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Thursday 28 July 2022 5:10 am  |  Updated:  Wednesday 27 July 2022 7:12 pm

Letters: You can’t always be everything

By: Morning Wire Reporter

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Royal Mail Sort The Post In The Run Up To Christmas
Letters to the editor, CityAM (Photo by Bruno Vincent/Getty Images)


[Re: A recession will tempt firms into short-term cuts, July 6 ]

Mass job losses continue to take place across the tech industry. While it’s easy to blame external factors, such as the lasting impact of the Covid-19 pandemic, macroeconomic challenges and a difficult fundraising environment, an important strategic factor has been largely ignored – focus. 

Initial fintech and tech challengers disrupted the status quo by bringing a single, industry-leading product to market which dramatically improved user experience, value for money, and technical capabilities.

But in a battle to attract VC dollars and stratospheric valuations, many have lost their focus and carelessly abandon the product that made them great; instead opting to desperately chase the latest product trends with little to no inspiration, and hiring hundreds of staff to embark on these vanity projects.

It appears that every fintech today has the same goal: becoming the next “super app” and controlling every aspect of a customer’s financial life. The super app pursuit is vague but also futile, as these companies end up neglecting their most frequent and loyal customers, many of whom signed up for the flagship product, not for the awkward and unrelated product appendages. 

If tech companies really want to alleviate their current staffing pressures, they should take a fresh look at all of their business lines and services, and ruthlessly cut those that don’t bring value to their most engaged customers. Otherwise, once loyal customers will opt for second-generation disruptors, resulting in more financial pain and lay-offs for super-app hopefuls.

Patrick Kavanagh

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Motor finance war of words heats up as City watchdog blasts law firm’s motives

The FCA has introduced new proposals to close the financial advice gap.

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