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Finance Technology also known as Fintech startup is a well-known term because it’s been in use for quite a time. Digital transformation technology has improved how the financial sector responds to consumer needs because it’s the technology that they employ to manage its financial transactions. If you make use of your card for credit to buy items or stocks online, pay for subscriptions, services or invest using Google Wallet, PayPal, or Apple Pay You’re making use of fintech. This means that fintech is a part of everyday daily life.
The fintech industry has been growing at a rapid pace. Its Global FinTech Market Size, Status and Forecast for 2019-2029 report declares that “the global fintech market is expected to reach $124.3 million in 2028, at an annual compound growth rate (CAGR) that is 28.84 per cent.” That’s why there is huge potential for investment in fintech companies.
What is a Fintech Startup?
A fintech startup is an organization that uses technology to satisfy customers’ needs in financial management. Fintech companies compete against traditional banks and financial institutions because they provide efficient solutions or have a better understanding of the problems that exist.
As consumers are adopting technology like fintech at an alarming rate it is possible to create an application and fintech business. Nearly 98% of consumers around the globe are using at minimum one fintech-related app for their smartphone. You should also have noticed that insurers, banks, and lenders have developed apps for their customers to make their operations easier. Your business also can develop and reap the benefits of fintech apps.
So, now is the perfect time to start your fintech startup idea off the ground.
The entire guide will provide an in-depth look at the fintech industry, ways you can get started with your own fintech business and why you should develop an application that is fintech-related to your company.
The Most Important Fintech startup Statistics you Need to Be Abreast
One question that is on the mind when considering looking at fintech business concepts is whether the market is expanding or not. What’s the future for the fintech industry? Is the investment worthwhile?
In this regard, the data indicate that the market for financial technology is growing rapidly in recent years. This growth is predicted to increase even more in the next few years.
According to Brisk Logic statistics, the number of fintech-related businesses is increasing significantly. For example, there were 5,686 fintech-related startups across the US in the year 2018, and that number increased to 10,755 by 2022.
As per Research And Markets, the market value for fintech across the globe was $2767 billion as of 2016. It is anticipated to experience an increase of 27.5 per cent CAGR and will reach $31,503 billion in 2027.
Things to Consider Before Launching a Fintech Startup in 2022
If you’re wondering what to do to begin the fintech startup industry Here are the most important steps to be considered:
Figure out what your Fintech startup Business Niche
This is the first step towards the start of a fintech startup like almost every other type of business. You must decide on the area to focus on.
Fintech startup can be described as having a wide variety of niches and verticals. Before you can enter the market with an idea for a business it is important to have a crystal-clear idea of the niche that you are targeting, the target market, and the issues that your company is planning to tackle.
In this case, you could choose to create an app for cryptocurrency exchange. This kind of application allows users to purchase cryptocurrencies such as Bitcoin and Ethereum and then sell them at any time desired, and earn profits. You earn a commission for every transaction you make on the application. There are many more ways to earn money through it.
The most well-known areas of fintech startup include insurance crypto exchange crowdfunding, personal finance management such as digital wallets, stock trading and money lending to mention some.
Make a brainstorming plan for your USP
After you have chosen your niche for fintech startup, The next step is to determine the competitive advantage or unique selling point your company will provide. There are many similar businesses in the market offering similar solutions to yours. What makes your fintech startup distinct from your competitors?
You must find the solution to this question to draw more customers or users to your product. Begin by identifying the leading competitors on the market. Make use of their platforms and develop an understanding of what they’re up to in terms of their unique capabilities, how they take on users and what are they doing to stay ahead of the curve.
For instance, apps for money lending offer loans to customers with no involvement from financial institutions or banks. The problem for consumers who are looking for a bank loan is the fact that they aren’t more convenient to obtain, nor do they are not able to verify their legitimacy. Apps for money lending online or platforms offer loans with no complicated criteria, like banks.
Additionally, you should consider what else you could provide, or what problem you could tackle through your fintech startup.
Be Aware of the Rules and Regulations
The regulations and rules are complex and high-risk in the field of finance. So, you must be aware of the ifs and buts in the rules which you have to comply and adhere to. There are regulatory and legal agencies, regulations, restrictions and requirements that you cannot avoid.
For example, if your market of choice comprises European states or countries, you must comply with the General Data Protection Regulation or GDPR. For fintech startups based in the US complying with the requirements of anti-money-laundering (AML) guidelines is mandatory.
There are many more rules, like the Know Your Customer (KYC) PCI-DSS, etc. Learn and comprehend these rules well before entering the market of fintech. If you break any regulations or rules that you violate, you could get into legal issues and possibly have your company closed.
Create a Team
To be successful as a business in the fintech field, it is necessary to have expert and knowledgeable individuals. The team will be responsible for defining the solution, developing marketing strategies, coming up with novel and inventive ways to expand in the market and managing cash flow, etc.
If you’re planning to create a mobile app then you must choose an app development firm that is fintech. The company will create the app for you by your business concept.
The outsourcing of some core tasks is essential for budding startups since hiring the right talent during the initial stage of your venture is a time-consuming job. In this case, it is possible to could outsource app development and web design as well as digital marketing. This will not only help to complete the task by a professional but also helps you save the time and expense of hiring a team.
Choose An Minimum Viable Product
MVP is also known as Minimum Viable Products (or MVP) is the base version of your web-based platform or mobile app. With the MVP version, it’ll have the basic features and functionality.
The goal of developing an MVP is to provide more clarity regarding the solution, release the application to a specific group of users to test in real-time and pitch to investors to raise funds, and concentrate on the main functions.
Additionally to that, the MVP can be created within a shorter time frame and for a lesser cost. When you’ve got the confidence in your vision, and you have received comments from investors and users and investors, you can move on to the official release. Fintech companies with good apps can help in both MVP as well as final product development.
Raise funds or find investors
After you’re done identifying the market and knowing the USP and securing the team, an app development company, as well as an effective MVP The next issue is finding investors. Fintech startups require significant investments. You must raise money for your venture before you can enter the market.
It’s time to present your fintech-related business idea to investors. In order to do this, you must create an inventory of investors who may invest in a fintech company and submit your business idea complete with all the information. Make sure you have a professional presentation, demonstration of your idea and monetization strategy.
Start your Business & Keep Innovating
After you’ve completed the steps previously and have identified investors, it’s time to go public with your unique fintech startup concept. This market is growing rapidly and will require your total determination to be to the top of the wave.
Be aware of the analytics of customers, be attentive to the feedback of customers and address the issues they face. Continue to make your product more creative by adding new functions, features and features and focus on user experience to ensure that you are successful.
How do I start a FinTech start-up?
You now know the advantages of starting an FinTech Startup. It is time to begin creating an FinTech startup. These are the steps you need to follow in order to complete the task:
- Make a concept
- Examine your concepts
- Sort your thoughts into categories
- Make sure you’re up to date on the rules
- Experts in app development can be found
- Begin developing an app
Let’s look at the in-depth details of each step:
Compose up with an idea
- Each venture starts by generating an initial idea. To build a high-end FinTech startup it is crucial that you begin by pondering an innovative idea that will alter the marketplace in the way you’d like.
- If you’re looking to become a FinTech founder of a startup You should think about brainstorming with yourself or with your team members. Be aware of the golden rule of brainstorming: no thought is right.
- Write down your thoughts as they come to you so that you can further refine your thoughts into the most practical ones.
- Think about the issues of your market you want to target and other banks struggle to resolve. Provide solutions to the problem.
Test Your Idea
Validating your idea is a process that helps determine the feasibility of your idea without cost or at a low cost.
Once you’ve decided on the FinTech concept, you need for you to decide “Will it be successful?” Also, is there any demand for the idea you’ve just thought of?
Conduct Research on Google
- Google offers two tools that can determine the market demand for your product. These tools include Google Keyword Search along with Google Trends.
- Google search engine isn’t only a tool used by SEO experts. It can also provide you with an idea of the requirements for your product. What is the process for doing this?
- This is a Google-owned product that will help entrepreneurs understand the most popular items.
- Google Keyword Research lets you search for keywords and other keywords that are related to your product.
- Then, it displays the number of searches these phrases and keywords have. It will give you deep insights into the market for your products.
- In the opposite direction Google Trends will let you determine how many people are looking to find the FinTech product.
- It’s the easiest thing to start and will help you determine if you’re selling a popular item or not.
- For instance, if you are planning to launch a cryptocurrency-related application It will provide you with an indication of whether the search trend is rising or declining.
Check App Stores
- As a FinTech, the majority of your products will be sold in an app store whether it’s the Play store on Google, the Play store as well as an Apple Store.
- It’s important to note that it’s not all apps that perform well, it is important to make sure that yours is among the best performers.
- Additionally, App stores can be a good way to compare other service providers operating in the same industry that you. You can find the most downloaded FinTech apps that are solving similar issues using your product.
- Then, you can do a comprehensive comparison to find out what is it that makes them sought-after.
- Now you have a few pieces of information regarding your idea. Your next task is to categorize your idea in order to transform it into a viable or acceptable item.
Go over Regulations
- Before you can launch your product, you must ensure that you check first the relevant regulations.
- When the rules and regulations seem to be within reach You can then begin taking steps to start your FinTech start-up.
- Make sure to verify rules and regulations in the location in which the application will be employed. For instance, a product that is used in Europe must be in compliance with the GDPR legislation.
- It’s not enough to keep up with rules You must also be aware of changes in the regulatory environment while developing your product.
- As for the level of sensitivity of the application you’re creating, you may need to take additional steps. These are additional ways to make sure you’ve properly vetted the regulatory requirements.
It’s commonplace to find small and expanding companies in violation of laws, even if it’s not intentional. To avoid this, adopt an open and transparent operating procedure.
It is also recommended to hire experts and consultants to ensure that everything is right. This lets founders have questions if they need to.
Schedule Regular Audits
Conduct regular internal audits prior to and during the process of the development of your FinTech start-up. Your internal audits should be focused on operational, technological and financial as well as regulatory aspects.
Check that your internal auditor is free from any external or internal influence. In addition, the auditor should follow the widely accepted standard for auditing.
After you’ve mastered the essential regulations, you are able to proceed to the next stage by locating a knowledgeable developer for your app.
Locate a Knowledgeable App Development Team
The most important aspect of starting an FinTech company is the hiring of an App Development team that will ensure a speedy execution.
Finding the right app development team using the correct technology stack is a “herculean job.” Particularly if you are not a tech-savvy person.
With the right information, you can surely be able to grow. Here are some websites to consider to find the best developers for your app.
Begin to Create
Once you’ve decided on your team The next step is creating. In the ideal scenario, you’ll need to develop a Minimum Viable Product.
It’s best to first determine the costs of creating your MVP and be sure that it’s something that you can manage before starting out.
When creating your FinTech application, the optimal process for developing your product should include:
- The phase of discovery
- Phase of creation
- Phase of development
- Product introduction Product enhancement
The Steps you Should Take with Brisk Logic
If you’ve learned the steps to build a FinTech business with Brisk Logic. The next step would be to start the process of creating your FinTech application. FinTech apps are often complicated as they require a variety of procedures. A single error during the process of developing an app could result in an action in court that could end up ruining your business.
In addition to what’s mentioned here, it is should know how to go about FinTech apps development.