If you are planning to start a fintech company. First, get a brief idea about what fintech start-ups are all about? Why do they call Fintech start-ups, and what are the basic things you have to take care of while building the one? All your answers are a scroll away.
What Are Fintech Startups?
‘Fintech’ is a combined word that came out of ‘financial technology.’ It provides new-age financial and banking solutions through digital modes. For instance, Paytm, NiyoX, Upstox.
Why A Fintech Startup?
Thanks to digitisation! Now building a fintech start-up does not require huge capital as compared to earlier times. It leads the market to grow exponentially. According to the facts, there were 12,131 in 2018 and 20,925 in 2020. A growth of 72% makes it a good career option.
If you are an experienced financial professional, tech-savvy and aspire to be an entrepreneur, Fintech start-up could be the right choice for you.
As a financial service provider, a citizen/company holds a huge responsibility of taking care of the public funds and government rules and regulations. Therefore, you need to do your homework to avoid turning down your dream start-up.
12 Tips Before You Start Your Own Fintech Business
1. Market Research Is The Solution
It is essential to have a brief idea about the market, competitors, public problems and demands. There are plenty of fintech start-ups who are doing well then why should people choose you? What is the value addition you will provide? You will get the answer, just start the market research. Rolling a survey could be a good idea, to begin with.
2. Know Your Idea’s Feasibility
Ample ideas are roaming around in the market but are all of them successful? Probably not, as an idea need a practical approach to turn into a start-up. No matter how brilliant is your idea but if it’s not feasible, it will be another random idea roaming in the market. Given the tips below may help you check the feasibility of your business idea.
3. Make A Business Plan
If you’re sure about the idea, now it’s high time to convert it into a full-fledged business plan to understand the future uncertainties and get prepared for the same. Also, a business plan enables finding the loopholes at the initial stage to be resolved before beginning the process.
4. Challenges And Risk Management
As stated earlier, fintech start-ups are not as easy as an evening walk. Fintech involves huge challenges and involves huge risks that you have to be prepared for. Do not plan to begin if you’re a fresher. Join a financial company or bank, take good experience there, understand the operational challenges, learn risk management and then think of starting your own set-up.
5. Choose The Business Partners Wisely
It’s not easy to start a Fintech brand. You need to have the right people at the right place with the right expertise. You will need a legal, operation and financial partner to begin with to avoid a legal/financial mess.
6. Don’t Miss On Rules & Regulations
Significantly, you need to know all rules and regulations by governing bodies of the particular region. If not, you may be able to serve your customers the way you would have thought.
7. Source Your Funds
Do your financial planning first, then others’. Despite this fact, the investment is a little less in fintech start-ups in comparison with traditional financial companies. You will need to secure funds for the initial capital. The funders could be any investor, business partner, friends or family.
8. Arrange Human Resources
Are you planning to hire freshers to cut the costs? Probably you are making a big mistake. Fintech start-ups are different from regular start-ups. You will need experienced professionals with expertise in their respective fields.
9. Speak To Your Target Audience
How many of you know about RideCharge? Probably none or a few. Yet we all know the brand called Uber. RideCharge was the first company to start the concept of online cabs but couldn’t grab the market due to a lack of marketing sense, whereas Uber did a tremendous job to create a buzz. Did you get the point?
10. Developers Plays An Important Role
Presentation is essential these days. If you can present it well, you can ring the bell! It means if you have a user-friendly interface and an appealing website/app, it raises the chance of getting attention. Web Development plays important role in fintech. Therefore, you must should be keep yourself updated with the new fintech trends.
11. Start With Domestic Services
Do not begin with the entire world because you may not know each region’s rules and policies. Start now and expand gradually so that you get sufficient time to acquire the market.
12. Do Not Give Up
Starting a fintech company is tough but not enough to give up. There would be daily challenges, demotivating moments, unsatisfied customers and losses. Remember, A steady start-up makes its place in the market. All you need is not to give up.