the pace is only increasing with time. In fact, by 2030, Indian fintech is expected to generate $200 billion in revenue and $1 trillion in AUM. Driven by the ever-changing customer needs and evolving technology, finance business leaders are slowly defining the world of tomorrow. 

 

With each innovation, their companies reshape how people access and consume financial products and services. Given its role in boosting the nation’s economy, many famous finance leaders in India believe traditional financial institutions must adapt. Among these is Sanjiv Bajaj, Chairman and Managing Director of Bajaj Finserv and one of the prominent fintech leaders in India. 

 

“Banking and Finance Sector should adopt the digital approach and partner with the FinTech ecosystem for effective growth,” he says when asked about the outlook for the future. In fact, the shift is a lot clearer today than it was just a few years ago. As per the data, out of 108 unicorns established till May 2023, nearly 20 were in fintech, making up about 20% of this space. 

 

Naturally, their rise points to the fact that their leadership is doing a few things right. But what? Read on to find out. 

 

1. Defining the C-Suite and Assigning Roles Clearly

Considering the disruptive capabilities of a fintech enterprise, it is important to have the right team members in place. In fact, the regulations on these companies force them to meet certain leadership standards, but there is internal motivation, too. For success in this space, these fintechs need leadership to set the tone, so they usually have a defined c-suite, if nothing else. 

 

It is common to find that these fintechs, even as startups, will have a CFO, COO, CRISK, CDO, and a CTO, at the very least. Data shows that over 50% of fintechs have these leaders in their employ, among other roles that aren’t mentioned. This defined C-suite is important for many reasons, but mostly because they make high-stake decisions and are core pillars of the organisation.  

 

2. Giving Platforms to Leaders That Prioritise the Customer 

Throughout the evolution of fintech, a common aspect is that the innovations and solutions are customer-centric. This is usually the vision of the leadership, which is why the right finance business leaders must get the platform. While some operate at a deeper level to leverage technology and innovate, others are visionaries who sell the idea to the masses. 

 

Whatever the role, leadership must be willing to focus on what’s important, which is the customer. They need a proactive approach towards customers’ needs and develop solutions accordingly, if within their capabilities. Else, simply communicating that solutions are in the pipeline or eliciting feedback is what’s needed, and it is what famous finance leaders in India do. 

 

An example of this mindset in action was displayed by Axio’s founders, Sashank Rishyasringa and Gaurav Hinduja, who didn’t shy away from stating the intent clearly. Their goal was to deliver better access to credit, and the solution that took the market by storm was checkout finance. 

 

“The big shift has been to go from thinking about products as building blocks to thinking of customers as building blocks. Checkout finance is the beginning of a relationship; it’s how we acquire customers and how they discover us. Once the customer uses us to finance one purchase, our aspiration is to grow to meet other, larger, needs as they arrive”, says Sashank Rishyasringa. 

 

Here, it is clear that the wheel keeps turning, and the customer is always the focal point, especially for the leadership. This is a key marker in the of fintech leaders in India, especially those rising through the ranks.  

 

3. Employing Progressive Individuals to Further Reach and Scope 

Fintech has been around for years, but the initial growth of the sector was not as rapid as it is today. The 2007-08 financial crisis and the Covid-19 pandemic were a few of the catalysts, but another factor was leadership. It is very likely that traditional leadership would have been able to keep up with the pace of change needed to stay relevant in a post-pandemic arena. 

 

However, progressive leaders were in their element, ready for change and raring to go, even if it meant redefining all working protocols. In fact, this was most noticed in fintech as finance business leaders realised that the incumbents were in an adapt-or-flounder situation. 

 

Lockdowns and restrictions brought entire systems to a grinding halt, and the way forward had to be more modern. This is when the progressives of the lot took the opportunity to revolutionise banking, and they did. 

 

In fact, in an interview, Sanjiv Bajaj pointed out this shift and why it matters. He said, “I believe there is a greater opportunity for the incumbent to leapfrog on the back of these technology advantages of startups by way of collaboration in new ways and build a new avatar of lending, insurance and investments.”

 

In fact, some of how fintech firms are growing and evolving banking, under the right leadership, are as follows:

 

• An unwavering stance of boosting financial inclusion through technology
  With ever-changing consumer needs, technology is ever-evolving too. As such, technology is among the most significant factors driving the growth of fintech. Some of the major changes and adoptions made in the banking sector are the advanced self-service features. These provide customers with autonomy towards the financial products and services they need.

 

• Stricter deployment of security protocols and adherence to regulation
  Security, or rather cybersecurity, is a critical concern for top famous businessmen and consumers. As such, many famous finance leaders promote their investment in technology that aids in offering secure, safe, and accessible solutions to consumers.
   

• Enhanced focus on emerging markets 

Given the ease and accessibility of the solutions offered by fintech firms, they are becoming increasingly popular and in demand everywhere. This growing acceptance and demand enable fintech leaders to tap into new markets and boost inclusion as a whole. This ultimately results in the growth and evolution of the industry.

 

While fintech firms have levelled the playing field, much is still needed. That said, top famous businessmen in the financial industry also learn from these fintechs and retrofit their solutions wherever possible. The relationship is becoming symbiotic, and this is good for growth in the long term.

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