Innovation not enough to secure investment for fintech start-ups

Trustpilot, the leading customer review platform free and open to everyone, today announces new research into the attitudes of fintech start-ups and investors into the role of consumer reviews and what investors are looking for. Commissioned by Trustpilot, the research is complemented by insights from some of the leading fintech and investment companies in Europe, including Monzo, Habito, Seedrs and Smart Currency Exchange.

Alan Duncan, VP Consumer Marketing Trustpilot, said: “At one point, innovation was enough to secure investment in the latest fintech start-ups. Not anymore. The majority of fintech start-ups are now prioritising a transparent, customer-centric approach from day one, listening and engaging with consumers to fuel their product and service innovations, and in turn, making them more attractive to investors. More than ever, start-ups are expected to show proof of consumer engagement to investors and this has made the role of online reviews essential for start-ups”.

Some of the key findings of the research show:

• 83% of investors believe that positive reviews and social proof are critical or important for generating interest from investors

• Around a fifth (21%) of those surveyed have been asked by investors to provide customer-centricity proof points such as ratings and reviews, and a further 43% have proactively provided this information.

• Around two-thirds (65%) of those surveyed strongly agree that they have built their business around an understanding of what customers really need.

Speaking about the role of online ratings, Roberto Napolitano, Marketing Director, Seedrs, said: “These ratings show potential investors that a company is interested in engaging with customers and improving on what they have to say; that they’re not solely about raising revenue. Ratings are a very powerful tool for investors to take the pulse of a potential investment to see if anything needs to be improved”.

Stressing that the role of customer feedback is not just about showing positive reviews, but showing that a business is engaging with and learning from its customers, Richard Cook, Online Community Manager, Monzo, said: “People who have backed us want to talk about our latest TrustScore and what we are doing to move it in the right direction”.

The full research and whitepaper can be found here: https://cdn2.hubspot.net/hubfs/2749863/FinTech%20Start%20Up%20&%20Scale%20Up%20Report%20-%20Web%20Version.pdf