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Value Chain As Differentiator In FinTech For the online marketplace the focus has moved away from the traditional value chain to encompass the order processing experience.

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The traditional value chain has been shaken, stirred, and tossed around so much by the e-commerce giants that there is very little resemblance left. Internet of Things and globalization have turned the entire concept of a marketplace on its head and then some more, and as a result, industries are being forced to adapt and respond to the changing market situation. Internet of Things, especially, has played a pivotal role in connecting B2B and B2C relationships via the online marketplace, redefining value chain in its entirety – from the conception of the product or service all the way to its delivery.

For manufacturing industry, the value chain has always been about the product. For the service industry, it was the IP and people skills. However, for the online marketplace the focus, in a sense, has moved away from the traditional value chain to encompass the order processing experience. It is all about providing the best buying experience. From order entry through to the delivery of the goods to their recipients, these different stages are intricately intertwined to form a part of the value chain. And though, the online retail industry does not have any control over individual products, they enhance the overall product experience with the flawless and quick order processing experience.

The new e-commerce value chain alters further when it comes to FinTech industry, though at its heart, FinTech is still e-commerce. The online buyers have been at the forefront of e-commerce adoption, armed with digital devices that are connected to the Internet almost all the time. They have just as well been the driving force behind the evolution of FinTech. They enjoy the experience of shopping online for books, electronics, travel tickets, movie tickets, apparel, and so much more, but purchasing most financial products like loans, credit cards, or insurance still was a faraway dream despite a strong latent demand for a similar experience.

This is the gap that FinTech evolved to fit. However, there are even fewer traditional parameters when it comes to the FinTech value chain but it is equally or more sensitive. There is no stock management or packaging or free home delivery to get you brownie points. All you get is an offer followed by a potential monetary transaction at the end of it. It looks simple but has complex business at work behind the scenes involving integration with the financial institutions, data security, fraudless transactions, and much more. And all your success as a business depends on how well and how smoothly you execute all of it, and this will be the only factor to distinguish yourself from your peers as a FinTech marketplace.

When a consumer shops for anything, he has an enjoyable and empowering experience. For example, when a consumer shops for a pair of jeans:

  1. He has the choice of brands, looks, colours, shapes and style
  2. He can customize the jeans as per his fit
  3. He has all the help and support of the sales staff, which is hugely alleviating
  4. He can buy it right there and then (Instant gratification)
  5. He can have it delivered to his home with COD options

The beauty, which also becomes a challenge, is to replicate and improve this kind of a value chain for FinTech filling the said gap. Here are four value propositions that can make the FinTech Value chain the main differentiator:


Variety and range of products to compare before taking a decision remain few of the biggest liberating factors of online marketplaces. This attraction remains current and very relevant even in the FinTech sector. The more the number of partner banks and financial institutions, the higher the number of products, and thus, even more options for your customers to choose from. This empowers the customers and provides you greater visibility.


This is the age of customization and personalization. Everything from clothes to gadgets to homes is off the rack and still personalized. So why should FinTech be left behind? To provide the same, we at integrated algorithms that take the financial profile of the customer into account while showcasing the offers, which means that the results are relevant and personalized.


Online marketplaces are relevant due to the buying experience they deliver. Support mechanisms play a huge role here in delivering an end-to-end experience. The customer is looking for a paperless and "presenceless' process for their financial purchase. At one end, there is a versatile platform that provides and supports all the related aspects of the marketplace,providing an unbeatable e-commerce experience for the customer and making it more secure for money transactions. On the other end, a more personal customer support – where relevant questions are raised by the customers and queries are resolved with relevant answers instantly­– makes it perfect. Smart phones can act as an important platform to facilitate this type of versatile experience.

Instant and Cost effective

The key enabler in all this is technology. For the customer, it brings the gratification of transacting instantly. For the partners, moving the entire supply chain online brings them the dual advantage of much higher visibility and reduced costs. There are no added expenses of setting up brick-and-mortar establishments. Paperwork is one-time and online. Verification processes are simplified and more secure. This takes care of some of the most pressing problems of the BFSI sector – rising costs, paperwork, and fraud.

As the value chain shifts toward the future, there will be newer challenges. It is essential that you manage these differentiating factors in-house so that you have the control to make more frequent updates, which would lead to more improvements. This will result in more value additions resulting in more happy customers. The success of any business depends on the "Repeat customers' you get, and this will surely bring more of them.


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