Steps To Take For Running a Successful Fintech Company

Today, you can find so many fintech companies sprouting up, primarily because of the need for funding by companies big and small. The Fintech industry has grown exponentially and there is no sign of stopping it. You can even see some financial intuitions partnering with Fintech companies, acquiring them else initiating their own Fintech startup as a means of expanding their services and providing more finding. Why?

It’s easier to take a loan from such a company because it does not pose many restrictions or regulations and the cost of loan is cheap. A Fintech company as such does not have to deal with the huge number of legal laws as seen by a normal banking service. Businesses that can never think of availing a loan through a regular bank find their way to a Fintech company for the same. The financial markets have not been the same since the rise of Fintech enterprises.

Image Courtesy:

Steps To Take For the Success of Your Fintech Startup

With the demand for such funding rising, many entrepreneurs are seeking to initiate a Fintech company. The key financial services offered by such companies are online lending, wealth management, payment and remittance services and insurance. However, along with the rise of many Fintech startups comes competition within its sector. How can your company be the leader in the Fintech world? Here is a look at what you need to know before venturing into the Fintech industry:

  • Get expert legal advice on all the rules and regulations that apply in your industry. You should be aware of the don’t in this industry to avoid legal pitfalls.
  • Check out the competition and do not limit your search to similar Fintech companies but also banks and other legal lending institutions.
  • Offer new and innovative finance lending services, which offer low interest rates and attractive monthly installment plans. Being different induces interest in your brand.
  • Look into new and innovative software that you customers can use to check services offered by you, open an account through your site and monitor their loans etc. Opt for the use smart internet and mobile technology when offering your services because it will make people feel inclined towards your business as it shows you are technology savvy and make use of it to make your services more easily accessible to people.
  • Opt for an appropriate financial niche by understanding various services offered by Fintech companies. Choose what you are comfortable with and what will make your brand shine in the market.
  • Show how you are trustworthy because this is the key factor to gaining customers. For example, telling customers that your site is secure with modern encryption which ensures their data security is a way of showing that your brand is reliable.
  • Get an optimal social media plan, one that promotes your Fintech Company in the best possible way in front of competitors and gains the kind of customers desired to your site. Include engaging content in your social media posts and respond to comments to show that your brand is always accessible to the public and is ready to address concerns at any time.

Reasons for More Banks to Team Up with Fintech Industry

Fintech being the latest buzzword in the finance industry, more or less many people have already come to know about it. For those who are still in the dark and are finding this term totally unfamiliar, Fintech is a whole new industry offering financial benefits to various organizations.

The fintech industry is made of different companies that offer innovative and latest financial technologies for the betterment of financial services. With the growing competition in the market, more and more banks are opting for a partnership with this latest industry.

Here are the main reasons for why most banks are thinking about teaming up with it:

Allowing Latest Payment Methods
Providing innovative technological ideas for easy online transactions, the fintech is providing the banks with excellent financial services. Banks have suffered a serious loss in popularity, over the past few years due to their not-so-updated financial methods of proceeding with transactions online. The financial crisis is acting as an eye-opener, so the banks are now relying on Fintech.

Presenting the Refreshed Version of Brands
Around 83% of respondents are referring to fintech as the main factor in enabling them to refresh their brandings. Fintech is helping the banks to improve their relationship with the customers in the best possible way.

It’s also allowing banks to introduce the latest offers and services to the customers in the fastest way possible. It is simply providing opportunities for various financial organizations of repositioning themselves in the market through its cutting edge technologies.

Banks Are Able to Cut On Costs Significantly
It has been seen in the records that 87%of the total participants have been able to cut the costs successfully. The fintech sector’s total amount of transaction value is expected to grow up to $ 1.57 trillion by the year 2020.

So, there’s no doubt about the effectiveness of it in cutting up the costs. The reasons for these huge amounts of savings are the agile and flexible structure of Fintech, as well as the lesser requirement for developing the services offered to the customers at the end of the incumbents.

Increased and Boosted Revenues
In the recently conducted survey, it has been seen that almost 54% of the incumbents have experienced a certain increase in their revenues. With the passage of time, it is expected that the number of profits will be boosted more than now or ever. For enjoying the benefits of the partnership with Fintech, specific areas and strategies must be formed and decided by the banks.

Letting the banks in on the latest trends of financial service technologies, it is helping banks to transform and embrace digitalization. It is by joining forces with Fintech, that banks would be able to stay updated in the dramatically and drastically changed online payment landscape.