A US-based fintech company owing to an accurate assessment of its market position was able to identify areas for improvement and growth opportunities.

A fintech company recently embraced cryptocurrency to provide innovative financial services and solutions to its customers. However, the competitive landscape restricted customer acquisition and retention. The company turned to RNPL analysts to conduct a thorough competitive analysis and benchmarking study to develop sustainable growth strategies and expand the customer base.

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An overview:

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The fintech company recently started a cryptocurrency exchange platform, allowing users to buy, sell, and trade various cryptocurrencies.

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The platform offered features such as order matching, liquidity provision, and secure storage of digital assets.

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It also developed digital wallets which enabled users to store, send, and receive cryptocurrencies securely. However, owing to the presence of an extensive competitive landscape with similar product offerings, the fintech company was not able to make its presence felt.

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It felt the need for conducting an in-depth competitive analysis and benchmarking of the market landscape for which it turned to Research Nester professionals.

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RNPL analysts were requested to use their expertise and experience to carry out the analysis and bring adequate results to facilitate the re-strategizing of processes for future growth.

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The Story

The fintech company was incorporated in the state of California in 2005 with ~USD 2.5 million in seed funding from the founders and other private investors. By 2011, it was able to raise over ~USD 125 million from investors. In April 2014, it acquired an internet payments company to tap the B2B transactions market. The company saw opportunities in the cryptocurrency spectrum. Soon in 2018, it registered itself as a Money Services Business (MSB) with the Financial Crimes Enforcement Network (FinCEN) and got a Money Transmitter License at the state level. Following all the regulatory guidelines subject to federal securities laws and as provided by the Securities and Exchange Commission (SEC), the company launched its cryptocurrency business. It implemented all the best practices and marketed its platform on various channels such as social media marketing, online advertising, and influencer marketing, and also formed partnerships with other crypto-related businesses. The company aimed to revolutionize the U.S. financial industry by offering fast, low-cost, and secure peer-to-peer transactions. However, the growth was much less than anticipated and the customer acquisition strategy also failed to meet its expectations. In 2020, anticipating a significantly low revenue, the company leadership sought the services of RNPL consultants, to formulate a strategy after examining the competitive landscape and studying the benchmarking perspective.

The Solution:

The major fault of the company was that they had not paid attention to the packaging products and are not emphasizing the latest trend in the market. They kept on neglecting the environmental issues and guidelines by the government which resulted in them bearing loss. To further emphasize it, Research Nester Consultants provided its customized research consulting services solution and informed the audience about the advantages and potential developments of Molded Pulp Packaging. However, Research Nester consultants then further evaluated and suggested some strategies to overcome this problem. The following strategies were suggested by RNPL analysts-

  • Identifying the strengths of well-established players, such as having a large user base and wide acceptance, a user-friendly interface, advanced security features, or a wide range of trading pairs.
  • Identifying the company’s strengths and using them for its market positioning.
  • Improving its own platform related to scalability, transaction speed, and privacy features
  • Evaluating the user experience provided by competitors’ platforms, websites, and mobile applications and identifying areas for improvement on its own.
  • Implementing security measures and trust-building initiatives to build its market goodwill and fine-tune its marketing and outreach strategies. Integrating cryptocurrency payment solutions into their existing payment infrastructure.

Research Nester consultants further established key performance indicators (KPIs) and benchmarked the company’s metrics against those of its competitors. Based on the analysis and benchmarking study, conducted by RNPL analysts, the Fintech company gained valuable insights and was able to streamline its product development initiatives and address its pain points. Implementing the measures into its strategic planning provided the company with a competitive advantage and enhanced its growth.

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Results

The company’s cryptocurrency platform experienced a slow year-on-year growth initially owing to several challenges, including a lack of awareness, low cryptocurrency adoption, and a highly competitive scenario. The annual revenue in 2019 was just ~USD 1.5 million. Research Nester was then brought into the company’s realm to conduct a re-analysis of the market industry. After a few significant and crucial reforms, the company gradually saw a positive turn in the growth situation. In 2020, the company’s revenue stood at ~USD 5 million. RNPL’s competitive analysis and benchmarking strategies helped the company expand its operations. Gradually the company extended its business outside the state of California. Revenues grew to ~USD 16 million in 2021, increasing more than 10 times from the previous year. As per its last year’s annual report, the fintech company earned a revenue of ~USD 24 million as of 2022 and has stabilized its market position building a strong base of loyal customers.

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Swara Keni

Head- Global Business Development

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