Establish Your Fintech Business
FinTech, also known as Financial Technology, is upturning and redefining the traditional banking structure, by making it easier for business owners and customers to move to an online set-up.
FinTech was initially the back of house procedures employed by financial institutions, now though, FinTech has become more consumer orientated and spans over multiple industries. Some of these industries are education, investment management, nonprofit, retail banking, and fundraising. FinTech is also the face behind new giants such as Bitcoin.
There is plenty of space within the industry for you to establish your own business. Here are some of the basics to get the ball rolling.
Firstly, what is FinTech?
As the internet has further advanced, and more services have made the jump to online, financial technology has thrived. But what exactly is it? In it’s broadest sense, Fintech can cover anything from the conducting of business transactions online, to the invention of crypto-currency. Essentially, that banking app you have on your phone? FinTech. Managing your shares online? Fintech. The apple digital wallet? FinTech. Obtaining a personal loan online? Thats FinTech too.
FinTech is becoming increasingly difficult to define as technology improves and more things go online. This is why it may be the perfect place for your new business.
Why should you get into the FinTech industry?
If you’re looking to start your business, the FinTech industry is good for multiple reasons. Firstly, growth. Everything that can go online will go online, if you start your business here it is highly unlikely that you will need to make big business model shifts any time soon.
Secondly, the industry is flexible, thereby giving you more flexibility as well. It is eliminating a lot of the heavy paperwork that comes with typical business transactions. As well as this, there is also all sorts of programs that can help you with how you run your business. Not to mention that, as your business will be online, if you are talented enough to not require staff, you won’t even need an office.
All that needs to be addressed now, is the basics on how to construct a FinTech business.
Step 1: Decide on your niche
Obviously, you can’t start a business without identifying a gap in the market that needs filling, or that you can do better at than the current services on offer. This is where you have to do your research.
Not only this must you decide where you business will fit, you will also have to identify your demographics. Who will be your target market? Do you have a certain age group or country in mind? Perhaps you have aspirations to appeal to everyone. Before you do this however, try to start small and work your way up once you are getting the desired results.
Step 2: the legal stuff
If you’ve ever been into a bank, or taken a loan, or engaged anywhere else in the financial industry, you will have noticed how strict procedures and regulations are. Naturally, when running your own business, similar rules will apply.
Due to the nature of these regulations, these sectors are heavily protected from fraud. Depending on the country creating the rules, they may be looser or tighter in your area, however, don’t assume no one will be holding you accountable.
Regardless of your location, before embarking on the journey to create your business, you must take the time to understand the laws of the industry.
Step 3: locate the talent
Unless you’re an absolute tech whiz, you’re going to need some help with this new venture. Ideally you have some background in either business or technology. This way you have already filled a position within the company.
To complete the rest of your team, however, you shouldn’t be cheap with your hiring process. Do a bit of research and figure out what roles within your organisation need to be filled. Once you know what you want, you have the right to be picky about who you employ. After all, a successful business is the product of its employees.
Obviously, treat your employees well. If you do right by them they should continuously work hard for you in return.
Step 4: get funded and build partnerships
Finally, funding your business. You’ve got a great product and fantastic staff, but if your pockets aren’t that deep, how will you stay afloat? The most common method is making the right partnerships to enable the future of your business.
For most businesses, this means finding an investor or two. People want to invest their money in profitable ventures, this means solidifying your niche is more important than ever. You must make your proposition enticing to get more investors behind you, and keep your business funded.
One way to do this is to make partnerships with other businesses that will increase your credibility. For example, if you are a banking business, partnering with a security site with a good reputation will do wonders for your legitimacy. Alternatively, the right partnerships may also increase the productivity and efficiency of your FinTech business.
So there you have it, the initial process of starting your FinTech business. Obviously, this is just basic information and you should broaden your knowledge before embarking on the journey. However, these tips serve as some base knowledge on the types of things you will have to consider before starting your business.
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