Moorwand reports £1 mn in additional revenue generated by FinTechs
By Joy Dumasia
Moorwand, a payments solution provider, launched a report that reveals FinTechs who outsource to specialist partners generate nearly £1m in additional revenue.
The report ‘Specialists vs generalists: How do fintechs fuel growth?’ explores why FinTechs outsource to third parties, the importance of outsourcing for FinTech growth, and the impact of working with specialists or generalists on FinTech businesses.
Moorwand commissioned an independent study of 75 senior decision-makers at FinTech firms across France, Germany, Ireland, Lithuania and the United Kingdom. The study features leading technology providers and consulting firms, including FN1X, GPS, Pannovate, Polymath Consulting, Ozone API and W2.
FinTechs outsource to quickly and efficiently build out their capabilities and expand into new markets and customer sectors. User experience is one area that nearly half of FinTechs outsource, and 84% see as ‘business critical’. With almost a fifth, 18% of total FinTech budgets dedicated to outsourcing, selecting a partner is a significant business decision.
Established FinTechs outsource more than their younger counterparts; when it comes to loyalty and reward programmes, 35% of younger FinTechs outsource, versus nearly double 67% for established firms. FinTechs that use specialists reports additional revenues of almost £1m due to their choice of an outsourcing partner. And looking to the future, 75% of the FinTechs planning on changing how they outsource plan to use specialist providers.
Vicki Gladstone, CEO and COO at Moorwand, said: “For a long time, the FinTech sector was characterised by the idea of disruption and competition. As the industry matures, propelled by the arrival of Open Banking, BaaS and more recently, Embedded Finance, the focus has shifted to collaboration to drive growth. The research demonstrates that outsourcing is helping firms to improve the customer experience, expand into new markets and customer segments, and launch new products and services.”
Recently, IBS Intelligence reported that Alternative financial solutions provider VIALET has selected UK-based Moorwand as the issuer and BIN Sponsor for its new credit product.
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