FinTech Startup: Where do you begin?

If are you an entrepreneur who wants to start a FinTech company from scratch, this article is for you. It provides a concise guide that can help you set up your business.

What is the most important thing to consider before starting a FinTech company?

Starting a FinTech company is more difficult than it appears. From product launch and marketing to legal compliance, it’s never as simple as it looks. Beyond this complexity, there exists a large market of financial services. Do you have any doubts about that? In the sections below, see what the statistics say.

The global fintech market was valued at $127.66 billion in 2019 and is expected to reach $309.98 billion by 2025, growing at a CAGR of 25.8% during the forecast period 2020‐2025 (up from 22% in 2019). At a breakneck pace, the financial sector is being revolutionized by FinTech. It affects how individuals use their bank accounts and credit cards, invest, lend, or purchase insurance. Since 2018, the United States has consistently accounted for more than 57% of the FinTech market. US-based customers have highlighted several key benefits that they obtain from the fintech industry. These advantages include improved financial security, simplicity, transparency, personalization, and creativity

Financial technology, or “FinTech,” has been constantly growing in the United States over the past few years. In fact, according to Mordor Intelligence, FinTech’s compound annual growth rate (CAGR) was 8.6%. And this upward trend is expected to continue until 2024! If you’re still doubtful about financial technologies’ power and influence, here are a few more figures: by 2025, the FinTech market size will have reached $300 billion; there are already over 10 000/-existing startups; 64% of people adopted some form of financial technology by 2020; two-thirds of all monetary transactions were conducted online last year.

The Unrivaled Ability to Provide Incredible Value

A startup becomes successful when its team members have the correct mindset while carrying out and implementing a top-notch idea. When it comes to mobile banking apps in the FinTech world, there are many that share similarities. However, their target audiences, monetization models, and user acquisition strategies may differ.

Create an idea by finding solutions to well-known problems. This method is based on your ability to recognize unmet needs among your target audience. One of the most well-known instances is Uber, which was able to establish a fast-growing ride-sharing business by giving something more than simply service for passengers.

Usually, a new solution means fresh approaches to promotion. The product has to reach its target market and the people in that demographic have comprehended the product’s utility.

If you want to establish a FinTech startup, here are the steps you need to take:

1. Do your research – Familiarize yourself with the SEO industry and understand what services or products currently exist in this space. Also, research your target market (i.e., who would use your service/product) in order to better assess needs and gaps that your business could fill;
2. Build a great team – As they say, “two heads are better than one”. When starting any business, it’s important to have a strong support system of like-minded individuals whom you can rely on for advice, help with brainstorming new ideas, etc.;
3. Create a prototype – This will not only give potential investors something concrete to look at when evaluating whether or not to invest in your company but also allows YOU as the entrepreneur to test out different aspects /features of the product before fully committing resources towards them.

Study Laws

It’s critical to double-check the rules before launching your product. When the requirements seem within reach, you may go ahead and start your FinTech company. Take the time to research any legal requirements in the area where your app will be used. A product designed for use in Europe, for example, must follow the GDPR legislation. It isn’t enough to just comply with laws; you should also check for changes as you develop your product.

Involve Expert Development Team

Small companies and expanding businesses frequently break the rules unintentionally. To avoid this, follow a transparent operational procedure. It’s also beneficial to hire fintech development experts and consultants to verify that everything is correct.

Begin Creating

After you select a team, the next stage is to start developing your product. Initially, you should focus on creating a Minimum Viable Product (MVP).

To make sure this is a project you can afford, estimate the cost of building an MVP before moving forward.

The ideal development process for your FinTech app would include these steps:

1. Discovery phase
2. Design phase
3. Development phase
4. Product launch
5. modification

Conclusion

The finance industry is complex, and so are financial regulations. To succeed in this domain, you’ll need a great team, an innovative idea, and comprehensive knowledge of the law. If you have what it takes, don’t hesitate to launch your own FinTech startup today!