Auckland-headquartered fintech business, Invsta, has released another in its series of industry ‘white papers’, focusing this time on its own sector.
The new Invsta report gleans lessons for the wider financial services industry from the breakout success of online investment platforms and changing customer expectations.
“Having been exposed to the efficiencies that digital interfaces and experiences bring in financial services, consumers expect their wealth providers to step up to the plate and deliver a seamless digital experience,” the Invsta paper says. “This is where retail investment platforms are really leading the pack, as their entire offering is digital-first and designed to drive high levels of engagement with their customers.”
Rachel Strevens, Invsta chief, said incumbent financial services businesses could adapt many elements of the fintech game plan, which the report defines as comprising “market-led strategies, digital-first processes and decentralised company structures”.
“Over the past six months or so, we’ve been involved in numerous projects and discussions with providers who are wanting to emulate the fintech experience – not just from a front-end customer experience point-of-view, but also from an operational standpoint,” Strevens said in a release.
She said the new Invsta white paper, titled ‘The fintech growth model’, provides a roadmap for traditional financial services firms looking to stay ahead of challenger brands.
“We wanted to bring this whitepaper to the wider New Zealand financial services sector in the hope that it’ll encourage innovative thinking to drive growth across the sector,” Strevens said.
The Invsta report says the next couple of years are shaping up as a “make or break” period for many established financial services firms as a growing horde of fintechs sweep through the sector.
“And it’s not about to slowdown anytime soon, with Statista revealing that there has been a 26% growth in the number of fintech startups from 2020 to 2022,” the paper says. “Incumbent providers need to get onto the same digital playing field in order to achieve growth and remain relevant in a changing market.”
The fintech report follows a series of Invsta white papers on subjects including digital engagement, next generation investor behaviours and top tech tips for KiwiSaver and managed fund providers.
Founded in 2016, Invsta offers a number of front-end and back-office digital tools targeting investment providers and financial advisory firms.