Some tips on how to get into the Fintech business
The world of finance and technology have come together to create the Fintech business, a new way of doing business that combines traditional financial services with digital technologies. While it may seem like a daunting task to start a Fintech company, there are many resources and tools available to help make the process more manageable, provided of course that you have the necessary capital and the ability to devote hours of work to structuring it.
This small guide offers advice and recommendations for entrepreneurs who want to start a Fintech business, according to the experience of Daniel Suero Alonso, entrepreneur, expert in the business field and financial markets.
1. Identify the problem you are trying to solve.
Most Fintech companies are created to solve a specific problem in the financial industry. Before you start working on a new venture, it is important to determine what problem you want to solve and how you solve that problem. This will be your starting point and your main focus. Analyze what the existing problem is, what the needs are, and what the gaps are in the financial market.
2. Research the market.
Before investing in a Fintech company, it is essential to conduct a thorough market research to determine what services and products already exist and what are the chances of success of your idea. Do not resort to theoretical research tools; the most advisable thing to do is to investigate in a practical way and in real time the market you are targeting.
3. Select the area of specialization
Once you have identified the problem you want to solve and have researched the market, the next step is to select the area of specialization your Fintech company will focus on. Are you interested in business financial services or services for end consumers? Are you interested in technological solutions for the lending, transfer or investment market? Identify what your strategic focus is.
4. Define the corporate structure
Daniel Suero Alonso, Fintech entrepreneur and expert in the business field and financial markets, goes on to explain that once you have a clear understanding of your target market and specialty within the Fintech business, the next stage is to define its corporate and legal structure. It is important that you seek legal advice for your company, finding a specialized lawyer will give you a clearer idea of what type of corporate structure you should adopt. If a corporate company is created, is it an open or closed capital company? Will it be dissolved at some point or are you looking to perpetuate it? What is the best scheme for the future projection of your company? Evaluate what type of corporate structure best suits your objectives.
5. Choose a technology solution
Your Fintech company will need a technology solution to support it in providing financial services. Because of this, it is critical to make the right choice of technology that meets the needs of your market and end user. Determine the power in your technology requirement – is it something you need to develop from scratch or can you opt for an off-the-shelf solution? Does everything need to be built in-house or is it feasible to use off-the-shelf tools? Carefully evaluate what is needed for the company and choose the most efficient alternative.
6. Create a good marketing strategy.
Once your technology solution is in place, it is time to create an effective marketing strategy. This is one of the most critical steps, as it often takes the lion’s share of the budget. Consider the marketing strategy from different angles: Who are the potential customers? What should your voice tone be? How can you reach them most effectively? What channels should you focus on? You will see that these questions will help you a lot in the process of defining your marketing strategy.
Finally, Daniel Suero Alonso, insurtech, young financial expert and entrepreneur, author of the book “How to invest your own money” tells us that starting a Fintech company can be a complex task, however, with the right research and strategic planning, anyone with a solid idea and the right strategy can do it. From understanding the problem, they want to solve and the market they are targeting to defining the corporate structure, choosing the right technology solution and creating an effective marketing strategy. Taking into account the above points, you can start the necessary actions to succeed in the Fintech business sector.
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