In today’s fast-paced fintech landscape, geographical expansion is often viewed as the ultimate benchmark of success. However, this perspective can be misleading. While growth is undeniably crucial, it becomes inconsequential if a business fails to establish itself as a leader within its sector.
Whether this leadership is achieved in the original market or a new one, category kinship remains the key to sustainable success. In our case, the African diaspora in the UK presented a compelling, largely untapped fintech opportunity.
Focus first, expand later
As the saying goes, a bird in the hand is better than two in the bush and remaining true to your key market is the cornerstone of strategic expansion. By focusing on one area and excelling to the point where your brand becomes synonymous with the industry, you are essentially planting your flag in that territory.
In today’s climate of financial prudence, a slow and steady approach often is the most effective. While operating across borders allows businesses to tap into global markets and diverse customer bases, a strategic approach is crucial. Bigger isn’t always necessarily better — the most lucrative markets might not be the most obvious ones.
Additionally, the constant pressure to generate revenue and secure investment is a reality for all businesses. However, it’s vital to choose investors who are aligned with your vision and avoid the pressure to expand at an unsustainable pace. A clear understanding between founders and investors ensures that growth is organic and in line with the company’s long-term goals.
African diaspora: high UK potential
The African diaspora in the UK, estimated at over 1.8 million people, represents a significant demographic with untapped potential. Unlocking this potential requires a deep understanding of their financial needs, behaviours, and preferences. World Bank data reveals that Sub-Saharan Africa received $54 billion in remittances in 2023 alone, highlighting the urgent need for fast, secure, and cost-effective remittance services tailored specifically for this market.
Cultural connection is another critical factor. Building trust and fostering a sense of community are powerful tools for connecting with the diaspora. In our case, having roots in the Nigerian market and a team with members from the African diaspora in the UK allowed us to effectively connect with this audience and ensure a perfect product-market fit. We were confident that the solutions we were developing directly addressed the needs of this community.
In a highly saturated market, understanding customer expectations is key for businesses to deliver value, build trust, and cultivate long-lasting relationships. The age-old adage “slow and steady wins the race” is especially true when building a loyal customer base within a niche market.
Establishing a strong presence across key markets and forging meaningful connections with customers creates a network effect that amplifies reach and influence within those niche markets. Imagine someone from the African diaspora in the UK recommending your platform to their friends and family. This kind of organic endorsement has the power to inspire others within the community to use your services.
Mastering niche markets
Expanding makes dominating a niche market harder. We launched in Nigeria and have since expanded to the UK, with plans for Canada and Tanzania next. Yet, maintaining a strong presence in Nigeria remains a core principle of our business.
By strategically harnessing the potential of niche markets like Africa, fintechs have a unique opportunity to become category leaders. In the UK, the African diaspora offers a compelling path to sustainable growth and lasting impact.
By embracing a focused, value-driven approach and continuously innovating, businesses can thrive in the ever-evolving fintech landscape. Ultimately, by understanding the unique needs of the African diaspora, businesses can not only achieve their own success but empower this community and bridge the financial gap between continents.
Babs Ogundeyi is the group CEO and founder of Kuda.
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