Leverage Strategic Partnerships to Grow Your Fintech Solution

Ghana’s Financial Technology (FinTech) industry has witnessed remarkable growth in recent years. This growth is largely driven by an effective regulatory landscape, technological advancements and the increasing adoption of digital financial services. As the industry grows, the need for partnerships and collaboration among industry players becomes apparent each day. This is because, to successfully deliver digital financial services at a cost effective, market competitive price, reducing operational costs is fundamental. Once the cost of developing the solution is low, a Fintech company can deliver a service at a cost that is cheaper for customers. Lower operational costs can also promote innovation and efficient resource utilization.

For Financial Technology service providers, leveraging shared infrastructure and existing solutions that facilitate interoperability helps them beat down costs. They don’t have to reinvent the wheel or start from scratch or even spend money on an activity like customer insight research, when they can depend on other players for the same data. Finding and forming the right strategic partnerships is one sure way of securing your seat in this competitive and fast growing space.

By strategic, I mean partnerships that foster growth, healthy competition and mutual benefits for all parties. One that encourages operational efficiencies and drives down costs; while finding creative ways of leveraging the strengths of many players in the industry to create understanding, promote usage and adoption.

Partnering with other players in the space grants access to a broader customer base, creates convenience for users and provides players with the opportunity to deliver value added services.

The partnership between mobile money companies and some banks for example, is what gave birth to the micro-loan services customers enjoy on mobile money. Similarly, the collaboration between mobile money companies, banks, Fintech and GhIPSS has enabled customers to move money to and from their bank accounts to different wallets and vice-versa. Collaborating and forming partnerships cannot be overemphasized or underestimated.

As the industry continues to grow and new Fintechs emerge with new solutions, strategic partnerships will continue to play a role in the success of the FinTech industry. Most Fintech startups have limited resources but the innovation they bring to the table can help a traditional bank boost its digital product offerings. Similarly, Fintechs can benefit from banks' longstanding trust and operational resilience built from their decade-plus experience in the financial services industry. How do Fintechs entering the Ghanaian market ensure they make the most of opportunities presented by strategic partnerships?

• Identify partners whose offerings align with your FinTech solution. Every solution is designed with a target audience and use case in mind. Look for partners that can add value to your product and help you reach your target audience.
• Make sure the vision for your product aligns with that of your partner: Successful partnerships are built on a shared vision and mutual goals. Before you agree to any partnership agreement, clearly articulate what you want to achieve through the partnership. Do your research and make sure your potential partner does not see you as a competitor. Both you and your potential partner must know how to leverage each other’s strengths to achieve your desired goals. Aligning objectives from the onset of the partnership ensures that both parties are working towards a common purpose. One that enhances the chances of long-term success.
• Know the value your solution brings to the table: When approaching a potential partner, emphasize the value that your FinTech solution brings to the table. How does your service improve what your partner is already doing? How will their customers benefit from your solution? Is your solution going to create competition for your partner or is it going to help them solve a problem? Demonstrate how the partnership can benefit both parties and their respective customers. Ultimately, emphasize the win-win nature of the partnership.
• Explore how the partnership will allow your Fintech Company to leverage the pool of human and technological resources available: Explore how you can tap into the expertise of your partners. For instance, a bank partner can provide financial resources, regulatory guidance, and industry knowledge. Similarly, a partnership with a mobile money company can offer customer insights. By sharing resources and expertise, you can improve product development, enhance customer experience, and overcome operational challenges that might hinder adoption.
• Understand local regulations and market dynamics: Ghana, like any other country, has its own regulatory landscape and market dynamics. When forging strategic partnerships, ensure that your solution is aligned with the Bank of Ghana 's regulations and can address the specific needs of the Ghanaian market. Make sure the potential partner complies with the Bank of Ghana’s directives on the solution both of you are collaborating on. When in doubt, reach out to the Fintech and Innovation office of the Bank of Ghana. Collaborating with local partners who have a deep understanding of the market and are compliant with the Bank of Ghana’s guidelines can help you navigate regulatory hurdles, cultural nuances, and customer preferences more effectively.
• Continuously monitor and evaluate the partnership agreements: As with any business agreements or partnerships, it's essential to continuously evaluate the effectiveness of your partnerships and make the necessary adjustments. Review the partnership performance regularly against the defined objectives set beforehand. Identify areas for improvement and take the needed actions to correct them. Foster open communication and collaboration with your partners to ensure that the partnership remains aligned and mutually beneficial.

The opportunities to partner and collaborate with existing players in the market are enormous. Do your research and make the most of the available market opportunities to grow your solution. The market is fertile. If your Fintech solution solves an actual problem, it will succeed. Always remember, the adage "no man is an island" is very relevant for growth in the Fintech Space.