One of the main key objectives for businesses operating in the fintech sector is to expand their customer base.
It has been a turbulent time for Financial Services companies over the past few years, market conditions caused by Brexit, COVID and the Russian war in Ukraine have caused significant economic impact, not just in the UK but globally. The Fintech sector has been pivotal in helping and enabling a much-improved customer experience for both end consumers and businesses alike. To offer new and tailored products and services to the market, in many cases that larger incumbent FS organisations were struggling to offer. Many will say it has been a welcome and needed change, despite the unfortunate circumstances.
Whether a neo bank, a new embedded finance solution or a payment provider the Fintech evolution has generated significant competition in the market, many of which now are outgrowing the older incumbents, look at Revolut, Klarna and Adyen to name a couple.
With this market now growing at such a fast rate, including VC investments into Fintech companies at its highest over the last few years, customer acquisition is now the top objective for Fintech companies. Making the most of this market opportunity is key and according to a recent "Fintech Snapshot Survey" by Ernest and Young, with more than half (58%) of respondents citing customer expansion as their primary emphasis. In other words, if you don't succeed in growing your consumer base, it could be bad for business. It may result in a drop in sales, a halt to growth and expansion and missed market opportunity, or even a shift in clientele to your rivals. To assist client acquisition, Fintech organisations must prioritise growing their operations and infrastructure which is what is highlighted as part of the EY Report and solidifies the number one goal of fintech organisations being that of growing their customer base
A global-scale database with the capacity to autonomously split data over several nodes is called CockroachDB. This means that CockroachDB can easily handle the increasing load without experiencing any performance concerns as the number of customers grows and the volume of data increases. Data is always accessible, even in the event of a node failure, thanks to CockroachDB's built-in replication capability. This implies that Fintech companies can be confident that their consumers will have access to the services they require even during times of high traffic.
The ease with which CockroachDB may extend horizontally is another benefit for Fintech organisations adopting it. Fintech organisations can easily add more nodes to their database cluster to manage the increased load as customer acquisition rises. Traditional databases, on the other hand, frequently need to be vertically scaled (i.e. upgraded to a more powerful server) to manage the rising load. In the long run, horizontal scaling is more flexible and scalable in addition to being more cost-effective.
Another crucial objective for Fintech businesses seeking to grow their customer base is by expansion into new countries and regions. This may present new chances for development and income, but it may also present new infrastructural and data management difficulties.
By offering a globally consistent, yet locally distributed infrastructure, distributed databases like CockroachDB can aid Fintech companies in overcoming these difficulties. Customers in those regions can access data with little latency since data is replicated over several nodes in various regions. With CockroachDB's integrated geographic support, Fintech companies can easily handle regional data and guarantee compliance with local data laws.
Fintech businesses may expand their operations into new areas with ease by utilising CockroachDB without worrying about the extra burden of managing several databases. CockroachDB has the ability to replicate data to various locations for low latency access in addition to enabling a single, globally consistent representation of the data. This makes it simpler for Fintech businesses to enter new markets and give their clients a seamless experience. Additionally, CockroachDB's support for multi-cloud, hybrid-cloud, and on-premises architecture gives Fintech companies more flexibility to choose the infrastructure that best suits their needs and allows them to adjust as their clients' demands change.
In conclusion, a distributed database like CockroachDB can be a useful tool for Fintech businesses aiming to expand their clientele, whether it is by the scalability of the current operations or by entering new markets and countries. These businesses can easily scale their operations and offer a seamless customer experience thanks to its ability to provide a globally consistent, yet regionally distributed infrastructure, built-in geospatial support, and flexibility to adapt to changing business needs. This helps them achieve their ultimate objective of growing their customer base.