A key to Fintech company success is being purpose-driven

Austin MacNab is the CEO and founder of VizyPaya payment processing fintech with transparent, money-saving services for small businesses.

To succeed in today’s fiercely competitive market, fintech companies must have a clear purpose that extends beyond the bottom line. That purpose should be the north star that guides the company’s direction. Fintechs that take the time to build a strong sense of purpose in their businesses can positively impact business growth, competitiveness and innovation.

The purpose’s why

The Harvard Business Review defined organizational purpose as “an aspirational reason for being that inspires and provides a call to action for an organization and its partners and stakeholders and provides benefits for the local and global community.”

Simply put, purpose is the reason a company exists. Clearly defining this purpose can help fintech companies stand out from the competition, meet company goals and shape corporate culture. This sense of purpose can also guide decision-making and serve as a road map for overcoming business challenges and navigating market changes.

Most fintech companies recognize the importance of the company’s purpose, but have varying degrees of commitment to the purpose. A survey of fintech companies by Pathward found considerable variation in the degree of commitment companies have to their stated purpose. Slightly more than half of respondents (51%) indicated that purpose drives their strategy but has a minor role in day-to-day decision-making, and 26% said they embrace purpose culturally but do not leverage it to drive strategy. or business operations.

Fintech companies can elevate their commitment to their purpose by following several key steps to embed purpose into their DNA.

Steps to make purpose part of the company’s DNA

Step one is to clearly define their purpose in simple, impactful language. To contribute to this, managers of fintech companies should think about what inspired them to start the company, which issues they are passionate about and which values ​​reflect the company. Feedback from employees, customers and other stakeholders can help determine how well the defined purpose resonates.

Next, fintech CEOs and founders should consistently communicate their company’s purpose and ensure that everyone across the organization understands that purpose. This is especially important for millennial and Gen Z employees who want their work to contribute to a higher purpose and are more likely to work for and stay with fintech companies that have a clearly defined purpose. Fintech company management can help employees understand how their work contributes to the organization’s purpose by discussing the topic in team meetings and encouraging employees to ask questions. The Pathway survey revealed that three of the top ways fintechs reinforce their purpose is through educational materials, leading by example, and email and newsletter updates. The result of this communication strategy should enable employees at all levels of the company to speak up by consistently leading in a targeted manner in all customer interactions.

Another key to making purpose part of the company’s DNA is to align the company’s strategy and decisions with purpose. Business leaders should incorporate purpose into product development, corporate guidelines and social responsibility initiatives. Keeping purpose at the forefront of operations internally can help fintechs deliver with purpose externally.

Finally, incorporate a purpose-driven approach to hiring. That means hiring candidates who share organizational values ​​and beliefs. This approach builds teams that are committed to the company and engaged in their work.

Advantages of being a purpose-driven Fintech company

Although becoming a purpose-driven company is an ongoing process, it pays dividends in many ways. First and foremost, it makes the work more meaningful. For example, at my company, VizyPay, employees at all levels feel that the company’s purpose of championing small businesses is the most rewarding aspect of being part of the company.

Being a purpose-driven fintech company also attracts top talent. That’s crucial for fintech companies vying for talent in this fast-growing industry. A report from Barclays noted that for the first time talent acquisition is cited as the second most pressing issue for fintechs across EMEA, APAC and the Americas.

Fintech company growth can also be accelerated. According to Deloitte, “purpose-driven companies experience higher market share and grow on average three times faster than their competitors, while achieving higher employee and customer satisfaction.”

An Ernst & Young report found that “companies with a strong sense of purpose are better able to transform and innovate. Leaders who treat purpose as a core driver of strategy and decision-making reported greater ability to drive successful innovation and transformational change and deliver consistent revenue growth.” That’s an important advantage for fintech companies operating in a hyper-competitive, fast-moving and evolving industry.

Success for fintech companies today is strongly linked to a commitment to purpose. Purpose-driven fintech companies can attract top talent, accelerate growth and increase business agility and innovation. As these benefits accumulate, it is clear that fintech company winners will be the companies that best define and operationalize their purpose.

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