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Just skimmed but will re-read thoroughly. What's jumped out so far is that:
1. There's only 1% merchant cash advance penetration.
2. 52% of business owners say the product would be useful.
I love how you actually User Experience in areas of competitive differentiation. Not enough is being done in this regard. For example, there are guys flushing millions of dollars in PPC and not even bothering to invest a cent in conversion rate optimization. Even if you don't want to be all "fintechy" - there's no reason to spend millions and millions of dollars on PPC and not a red cent on conversion rate optimization. Net result = lower conversion rate = higher cost of acquisition = higher cost of funds to merchant.
Mobile presents a huge opportunity. In our experience with Buynance, we never even had a mobile optimized site but half of all merchants completed the app via their handheld device.
User Experience is like a red headed step child in this industry, when guys start to focus on this, rates come down because their CPA comes down... Just based on my experience. -
Extremely informative! Thanks Fintechjunkie!Comment
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Yes - all the data suggests that short term loans/cash flow management products are of high interest to SMB customers. And yes - it CAN'T be the right answer to drive customers to a product/landing site with no time/money spent on user experience. This isn't about being "fintechy" -- it's about what customers want. Mobile, tablet, desktop, etc. are table stakes to being seen as "professional". This is true for many, not all businesses, but the ones that don't care also tend to be the less sophisticated/riskier businesses that will take whatever they can get.
Happy to field questions....
fintechjunkieComment
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