What does it mean to be a European company? We believe it means not only operating within the confines of your own country but also having the opportunity to tap into the flourishing markets emerging across the continent.
The European tech ecosystem is valued at $3 trillion. This showcases a decade of robust growth and resilience, despite economic ups and downs. This landscape presents vast opportunities for companies to grow by tapping into diverse markets, accessing new users, and building better digital experiences for customers.
However, maintaining user satisfaction at a regional level while also delivering Europe-wide operations can be a challenge. So how can you find the balance between catering to local market needs and building a product that can cross borders and impress users across the continent? Let’s explore.
1. Understand and adapt to local markets
The diversity of the European market means that a one-size-fits-all approach will not suffice. The key to expanding across Europe and building a cross-border product is to lead with a local-market mindset.
While there are many similarities among European countries, there are also many differences in customs, preferences, and user behaviors (not to mention languages). These nuances can influence how your brand is perceived in different markets as well as the adoption and usage of your product. Imagine you want to embed banking features into your product. Payment methods in the Netherlands, such as iDeal, differ from those in Spain, where Bizum is most popular. Likewise, a legal representative doing their onboarding in France will have to provide Kbis whereas, in Italy, they would have to provide a “visura camerale”. These nuances become simple when you foster the right partnerships, which we’ll explore in a moment.
Taking Swan as an example, our local accounts and IBANs are designed to help companies build trust and meet local banking expectations. Local accounts and IBANs are received more positively than foreign alternatives, making interactions and transactions smoother for your customers.
In many cases, catering to these local preferences will set your product apart in a competitive market. So, by combining your Europe-wide ambition with a local-market mindset, your business is well-placed to improve user acquisition, retention, and expansion.
2. Ensure regulatory compliance
Expanding across Europe isn’t as simple as replicating your operations exactly the same way in each new market. Navigating complex regulatory environments across Europe can be a daunting task. Each country has its own set of regulations, standards, and compliance requirements, which can vary significantly and change frequently. Ensuring your solution meets these regulatory demands is critical to avoiding legal pitfalls and building user trust.
But don’t worry. You don’t have to become experts in each country’s regulatory requirements. You want to focus on building the best product in your realm of expertise. That’s where Swan comes in. When embedding banking services via our platform, you can rely on our deep knowledge of regional regulations and our robust compliance framework. We take care of the nitty-gritty details to ensure that all financial operations adhere to local laws. Reducing the regulatory burden on your team means you can concentrate on what you do best.
Whether you’re building something yourself or partnering with another provider, making sure you meet the regulatory requirements of each market will keep your business out of trouble while enhancing your credibility and operational security.
3. Create a competitive user experience
When you expand into new markets, you don’t only meet new potential customers. You also face new competition. Do your research and understand the competitive landscape in the market you want to enter. A well-designed user experience (UX) will differentiate your product and drive key performance metrics such as adoption and retention. Consider how you can create a user experience - from prospect to loyal customer - that resonates with the new audience and is also useful and enjoyable.
Complimenting the point above, at Swan, we’ve strengthened our competitive advantage with a commitment to localized UX. Available in multiple languages, our support services and localized interfaces drive user satisfaction for our partners. By providing a UX that resonates with regional users, our partners can create products that feel native to each market - often helping them outperform the competition. So, focusing on UX is essential to establish a strong position in new and existing markets.
4. Build a scalable infrastructure
European expansion can be addictive. When you’ve experienced the benefits of operating in new markets, it’s common to want to expand further. To do so successfully, a scalable infrastructure is essential. This means considering how your product can handle more users and adapt to different market needs while maintaining a consistent, high-quality experience across all regions.
For example, with Swan, our partners can deliver a seamless experience no matter where operations occur. Thanks to our international credit transfers (ICT), users can send and receive money in 20+ currencies in a matter of seconds. These simplified cross-border transactions reduce the friction in financial operations for users in different countries. It eliminates the need for multiple banking integrations and supports smooth expansion into new customer bases and markets.
To build a scalable product, focus on modularity. This way, you can update or replace components without disrupting the entire system. Use cloud-based solutions to dynamically scale based on demand, and prioritize robust API integrations. These strategies keep your product flexible, resilient, and ready to meet the demands of diverse European markets.
5. Become an all-in-one solution
Offering an all-in-one product makes the user experience smoother by simplifying workflows and reducing the need for multiple apps. Integrating various functionalities into a single platform increases the stickiness of your product and, as a result, improves user satisfaction and retention. Of course, becoming an all-in-one solution doesn’t happen overnight. It’s a gradual process as you define the right strategy, build the right features, and find the right partners to help you achieve this.
By partnering with Swan, you can embed financial services into your non-financial product; creating a richer single environment for your users. Embedding accounts and payments into your platform helps your users manage their financial tasks in a centralized place, eliminating the need to switch between different apps.
A unified solution makes your product more appealing and convenient for users. And with Swan's embedded banking features, you can create a consistent, cohesive experience that transforms your product into a must-have for businesses across Europe. We’re talking higher adoption rates and lasting customer loyalty; not to mention a product with higher revenue potential.
So, expanding your product across Europe requires a nuanced approach, balancing local market needs with a scalable and competitive product strategy. If you consider the above tips, explore Swan’s embedded banking capabilities, and position your product for sustainable growth, you’ll be well-placed to explore new opportunities across Europe.
