A startup can’t succeed without the right team. This is as true for fintech startups as it is for companies in any other industry. Even if you think you have a great idea for a new product or service, you need help from other talented people to execute it.
That’s not simply because turning an idea into a finished product involves too many steps to complete on your own. At many startups, initial ideas evolve as members of the team contribute their own suggestions and insights.
That’s a major reason it’s a good idea to prioritize diversity when hiring people to work for a fintech startup. Having individuals with a variety of perspectives and backgrounds is key to fully understanding how to make your service appealing to the masses.
To better understand the value of diversity at a fintech startup, consider the following points.
Fintech Reaches Many Customers
Fintech products and services are wide-ranging. However, they all involve leveraging technology to provide consumers with alternatives to traditional financial services.
This means that many people can benefit from using a fintech product. Fintech companies often help unbanked and underbanked people in emerging markets gain access to financial services that would otherwise be unavailable to them.
If your team consists solely of a single type of consumer, you may not recognize opportunities to serve people in other demographic groups. On the other hand, if you have a diverse collection of voices, team members may help you realize how your product can serve consumers you hadn’t originally considered when developing your initial plan.
Fintech Requires Security
It’s important for fintech startups to prioritize security. Customers won’t use their products if they don’t believe their data will be safe.
Unfortunately, there are many different types of security dangers. When your team members have varied life experiences, they may also have varied professional experiences with consumers’ security needs. Having a diverse workforce makes it easier to identify and anticipate those needs when planning and implementing security measures.
A good idea or a well-designed product is not a guarantee of success. There are many fintech services available to customers. You need to make sure you’re doing what you can to spread the word about yours.
Thus, proper marketing is essential for fintech startups. That means you need team members who can help you develop marketing content that appeals to many different types of consumers. If every employee at your company is a member of the same demographic, you won’t get the insights you need to develop a truly comprehensive marketing plan.
Innovation is key in fintech. As new technologies are developed, you need to know how to use them to your customers’ benefit.
This is easier with a diverse workforce. This is because people who belong to different demographic groups often have similarly varied life experiences and backgrounds. Hiring a team that consists of people who are extremely similar results in an “echo chamber” effect in which everyone is familiar with the same technologies, tools, and resources. This makes it difficult for any truly innovative ideas to rise to the surface.
When your team consists of people with different backgrounds, innovation is much more likely. You can’t succeed in the long run without it.
Making the Right Impression
It’s worth noting that some customers care enough about brands to learn “behind the scenes” information about companies whose products they may use. They want to be certain the brands they support reflect their values.
Having a diverse workforce can improve your reputation among members of your target market. Members of groups who are represented in your workforce may feel you value their voices and can truly serve their needs. If you prioritize diversity, consumers will be more likely to support you.
The benefits of a diverse workforce can also be extremely practical. While you should prioritize diversity as a positive goal in and of itself, you also know your company needs to make money in order to stay in business.
This is yet another reason to assemble a diverse team. According to a 2015 McKinsey report, companies with high levels of diversity are more likely to see financial returns that exceed their industry medians. On the other end, companies significantly lacking in diversity often struggle to achieve such returns. Diversity is simply good for your bottom line.
It’s also good for your company culture. As a fintech entrepreneur, you want to build a company where people feel respected and are passionate about their work. Putting together a team with many unique voices is key to developing this type of company culture, and to developing products that succeed.