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Fintech is a popular term for financial technology. Digital transformation has enhanced the way financial transactions take place and how consumers’ needs are fulfilled. You may or may not know about Fintech but if you are using paying online for services then, Fintech exists in your day-to-day life.

The global Fintech market is projected to reach $124.3 million by 2025. Fintech is growing at a swift pace and statistics are saying that all loudly. Last year, fintech startups crossed the 25,000 mark, and many new companies are still showing interest in Fintech.

If you are completely unaware of what Fintech is or you are planning to start a company, I have written this blog for you with clear context, also do let me know if you have any inquiries or questions.

What is a Fintech Startup:

A fintech company or startup is generally a company that fulfills the financial management needs of customers. These companies offer efficient solutions and premium experience to handle existing financial problems.

About 96% of consumers across the world have a minimum of one fintech application in their world. You might have also noticed that lenders, insurers, banks, and financial institutions have created apps of their own to streamline processes efficiently. Since consumers are loving fintech at a swift pace, you have the opportunity to start a fintech company.

Here’s a complete guide with in-depth information on establishing a powerful startup in the fintech industry.

The Process to Kick Off a Fintech Company:

The financial sector is packed with uncountable business opportunities, but you must develop unique and creative ways to look different from your competitors. Your services should be meant to be scalable and reliable. Your motto should be clear and beneficial for customers.

If you employ practical planning to run a fintech company, you can easily and swiftly build a successful business. The process is discussed below step-by-step, go on, read it, and let me know your views in the comment section.

1. Know the Regulations:

Being a newbie to the Fintech industry, it is advised you know the ins and outs of the fintech and banking industries. These industries are highly regulated and numerous laws govern them. Understand laws and regulations like anti-money laundering (AML) policies, The General Data Protection Regulation (GDPR), Know Your Customer (KYC), and Payment Card Industry Data Security Standard (PCI DSS).
Many government financial bodies regulate these companies based on their jurisdiction. However, some dominating regulatory bodies are Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), Commodity Futures Trading Commission (CFTC), and Consumer Financial Protection Bureau (CFPB).
Learn the laws of the country you live in and if you are planning to expand your business on a global basis, learn how rules will impact your business. Never forget that the rules and regulations of a state or country may vary from other countries or states.

2. Identify Your Niche:

Every business starts with an idea, and so does Fintech. Your biggest competition is with traditional and financial institutions. To ensure the long-term success of your business, first, understand that market disruption is the most crucial thing to do. You can never place two things in one place when there’s a space for one. During the brainstorming session, do not dismiss your ideas or others’ ideas in the first instance. You never know what can bring you success. Even if you are facing problems starting with your idea, just know that no idea is perfect in any industry, but it can always be improved upon.
Before you ideate the business, you must understand what you are starting.
Select the niche. Some of the admired niches in the fintech industry are:

a. Investment management

b. Lending

c. Mobile banking

d. Global money transfers

e. Loans and advances

f. Insurtech

g. Blockchain-based solutions

h. Crowdfunding

i. Financial products

The following mentioned questions can help you understand a specific niche for your startup.

a. What is the subdomain that interests you to step into the fintech industry?

b. Whom are you targeting? Is it a certain demographic group, specific country, or region, or do you see it as a global product?

c. What’s the motto of your fintech company? And do you want to launch it first locally and then globally?

d. What is your mastery in this industry?

3. Research Your Competitors:

You are stepping into a market with existing solutions, why would customers like to choose you? You need to make your solution more unique and effective than others. Proper competitor research can bring valuable aspects or competitive advantage to your business. It also helps in reducing the pressure of creating something new, rather you improve the solutions that are already on the market. The best technique for conducting a competitor analysis process is to first understand who your targeted audience is and get all the answers related to your audience. By conducting a competitor analysis, you get the chance to create an incredible personalization in your solution as you understand your audience and you know what they need and their reactions to approaches that your competitors provided.
Healthy competitor analysis is the need for today as many companies are expanding and growing in this industry.

4. Hire the Team:

One of the elements in making a successful startup is having the right people by your side. One way to eliminate the hustle of recruiting and managing fintech app developers is to hire an IT outsourcing company in the USA. Many mobile app development companies provide an all-inclusive package of services at an economical price and the experienced engineers will build your idea with utmost excellence. By the team, outsource company accomplishes your project, you can hire other teams who can help you in upscaling your business. Find specialists with specific domain knowledge and let them build a strong and talented pool for your work.

Also, when you are hunting for an outsource mobile app or web development company, do not rush the process. Always agree with the one who can understand the complexities of Fintech app development and has previously developed some apps or websites in the same domain.

5. Choose Tech Stack Wisely:

When it comes to choosing a technology stack for your fintech app development, know that cheap and fast aren’t possible when something ‘good’ has to be created. If you are hiring a mobile app development company then they will let you choose the tech stack and in case you are not aware of the trending technology stack, the mobile app development experts will make you understand all the technologies with their pros and cons. In case you are developing a fintech app on your own, consider rapid development tools, server less architecture, 3^rd party innovative solutions, and technology with good and easy-to-understand documentation and a big community to help you when you encounter a problem.
Moreover, the tech stack that most of the app developers use for fintech app development includes:

• Programming languages:

1. C/C++,

2. Python,

3. Javascript,

4. Java, and

5. Ruby

• Frameworks:

1. js,

2. React,

3. Django,and

4. Spring

• Databases:

1. MySQL,

2. MongoDB,

3. Redis, and

4. PostgreSQL    

6. Get Funded:

When you need funding, there are multiple ways that can help you collect funds. These ways include crowdsourcing, venture capital, startup competitions, bank loans, and angel investors.
However, you need to have an MVP (Minimum Viable Product) that acts as a proof concept. For those who don’t know what MVP is, it is a basic version of your software that you think will provide value to your customers. You can gather funds from MVP to streamline the fintech app development and also you can attract potential investors to your product. You can efficiently utilize the time, effort, and money with a proper strategy.

7. Improve and Maintain:

A fintech app development is an incessant process. The best technique is to start small and keep improving the product with reliable features to minimize the risk of failing in the market. Keep adopting newer technologies to maintain data security as your priority. Make demanding changes from time to time but never give a chance to hackers to look into someone’s data. While maintaining the standards of your company, keep promoting your product for a wider customer reach.

Fintech Startup Ideas

It is important to understand that your motive is to eliminate the use of the traditional style of financing and improving the efficiency of Fintech products. Many trending technologies like big data, blockchain, cybersecurity, and artificial intelligence help in scaling an efficient solution.

Here are some of the most popular Fintech Startup ideas with their existing examples that you can adopt and step into the fintech industry:

a. Digital Payments: Google Pay, Amazon Pay, PayPal

b. Crypto Exchange Platforms: Coinbase, bitFlyer, Binance, Bitfinex, Fundsbarter

c. Personal Finance Apps: BillTracker, Mint, iBotta

d. Investment: Robinhood, Acorns, Webull, Wealthfront, Betterment

e. Regtech: Onfido, Cappitech, Fenergo, Suade

Benefits of Launching a Fintech Startup

a. Fintech solutions has a growing customer base and hence, there is a high chance of adopting a new solution.

b. Existence of a wide range of technologies makes the fintech app development process much smoother and more trustworthy.

c. The use cases of fintech solutions enable companies to use it internally or externally and hence, streamline the finance tasks.

Final Thoughts:

Well, this was a guide that can help anyone build a fintech startup but you don’t necessarily have to do it step-by-step. The process can change depending on your requirements or the steps can take place in a different order. Deciding to launch a fintech startup is a tough decision as you need to follow some rules and laws and is supposed to be more secure than other startups and projects. If you need assistance at any step, you can connect with our Fintech development experts who will make you understand the process with in-depth explanation. Also, we have successfully launched a few Fintech app development projects, so we can assist you proficiently.