Innovation ‘not enough to get FinTech funding’

New research has revealed that 83 per cent of investors believe that positive reviews and social proof are critical or important for generating interest in FinTech firms.

Trustpilot commissioned London Research to survey 56 startups and 87 scale-up businesses across all major business sectors, including fintech companies, across the UK, US, Asia and Europe in May.

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

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

Alan Duncan, vice president of consumer marketing at Trustpilot, said: “At one point, innovation was enough to secure investment in the latest FinTech startups, but not anymore.

“More than ever, startups are expected to show proof of consumer engagement to investors and this has made the role of online reviews essential for startups”.

Roberto Napolitano, marketing director at Seedrs, commented: “Ratings are a very powerful tool for investors to take the pulse of a potential investment to see if anything needs to be improved.”

Monzo’s online community manager Richard Cook added: “People who have backed us want to talk about our latest TrustScore and what we are doing to move it in the right direction”.

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