The Fintech industry grows rapidly. According to recent research, the global fintech market size is expected to average approximately $37 billion by 2026. So there is no surprise that fintech startups have become an increasingly popular way to invest money. As of 2021, more than 10k fintech startups enrolled in the US market alone and 26k were registered globally. If you also feel like you’re ready to make your first steps towards launching a fintech startup, this article may come in handy.
Fintech startup development process
To build a successful fintech startup you should plan every step carefully. Start with the investigation of the most basic questions like what will be your target country, who will be your target audience, identify the direction in which you want to operate (e.g. digital payment, personal finance management, blockchain, etc.), think of your competitive advantages and so on.
The next important step that is crucial for fintech startups is to choose your funding options. There are several ways to raise money – bootstrapping, asking for financial support from your friends and family, crowdfunding, incubators, angel investors, loans, grants, etc.
Pay special attention to legal aspects as fintech is one of the most strictly regulated industries. For European fintech startups and companies, it’s obligatory to follow General Data Protection Regulation (GDPR). In the USA your startup should be compiled with Anti-Money Laundering regulations (AML) and Financial Modernization Act. If you’re going to launch your project in several countries at once, don’t hesitate to hire legal experts that will be highly qualified in the regulations of particular countries.
When setting up your team, keep in mind that it should contain both financial and software development experts. It will be a great benefit if your tech team also has experience working with financial or fintech projects. For example, you can contact Perfsol – a fintech app development company that creates innovative software solutions from scratch.
When choosing your tech stack and key app features, take care of security issues – you should pick technologies that can provide your app with maximum protection against cyberattacks.
Also, you should think of integration of third-party services to your app – it’s very important as your users should have an opportunity to attach their credit cards and make financial transactions with ease.
Top tips to launch your fintech startup and save costs
- Start with MVP
The Minimum Viable Product (MVP) is the most basic version of your app that contains only key features. Startupers usually start with MVP creation because it’s a perfect way to launch a product to the market with a smaller budget and attract more investors. With MVP on board, you can test your idea viability, get the first users and gather their feedback, and continue the development of more advanced features at the same time.
Software development outsourcing can help you save your budget as you can hire top-notch tech experts for relatively low rates. For example, it’s a common fact that software development in the US is very costly, but the quality is high. At the same time, Eastern European software developers are also highly-qualified but have lower rates.
Hope this article helps you to find out answers to the questions that will help you make your first step towards startup if your dream! And don’t hesitate to contact our Perfsol team if you need any consultation regarding fintech software development.