Long viewed as a highly technical and regulated industry dominated by banks that resist disruption, finance is currently riding an entrepreneurial wave with Fintech innovation. Previously frustrated by big banks, consumers are now demanding innovative firms that increase efficiency and benefits in financial services.
According to Ernst & Young LLP’s ‘Landscaping UK Fintech’ research commissioned by UK Trade & Investment, fintech sector in UK generates c. £20bn in revenue annually. In addition, annual investments into fintech firms continue to increase every year.
So is there an innovative roadmap that leads to success? Is there a way you can put your fintech company in the best position to grow? Are there something existing firms can do to improve the chance of evolving and thriving into global players?
We think so. You only need to understand the things that would catapult your company to a market-leading position. There are a few things that developers need to know. These are:
Money is social
People want their money to move just fast as their gossip, internet trends and news. When Kashmi, a peer payment platform, realized money is social, it made waves by making money sharing easy in Singapore. Slowly moving across Asia, the app allows users to transfer money through smartphone with no extra fees. Just as users expect, it makes the process streamlined and easy.
Making money social doesn’t mean you create a “Financial Twitter.” It means realizing how people use money during their interactions. Startups should harness combination of financial resources with the political, emotional and social interactions that people make every day.
Keep users safe
If Fintech Startups want to attract attention, they should consider keeping their consumers’ information safe. PixelPin does not need you to have passwords to secure your data. It uses image, allowing users to choose their own picture and four points that act as keys. Everyone wants to be secure, without having very long passwords kept under lock-and-key.
International Money transfer
It was much harder some years ago to transfer money to another country. It was exhausting, expensive and sometimes infuriating. Today entrepreneurs have come up with better ways. For instance, PayPal, Money Mover and Transferwise help consumers to transfer money with ease. Thus, these fintech firms are moving forward with a rapid speed and bringing us along with them.
If fintech firms are challenging the traditional finance institutions, they should be ready to take their place. Fintech Startup Number26 is a good example of 21st century banking. The modern-day finance woes require modern-day solution. Everything happens online, and consumers are provided with a traditional debit card to use at MasterCard-friendly shops and ATMs. According to Valentin Stalf, Number 26 CEO, his startup has a great future.
Other key issues to consider include having a viable concept, funds, talented personnel, corporate and tax structuring, regulation, day to day operations, growing the business, management, competent advisers and tax.
In conclusion, you should understand that success in the fintech industry rests on understanding what people need on a daily basis. There is so much unexploited potential for the fintech world. If your firm becomes very innovative, it will soon be heralded as a hero of Fintech Innovation.