In an increasingly competitive world, quality management has become a core concept for all businesses. The global fintech market is expanding impressively fast, and it’s set to reach USD 353.73 billion by the end of this year. In 2024, over 30,000 fintech companies were operating worldwide, a number that considers only startups.
Indeed, it’s a busy and incredibly competitive market where the fight for survival can be gruesome. About 10% of startups are ruled out of business within the first year, and mortality rates can go as high as 70% after two years. In this context, quality management is more than a competitive advantage; it’s a basic requirement for business survival.
Here’s how it works for fintech companies.
Moneywise and Tech-Savvy
Fintech stands for “financial technology.” So, it should surprise no one that such companies are heavily backed by digital tools like QMS Software to stay on top of their businesses. Keeping clients happy can be difficult, even more so for companies dealing with their pockets. After all, service disruptions and security breaches can result in massive losses for companies and clients, ruining a brand’s reputation overnight.
System malfunctions can severely damage clients who need quick access to their funds for time-sensitive deals. So, fintech companies must have contingency plans for any problems that may arise to guarantee stable and reliable services. Above all, they must employ the most advanced cybersecurity systems, as fintechs make juicy targets for cybercriminals.
Indeed, scare stories abound, and not even big companies are immune to them. Back in 2014, JP Morgan Chase suffered an attack where sensitive information about 7 million businesses and 70 million households was leaked. Another US-based company, Equifax, was badly hit by criminals who stole data from about 200,000 credit cards and over 140 million accounts.
Quality Over All
Fintech companies need more than antiviruses and firewalls to counter such threats. In the case of JP Morgan, the disaster began with a phishing attack, a trick nearly as old as the internet itself. It could have been easily avoided if the staff had been trained to identify such threats. For Equifax, a vulnerability on its website opened the gates of hell. Maybe it would have never happened if the company had held regular audits to find and fix weak spots. In both cases, efficient quality management could have saved the day.
Some financial institutions still rely on outdated legacy systems, which are more prone to attacks and failures. Integrating them with QMS can be expensive, but the price of not doing so can be astronomical. Many fintech startups suffer from the scalability of their services, which can be vulnerable or simply shut down when traffic numbers rise.
Still, the growing pains can be overcome if the scalability issue is factored in the first steps of QMS planning. Regular audits and reports are vital to this process. Still, the wisest companies also consider customer feedback in their quality management strategies, ensuring that customers’ needs and expectations will be met.
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