The fintech industry seems to be popping up all over the globe. More and more individuals are found determined to try their luck in the finance and banking sector with the help of a few technological innovations. Not to mention more and more fintech companies are finding new ways how they can enhance their customer experience.
Today anything is possible, yes one no longer needs to step out to achieve in their respective careers, you can work well using your laptops or desktops sitting at home. Not to mention that the fintech market is growing at a significant rate. No matter how many global lockdowns happen, the verge of digitalisation won’t stop any time soon.
What is a Fintech Startup?
Now first and foremost what is a Fintech Startup? Well, it is a mere company that mainly relies on a wide range of technologies just to enhance customer experience by offering the best finance management services. The main objective of the commencement of these fintech startups is to wipe out the traditional financial providers by offering more intimidating solutions.
Often called a portmanteau of the terms “finance” and “technology”, Fintech is one such industry that creates different types of fintech softwares and solutions which provides a win-win situation for both businesses as well as end consumers. Some of the known examples of fintech solutions include mobile banking, cryptocurrencies, bitcoins and whatnot!
So does this mean starting a fintech startup is a child’s play? Probably not! Theoretically speaking you need a team of reliable fintech developers or hire a reputable fintech development company that can work for you. However, that’s a very small aspect of the entire process. The following blog focuses on certain tips and tricks that must be taken into consideration while commencing a fintech startup.
One of the popular online payment gateways named Stripe is considered by numerous eCommerce businesses worldwide. Stripe is more in regards to businesses than customers. The fintech startup is now a $36 billion fintech giant.
Of course, we have seen a lot of companies reaching new heights but at the same time, several fintech startups tend to fail due to certain challenges such as not getting enough funds or not understanding the competitors, picking the wrong VC, not keeping up with the legal aspects, picking any random fintech development company, ignoring the understanding of customers and so forth.
Further, I would like to mention certain tips and tricks to know starting a fintech startup
What to Know Before Commencing a Fintech Startup?
#1 Analyze your market
This is something very obvious yet many businesses tend to skip this part. See analyzing the market is extremely important, no matter how fantastic your idea seems to be at first but there is no point in implementing it unless you have analyzed the market well. Fintech startups must consider analyzing the market as soon as possible just to be doubly sure regarding what they are about to implement will turn out to be a grand success or not.
Not analyzing the market is one of the major factors that lead to companies’ failure, according to general stats. So understanding the market, knowing your competitors well, see how your kind of products and services are being sold and purchased are some of the crucial factors that must be taken into account before commencing any fintech startup.
#2 Try offering Customer-Oriented Service
Another sure-shot way to make your fintech startup more successful is by offering customer-oriented services. Today customer is no longer bound to cheap prices, if they don’t find you worthy they will immediately switch to your competitors. So yes, hands down when it comes to customer-oriented service.
As a fintech startup, one must try to satisfy their customer’s needs and requirements. Not to mention that opening up to the new-age technology can do a lot of good, especially in this scenario. It significantly beats the pressure of offering the best customer service.
#3 Quick Integration
Today the need for disruptive technologies has increased to a great extent. Technologies such as artificial intelligence, and blockchain are found willingly being adapted by numerous companies, fintech ones turn out to be no exception. And of course, one shouldn’t avoid the fact that new technologies keep on opening several doors and possibilities like never before. Today tasks such as accessing the right customer or making accurate decisions, reducing losses and what not!
In the present scenario, any startup should be reached by end customers to grow. After all, adapting to their expectations is not easy, there must be fast and reliable integration offered. On and all, fintech startups have excellent growth potential, you have to just be a little more proactive towards it.
#4 Take care of Regulations and compliances
Another crucial aspect that must be taken into consideration before commencing any fintech startup is to keep a close eye on all the regulations and compliances. You see fintech industry is pretty sensitive, one must watch out for every single step. One ought to be 100% sure before making any decision, especially in regards to how the information will be stored and how protected it is.
Everything from all the legal restrictions to ethical laws can be well-taken care of. After all, these points might seem basic but can be extremely pivotal if you somehow happen to lose the business. So make sure you are legally protected. Prevention is better than cure, right!
#5 Cash Flow and Financial Management
Last but certainly not the least aspect to consider is the cash flow and financial management. Do you know why most fintech startups fail right in the beginning? They are unable to manage the cash flow appropriately.
Setting up a fintech startup is not easy and it takes ample time, money and energy to do so. So one must have a concrete plan when it comes to maintaining long-term cash flow.
And we are almost done! I hope the blog turns out to be helpful in commencing a fintech startup. The future of the fintech industry is pretty rosy. Wish you good luck!