Financial Technology or shortly Fintech is an industry of companies that compete with traditional financial organizations like banks. Fintech 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:
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:
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.