Improving and disrupting the market: How a start-up can prove advantageous over an incumbent
Fintech companies see technological shift to cater to more consumers, market disruption becoming com
In recent years, the Fintech industry has grown steadily across the globe, being reshaped altogether by technological changes. With these technological changes, we’ve started to see a shift in trends, otherwise known as market disruptions. A market disruption is defined as the act of markets creating a new segment in an existing market to cater to unserved or underserved customers. As technology continues to shift in the banking service, new ideas have been introduced to better serve consumers, providing better service value.
The market disruption model occurs when incumbents overshoot their ideas, namely to satisfy the high end of the market, and fail to accommodate low-end and mainstream customers. By doing this, they risk their reputation, allowing startups to gauge footing in the less-profitable settings that the incumbents are neglecting. Because of this, market disruption has become more common over time. And, with market disruption comes opportunities for small businesses to grow. As as startup company, CAKE Capital is at the forefront of market disruption; every day we do our best to maximize growth and enhance consumer experience for all.
As CAKE Capital is a startup company, we recognize our competition. We’re among 12,000 financial services firms within Canada’s sector, not to mention Toronto is home to Canada’s four largest banks and eight of the 10 largest Canadian asset managers. Banks are constantly gaining more insight to information through Artificial Intelligence and Big Data, which are ultimately more consumer-centered approaches to a well-rounded banking experience. That’s why at CAKE, we pride ourselves in offering services that are constantly evolving, services that are both technologically advanced and secure: it’s a no-brainer.
Ever since the beginning, CAKE Capital has worked around the clock to disrupt gatekeepers that slow businesses down. Those that prevent businesses from achieving the growth capital they desire most. Having said that, to date, the largest sector of any economy is filled with small and medium-sized businesses, otherwise known as SMB. This sector makes up a total of 65-75 per cent of GDP, the largest employer and the most material driver of wage growth. Yet, this is the part of our economy that has the hardest time garnering growth capital. By choosing CAKE Capital, flexible growth capital is guaranteed, with no restrictions and no strings attached.
To make the most out of your time and money, we offer the option to schedule payments and even create exports with various programs available at your fingertips. Through accessible, quick technology, CAKE’s software platform is able to offer a unique banking experience for all, a great alternative to traditional banking methods offered by financial institutions.
CAKE should stand out as a core market disruptor due to the fact that we provide all our users with the opportunity to get approved for instant funding. It’s advantageous because you’re able to control your money as you see fit, without constraints or curveballs being thrown at you.
While larger businesses might be more recommended, or have garnered more success, startups are often the better selection of the two. Most, if not all startups were fostered to provide new ideas to an already existing market.
One of the best ways to disrupt the market and stay ahead is to find a niche and promote change within a specific market. When it comes to Third Party Payment Processors (TPPP), CAKE stands out by providing its users with quick capital and zero restrictions. Because the industry is always fluctuating between new payment methods, technologies and mergers and acquisitions, it can be easy to fall behind. Now, the newest players in the game are working hand-in-hand with small businesses to make sure they’re able to manage their finances with ease.
Over time, the traditional payment processing model has begun to change. Ever since the introduction of Payment Facilitators, like Square and Stripe, the market has been turned upside down. The reason Payment Facilitators are disrupting the market is because you can onboard merchants quickly and command a greater processing profit. Not only that, but Payment Facilitators don’t hold funds, and their verification process is less rigorous than the traditional ones.
Further examples of market disruptions are cashless payments and merchants, as well as real-time payments and security advancements.
While CAKE offers these luxuries to our consumers already, it’s important for us to acknowledge that the payment industry is at the forefront of innovation. Because of CAKE, employers will be able to access all their information at the click of a button, through a system that projects sales data based off of algorithms and sales patterns that are inputted by the user. By syncing your data with CAKE Capital, you’ll always be in charge of your finances and you’ll always be able to make changes to keep up with your lifestyle, including any sudden changes you encounter when building your SMB.
With that being said, our need for spearheading solutions to each obstacle continues to grow at an alarming rate each day. We continue to challenge and successfully target customers, so that disruption occurs. After all, disruptive innovation is essential to the FinTech industry, and all businesses should be able to embrace that change, and any risks that go with it.