Ten years ago, I launched a new product in the US that allowed mobile banking on the go.
And I use the same strategy every time I launch a new product in a new market.
Proven Technique: — I partnered with local banks How it works:
Step 1: I identified a local bank that understood the rules and regulations deeply.
Step 2: I partnered with them to understand how to reach their consumers.
Step 3: Partner with local associations to get them to recommend us.
These three steps always ensure that we gain smooth entry into the local market—both compliant and efficient.
For example, in Latin America, every single transaction, regardless of size, had to be reported to the local government to keep corruption down. In contrast, the US government only requires reporting for transactions above $10K.
📌Challenge: The volume of data that needed to be reported proved to be challenging and we didn’t know about this requirement until we were boots on the ground.
📌Strategy: By partnering with a local bank, we leveraged their systems to get real-time reporting on all transactions, which satisfied the government requirement. The local bank that had already built trust with local consumers recommended our mobile banking on the go solution. Consumers were delighted that they could get their paycheck a day earlier. Word-of-mouth helped widespread adoption of the app.
📌Takeaway: For tech startups looking to establish their footprint in a new market, its not only important to understand the local rules, but its critical to find a local partner whom the community already trusts for the roll out and mass adoption.
➡️ How do you handle regulatory challenges in new markets?
Comments