By 2025, the global fintech industry is forecast to reach 191.8 billion USD. In 2019, the market was valued at 111.2 billion USD. Despite this, EY’s 2019 Global Fintech Acceptance Index found that the consumer growth in building a fintech startup was still at a low of 63.5 percent globally.
Financial technology (Fintech) is one of the flourishing industries in the world today. Financing and investing, as well as insurance, are just a few of the services it provides. This situation demonstrates how intense the financial industry’s rivalry is becoming.
While competing in the financial sector can be difficult, the correct methods can put your company one step ahead of your rivals. This article will walk you through the steps to building a fintech startup. To gain more in-depth knowledge on how to start a fintech company from the ground up, check the article on EPAM Anywhere Business.
Seven Step-by-Step Guide to Starting a Fintech Company
1. Find Out What The Rules Are In Your Country For Fintech
Every country has its rules, and it can be hard to follow them. If you don’t follow the local regulations and laws in your country or state, you could be fined or taken to court. For example, in the US, fintech is regulated at state and federal levels. It will be a complicated launch nationwide since each of the 50 states has its own list of regulations. Nevertheless, it is possible to create and launch software that will work in all fifty states.
Working with a solution provider that understands what it takes to launch a fintech startup in your country and puts data protection first is essential.
2. Set Up a Plan to Work With When Building A Fintech Startup
Registering, signing up, and authorization should all be on the list of essential functions for a financial planning app. It would help to make a digital payment app to secure transactions and point-of-sale (POS) implementations.
To find out what features you might need, it’s a great idea to check finance applications and software products in your niche. Most of them are free or available for a trial period. So, your investment is the time only. Enlist features you like and don’t like, and consider how they might influence the consumer’s decision. Make sure they are useful since some features might look like potential but are useless.
If you are already working with a trusted service provider, you may get help from their business analysts. The technical business analyst gathers all business requirements and enlists mandatory features for your fintech solution. All features are discussed by you and your team. This approach allows for building excellent products.
3. Look at the Market and Figure Out How You Can Stand Out
As a fintech company, your product should be better than what’s already available. When you know what others are already offering, you can find unfulfilled needs or possibilities. This will give you an advantage over your competitors and help you become a strong player in the market.
As we mentioned before, trying out other products is a great idea to learn more about competitors. In addition to that, you can check their reviews and find out what is missing. There is a lot of information about missing features in Google Play and Appstore, Trustpilot, Site Jabber, etc. Search where consumers are leaving reviews about your competitor. You can find out all the information you need for your fintech company.
4. Create a User-friendly System to match Your Target Audience
At every step of the customer’s relationship, you should give them a smooth experience. The most important reasons to launch a fintech company are an easy-to-use design, simple security checks like biometric verification or Face ID, and good customer service. With a good UI designer who has experience in financial software design, the task will be easy.
You should also hire a financial expert to help you figure out who your primary audience is and what their needs are. The financial expert will assist you in determining what is essential for your software. These can be features, algorithms, security measures, and so on.
5. Choose a Way For Your Fintech Startup to Make Money
When you start your own fintech company, you have two other choices: whether you want to give your app away for free or find third-party merchants willing to pay for ad campaigns and recommendations. For example, some top fintech companies use techniques to choose and demonstrate specific advertisements to the 50 million people who use the app. Then they get paid when consumers follow through with these suggestions.
Freemium is also a great solution. You can offer free access to your product with limited features, and some advanced ones will be available for your customers with premium access. Freemium is a very popular model since it allows not to annoy consumers with advertisements and earn profits.
Licensing approach works when you are offering a desktop or web application. You can create various packages allowing clients to buy a licence for your software. There are a lot of licence types you can choose from. You can allow your users to buy a lifetime license or pay monthly or yearly for your access to the software.
6. Construction of a Minimum Viable Product (MVP)
An MVP is a minimally viable product (MVP) you can demonstrate to consumers. This is a crucial stage when creating a fintech company because it enables you to collect statistical information about your software or application and gain feedback from actual users. Statistics and user reviews can help you better understand what needs to be changed about your brand. It’s also a valuable technique to determine what essential and sophisticated attributes are lacking.
Another benefit of MVP is that it allows you to launch an innovative solution before your competitors do. In the technology market, every day is important; if you can win the competition faster,, it’s a benefit.
But you shouldn’t forget that MVP aims to demonstrate your product to potential users. A huge investment into the development is needed, and you must perform fast to ensure your consumers are satisfied with your offer.
7. Evaluate And Enhance Your Product
Analyze the data, test your MVP, and gather customer feedback. With a thorough investigation, you can pick precisely everything you need to put in the finished work. These can be new features or glitches users find while using your product. Yet, you don’t need to focus on everything they are skiing since some features might not fit your business idea and require too many resources.
MVP allows you not only to fix bugs but also to make sure that your product meets your customers’ needs. If you can act fast and add new working functionality as needed, you can retain more and more users and, as a result, multiply your profits.
Things to Avoid as a Fintech Startup Company
Ignoring the user’s complaints is a common mistake most people make when starting a fintech company. A successful product fulfills users’ needs and alleviates their problems. During the customer journey, potential customers may encounter difficulties. Think carefully about your competitors and read customer reviews to discover what problems your company’s app can help solve.
When setting up a fintech startup, it’s crucial to guarantee the security and safety of your brand. Make sure you have implemented all technical measures and certificates. Many technologies allow you to secure your software and customers’ details, and with the right development team, it is possible to get everything set.
You are more likely to lose out on recent growth by using remote contractors. Your organization needs to have an onsite team of app engineers and designers. A good team will help you plan and create your own fintech company, figure out how much it will cost, develop ideas, and thoroughly test your financial website and app.
Another approach is to build a dedicated team for your product. There are a lot of companies offering this service. It will be a remote team, but you will fully control the resources. Dedicated or augmented teams are built based on your requirements, but they are less expensive than hiring onsite. Moreover, office set-up, workstations, legal issues, and even hiring are taken care of by the outstaffing agency. So, you can focus on your product development only.
Final Thoughts
There is room for new financial startups to succeed because the demand for this industry is vast and continually expanding. It would help if you had a clever approach to creating a fintech company and a strong master plan to gain a share. Choose your startup’s revenue model and leave the development of your MVP to a reputable group of experts. If you follow the instructions in this article, you’d have done all that is required to build a fintech startup.
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