FinTech Start-up Guide

Recently, FinTech startups are becoming more popular due to its vast potential to serve consumers as we all are dependent on our devices to carry out our daily functions, whether it being our phones or computers. In Singapore, we see that there is an increasing number of FinTech startups that are widely successful. For example, Validus Capital, an award-winning FinTech company and Singapore’s leading peer-to-business financing platform, addresses the financing gap SMEs face by utilising data analytics, machine learning and AI to fund growing businesses. Thus, in order to prepare those who want to bring up a FinTech startup, these are some essential tricks of the trade to which you can start garnering traction for success.

Before brainstorming for ideas, be well-versed in the laws and regulations of this industry. Since the FinTech industry tends to be highly regulated, it is crucial to know the ins and outs of this complicated system, especially the General Data Protection Regulation (GDPR). As your startup may handle your consumers’ personal information, you will need to operate digital certificates and other authentication mechanisms for digital protection against misuse. More than that, if you plan to expand your startup globally, practice caution as the laws and regulation vary between regions.

Afterwards, think about what subdomains you want your startup to lean towards. As the FinTech industry goes digital, this spawned numerous possible subdomains of FinTech such as mobile banking, insurtech and crowdfunding. By selecting a certain subdomain, you are also targeting a specific group of consumers whom you want to reach out to. Thus, your startup can easily receive large customer activity if you choose the right angle of approach for your startup.

Next, think through what exactly is your competitive advantage in the FinTech market. This is a pivotal feature of your product as it distinguishes itself from existing products in the market. Currently, the market is dominated by giants like Microsoft and other successful ventures like Stripe and Coinbase. From that, you should devote substantial resources and time to understand your user satisfaction, so that your startup can easily resonate with their preference and compete against the giants. Therefore, having a unique product or value can potentially pit your startup against them on fairer grounds.

With the subdomain and competitive advantage in mind, you can commence formulating your team dynamics. Having the right people in your team not only provides relevant knowledge and skills, but also the experience to cut-down on costs as much as possible which saves time and money. Furthermore, with software developments, you should consider what programming languages, frameworks, and databases you wish to utilise for the optimal user experience. One key aspect of this is the data safety management, earlier mentioned above. By building up a formidable cyber defence, your potential customers turn clients will then entrust you with their information.