Fintech is the next big thing in the financial technology industry. It is the so-called digital revolution which will redefine the way the financial sector works. Although fintech India is in the developing phase, it is not an unknown concept. With the passage of time, it will be easier to adopt financial technology in India. Fintech start-ups are emerging in India, but they must be aware of the challenges which are being faced by the existing players of the industry. So here are the seven handy tips which will be useful for the industry in the future. As the financial sector is supposedly considered a shark tank, it does not let weak start-ups to stay for long. Hopefully, these tips will equip start-ups to deal with challenges of this industry.
Know the regulatory environment
First and foremost it is essential to note the regulatory environment of any industry before setting up the business. Since financial technology is relatively new, it is possible that some aspects of it might not be addressed under regulations. Knowing the complete rules and regulations is also essential while deciding upon the types of product. It could be very much possible that certain products might end up being prohibited from a regulatory point of view and need to be revoked later. Also setting up the anti-money laundering policies and know your customer guidelines is also very imperative.
Analysis of market
A business idea is fundamental for any start-up. An idea which can look good on paper might end up in reality. The best way is to analyse the market beforehand and know the target audience. Apart from that, it is also important to note the competition as well as the products which are already doing well in the market.
Funding must be secure
The issue of funding exists with almost every start-up. Attracting the right type of partners which can help you deal with capital issues at the start of business is very important. Such investors must know about your idea and should be excited to see it in action.
The product being offered
This is also a critical aspect of the financial technology start-up. As fintech is a relatively new concept, one must be well aware of the kind of product it is offering to succeed in the market. Market research can help in this regard, before launching the business. Careful assessment of product must be done so that it covers a particular market niche.
Market yourself effectively
This is the fundamental aspect for any start-up. Establishing an active presence in the market will make your customers about the company and its products. This will help customers especially to know what is being offered to them and how it will be beneficial for them in long-term. It is equally important to add all the relevant information about your company on the website so that it will be easier for customers to know you. Since fintech is a new concept, it should be adequately explained so that customers know exactly what services they should be expecting.
A good example would be of blockchain technology. Many people are still not aware of what it is all about. So adding the relevant sections on the website and through social media marketing, knowledge can be imparted to customers.
Apply for licenses and complete registrations
Before the business starts to get involved in customer dealing and other matters, it is advisable to complete this process of applying for registrations and obtaining licenses. So it is better to register for taxation purposes, company registration and listing. This is basic for almost every company but fintech companies are subjected to more regulations which have to be completed.
Have a good team ready
The team can be a detrimental factor for the success or failure. This is very relevant for technology based startups especially. Thus, you need to have competent and knowledgeable team members who understand your vision, and are willing to work hard to make it a success.