Fintech, also known as financial technology, is a popular term used these days. According to Alan Safahi Orinda, the founder of a startup company and experienced entrepreneur, digital technologies can improve the way financial companies respond to their customers’ needs and streamline their transactions.
People use fintech when they use a credit card to purchase items online, subscribe to services, or invest via PayPal, Apple Pay, Google Wallet, etc. Today’s article will guide you to start a fintech company. Read this post carefully to understand each step and make the most out of your business.
STEP 1: Choose a Specific Domain
Choosing a specific domain and subdomain is essential when starting a fintech company. For instance, perform research to determine which subdomain in the industry aligns with your goals. Likewise, identify a target audience by focusing on specific demographic groups, regions, or countries.
According to Alan Safahi, some of the most common subdomains in the fintech industry are lending, investment management, mobile banking, Insure-Tech, loans/advances, cross-border payments, global money transfers, crowdfunding, financial products, and blockchain-based financial solutions.
STEP 2: Build a Team of Professionals
Once you have identified your subdomain or niche, it is time to build a team of professionals, including technical and financial experts. The purpose is to collaborate with these professionals and let them develop an innovative fintech app for your business. Make sure the technology partner or association you choose is within your budget.
For example, you can choose a software development company in your local area to develop a fintech app. However, it is crucial to find a company with years of experience and talented technical experts.
You can research online, ask entrepreneurs in your local area, and gather enough information to make an informed decision. If your budget allows, you can build an on-site team of professionals to create a software application at an affordable cost.
STEP 3: Explore Your Funding Options
Alan Safahi says bank loans, crowdsourcing, angel investors, and startup competition are the most reliable options for funding your fintech company. However, Safahi argues that an entrepreneur must develop a minimum viable product or MVP before accessing funds from third-party investors.
You can get enough funds to develop a software application for your target audience when you develop an MVP. Remember, giant fintech companies followed the same pathway.
STEP 4: Develop an Innovative App
The bottom line of a fintech company is to develop an innovative app. The application must align with your subdomain goals or business objectives. Safahi recommends choosing appropriate technologies and incorporating them into the app to ensure everything goes well.
According to Safahi, fintech entrepreneurs must focus on specific features, such as biometric sign-in, user-first navigation, voice-assisted banking, personalized UI and UX, data visualization, API integration capabilities, and blockchain technology.
For instance, blockchain allows entrepreneurs to build a reliable and secure fintech application. So this will enable consumers to trust your app and make transparent transactions without worrying about security issues.
In
addition, leverage the power of artificial intelligence and machine
learning algorithms to analyze real-time data and make informed
decisions. AI and ML can detect unauthorized and fraudulent activities
in digital banking, Insure-Tech, and financial management fintech
companies.
Originally Posted: https://safahi.com/a-step-by-step-guide-to-starting-a-fintech-company-c6d972a4919c
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