What is the future of Fintech Startups?
The fintech sector is expanding quickly as new technologies and business models are being widely adopted. Over the past few years, the FinTech industry in India has seen an exponential increase in finance, drawing significant investment from sizable venture capital and private equity organizations. During COVID-19, FinTech businesses benefited from the growing need for the digitization of financial services.
In 2021, $8 billion was invested in the Indian fintech business, which resulted in the creation of over 15 unicorn fintech companies. Indian FinTech is growing as a result of several encouraging initiatives taken by the government and relevant regulators, a thriving funding environment, a thriving VC ecosystem, undeniably huge demographic opportunities, high FinTech adoption, and access to talent and technology for the entrepreneurs creating the new India.
Trends shaping the future of Fintech
Global FinTech suggests that growth regions are active in economies with young populations, such as India. India is one of the FinTech countries with the greatest growth rates worldwide, closely surpassing the UK in terms of investment volume and startup activity. The main growth tactics as the Indian FinTech ecosystem reaches maturity include entering new markets, investing in technology, increasing operational efficiencies, and forming ecosystem relationships. The following elements would have a significant impact on this in shaping the future of Fintech:
Mobile Banking and Cashless Transactions –
Mobile banking forms up a significant portion of the fintech sector. In the area of personal finance, consumers have become more and more in demand for straightforward digital access to their bank accounts, especially on mobile devices. Digitally linked transactions will help the firm collect data as well as enhance the volume of transactions. The acquired data can then be applied to creating new services. As a result, new sources of income are produced, unlimited bandwidth offerings are made available, and low-cost business models are developed.
Insurance –
Although it is quickly developing into its sector, insurtech is still included in the fintech category. Insurance is a sector that has been slow to accept technology, therefore several fintech companies are working with traditional insurers to simplify processes and expand coverage. The Indian insurtech industry has grown significantly over the past several years, thanks to novel business models that have allowed for rapid financial development (more than a two-fold increase in the last two years).
Neobanking app –
There has been a sudden spike seen in the number of neo banking platforms and global investments in the neo banking app segment. The rise in the number of neobanking startups in the country is attracting global investors to the market. The funding that has been received continuously since 2017 has raised interest in this sector. Investors have noticed the potential of neobanks in bringing the larger financial services industry.
The 5 steps to launch a fintech startup
1. Choose a niche –
Since the fintech sector is large, many gaps need to be filled. You must conduct a study to identify your specific niche inside the broad vertical. The criteria for deciding your niche depend on the below-mentioned:
- What area of the fintech industry are you most interested in? (transactions, crypto exchanges e.g., insurance, regtech)
- Who are you aiming for? Is the product targeted at a specific demographic, a particular nation or region, or is it available worldwide?
- How well-versed are you in this field?
- What specific advantages does your FinTech app suggest? Do you possess a distinctive factor?
2. Ensure regulatory compliance –
It\’s crucial to research current laws and consider how to comply with them when deciding how to launch a fintech business. Otherwise, you risk fines in addition to data breaches.
For instance, fintech startups should need to make conformance with the Payment Card Industry Data Security Standard (PCI DSS). The General Data Protection Regulation (GDPR) is another standard you should consider when building a fintech startup.
Institutions must employ strong passwords, use data encryption, utilize anti-virus software, and routinely monitor networks for security flaws to comply with PCI DSS, GDPR, and other rules.
3. Hire a trusted fintech software development company –
One of the most important things to do when beginning a fintech startup is to find a reliable IT partner because this pillar forms the foundation of your business. Using an unreliable IT partner may result in low-quality software products (such as slow performance, challenging maintenance, and unplanned costs) and deadline non-compliance.
You should review a potential IT partner\’s project case studies to determine whether or not it has experience with fintech. In addition, you should consider factors like team members\’ backgrounds and difficulties that software engineers can assist you with.
4. Choose a type of fintech software development –
You must decide on the type of software development, or the platforms and devices your product will work with, before creating a fintech firm. You can reach customers who use Computers and laptops to access the service, for example, by creating a website.
Customers will undoubtedly be able to access a website from their mobile devices, but this is less practical than using mobile apps, which provide a more seamless user experience.
You should think about the possibility of releasing a smartphone application given the fast-rising popularity of mobile solutions.
5. Start by making an MVP –
Consider using the MVP strategy if you want to learn how to build a fintech startup and improve your chances of success. A Minimum Viable Product only has the essential components required to address end-user problems. The time to market is greatly shortened because a complicated system with full capabilities is not built.
With an MVP, you may validate a project idea, test various theories in practice, and get user feedback. You will understand how to alter your solution to accommodate the audience\’s preferences once you have measured end-user response.
As a result, you\’ll set capabilities into place that your customers need and want, resulting in cost savings. You may demonstrate the product to investors and raise money for a financial firm by using an MVP.
Types of Fintech Apps
1. Digital Payment Apps –
On behalf of a business, digital payment apps manage all payment transactions. Apps for payment processing increase everyone\’s access to financial services. In this instance, they give small businesses the option to accept credit cards and internet payments. Payment processors can be used by anyone to accept money from anyone else, even individual users.
Any online business needs a reliable payment processor. It allows for the immediate transfer of money from the buyer to the seller and offers a variety of payment alternatives for the convenience of the consumer.
2. Neo Banking Apps –
Customers can manage their accounts and get financial services using digital banking apps without actually stepping into a branch. It incorporates both mobile and online banking to offer financial services wherever you are, any time you require them. The capability to access your money directly and conveniently around the clock is their key advantage.
Additionally, these apps assist you in your financial management. To pay your expenses, for instance, app notifications might alert you when your salary is in. In general, digital banking apps let more people access financial inclusion. They are therefore a useful tool for the estimated 1.7 billion unbanked people globally because it is simpler and requires fewer prerequisites to obtain an online banking account.
3. Digital Investment Apps –
Investment apps are becoming incredibly popular. These systems now enable users to watch their accounts in real-time, trade in the cryptocurrency stock market and obtain insight into market movements.
These factors make digital investment apps an intriguing business concept for anyone looking to invest in stocks and other types of platforms.
4. Digital Loan Apps –
By putting the lender and borrower in direct contact, loan apps streamline the financing process. Everything is managed by the platforms, including loan payments and the application procedure.
The fact that loan applications are available at organizations other than banks and credit unions is unusual. Peer-to-peer (P2P) lending, which enables a person to lend money and earn interest, is also supported by several apps. Loan applications, whether P2P or provided by financial institutions, are useful since they can significantly enhance the experience for both borrowers and lenders.
Why you should Start your FinTech Business Now
The Growing Adoption Rate –
The current electronic financial sector offers solutions that an increasing number of consumers find to be very helpful. Fintech encompasses every possible industry segment, from easy investing to personal money management tools. This bubble is still growing. Users want a sleek, all-in-one interface that they can always have with them so they can feel in control of their finances.
Today, starting a fintech business requires meeting the urgent demands of millions of potential customers and attracting the kind of attention that startups in other industries rarely get.
Wide Array of Developmental Opportunities –
There is a huge pool of possibilities due to the evolution of the fintech ecosystem. Building a fintech app now is wise due to the numerous opportunities the market\’s current conditions present. By 2023, it is expected that mobile apps will bring in $935 billion or more in revenue. If more business owners develop their fintech applications before then, this number might be higher than this.
Availability of a Wide Array of Technologies –
Modern technological advancements like the Internet of Things, machine learning, artificial intelligence, and robotics are widely used in financial technology.
One of these technologies can be used to develop a useful fintech solution. Financial technology is both intriguing and lucrative because the technology itself provides a solution.
Better Expertise –
These days, creating a fintech app will also be simpler. As software engineers get more skilled at creating this type of software, more specialized toolkits to incorporate third-party products are constantly produced. To learn more about the inner workings of financial systems, programmers can also consult fintech consulting services.
In addition, banks and governmental organizations encourage the digitalization of the finance sector and have progressively begun to modify their services and initiatives to facilitate the success of fintech enterprises.
How can iServeU help to launch your fintech startup like Neo Banking app in 2 weeks?
For instance, you want to start your Neo Banking business. Here’s how iServeU can help you launch your Neo Banking application. iServeU’s Neo Banking platform supports features like Accounts Opening, Cards Issuance and Management, Instant Funds Transfer through QR, UPI, NEFT, IMPS, RTGS, etc, Investments like FD backed with multiple security protocols such as biometric verification, 2 factor authentication, role based access control and advanced data encryption.
Our Neo Banking Solutions stack includes API, SDK and even a full fledged platform. The modular approach to development made it possible to offer Accounts Opening API, Prepaid Card API and other modules as per requirements. We accelerate your development and deliver the product in a time of less than 2 weeks. This enables you a quicker market launch and hassle free robust engineering support.
Ready-made Solutions for almost every fintech segment
At iServeU, the product research team stays ahead of the market and deeply researches the potential, and works in alignment with the expected booming sectors. Be it Neo banking platform or Prepaid Cards or UPI Solutions, iServeU’s product stack is so diverse that it covers all the segments that are profitable business opportunities for entrepreneurs.
Expert team of experienced talents in the banking & finance industry
Handpicked talents from the BFSI sector, majorly from the different teams in iServeU. We make sure the product quality we develop is top-notch and so we ensure only the best of talents are deployed in these projects. Along with experience in the industry, we pick expert talents and conduct training and exam sessions frequently to keep the team updated.
Perfectly synchronized Product, Design, Engineering, and Support team
We follow a collaborative approach to product development and all the teams are always in sync with each other. You can stay assured about the product, as our teams match and work together to develop the highest quality products.
Modular APIs, SDKs, and full-fledged platforms are a part of iServeU’s offerings
Our diverse offerings include APIs, SDKs, and platforms for different products. With this kind of flexibility, we can easily just be an extension to your tech team or can be your entire tech team. We have multiple options to get started, and you can pick as per your preferences and requirements.
Explore our NeoBanking Product Stack or Prepaid Cards Product Stack
Having said everything about our products, we would love it if you would want to explore the possibilities with our NeoBanking and Prepaid Cards product stack for your requirements. To get in touch with our expert business strategists today, drop us an email at info@iserveu.in or call us at 08338088000.
