With a crowded market full of businesses racing toward innovation, standing out as a fintech startup takes more than just a sleek interface or a competitive rate. To truly differentiate your company, you need a clear strategy—one that focuses on solving real problems, building trust and continuously evolving with your customers’ needs.
Below, 19 Forbes Business Council members share their best advice for fintech startups looking to gain a competitive edge. Whether you’re launching your first product or refining your strategy, these expert recommendations can help you carve out a unique position in the market.
1. Stay Close To Your Customers
Fintech moves fast, and success isn’t just about having a great idea. Startups that stand out not only solve a real problem but also stay ahead of how the market’s needs evolve. Product-market fit today doesn’t guarantee success tomorrow. The companies that stay close to their customers, move quickly and continue to evolve their product at pace stay relevant and continue to stand out. – Chris Lawn, Elwood Technologies
2. Solve What’s Missing In People’s Lives
The standard playbook—take an existing financial product, add a sleeker interface or better terms and launch it in a new market—is a recipe for mediocrity. The same goes for the “Uber for X but in Y country” approach. Both strategies misunderstand what drives transformative companies. The key isn’t to find what’s missing in the market—it’s to find what’s missing in people’s lives. – Barney Hussey-Yeo, Cleo
3. Narrow Your Segment And Community Engagement
For fintech startups seeking consumer adoption, focus on a narrow segment and use case. Immerse yourself in the communities where those users spend time. Prioritize founder content and audience building. AfterHour is a startup that exemplifies this approach with retail stock investors, with a founder who runs an active subreddit. – Brandon Hoffman, Sunset Ventures
4. Define Your Unique Value Proposition
What’s the user experience, gap and value you are trying to solve or achieve that others in the industry can’t or haven’t solved? Do you think your competitors can offer it at any time? If yes, then what’s next for you? What is the real value proposition to your clients (for example, five-minute turnaround on loan approvals, 24/7 call support or the lowest interest rate in town)? Identify what resonates with them. – Zeenath Kuraisha, Asia Pacific Sales & Marketing Academy Pte Ltd
Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
5. Prioritize Trust, Compliance And AI-Driven Personalization
Fintech success isn’t just about innovation, it’s about solving real problems that banks and financial institutions struggle with. Instead of chasing trends, focus on deep industry alignment and build solutions that seamlessly integrate into existing financial ecosystems. I have seen fintech startups win by prioritizing trust, compliance and AI-driven personalization over pure disruption. – Naresh Prajapati, Azilen Technologies
6. Focus On Simplicity And Reducing Friction
From my experience in tech startups, the companies that last are the ones that make things simple and more accessible. Fintech is no different. With so much competition, the real advantage comes from reducing friction, whether in payments, lending or investing. Focus on user experience, security and value. In tech, the products that truly make life easier are the ones that win. – Andrew Lopez, 1000 Media
7. Continuously Optimize
Conduct extensive audience research, pilot with at least 100 of them and get their feedback over a 10- to 20-minute session. Convenience is key—make 1% improvements until the product is competitive. Ensure there is strong security in place and try to reflect this to the customers. – Amareen Dhaliwal, ANHCO Health and Life Coach Certification
8. Seek Harsh Feedback Early
For early-stage fintech startups, constant product testing and learning from feedback are essential. Seek feedback from strangers to get genuine opinions. Actively seek out critical feedback and understand why your product might not work. Early, legitimate harsh feedback helps you pivot quickly, saving time and resources. The sooner you learn, the faster you can improve and succeed. – Meg Yim, MSA Security, an Allied Universal company
9. Solve Pain Points With Secure Innovation
Differentiate by solving a specific customer pain point with a seamless, secure experience. Focus on innovation, user-friendly design and trust-building through compliance and security. Leveraging AI, blockchain or automation to enhance efficiency can set your fintech startup apart, ensuring long-term value and customer loyalty in a competitive market. – Shashidhar Reddy Keshireddy, CEPTUA IT INC
10. Build Trust Through Transparency
In fintech, credibility is everything. Customers need to feel secure with their data and money. Differentiate by offering clear, customer-friendly policies, robust security measures and exceptional service. A strong reputation for reliability will set you apart in a crowded market where trust is often the deciding factor. – Chad Angle, Reputation Defender
11. Create Seamless, Customer-Centric Solutions
Focusing on the customer experience through customer-centric solutions is the best way for early-stage fintech startups to differentiate themselves in a competitive market. Understanding the consumer’s pain points will create a seamless, user-friendly experience. Through solving real problems in a simple, effective way, they’ll establish loyalty to stand out and sustain growth. – Einat Steklov, Kashable
12. Scale With Partnerships
AI is an existential shift. For fintechs with top tech talent, it’s a force multiplier. For legacy financial service enterprises, particularly life insurance, it’s a lifeline. Fintechs move fast but need to scale—incumbents have to scale but move slowly. The smartest play? Partner up. Those who bridge the gap between agility and distribution will define the future. – Sam Henry, WealthSmyth
13. Use Compliance As A Strategic Advantage
One way fintechs can differentiate is by treating compliance as a strategic advantage rather than a regulatory hurdle. Too often, startups see compliance as something to address later in the process. But in reality, bringing compliance into the conversation from day one can speed up market entry, build trust with clients and investors, enable scaling more effectively and drive long-term success. – Roseanne Spagnuolo, Vixio Regulatory Intelligence
14. Have A Niche
For early-stage fintech startups, focus on a niche and build a loyal customer base by offering a truly unique, personalized user experience. In a crowded market, specializing and deeply understanding a specific customer segment allows tailored product development and stronger relationships, making you stand out. – Reco McCambry, Novae
15. Know Your ‘Why’
Lean into your “why.” What is your compelling story? Often, funders and supporters will back a person even more so than an idea. You need to ensure you are convinced by your pitch or you will struggle to convince others. – Marian Evans, Elevate BC Ltd
16. Launch Fast And Iterate Rapidly
Go to market immediately and iterate growth virally. Speed is your advantage—launch fast, gather real user data and refine your product based on feedback. In fintech, early traction builds credibility, attracts investors and helps you stay ahead of the competition. Focus on a niche, leverage AI for personalization and ensure compliance from day one to scale sustainably. – Dr. Clemen Chiang, Spiking
17. Differentiate By Answering ‘Why You?’
Look closely at what others in your space are doing. Rise above the din. Differentiation will likely not be found by looking like and sounding like those to your immediate left and right, even when saying you’re different. Focus less on describing what you do and more on how you will help to positively impact someone’s current points of pain. Create a compelling case for “Why you?” – Gregory Roll, Touchpoint Associates
18. Specialize To Stand Out
To stand out in the competitive fintech space, focus on solving a hyper-specific pain point that larger players overlook. Instead of being a generalist, refine your niche, whether it’s AI-driven financial planning for freelancers or seamless cross-border payments for small businesses. A laser-focused approach helps build a loyal customer base and establishes credibility faster in a crowded market. – Beth Worthy, GMR Transcription Services, Inc.
19. Humanize Fintech Through Intuitive UX
To stand out in fintech, focus on humanizing your technology. Too many startups chase innovation but forget the end-user experience. Build tools that are not just functional but intuitive and emotionally resonant. For example, simplify complex financial processes with clear visuals or gamified features. When people feel empowered, not overwhelmed, they’ll choose you—even in a crowded market. – Oleg Levitas, Pravda SEO Inc.
Read the full article here
