Over the last year of COVID-19 fueled layoffs and business structure reworks, one industry that has truly shined is the Fintech industry. As the need for in-person banking and other financial transactions has further diminished with the growth of the internet, these services have had to adapt and go online.
Whether the public knows it or not, they rely on Fintech everyday, making it the perfect industry to enter into from an entrepreneurial perspective. It is growing, fast, and now is the perfect time for you to get your foot in the door. Having said this, lets delve into the Fintech industry a little further.
What is Fintech?
Fintech is a contraction of financial technology. In case you’ve never heard of the concept before, this article is here to let you know that you actually have. If you’ve ever banked online, used a stock-trading app, participated in a GoFundMe or bought cryptocurrency, you have used Fintech.
Essentially, as the name suggests, Fintech is any program or other technology that enables financial services and banking. These financial services include apps to help you budget and sites such as Monzi, for being matched to personal loan lenders. Fintech is innovative and efficient, helping to move certain services into a more modern structure.
The Benefits of Fintech
There are a number of benefits to this industry for both the consumer and business owners. Firstly, financial technology gives you a better view of the state of your finances. Bank statements are emailed and processes can be tracked from home. Getting the answers you need about transactions and services are just a few emails away, instead of requiring a visit to a branch. This is also useful for customers who live in rural areas.
Following on from this, Fintech allows everyone access to more financial products. Location is no longer a problem, whether you require a national or international service. Prices are also far better for both the consumer and the business. Algorithms make it easier to judge risks and, as business is online, this often means owners won’t require as many employees as a traditional set-up would.
One of Fintech’s biggest benefits is the flexibility it allows for. Being up to 100% online allows businesses to remove a lot of the heavy paperwork that comes with traditional structures. You also have access to all sorts of programs to help automate work and improve flow.
How to Set Yourself up For Fintech Success
With so many businesses operating in the Fintech sector, it is imperative that you set yourself up properly for success. Get the right investors on board. Don’t cut corners with web design and familiarise yourself with the fintech laws in your country. So, what steps do you need to take to get yourself off the ground?
You’ll need a good niche. Figure out your target market, what you stand for and what you’re offering. Do you have the world in sight, or are you just chasing your home market? All these little details matter, you can’t market to every single person on the planet at once, its not viable.
Figure out the legal requirements, what processes are required? If you’re working with money you’re going to need disclaimers and contracts drawn up. There is always someone to hold you accountable. Get the proper talent. You might be a software engineer with twenty years of computer experience, but you will still need help. You might need a content writer, or a receptionist to answer client emails. Don’t try and do it alone unless your target market is very small, which is not typically the way of Fintech.
Partnerships and funding are imperative. Partner with the security giants. Consumers value their privacy, especially when it comes to their finances. Getting reputable security services to guard data, is just as important to your reputation as it is to the legal aspects. Finally, market yourself well, sell your niche to willing investors. The best way to fund your business is through investors and shareholders. An enticing proposition surrounding an exciting concept is what investors are looking to put their money behind.
How to Stand out From the Crowd
Speaking of an enticing proposition, this is what you need to stand out. So, how do you go about this? Well, the Fintech market is changing rapidly. You should be looking to contribute to this change rather than simply jumping on the bandwagon and waiting for others to push the industry forward.
Essentially, anyone can make it in Fintech, the question you should be asking yourself is how big are you going to grow? Set your standards high and understand that it might take time, but you will eventually get there. If you’re still perfecting your idea, however, reflect on your past interactions with the industry and see where you felt there were gaps.
The overarching ideas have been done before, stock-trading apps have been done thousands of times over. But perhaps they weren’t as clean and easy to use as you would have liked them to be. Just because stock-trading apps exist, doesn’t mean you can’t do it better. This is your niche, taking something that’s been done, doing it better, and marketing what it is better at to your investors.
Naturally, this is all basic information for the potential future fintech businessman or woman. Carry out some further research and begin piecing together the puzzle that is you future business. The industry can only improve, and so can you.