Financial sector has been widely influenced by technology in recent years. Companies are adapting and developing new capabilities to remain ahead of their competitors. For that same reason, many banks and other financial institutions start to make partnerships with FinTech startups. High demand for innovations created a new promising area of business and attracted many entrepreneurs into the FinTech sector, making it more challenging to stand out and reach a stable growth.
A rise of emerging companies in FinTech also means the rise of cases of failure. However, there are some things to consider that may help founders of FinTech startups establish a business with a better chance for success.
Regulations
The industry of FinTech remains a grey area for lawmakers because of its new way of handling money. While it does attract attention for new regulations, laws still differ depending on a country. Therefore, you have to learn the rules of the region you want to start your business in and comply with regulations of that particular region.
Trust and Security
There is no way to succeed if potential customers have trust issues with your business. With the rising number of financial technology companies, the amount of cyberattacks and cases of data robbery has increased. This is why making sure your FinTech services are highly secured should be one of first priorities for your business.
Valuable Service
FinTech is a competitive industry and keeping your company on two feet requires a lot of funding. But try not focus too much on investors. Daria Dubinina, founder of Crassula, says: “Try to think of your target customers and issues they are facing — and find a solution for them. This will help you to avoid wasting time on developing a products that no one needs and also will make your business interesting for investors.”
Networking
Another way of attracting investors without actually making a focus on it is attending networking events and talking with people. Expanding your network can lead to new business partnerships and make your brand be heard. Otherwise, people you talk to can open your mind on different areas.
Teamwork
Your employees — people who make the product — are the ones who determine how successful your business will become. FinTechs are complicated and require high knowledge of business and finance along with technology. Building a strong team is essential as your product will most likely change shape and services in first years until you find your niche for providing unique solutions. Teamwork is what helps to create a great product and brand, so make sure you invest your time in developing a strong company culture.
Developing and maintaining a FinTech business requires creativity and persistence, so if you are considering to launch a startup in this field prepare to handle the pressure. Be bold, believe in your product and work really hard. We at Crassula know it firsthand!
Facebook: /crassula.io
Twitter: @crassu_la
LinkedIn: https://bit.ly/2H5oXID
business@crassula.io
