The fintech industry has found its stride. Finding financial technology solutions to existing problems may seem to outsiders to revolve around online banking apps, such as Monzo and Venmo, or cryptocurrency, but the industry’s scope is astronomical. In 2018, the industry acquired $111.8 billion in global investments, while 88% of financial institutions are concerned about the threat of fintech to existing structures. But, with so much impetus behind fintech start-ups, how can you ensure that yours succeeds? Here are some considerations to help your fintech business take off.
The Right People…
A lot of fintech success comes from those who are involved in the early stages. The right talent at the start is not only an incentive for angel investors or as part of a wider investment strategy, but also means your product will come out of the gate stronger. Finding fintech talent to help the ideation stage can be difficult, especially for a start-up that won’t pay them as much as larger companies. But, often the idea of being involved in the next PayPal or Bitcoin is enough to convince them to devote their expertise.
…at the Right Time
When embarking on a fintech start-up, the most important aspect is having the right solution at the right time. Indeed, globally, some of the biggest fintech successes have brought out a solution that reflects what is needed at that time. For instance, Kenya’s M-Pesa took advantage of the rise in mobile accessibility to provide a mobile banking alternative, while Ant, which specializes in QR payments in China, saw the move away from physical cash. Finding a niche in the market is important, but this goes hand in hand with doing so at just the right time.
Invest for Success
It’s true: you must spend money to make money. Not only will you need to outlay cash for your time and resources in the start-up phase, but you’ll also need to find premises for your business. Bank loans can often help in the early stages, and even crowdfunded seed money could ensure you have the funds to work on the prototypes and initial groundwork of the business.
Some, who are able to work from home, devote a whole space in their home in order to create a boundary between working and home life. Often, this initial cost can be bundled up together with your existing mortgage if a home renovation for an office or studio space is required for your business. You can get mortgage advice from Trussle to discover remortgaging deals which could allow you to add a home office now, and pay it back when your fintech is up and running as part of your mortgage.
The success of a fintech start-up comes down to many factors – undeniably one of them is luck. Not only do you need the right product at the right time, but often this ‘right time’ can be identified best in hindsight. To give you the best chance at succeeding is to devote yourself to ensuring you have the best talent, the best working conditions, and ultimate dedication to the idea.