First Symphony: The Distinctive Strategy Used by IDFC FIRST Bank to Support Startups

Every successful startup recalls its very first large anchor client. The client they were not prepared for, but managed to land. The client whose stature and credibility inspired other clients to say “yes.” The client with the ability to refer them to other clients. The client was given first priority on their website, marketing materials, and sales collateral. The client that supported them throughout their early and expansion phases.

It’s especially true for B2B, digital-first startups that serve both small and large enterprises—you don’t really start playing in the big leagues until you have your first major anchor client. However, not every startup does. More than 90% of firms fail during the first five years, even with good technology and potentially successful business concepts. Not only can a thriving business get weight from having a solid anchor client in its early phases, but it also offers other concrete advantages.

What qualities define a strong anchor client, especially for a tech-forward or digitally native B2B startup? To start, in order to establish credibility and draw in other prospective clients, your anchor customer must be a well-known figure in the sector that is pertinent to your firm. It goes without saying that they should have significant size and development potential, be receptive to implementing new digital solutions, and be willing to build a long-term, mutually beneficial collaboration with you as you expand.

Additionally, they must have an innovation-focused mindset and a readiness to try out cutting-edge ideas. Furthermore, it’s critical that they be open to working directly with you to address certain business problems, since this will give your product the advantage of real-world experience and learning. An anchor client whose company handles sensitive data also helps your firm improve its advantage in data security and regulatory compliance, which boosts the trust of other prospective clients in your skills.

In addition to sharing your long-term goals, the ideal anchor client has the financial stability to dedicate themselves to a major collaboration with you.

Where are they located?

That’s usually the difficult part. Businesses of this caliber and stature are often wary of collaborating with startups, especially those that have disruptive technology. It’s a typical case of chicken and egg: up until you get your first anchor client, you’re seen as “untested” and “risky,” and because of this, you find it difficult to attract one.

But your bank is one possible anchor client that already knows you, is familiar with your industry, and has firsthand knowledge of your financial situation. It also fulfills all the requirements for becoming the perfect anchor customer:

Banks are major participants with a lot of sway.
They have an innovation attitude and a readiness to work together to find answers, and they often embrace digital ideas early.

They have a huge amount of space and room to expand, and by design, they place a high priority on data security and legal compliance.

Furthermore, you must already trust this possible partner if you wouldn’t bank with them personally, don’t you?

Fortunately, one bank views itself the same way as you do, and it serves many startup clients. The FIRST Symphony Program of IDFC FIRST Bank is making good progress in locating startups that it can collaborate with, serve as an anchor client for, and support via distribution.

IDFC FIRST Bank’s First Symphony: Startup founders’ favorite music

The program’s idea is rather straightforward: banks may act as matchmakers for other anchor customers by using their existing customer base and industry contacts, in addition to creating fantastic anchor customers themselves. Finding anchor customers increases the chance that the bank’s startup clients will expand; some could even turn into unicorns. Every time one of these businesses succeeds, it immediately boosts the bank’s own profits. Additionally, entrepreneurs who credit the bank with helping them succeed are likely to spread the word about them to their colleagues and foster goodwill for the bank.

Overall, everyone is lifted by the program.

Additionally, IDFC FIRST Bank has done all possible to streamline and open up the First Symphony procedure. To identify the correct POC, there’s no need to follow up on many “connections.” There is no need to make a lot of jumps. It all begins with a pitch, just like everything else in the startup industry. Cross-functional teams from several bank business areas comprise the First Symphony team. Due to their cross-functional makeup and incentive to assist as many startups as possible, these squads are adept at identifying and investigating synergies.

Together, the startup and the squad investigate these opportunities and develop the framework for their cooperation, which is documented in a memorandum of understanding (MoU). IDFC FIRST Bank may serve as a distribution channel, an anchor customer, or even a partner by expanding the startup’s services to its clientele.

For example, a company that assists in the development of customized chatbots may be added as a provider to meet IDFC FIRST Bank’s specifications. As a partner, the bank may also include this chatbot service in the package that it offers business clients. Alternatively, the bank might act as a distributor by offering corporate clients exclusive access to the chatbot provider.

The First Symphony team and the startup collaborate to develop roadmaps, products, and offers, as well as policy and/or system enhancements at IDFC FIRST Bank, once they have worked out conditions of engagement. The bank’s PR staff gets engaged to inform the media once these offers, products, and procedures become online, and the first pilots are started.

The remainder of the tale describes how unicorns are often created. First Symphony’s ability to link these relationships to anchor clients allows it to assist companies in overcoming what is often the first significant obstacle. Startups can make a strong first impression and really compete with established brands when they have an anchor client.

The nicest aspect is that First Symphony is available to everyone. All IDFC FIRST Bank Startup Banking clients are eligible for the program. Discover more about the many ways that IDFC FIRST Bank is committed to promoting Indian businesses worldwide, and think about using the IDFC FIRST Bank edge for yourself.