What Does It Take to Build a FinTech Company from Scratch?

Factors to consider when starting a FinTech company

Your niche

FinTech is a vast industry with several verticals, so you need to have a clear idea of the problem you seek to solve. Once you identify the problem, you need to involve the right FinTech product in offering the solution. After choosing the niche, you have to decide the type of audience you will cater to with your service—in other words, identify your target market. It is highly suggested to start small locally and then expand to a large market.

The rules

Money is a critical commodity important for everyone. Hence, there are a lot of rules and regulations pertaining to the same. This is the reason any FinTech company or institution needs to abide by numerous rules when dealing with the money of the people. Before starting a FinTech firm, you are expected to know the ins and outs of the regulatory mechanisms in place.

Hiring a team

Most successful companies are made by talented people. So, if you seek to become the best FinTech company, you need to have the most talented people on board. The FinTech sector is always faced with a talent crunch when limited by location, and the best way out of this is to build an offshore software development team. Another way to get around the problem is to outsource your software development needs.

Create the right tech stack

FinTech solutions are always vulnerable to data breaches, and there is a need for increased security when offering a service to people. You need to ensure that the app, payment platform, and website offer cutting-edge security features with data encryption and storage on a cloud enterprise. Choosing a ready-made solution is risky, so the right custom tech stack must be created to stay relevant and succeed.

Preparing an MVP

It is entirely possible that a FinTech company will not have the entire product in the beginning stages. The way to get around the problem is to create a minimum viable product or MVP. This is the washed-down or basic version of the product with just enough features to showcase to potential investors. An MVP is advantageous because it can be developed fast and serves as the proof of concept in the early stages when looking for funding.

Funding

When you have an idea, team, and an MVP, the next obvious step is to build a full-fledged FinTech product with adequate funding. Let your creative juices help you in building an investor presentation, business proposition, and product demo. If everything goes well, investor money is likely to flow into your bank account. You need to understand the mindset of VCs and what they are looking for are truly game-changing offerings. Thus, make the most alluring value proposition with your product.

Final thoughts

This blog can serve as a template for anyone who seeks to create a FinTech business. For others who like to be part of FinTech companies, you can opt for the PG Certificate Programme in FinTech being offered by IIM Nagpur.  as part of Financial Technologies.

The programme seeks to introduce and delve deeper into modern technologies such as blockchain, machine learning, cryptocurrency, big data, and artificial intelligence. The programme also involves imparting knowledge on organisational dynamics, new-age strategies for managing FinTech, and insight into key levers of banking transformation.