Growing with Purpose: Insights on product-led growth and customer acquisition strategies from and for emerging financial firms
- Three off-the-beaten path financial firms navigated the economic headwinds of 2022 and 2023, managing to succeed where many others struggled.
- Executives from Brigit, Majority, and Grasshopper Bank share how strategies tailored to their company ethos drove strong performances amid uncertain times.
In the face of the challenges posed by a difficult economic climate in 2022 and 2023 that squeezed profits for many — three financial firms managed to beat the odds.
Brigit, a personal finance management (PFM) app; Majority, an online banking platform for immigrants; and Grasshopper, a federally licensed digital commercial bank reported strong stats across different areas of their businesses this year.
- The uptick in revenue: Brigit surpassed $100 million in revenue for the previous year as announced by the firm in April 2024. Mint’s departure may have cleared the way for other PFM apps to thrive, but the milestone achieved by Brigit goes beyond merely filling a gap left by Mint, even if that aspect holds some truth. The firm seems to have found a winning formula with its multifaceted model of financial wellness tools. Brigit’s core value proposition revolves around cash advances and other protections against overdraft fees.
- The influx of funding and larger user base: Majority raised $20 million in new funding after doubling its user base by June and is projected to hit a $2 billion valuation by the end of this year.
- The upswing in deposits: Grasshopper Bank, which launched in 2019, broadened its focus in 2021 to serve a wider range of business clients. This shift included bringing in a new leadership team, introducing new business services, and overhauling its technology infrastructure between mid-2021 and mid-2022. These efforts drove significant growth, with deposits soaring from zero to almost $1 billion and approximately 1,000 new small and medium-sized businesses (SMBs) joining its digital platform monthly.
Embracing advanced technology is becoming a baseline for firms seeking to excel and stand out.
But what underlying approaches helped these offbeat and relatively young financial firms, each with a distinct market focus, grow successfully and achieve significant milestones during uncertain times?
1. Launch new products; but not in silos
Growth and expansion are closely tied to launching new products. While this approach can be effective, it calls for thorough planning and mindful execution. One way to maximize the potential of products is for companies to dismantle silos
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