Financial Technology or shortly Fintech is an industry of companies that compete with traditional financial organizations like banks. Fintech startups https://itsvit.com/services/startups/ provide technologies that make financial operations quicker. In general, we can call fintech any company that uses software technology, mobile devices and cloud services to work with financial operations. Fintech provides the following services:
- bank and mobile payments;
- asset management.
What common challenges wait for the fintech startup owner?
The very first challenge is the customer focus. Often, startup owners orient on their own vision but not on the end-user needs. As a result, the users require additional explanations about the product. Thus, before the product development, you need to conduct a market analysis. Also, on this stage, you need to think about future strategy. Even if you have the best idea, you need to think about realization, implementation and marketing strategy.
The second challenge is financing. You need to find investors on the early stages of the product lifecycle. To do this efficiently, you’ll need to present your product, so you need a strategy we talk about above.
The third challenge is business scalability. Startups often focus on solving internal problems and forget about entering the global market.
Also, startups often have difficulties with the technical realization of ideas. To solve this problem you need to hire technical specialists. But startups usually have small teams, lack the budget and haven’t the ability to expand the in-house team. You can solve it by hiring a Managed Service Provider (MSP). MSP will help you with next things:
- To make a proof of concept. Investors want to know what your startup will do and what they will get from it. MSP can help you with strategy and working proof of the idea.
- To make MVP – Minimum Viable Product – this is a functional version of the software you can receive as fast as possible.
- End-to-end Development. Some MSPs offer a full process of development from plan and design to complete software and further support.
- To hire narrow specialists on the project. MSP can find and hire new team member for the project for you. Also, if someone will leave the outsourcing team, MSP will deal with it and you won’t waste your time and resources.
Final thoughts: how to avoid mistakes in a fintech startup?
We described what fintech startups are and what challenges you might face if you start to make your own product in the financial area. This kind of startups is closely connected with software development and cloud computing so you might need to refer to Managed Service Provider who will lead you along the way of your product development. Any process of development is accompanied by difficulties and startup owner needs to be prepared for it. Good strategy, reliable team and an experienced MSP can save you from most problems.