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Fintech startup apps are getting more and more essential to our day to day activities. From payment transfers to investments and cryptocurrency, fintech is making life easier and the world of finance more accessible. We also see an increase in the overall number of fintech startups currently in the industry, with around 20,925 companies in 2020. However, if you are looking to enter that market, you need to be prepared to compete with both well-funded startups filled with talent and well-established billion-dollar giants. In this article, we’re going to go over how to start a fintech startup.
Understand the regulations
The financial industry is highly regulated, and as such, knowing and understanding these regulations has to be a part of your game plan. You have laws, regulatory authorities, and legal requirements and limitations that you have to become familiar with. To name just a few in the US, you have anti-money laundering (AML) policies, PCI DSS, and Know Your Customer (KYC) compliance requirements. Then you have digital certificates and laws that differ from country to country. All of these factors will have to be taken into consideration when planning out your course of action.
Find the right niche
There are many niches to choose from in the fintech industry. You have payment processing and international money transfer, lending, personal finance, mobile banking, investments, trading, insuretech, cryptocurrencies, data analysis for financial decision making, financial services for small businesses, and crowdfunding. Finding the right niche for your business is essential to succeed in the fintech startup world.
Figure out a competitive advantage
Each niche will have several companies competing for dominance. As soon as you pick a niche, you have to know who these companies are and learn as much as possible about them. You can then use this information to find a competitive advantage that will make you stand out in the market. This competitive advantage can be everything from a new product to better service and highly-focused targeting of underserved segments of the market.
Hire the right team
As with any fintech startup venture, hiring the right team is very important. However, attracting top talent for any small company can be quite difficult. You have to take costs into consideration, the possibility of having to hire remotely or relocating employees, and working with offshore development teams. Ultimately, you will have to strike a balance between costs and expertise to deliver a product to market quickly so that you can start to see how your target audience responds.
If you would like to work with an experienced team of developers which will give its 200% to make your fintech startup successful – contact us today to start discussing your project.
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