What No One Tells You About Starting Your Own Fintech Startup – CEOWORLD magazine

CEOWORLD magazineTop StoriesCEO InsiderWhat No One Tells You About Starting Your Own Fintech Startup

These days, there is a global surge in technological awareness as many people are becoming more conversant with technology and its use in solving critical issues. Especially in the commercial industry, where customers’ needs are being satisfied from any corner of the world with the touch of a button.
Now, people perform financial transactions locally and internationally with ease, all thanks to improvements in technology. This global tech trend has spurred a lot of institutions to create platforms and structures that will transform the financial sector for good.
The use of credit cards, payments in cryptocurrencies, global investments, and other online services have increased the reliance on fintech, making them a significant part of the financial sector. According to Fortunly, the total transaction value of digital payments increased from $4.1 trillion in 2019 to $5.2 trillion in 2020.
As a growing industry, many people intend to venture into this sector but don’t have the plans effective enough to do so. Others have their blueprints laid out but lack the adequate tools to launch their blueprint project. This article will show how to successfully launch your fintech startups sooner than you expect. Also, you will learn about the importance of establishing your fintech startups.
What is a Fintech?
The term fintech is an acronym for financial technology, which refers to innovative digital technology solutions channeled to optimize commercial, banking, and financial services. Digital innovations like blockchain and artificial intelligence are bringing new ways of doing business in the financial industry. And thanks to Fintechs, areas in the financial sector, including electronic payments, banking, insurance, personal loans, and wealth management, have gotten a digital facelift.
Why should You Launch Your Fintech Plans?
As stated, the improvements in technology should be glaring enough to motivate you to launch your fintech startup. There are even better reasons backed up by statistics that show why you should start your fintech plans right now.
Current Trends in the Finance Sector: The current finance sector is experiencing a paradigm shift towards digital financing and e-commerce. PWC reports state that a large chunk, about 88%, of the financial industry will be lost to standalone fintech companies in the next five years. This shows that your fintech plans will definitely fit into a thriving fintech industry in the coming years.
Increased Investors: Many investors are looking to be a part of the success stories of fintech startups. Currently, investors are mainly focused on fintech startup growth rather than racking profits.
This means that they would rather have an equity interest in the Fintech startup than give business loans.
Insurtech companies are currently doing both, which is why experts predict investments in this sector won’t dry up anytime soon. S&P Global says that the number of new Insurtech startups peaked in 2016 when 28 new fintech firms were founded in the insurance sector. As of 2020, there were 19 Insurtech IPOs already.
Thriving Industry: With the trend in technology and its advancement, the fintech sector is a great industry to venture into. And it is only reasonable to be a part of a growing sector that fits your plan.
Actionable Tips for Launching Your Fintech Startup
Now that you are ready to set your plans into motion, there are a few essential things to know that will set you apart and launch your fintech startup in the right way.
Written by Tony M Fountain.
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