Ongoing boom of financial digitalization has changed the way we do business. From banking to investing, there’s just about nothing you can do from your mobile. Here are fintech ideas for your startup.
Fintech Startup Planning
Apps are at the forefront of any successful fintech business. You might have a great idea but not enough money to get your idea off the ground. After all, trying to build a business while working your regular job and paying for your daily expenses can be costly. So, what does this mean for you? Do you have to wait until you’ve saved enough to launch? Absolutely not. If you’re short on expendable money, you could think about getting a personal loan.
With this loan, you could cover your monthly bills, such as housing and credit card debt, and then use the money you saved to build your app. If you have good credit, you can usually score a favorable interest rate, which makes paying any money borrow easier. If you go this route, just be sure to create an itemized list of your expenses prior to applying. You’ll then have a better idea of exactly how much is coming in and how much is going out each month. When it comes to finance, there are a variety of sectors you can choose to focus your attention. Let’s break those down a bit further.
Digital Payments
Digital payments have become even more popular over the last two years. They create an ease of access to most shopping platforms, which is a huge win for consumers. That said, consumers of today are also looking for the next, best thing. They want a digital payment system that simplifies the process and saves them time. Digital payment apps also allow people to send money to friends and family without having to go to the bank. Venmo and PayPal are the most popular ones, however, that doesn’t mean you can’t improve upon them.
If you choose to focus your attention here, note that you must adhere to federal regulations set forth for banking and transferring of money. In addition, you’ll also need to choose which business model you want to deploy. The most common one is pay-per-use which means the user only pays when they send money or make a deposit. Another thing to keep in mind is the type of tech specs this kind of platform requires. You’ll need robust cybersecurity protection, encryption and a secure peer-to-peer framework.
Neo Banking takes the wait out of banking. Instead of having to go a physical location to perform basic banking transactions, your customer base can perform those from their mobile. While many banks already offer this, there’s still room to create a program that streamlines the process. If you choose to invest in this sector, know that you’ll need to create a program that uses AI, is automated and also safely stores user information on the cloud. There are also different business models you need to consider. Some of the most common ones include credit-led, interchange and asset-led. Each model has its own unique set of pros that will appeal to certain demographics.
Digital Lending
Remember the days when the only way you could get a loan was to go to a bank with a stack of documents? Thankfully, those days have come and gone. Now, getting approved is as easy as opening a mobile app. There are already quite a few successful ones out there. Prosper, Avant and Cross River Bank. With that in mind, you still can get a leg up on your competition if you know what you’re doing. When it comes to digital lending, you need a solid understanding of the lending process and be backed by reputable investors. You don’t need a degree in economics but you do need to have the right people in place, not to mention the banking institutions, to fund approved applicants.
Cybersecurity
Where there is money, there is also the need for cybersecurity. People need to know that their transactions are protected from hackers. Cybersecurity protection programs and cybersecurity performance management will never not be needed, so now’s the time to act. You’ll need to include Source Data Analytics into your application, and make sure you’re providing protection against trojans and malware.
Biometrics
Biometric technology is one of the best ways to safeguard someone’s identity. While Apple already uses thumbprints for recognition, other companies are in the process of actually using palm and vein mapping to increase security measures. This type of startup is definitely not for the faint of heart, so make sure you know the logistics before investing your time and money.
Gamification for Saving
Who doesn’t love a little competition? These days, people are starting to save earlier in life, and that means creating a fun way to get them interested. Money saving gamification is a great way to encourage even teens to start saving for their future. To be successful, you’ll need to perform market research to find out exactly what type of incentive would work best. Regardless, gamification is when you implement game-like mechanics to make things more interactive and less tedious. Even something as small as a saving tracker is an example of gamification. You can even implement milestone rewards for those who meet a certain amount, like a $10 gift card or discount for varying stores. The possibilities are endless when it comes to gamification, so be sure to understand the ins and outs of it before anything else.
