Have you ever wondered how Fintech success stories get started? Have the urge to start the next Fintech unicorn? If you want to beat stats that show just one in ten start-up companies makes it, then learn from those who didn’t.
It’s easier to have the next big idea than to make it a reality. And in today’s ever-expanding Fintech sector, you have to be innovative to get ahead. Competition is fierce between start-ups and established brands in this space, all fighting to get a piece of this industry.
Advice for Fintech start-up success
Fintech is essentially governed by consumer demand, and as technology continues to advance, more companies are grasping the opportunity to become a part of it. There are massive opportunities for start-ups with the right ideas to deliver across the whole spectrum of finance. This includes payment solutions, more engaging user experiences, more direct access to funding and financing for businesses, and much more.
Categories within this sector range from cryptocurrency, distributed ledger technology, solutions for wealth management and alternative lending. All of which are at the very beginning of what will be a total revolution in the way that we manage money.
Consumer adoption and acceptance of innovative Fintech solutions is increasing all the time. It more than doubled between 2015 and 2017, according to research from EY. Importantly, this enthusiastic adoption is putting traditional financial institutions on the back foot as they react to the threat caused by disruptive Fintech companies.
If you want to be part of this sector, how can you guarantee it’ll work? As with every other start-up sector, there are no absolute guarantees, but you can take on key strategies to give yourself the best chance to break through.
Design, iterate and create for the end-user
Every Fintech service, solution or product lives or dies by its user experience (UX). Plenty of the Fintech solutions available now suffer from poor UX, and this can be the difference between failure and success.
There are tonnes of opportunity right now for a start-up to combine smart design with up-to-date tech to provide a truly thoughtful service or product. Always work to simplify your offering and make it as accessible as possible to everyone. Remember that the end product will be used by people who aren’t remotely interested in the intricacies of tech, but just want to access their finances more directly.
Start-ups are working against the major, well established banks and financial institutions. While they may have been slow to react to the Fintech disruptors, they are now. And they can buy what they need to be competitive in this sector. To be successful as a Fintech start-up, you need to be bold, innovative and decisive.
Make it simple to understand
If you’ve created a Fintech app and you can’t explain it to a stranger within ten seconds, it won’t work. The financial world is bewildering for many, stressful for others and boring to yet others. Products and services must have simplicity on their side.
Creating a solution that has no extraneous embellishments can go a long way to its future success. Consumers trust transparent, easy to use products, and this is obviously key as it involves financial and personal data.
Don’t lose the human touch
You don’t always need to involve tech. If you can solve a step in a Fintech solution without it, then do so. It’s vital to keep a human element in your start-up and to remember that people need to be heard as well as analysed.
For example, while a potential borrower can be analysed by data tech, they also have a unique story that affects their decision. Automating every process takes away the personal touch and can get in the way of the trust between Fintech business and customer.
Activate the passion of your workforce
Successful Fintech companies always have passionate and skilled employees. Start-up owners must activate this passion and inspire their workforce. This is where it comes down to the purpose behind your app or solution. The very best people always want to work with businesses that stand for something more than just making money or jumping on a bandwagon.
Fintech start-ups are on a mission to revolutionise the way people get access to their money, whether savings, wages or loans. It’s about changing the way people do everyday business and manage their personal finances. By tapping into something bigger than yourself, your Fintech company can become something truly special.
About Freddie Achom Frederick Achom is a British-Nigerian serial entrepreneur and tech investor. He is the co-founder and chairman of the Rosemont Group Capital Partners.