How did FinTech start?
FinTech is a broad term that covers all types of financial technology. It’s a new way of doing things, but it’s not just about online banking. FinTech is about using technology to make the financial system more efficient, secure and accessible.
For example, if you want to transfer money from one bank account to another through your smartphone app today, there are three steps involved: First you need access to both accounts–the one sending money and the one receiving it (you can’t send money from someone else’s account). Second, you need an Internet connection so that your phone can communicate with these banks’ servers over the web. Thirdly…well…you have no idea how many days this process might take because there aren’t any standards for how long it should take! Some banks don’t even allow transfers between accounts unless both parties have been customers for years.
Setting up a Fintech business
The first step to setting up a successful Fintech business is to identify an attractive niche. This starts with finding a problem that needs solving. That could be for a particular group of people, or a geographic area.
Successful Fintech ventures have been set up in the realms of: payment services, crowdfunding, blockchain and cryptocurrency, banking, wealth management, price comparison, accounting and personal finance management. Within each of those areas there is massive scope for niche products to better serve particular groups. For example accounting products for specific industries like care homes or media companies.
Next, you need to really understand the regulatory environment. The UK has one of the most attractive legislative environments for Fintech and has produced world-class startups like Revolut and Monzo. Cyprus is growing as a location for Fintech due to it’s attractive tax laws and the access it provides to the EU market.
Wherever you start, getting the right team of specialists is key. That includes technical specialists, developers and designers to help you build your platform. It also includes marketing and legal expertise.You can avoid pitfalls during Cyprus company registration by working with a fintech lawyer.
Finally, getting started in Fintech is rarely cheap or straightforward. You will need funding and to attract investors who provide knowledge and connections as well as finance.
Conclusion
The Fintech industry is booming, with an estimated market value of £10 billion. Fintech is a rapidly growing area that has the potential to change the way we manage our lives and do business. It’s important to know what FinTech is, where there are opportunities, and how it works so that you can stay ahead of the curve in this fast-paced world.
