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by James Robert Lay on April 17, 2023
Brief Summary of Episode #289
The conversation around niche financial services is heating up as the American banking system crosses a harrowing threshold in our economic history.
Consumer confidence in our financial institutions is at a precarious level in early 2023. So it’s more important than ever for regional banks, credit unions, and fintechs to plant their customer-centric flag in a niche market.
Tim Hamilton, CEO of digital innovation agency Praxent, believes financial services can do just that by speaking their clients’ language.
“You have to first belong to a community,” Tim said. “You’ve got to define [them] in the words and phrases of that community. It cannot be in your own words.”
As Tim will tell you, pivoting into niche financial services isn’t an easy decision, something he learned leading Praxent into a niche sector in 2019.
“It’s a terrifying prospect to focus your business,” he acknowledged. “To commit to a vertical is seemingly a counter-entrepreneurial thing to do.”
But FIs and fintechs can no longer afford to ignore these financial growth verticals if they want to move forward with confidence.
“They cannot be important — they cannot be perceived as experts — unless they make that very inconvenient decision,” Tim argued.
By coming together in community, we can help each other stay the course in our growth journeys.
Key Insights and Takeaways
- Connecting people with a human-centered tech stack (7:07)
- Vertical growth opportunities for financial services in 2023 (19:25)
- Praxent’s pivot to a niche community commitment (30:13)