Startups – What entrepreneurs need to know when starting a FinTech company

Sanjay Singh
FinTech-company

Introduction

Our daily routines are increasingly being conducted digitally through apps, such as payments and banking. People must use their laptops and smartphones to perform their daily tasks. Using an app, you can manage your finances, trade cryptocurrencies, and even invest in international businesses. You will have more audience than a traditional financial institution if you start a fintech company.

After the pandemic, digital payments gained even more attention. The global fintech market size reached $110.57 billion by 2020. It is forecast to reach $698.48 by 2030 at a CAGR of 20.3%. In the last two years, the number of fintech startups tripled because fintech apps are gaining traction at such a rapid rate. A partnership with fintech startups was considered an important opportunity by almost 70% of senior bank executives in 2018.

As a result, investments in fintech have also increased. By 2021, they reached $226.7 billion.

total-value-of-investments

Get in touch with us if you’d like to build an effective business plan for your fintech startup.

Fintech startups transform the industry

In this article, we will take a look at a few companies that are doing well on their niche market.

startups-revolutionizing

Streamline

Nine rounds of funding were raised by Stripe for $478.7M in online payments.

Grass

Five rounds of funding raised about $31 million for Mint, which deals with personal finance management.

An American legend

A total of $539M was raised in five rounds of funding for its investment and trading activities.

Bitcoin

In eight rounds, Coinbase has raised $225.3M in funding for its digital currency exchange.

Revolution

It has raised $1.7B in seven rounds of funding and operates as a ‘neobank’.

Let’s examine the steps required to create a fintech startup now that we have seen the successful fintech startups.

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What does it take to start a fintech company?

It is imperative to consider the importance of financial resilience when building a fintech startup. We will now look at the steps you need to take to launch a financial technology startup. This helps combat the increasing complexity of financial regulations and systems.

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Regulations must be known

There is a great deal of regulation in the banking and fintech industries, so you have to be familiar with every aspect of this very complex industry, from the governing bodies to the rules and regulations to the criteria.

Companies who interact with client data must comply with the General Data Protection Regulation (GDPR). However, this policy is only the beginning for businesses in the finance sector. In the US, fintech regulations typically include anti-money laundering (AML) guidelines, Know Your Customer (KYC) compliance standards, and PCI DSS compliance. Digital certificates might also be required for authentication.

Everywhere there is money, there are laws and regulations. To ensure that your customers’ money and their identities are reliably protected, make sure your proposal complies with existing laws before you begin any work. Establish regular legal auditing practices to prevent compliance issues from developing.

Be careful when choosing a niche

The demand for fintech software is on the rise, with the fastest-growing market categories being digital payments, personal finance management, and alternative financing, along with a significant increase in the use of investment solutions.

Consider the following fintech subdomains:

  • Investment management
  • Personal finance management
  • Global money transfers
  • Loans and advances
  • Bitcoin and blockchain-based technologies
  • Crowdfunding

Your product can target a specific audience, such as a particular nation or demographic, based on the subdomain you choose. Starting your business locally and expanding globally is advisable.

If you’re interested in capitalizing on the growing demand for fintech software, we can help. Contact us to learn more.

Gain an advantage over your competitors

It can be helpful to research your competitors once you have chosen a niche. Finding out what makes your product unique and different from similar products already on the market can help you to identify your unique selling point.

It might be an entirely new product (for instance, a financial service for the unbanked) or a revision to an already excellent service (for instance, a fast and simple mobile banking app).

While fintech appears to have tremendous potential, the market is dominated by well-known companies like Microsoft as well as a number of extraordinarily profitable companies (like Stripe and Coinbase). If you want to succeed in the fintech industry, you should stake your idea on flawless execution.

The right people will help you build a successful team

In order to have a successful company, you need the right people on your team. But if your area has a limited talent pool, it can be difficult to attract developers.

Developing an effective solution within a constrained timeframe requires technical and financial knowledge from your team. It is important that your partner development company has a track record of creating effective startup solutions. Consider outsourcing your development tasks to a reputable software development firm like Revinfotech.

Protecting data should be a top priority

As a fintech startup, you should make sure your business is secure and that all important data is encrypted and stored in the cloud. In the event of fintech security breaches, sensitive information could be disclosed that could be used for fraud or theft.

To ensure your company’s top-notch fintech cyber security, run thorough tests to identify any vulnerabilities. Secure your client’s information using HTTPS SSL certificates and transport layer security (TLS) on all network connections.

It is also possible to use a cloud platform like Amazon Web Services (AWS). You can put in place multi-step authentication and have users use strong, frequently changing passwords on the client’s end. It provides a strong defense against DDoS attacks and backups the data so it can be restored in case of a network outage.

Funding

When your personal resources are limited (which they are usually), it is necessary to secure outside funding before you can launch a fintech startup. You can get seed funding from family, friends, or investors. Getting the funding requires moving to the MVP stage, where you’ll be presenting your company to more experienced investors for future expansion and development.

Choose a scope for your MVP

Your top priority as a startup entrepreneur should be minimizing the time it takes to create your first line of code and onboard your first users. The MVP should be minimal yet provide users with enough features and capabilities to get a sense of your business, so you need to carefully define its scope.

In addition to cutting costs and shortening time to market, gaining MVP status early allows you to start testing and answering user feedback, all of which can increase your chances of long-term success.

Improvements to the product

It’s time to launch your product after your MVP has been approved.

Despite the fierce competition you will face, don’t let that intimidate you. Focus on enhancing the user experience and strengthening cybersecurity for your new fintech business.

Your product should always be tested for improvement, even if customers believe it is excellent.

fintech-app-development

Building a Fintech startup requires the following technologies

It is important to stay up to date with the latest technology trends so that you can incorporate them into your business when you start a fintech company. The more advanced the technology, the better the services you can provide to your customers. Here is a list of the essential technologies you need to get started with your Fintech company.

technologies-required

Intelligent machines

Artificial intelligence can be used to detect fraudulent activity in digital banking, insurance, etc., because it recognizes and analyzes real-time data, offering recommendations for the best course of action.

Cryptocurrencies

You can create a decentralized fintech product using blockchain technology because it creates time-stamped uneditable data that is unremovable.

A cyber-secure environment

In the fintech industry, cybersecurity is a top priority. Before starting a fintech company, you should be very careful about how sensitive customer data will be handled and stored.

In order to avoid security breaches and data theft, you should implement various security measures.

Service-oriented architecture

Microservices enable you to create decentralized data management and a distributed application. Your infrastructure can quickly incorporate new solutions.

Are you interested in building a Fintech startup with Revinfotech?

Are you seeking a finance software development company to help you build your fintech startup? Revinfotech can assist you. Our company has been developing digital solutions for international organizations and Fortune 500 companies for the past few years. Our solutions are directed by listening to our clients’ problems first.

The fintech team at Revinfotech has previously created successful fintech solutions for Asian Bank. As a result of our efforts, we were able to create an app that received 250k+ downloads and made them the next big thing in consumer finance. To date, the app has received over 50k cryptocurrency transactions since our team was able to identify and resolve critical challenges in the process.

In this sense, we are glad to help you launch your fintech company. Our team of experts will help you create a successful project without any hassle.

Frequently Asked Questions

Our testing processes place a high priority on data security. To ensure the security of sensitive information, we adhere to a number of protocols, including the anonymization, encryption, and control of access to data. During testing, we use secure environments and data that mimic real-world scenarios without exposing sensitive information. We adhere to best practices for data protection and comply with industry standards and regulations including GDPR and HIPAA. As part of our security testing process, we employ a variety of tools and methodologies to identify and rectify security vulnerabilities.

To ensure the quality and reliability of your software solutions, we employ a comprehensive range of testing methodologies and cutting-edge tools. Our testing approach includes:

  • Manual Testing: We use structured test cases to identify usability, functionality, and design issues.
  • Automated Testing: Automated testing streamlines processes, improves efficiency, and ensures consistency.
  • Unit Testing: JUnit, NUnit, and PyUnit are unit testing frameworks we use to validate the functionality of code units.
  • Integration Testing: We verify the seamless interaction of various system components using tools such as Selenium, Appium, and Postman.
  • Performance Testing: To assess system responsiveness and scalability, we employ tools like JMeter, LoadRunner, and Gatling.
  • Security Testing: Our security testing includes vulnerability assessments and penetration testing using tools like OWASP ZAP and Nessus.
  • User Acceptance Testing (UAT): We collaborate closely with your team to ensure that the software aligns with your end-users’ expectations.

You can count on us to improve the visibility of your website on search engines by using our SEO services. On-page and technical SEO best practices are implemented by our team, content is optimized, and search engine optimization strategies are provided to improve the search engine rankings of your website.

We adhere rigorously to project timelines and deadlines at our software development company. To ensure on-time delivery, we use meticulous project management, agile methodologies, and clear communication. Depending on the scope, complexity, and your specific requirements, we conduct a comprehensive analysis and planning phase. Our project managers then track progress continuously using agile frameworks. We maintain regular status updates and transparent communication channels. Whenever changes need to be made, we let you know promptly while keeping you updated.

We specialize in a wide range of technologies and programming languages, including but not limited to Blockchain, .Net, JavaScript, C#, Ruby, PHP, Wordpress. Our expertise covers web development frameworks like React, Angular, and Vue.js, as well as mobile app development for React Native, Flutter, iOS and Android. We also have experience with cloud platforms such as AWS, Azure, and Google Cloud, and are proficient in database systems like MySQL, PostgreSQL, MongoDB, and more. Additionally, we are well-versed in DevOps tools and practices to ensure seamless deployment and ongoing maintenance of the software we develop.

Our company offers a wide range of development services, including:

  • Web Development: We specialize in creating custom websites, web applications, e-commerce platforms, and content management systems.
  • Mobile App Development: We develop mobile apps for iOS and Android platforms, from concept to deployment.
  • Software Development: Our software development services cover desktop applications, business software, and cloud-based solutions.
  • Blockchain Development: We have expertise in blockchain technology, including smart contract development and decentralized application (DApp) creation.
  • IoT Development: Our Internet of Things (IoT) development services encompass connecting physical devices to the digital world.

Sanjay Singh
Article written by

Sanjay Singh

Sanjay Singh holds a Bachelor's degree in MCA from JNU University. Sanjay Singh is an experienced WordPress developer with over 6 years of experience. He specializes in PHP programming, HTML, CSS, and JavaScript, along with strong web development ski... read more

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