Startups will have to amp up their game to win users over, says fintech Dank’s CEO

Contxto – Fintechs are experiencing first-hand just how Covid-19 is expediting the use of electronic payments, e-wallets, and every other solution that can be done with as little contact as possible. 

Although according to Chilean fintech Dank’s CEO and co-Founder, Herbert Schulz, it’s only the beginning of something bigger—though not necessarily easier.

A domino effect

It’s been consistently stated that Covid-19 has accelerated the adoption of digital products and apps. But for Dank it also means that the number of fintech users will grow too.

“I’d say the amount of entrepreneurs and freelancers will grow and as a result they’ll have a more relevant share in digital products,” said Schulz in written correspondence.

But that’s not a free pass for fintechs to create low-quality apps. On the contrary. In a very Hunger Games-like fashion, competition will grow fiercer for these startups to win a place in users’ phones.

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“Day by day this audience grows ever more selective as to which apps deserve to be downloaded onto their devices,” reflected Schulz. 

“That’s why we need more arguments to win a slot there. They value their time which forces us to constantly optimize the user experience by asking ourselves: ‘How can we help them achieve the same goal, but with less clicks?’”

Dank’s predictions

With new fintechs rising every day, one can’t help but wonder, “what’s next?”. Which features or services will convince users to grant a new app a place on their precious phone? On that topic, Schulz shared his views too.

“I’m convinced that prepaid cards can solve a lot of problems banks have been unable to take care of [and] eliminate friction,” said the executive. On that note, Dank hopes to launch a prepaid card by the end of this year.

“Simultaneously, I’d also say electronic payments will be in high demand in a context where social distancing will be part of our day-to-day for a couple of years,” predicted Schulz. This also has implications for companies and independent workers.

“Entrepreneurs, SMEs, and freelancers are migrating their businesses onto the digital realm, so they’ll need to complete transactions this way as well.”

• Related article: 18 fintechs in Chile transforming the financials industry

And in the meantime

The fintech launched its app for freelancers and SMEs in October of last year. As of December, it began growing at a steady clip.

Then came Covid-19 and the number of new users increased significantly. Dank’s co-Founder told Contxto it’s been growing at an average rate of 20 percent within the last 25 weeks. More specifically, it’s been snagging 50 to 60 new users every week.

One can say Dank is halfway there. It’s acquiring a place in users’ hearts (and phones). But as Schulz said, a product needs continuous improvement to keep them. 

Related articles: Tech and startups from Chile!

-ML