In the past, fintech was an industry that only handled simple financial transactions. Over time, however, it has evolved into a way for businesses to provide their customers with innovative services that fit their lifestyles. There are now hundreds of companies in the fintech sector, and each one is different from its competitors. If you’re considering starting your own fintech business this year then here’s what you need to know.
So, here is how to build a fintech startup in 2023.
Things To Know About Starting A Fintech Startup
The Fintech market is one of the fastest-growing industries in the world: according to CB Insights research, the total number of global fintech funding deals in the first quarter of 2022 was 1,482, and it is 20% more than in the first quarter of 2021.
Fintech companies provide a variety of financial services, including:
- Personalized banking experiences through mobile apps and portals
- Traditional banking services (such as loans)
The competition among startups isn’t as stiff as it might seem at first glance; there are still plenty of niches where you can carve out your own space without having too much competition right away!
If you’re interested in how to create a fintech startup, it’s important to know what sets this industry apart from its traditional counterpart — and how you can build your own FinTech startup into a successful business venture.
The Pros Of Starting Your Fintech Business In 2023
One of the greatest benefits of starting a fintech business in 2023 is the ability to innovate at a faster rate. The industry is still young, and there’s no telling what innovations will come about in the next few years.
There are many reasons why this could be an advantage for you as an entrepreneur:
- The market is already established. The fintech sector is one of the most competitive markets in the world. There are already many established companies that have made their mark in this space, such as PayPal and Square. However, even though there is a lot of competition, there is still room for growth. This means that you can get your foot in the door and start making an impact right away!
- It’s easier to market your product. Marketing your fintech business is easier than you think. The reason for this is that social media allows you to reach potential customers and build trust with them. You can use social media to get feedback on your product, as well as build a following so that when it’s time to launch your product, people are already interested in what you have to offer.
- There’s less competition than in other sectors. This is because many established fintech companies have been around for years and have gained a lot of customers, so new startups are hesitant to enter the market. However, despite this fact, the market is growing rapidly and there are always opportunities for new players to enter and find their niche (by targeting specific industries or customer segments).
Most Common Reasons Why Your Fintech Startups Will Fail
If you’re planning to start a fintech company, there are a few things that can go wrong:
- You don’t have a business model. A lot of people think that their idea is great, and they’ll get funded by investors. However, if you don’t know how to make money from your product or service, it’s not going to work out well for anyone involved.
- You haven’t done competitor research. The competition also plays an important role in financial technologies because if there’s already competition out there then chances are they’ve done their research better than you have, so make sure before entering any market space that there isn’t already someone else does what it is that makes sense for YOUR business model/idea.
- You haven’t made sure that the product fits the market. The first step is to determine if your idea is something people want and need. Then, you can build your team around this idea and start working on it.
How To Start A Fintech Company?
The fintech industry is booming, and the opportunities it presents are endless. If you have the right idea and can develop it into an actual product or service that has value to customers, you could be well on your way to starting a successful fintech startup.
How to start fintech company? The following nine-step guide will help you get started.
Step 1. Define Your Fintech Idea
- Define the problem that you are trying to solve;
- Define what your product will do;
- Define who your target audience is and how much money they make per year (if applicable);
- Figure out how much time it will take for you to build this product, in hours per week or month, and then divide that by what you think an employee would cost in salary and benefits per hour of work (including taxes). This will help determine if it makes sense for someone else to work on it instead of yourself.
Step 2. Research The Fintech Industry
The second step to starting a fintech company is research. You’re going to need to do some heavy-duty research on the fintech industry and its trends, as well as what your competitors are doing, in order for you to have an idea of where your business can fit into this market.
Look at the market — What is the size of your target customer base? Where do they live? How much money do they make? What kind of education do they have? These are all questions that will help you determine how big or small your target market is going to be when starting out in this industry and how much money is available for you or anyone else who wants part of those profits.
Also, learn more about big data in fintech. It is important for improving the safety of general data protection in your future product, including the safety of money transfers.
Step 3. Create A Business Plan
A business plan is a document that outlines the goals, strategies, and resources needed to achieve those goals. It’s important to create one because it helps you to understand your business better by identifying its strengths and weaknesses. Get funding from investors by showing them how successful their investment could be if they were involved with your company at this early stage – so make sure that all of this information is included in your business plan too.
Step 4. Assemble A Team Of Experts
The next step you should do to start a fintech company is to assemble a team of experts. The best way to do this is by networking with other startups and fintech professionals in your area. You can also post on job boards like LinkedIn and Upwork if you don’t have time for face-to-face meetings.
Step 5. Develop Your Fintech Platform
The next stage is fintech app development. Developing a fintech platform is a complex process. You need to consider the needs of your customers, and the industry you are targeting. You also need to decide on the features you want to include in your platform.
In general, there are two different types of fintech platforms: those that offer financial services directly through their own websites or apps (such as Robinhood), and those that provide software tools for other companies who want to offer financial services (like Stripe).
Create an MVP (Minimum Viable Product). This will help you test the viability of your idea before investing too much time or money into developing it further.
Don’t forget that your application must follow KYC (know your client) procedures. The Broscorp team has already developed an effective KYC for fintech business solutions. Contact us, and we will help you choose the best KYC system according to your needs (countries of service, type of application, verification methods).
Step 6. Launch Your Fintech Startup
Launch your MVP as soon as possible so that potential customers can try out what you’ve created so far. In order for this step to be successful, make sure there is enough interest in what you’re offering; otherwise, consider pivoting until there is more demand for your product than supply! Once people start using your product regularly and give feedback about how they would like it improved based on their needs/wants/etc., then proceed with building out more features while still keeping a focus on improving usability at every step along the way.
Step 7. Market Your Fintech Startup
Marketing is a key part of any business. It’s especially important in the fintech world, as startups have to work hard to get noticed among the noise of other companies and products on the market.
Create an eye-catching website with clear calls-to-action (CTAs). You want visitors who land on your website or landing page to convert into leads or customers as quickly as possible, so make sure they know what they’re getting from each page by providing clear CTAs that guide them through the process of signing up for free trials, buying products/services, etc., rather than leaving them confused about what step comes next in their journey with your company.
Step 8. Secure Funding For Your Fintech Startup
If you’re moving forward with your fintech startup, it’s time to secure funding. There are many ways for you and your team to raise money, but how do you choose the right one?
You can secure funding from investors, banks, venture capital firms, and angel investors.
Step 9. Grow Your Fintech Startup
Once you have established your business and are ready to grow, there are a few things that you can do:
- Grow your fintech startup with a strong team. One of the most important things when it comes to growing any company is hiring the right people. This means hiring people who share your vision, work hard, are honest and trustworthy, and understand their role in the company’s success.
- Grow your fintech startup with a strong network of partners/suppliers/customers etc. It’s important not only because it helps spread awareness about what kind of services/products are provided, but also because these connections often lead directly back into other businesses which could potentially become clients themselves down the road.
Our Work Case Of Solutions For Financial Institutions
Broscorp has extensive experience in implementing fintech tasks. Here are some of our cases:
- POS Software. We built an in-flight Point of Sale with a client-facing e-commerce solution, payment processing solution, mobile app for the team, and stock management features for the back office.
- Financial Reporting Software. We built a financial data pipeline that fetches real-time data from ERP, stores it, aggregates, and creates comprehensive analytics on top. All in all, it helps speed up the decision-making process and cut profit losses.
- Trading platform. We developed a platform for monitoring cryptocurrency allowing a trader to work with just one webpage, make decisions based on significant market indicators and, most importantly, be able to buy or sell cryptocurrency on several exchanges all at once.
- P2P exchange platform. For P2P exchange platform Broscorp has developed a custom fintech app. We provided business analysis, bootstraped the project from scratch and successfully implemented mobile app as well as back office web application, overcomed multiple legal issues.
- Trading data analysis. We are working with Alliance Block and building real-time data pipelines for processing on-chain data for them. We build a data computation streaming system and achieve low latency in processing big data and SQL computation.
You can learn more about the other projects implemented by our company in the section Cases.
Now you know more about how to start fintech company. The fintech industry continues to grow, so why not give it a try this year? Just remember: before you start developing an app, do all the necessary research and make sure that your product will find its target audience.
It is better to entrust the development of the app to professional developers who have already worked with similar products. Broscorp is a reliable app development company, with experience in developing various fintech solutions. We will help you to implement your ideas, considering all the details of applications in this industry.
We’re open to discussing your ideas and questions. Leave us your email and we will contact you to arrange an initial conversation.