In regions like Australia, the technology sector is quickly becoming one of the nation’s fastest-growing exports, but it’s not just the big-name unicorns making a splash in international markets.

With the proliferation of pick-and-shovel tools to help facilitate the process of scale and low-touch market entry, it’s now easier than ever for Australian businesses to make tracks in new markets.

According to the Export Council of Australia, technology is already our fourth-largest export sector, and it’s only predicted to grow, with projections to be worth $19 billion by 2030.

Amongst them, fintech is becoming one of our most promising sources of innovation.

Businesses like trade payment solutions provider Finstro are amongst some of the Australian upstarts going after global customers.

Founded in 2014, the company had provided more than 7,000 global businesses with over $1 billion in trade payments, and had identified the US as its next target market.

Finstro knew the key to gaining traction and relevance quickly in market came down to its ability to engage with new customers, develop a streamlined online journey, and make onboarding and decisioning as quick and easy as possible for its American customers, while meeting its compliance requirements.

For businesses operating in highly regulated spaces, like fintech, there are a number of key considerations to make before setting course north.

In my experience supporting fintech businesses going through this process, there are four questions to ask before launching your product in a new market.

1. Are you aware of the local culture, customs, and norms?

Before you rush into a new region, take the time to consider the expectations and nuances of engaging with potential customers, especially if you’re not ready to hire local employees. What are the local business customs and how do they differ from the laid-back approach we take to business in Australia? Will our lingo and slang words land in a new market, or be the source of confused looks and potential offense?

Consider the market fit for your fintech product or service. Is it culturally relevant? Just because you might be a hit in Australia doesn’t promise success overseas. For example, if you’re a neobank, you may want to research the percentage of the local population that is unbanked, as well as investigate the sentiment and trust level towards financial institutions. Overestimating your cultural market fit is a surefire way to learn an expensive lesson in the 101s of business strategy.

2. Will language be a barrier?

Consider the complexities of language and the costs of translating your product into new geographies. If your competitors are able to offer sales support in the native language while yours can only offer the Queen’s English, you may want to reconsider your approach.

Before launching into non-English speaking regions, ensure you have the resources to afford appropriate respect to the market you’re trying to sell into. That means well-translated copy that is relevant to the audience, localised language settings built into the product and a customer team local users can relate to.

If you don’t have the resources to hire a translator full-time, plug-and-play resources are a good way to start. Platforms like Smartcat for example can help to automate copy translations with AI and match to translators where required.

3. Is your product compatible with local tech infrastructure?

One of the most arduous processes in setting up international operations is tapping into the tools and systems that power the local economy. This could include anything from the ability to access risk and credit scoring indicators to banking gateways to compliance and regulatory systems.

For fintech companies in particular, integrating with other systems customers use is a fundamental part of providing a great customer experience. Businesses use many different systems to manage their finance and operations and these differ radically between markets. If mission-critical operations rely on niche systems, what could this mean for your business’ viability in different environments?

For example, if you’re trying to launch a fintech service like Buy Now Pay Later into a new market, or offer tech-powered trade credit and payment solutions like Finstro, assessing an applicant’s suitability needs to align with locally relevant data.

In many instances, the leg work required to source this is time-consuming, costly, and resource-heavy.  Finstro’s approach was to leverage a universal business data API via Codat, which enabled them to digitally collect financial statements during the loan application process. Finstro now integrates into the most popular accounting and ERP systems in the US market with a single connection.

“With Codat's extensive global coverage we are able to support even more small businesses as we grow, without having to worry about building and maintaining numerous integrations ourselves,” said Finstro CEO Brad Prout.

The ability to access accurate local data can be the difference between being able to efficiently offer your product to the market, or exposing the company to an unacceptable level of risk that could limit operations.

4.  Are you aware of the local regulatory and compliance requirements?

Perhaps the most important consideration before launching a fintech product into a new market is the regulatory environment. For example, if you provide payments or lending, you'll be keen to investigate these requirements as early as possible to ensure a move to another market is even viable. 

For example: If you’re collecting customer data, do you need to adhere to any data privacy and sharing laws like GDPR and PSD2? Perhaps you’re required to attain ISO 20022 or ISO 27001 certifications to be compliant?

There may be partnerships to help with this, for example, bank charter partnerships in the US. It may also mean that to be compliant, you’ll need to consider partnering with a local player who has licenses you may be able to temporarily leverage, or plugging into platforms that take care of compliance on your behalf.

For fintech companies looking to make their mark internationally, the use of plug-and-play technology should not be overlooked- it may be your only key into a market that could change the game for your growth trajectory.

In saying that, you’ll still need to consult with a professional to understand the local tax laws and trade agreements, to ensure you’re adhering to the region’s policies.

There are many complexities that come with international expansion, but with the proliferation of trustworthy technical solutions, combined with strategic partnerships the legwork required to grow can pay off.

Remember, it’s crucial to do the appropriate due diligence, particularly if your company is one of the many thousands of innovative Aussie exports snubbing their noses to the limitations of borders, aviation, and lockdowns that have plagued global economies for the past two years.

For founders, it’s becoming a very possible reality that you’ll no longer need a passport to conduct business with global customers, staff, or infrastructure.