Fintech is a term used to describe the industry that combines the power of technology with any sort of financial business. If you’ve ever used financial services through an app, a website, computer software, or a tech device, you’ve interacted directly with a fintech company. Fintech is a wide-ranging industry that includes both consumer finances as well as business-to-business (B2B) technologies. If you’re interested in starting your own fintech app Development Company or fintech software development company, check out these facts about one of the most exciting tech industries.
Is Fintech a Good Investment?
Fintech is a fast-growing industry that attracts millions of consumers every year. The industry is estimated to be worth $4.7 trillion, and the largest fintech company, Ant Financial, has a net worth of over $60 billion. This is an undeniably lucrative industry, and the prevalence of smart phones has only helped to fuel more widespread use. Now, almost everyone has a device in their pocket capable of making instantaneous transactions, and fintech apps can be downloaded in seconds. As a result, consumers are relying less on brick-and-mortar institutions and there’s a growing demand for finances to be handled through convenient tech services. The fintech industry is expected to keep growing at a rapid pace in the coming years, so it’s definitely a good investment if you have an inspired idea to bring to the table.
Which Country Has the Highest Number of Fintech Users?
It’s clear that fintech is an industry on the rise. But if you want to target your business successfully, it’s important to know where this type of service is the most popular. According to Statista, China have the highest adoption rates for fintech. In fact, 92% of all banking and payments and 91% of financial management services are handled through fintech companies. The U.S. comes in second with Americans turning to fintech companies for 52% of their banking and payments and 49% of their financial management services. Other countries that have embraced fintech on a wide scale include Mexico, South Africa, and the U.K.
What Are the Most Successful Fintech Startups Across the World?
Looking to gain some inspiration from other successful companies? Powerful fintech businesses are by no means in short supply. Many small startups rapidly grew to become major industry juggernauts for some of the most frequently used financial services. The growing list of the top fintech startups in the world includes companies in categories like:
- Mobile payments: PayPal, Venmo, Square, Apple Pay, Google Wallet
- Personal finance/Budgeting: Credit Karma, Personal Capital, Mint
- Blockchain/cryptocurrency: Bitcoin, Litecoin, BlockVerify
- Stock trading/advising: Robinhood, Acorns, Vanguard
- Crowdfunding: GoFundMe, Patreon, KickStarter
- Insurance: Oscar Health, PolicyGenius
How Can I Start a Fintech Company?
The list of fintech companies that are widely used today, like Venmo or Bitcoin, all began as a startup at one point. Your idea for a new fintech business has that same potential to grow and become successful, but it’s important to make smart decisions every step of the way. Here’s the path that some of the biggest fintech companies followed to become highly profitable:
- Find your niche: One of the biggest mistakes made by entrepreneurs in the fintech industry is having an idea that’s too broad. You’ll have better luck by narrowing down your focus to solve a specific problem in the most efficient way possible. Your idea should be simple for you to explain and easy for potential investors and users to grasp.
- Build your team:Next, it’s time to start putting together a team of talented people to bring your idea to life. You’ll need to hire skilled developers, knowledgeable customer support representatives, and a competent management team.
- Prioritize security: Although fintech services are much more commonplace today than they were even just a few years ago, people are still weary about sharing financial information online or making transactions with an unfamiliar app. Before launching, you need to make sure your product is fully secure and that your users’ information will not be compromised.
- Get startup capital: You’ll likely need a financial boost to get your fintech business up and running. Many of the top fintech companies started out by attracting investors with an exciting idea backed by a solid business plan.
- Refine your product: Once you have funding secured, it’s time to fine-tune your fintech product or service to make sure it’s ready for launch. Using a prototype can help you develop a minimum viable product (MVP) that can be easily scaled as needed once you’ve launched.
Now that you know the basics about fintech and what it takes to start a business in this industry, it’s time to get your idea off the ground. Use these tips to create a successful fintech venture that can help countless people handle their money in a convenient and effective way.