From Startup to Scaleup: The Role of Culture in Successful Fintechs

The article ‘From Startup to Scaleup: The Role of Culture in Successful Fintechs’ was originally published on The Financial Technologist Magazine by Harrington Starr. You can access the issue here.

Building a strong company culture is essential for organisational success, as Peter Drucker’s famous quote reminds us, ‘Culture eats strategy for breakfast’. While there is no ‘one-size-fits-all’ approach for cultivating the ‘right’ culture, organizations must determine what aligns best with their goals and, just as importantly, their customers’ needs. Cultures must also adapt as companies grow: the intense, founder-driven work ethic of a new start-up may not be sustainable as the organization scales, especially as new generations with different values and outlooks enter the workforce. For leadership teams in fast-paced, regulated industries such as fintech such factors demand thoughtful consideration when shaping the principles, values and behaviours that will drive their companies forward.

Why Do You Need to Prioritise Culture?

Company culture as a competitive differentiator is often overlooked, especially in technology and product organisations. This is a mistake. While delivering great solutions is essential for survival, the way customers perceive your organisation and your people – how they view your brand and whether they see you as a trusted technology partner – can determine commercial success.

Your employees are your strongest evangelists – they are inseparable from your brand. Few things reflect a company’s health better than the people who work there. If customers notice high turnover, key figures leaving, or disengaged staff, their confidence in the company is quickly eroded. This becomes especially evident during mergers and acquisitions when customer perception of the newly formed organisation is critical. Customers are hyper-sensitive to deteriorating support levels, departures of key contacts, and mixed messages about the company’s direction. A weak culture, dependent on individual relationships, is highly vulnerable during such transitions and disenfranchised staff means opportunity for your competition. In contrast, strong cultures with high employee engagement and a customer-centric focus can navigate such changes and emerge even stronger.

This is most impactful when everyone shares a clear understanding that positive customer engagement is a collective mission. It’s not just the role of sales and support teams; every member of the organisation, from junior employees to the CEO, must see it as their responsibility. A strong culture ensures positive and consistent customer interaction, avoiding reliance on a few proactive individuals. But as organisations grow and add more non-customer-facing roles, they risk becoming inward-looking. Maintaining a customer-centric approach as a company grows is challenging but necessary for long-term success.

What Factors Affect Culture in Fintech?

Post-Covid, the demand for tech talent soared as did salary inflation. This presented a significant staff retention challenge for fintechs, with unhappy employees quick to jump for higher remuneration. This underlines the strategic importance of workplace culture in retaining and attracting talent, with most of us looking for more than just a pay cheque from their place of work.

Inclusive cultures also lead to better productivity and decision-making. When employees feel empowered, supported, and connected to the company’s mission, they are more likely to collaborate effectively and make decisions that align with the organisation’s goals. A healthy culture encourages open communication, diverse perspectives, and a shared sense of responsibility, resulting in smarter, more strategic choices.

While it’s easy to discuss the importance of culture, transforming your business into a compelling workplace is far from simple. Many fintech companies face challenges in aligning their teams, hiring the right talent, motivating their teams and delivering a consistently good experience for their customers. Yet many firms succeed in creating an effective and inclusive work environment while simultaneously building strong reputations as trusted advisors. The key difference lies in how they approach culture as a strategic priority.

Leadership plays a pivotal role in shaping the values, behaviours, and attitudes that define a company. Great cultures don’t emerge organically – they are intentionally crafted to reflect the organisation’s goals and ideals. Leaders must actively embed these values into every aspect of the business, ensuring that the culture motivates and retains employees who are aligned with the company’s mission.

How Do You Build a Top 1% Workplace Culture

Creating a strong culture requires a clear and compelling vision for the business, but it must be shaped through collective input and continuous engagement across the organisation. While the CEO may own and champion this vision, true cultural strength comes from involving employees at every level, ensuring their voices are heard and integrated into the company’s core values. A culture built collaboratively fosters greater alignment and commitment among staff, who feel a genuine connection to the organisation’s goals. Relying solely on top-down directives often leads to hollow mission statements and disengaged employees. When the workforce is not involved in defining the culture, they are less likely to embrace it.

A challenge that fintechs face is that leaders often come from backgrounds of deep domain expertise, which may limit their understanding of the diverse personality types, skills and experiences across their teams. While they excel in technical or financial knowledge, they may struggle to appreciate the broader dynamics of their workforce. Communicating the company’s vision, mission, and values requires a different skill set—one that ensures these messages resonate with all employees.

Along with poor communication, one of the quickest ways to undermine an organisation’s culture is through poor or inconsistent behaviour from the leadership team. When leaders fail to align with the agreed-upon purpose or fail to reflect the company’s values in their actions, they can quickly “lose the dressing room”. Employees notice when there is a disconnect between what leaders say and do, and this inconsistency erodes trust and engagement.

Authenticity from the top sets the tone for the entire organisation. Leaders who consistently embody the company’s values in their decision-making, communication, and behaviour inspire employees to do the same. Leaders cast a long shadow, and their actions have a ripple effect throughout the organisation. Leading by example is critical, and when it’s done well, it creates a culture of integrity and alignment that motivates everyone to contribute positively.

Transparency is another critical element of building a strong company culture in fintechs. When leaders communicate openly about the company’s goals, challenges, and progress, employees feel more connected and invested in the organisation’s success. Regular updates ensure that everyone stays aligned and informed. This openness fosters trust and encourages a sense of shared responsibility, where employees understand both the big picture and their role in achieving it.

Moreover, establishing a solid flow of information both horizontally and vertically within the organisation strengthens cohesion and alignment. It allows teams to work together more effectively and ensures that the company presents a unified front to customers, vendors, and prospects.

Once an organisation has clarity of purpose, that is well communicated and reflected in the behaviour of leaders then trust and empowerment can follow. Micromanagement can be highly destructive to culture, but an environment where employees feel trusted and supported to take initiative and innovate directly contributes to the company’s success. This should come hand in hand with recognition and reward systems that are designed to actively encourage desired behaviours. Misaligned commission and bonus structures can exacerbate poor behaviour and undermine the culture leaders are trying to build. Conversely, aligning rewards with the company’s values and celebrating successes – whether big or small – motivates employees and reinforces a culture of integrity, engagement, and consistent performance.

Finally, it goes without saying that leaders must ensure that the culture in fintechs remains inclusive. A diverse and inclusive workplace not only brings a broader range of perspectives but also fuels creativity and innovation. Doing so in an environment that actively encourages people to speak up, where their opinions are valued and actively listed to is key to a successful culture.

In conclusion, organisations must recognise that culture and values cannot simply be taught; they need to be reinforced through a clear vision, authentic leadership, transparency, empowerment, recognition and inclusivity. When these elements come together, they create an environment where employees are engaged, motivated, and aligned with the company’s goals.