How speaking the customer’s language aided UK fintech businesses in entering Germany and the rest of Europe
Europe’s fintech sector has boomed in recent years. According to McKinsey, Europe’s fintech firms represented a total valuation of nearly €430 billion as of June 2022.
The UK, in particular, provides a fintech-friendly environment. According to G-P, the country’s business-friendly approach, favourable regulatory frameworks, tax incentives, investor-friendly policies and talent pools all play a role in supporting its position as Europe’s leading fintech hub.
Europe’s leading fintech industries
The UK has led the way in terms of embracing digital banking in Europe, with strong demand from consumers for digital banking products. Just 23% of UK consumers prefer to apply in person for new financial products, compared to 53% of Europeans.
UK financial institutions are equally enthusiastic about the potential of fintech. According to Tink, 74% of financial institutions in the UK feel positive about open banking; in Europe as a whole, the rate is just 61%.
UK’s fintech sector bounced back post-pandemic and brexit
Despite the twin disruptors of Covid-19 and Brexit, the UK’s fintech sector is flying. The country registered record fintech investment of $11.6 billion in 2021 – 217% more than in 2020. The investment accounted for 11% of all global deals (713 out of 6,495), meaning that the UK was second only to the US in 2021. Clearly, the country has bounced back.
How influential is the German language in the European market?
In terms of native speakers, the most spoken language in Europe is Russian. That’s followed by German, which is the native tongue of around 13.3% of Europeans – some 100 million people. Add in the fact that Germany is home to Europe’s largest economy and the importance of the German language in Europe is clear.
From a business perspective, engaging German translators or a German language interpreter can open up plenty of new opportunities for revenue. Being able to access accurate and precise German translation services for any document medium and type is essential for any business that’s serious about having a European presence.
What is a good translator for German? For business purposes, it’s an English to German translation service with expert business, legal and financial translators who can work on a wide range of documents. That raises the next question: How much does a German translator cost? Well, the price of an accurate German translator can vary considerably depending on the field of their expertise. A legal expert will cost more than someone providing general German document translation services, for example.
What we can learn from UK fintech companies when entering Germany and Europe
There are plenty of lessons we can learn from UK fintech companies such as Yapily, which expanded from the UK to Germany (and then to France and Austria, through a partnership with Dutch fintech BUX). At the heart of many of those lessons is the role that language plays in the expansion process. This is true both for fintech expansion from the UK to Germany and for firms in other sectors that have set their sights on international growth.
Building trust starts with communication
The first lesson is the importance of communication in building trust. First impressions count for a lot. If a company approaches a new market with poorly worded translations, it doesn’t bode well for how quickly they will be able to build trust, either with consumers or with potential partners and funders. That’s why sourcing professional English to German translation through a reputable, reliable company with relevant business experience is so important.
Geo-target specific marketing creates a personalized experience
Consumers increasingly expect a personalized experience when they interact with a brand. Any tech-savvy firm is well positioned to deliver this through email and website personalization. Doing so enhances the user experience and is another of the blocks needed to build trust. Again, flawless translation is key for businesses reaching out to markets that speak different languages.
Making local banks and currency available
Fintech is about convenience – about making things easier for consumers, whether they are individual users or business customers. Making local banks and currencies available is an excellent example of this.
This focus on convenience has encouraged many consumers to adopt fintech firms’ apps and ethos. In the process, it has delivered a clear message for other types of companies about the importance of convenience when it comes to connecting with customers.
Compliance with local policy and regulations
In this age of Open Banking Standards and General Data Protection Regulation, firms can live or die by their approach to compliance with local policy and regulations. It’s an area that needs input from multiple teams – legal, operational and tech, as a minimum. When compliance work crosses language barriers as well as geographic ones, the support of a trusted translation services is also essential.
Compliance work is often viewed as a difficult or worrying area to approach but it is there to keep firms and their customers safe. Like anything, when broken down into a series of tasks, it becomes easier to manage. It’s simply a question of understanding the local policy and regulatory requirements in each territory in which a firm wishes to do business.
The UK and German fintech sectors are two major hubs of innovation and revenue creation in Europe. Cities such as London and Berlin are buzzing with fintech talent and business opportunities. Companies that can take language considerations into their stride and move forward rapidly, with the help of German translation services to keep their communications on track, are well positioned to benefit from the vast appetite that exists for fintech in Europe.
The rapid growth of fintech start-ups provides multiple lessons for businesses in other sectors, from the need to build trust to the importance of language, localization and personalization through geo-targeted marketing activities. Firms that take these lessons on board and act on them swiftly will be well placed to grow their international presence in Europe, regardless of which languages their founders happen to speak.