Fintech is an industry that is near its peak. Cryptocurrencies, investing, licenses for sale and similar phenomena have already been thoroughly entrenched in the everyday life of representatives of various generations. However, a difficult question arises: how much money do you need to invest and make efforts in order to establish and successfully develop your own project? Let’s talk about this further.
It is obvious to every founder that the main tasks in this business are to assemble a team, obtain licensing permission and start writing software. At first glance, everything seems simple enough, because we have a staff of IT specialists, experienced managers, a solid platform and the enthusiasm of the owners. However, after the project was launched, for some reason there are still no clients. Why is this happening?
Here are a few basic reasons why a project might not meet your expectations.
- By no means all startups, starting their journey, see their future and realize what exactly is necessary to support the life of the project. One of the development strategies in this area is to attract significant investments gradually and level by level, which is accompanied by honing skills and improving the perfection of the service and software product. This allows you to attract more users and keep the interest of investors.
- Considerable cost of software. First of all, Fintech is a software product, the funds allocated for the writing of which can even exceed 500 thousand dollars. Thus, not all startups are ready to incur such costs until the company begins to pay for itself.
- High level of competition. The structure of a business project operating in this area must be flexible and respond quickly to changes in current trends in order to be able to offer the best conditions on the market. This includes everything related to blockchain, cryptocurrencies, and more.
- Compliance with the requirements set by the regulator. Despite the fact that the procedure for obtaining a license itself is not complicated, the legislative and regulatory provisions are quite directive, and in order to comply with them, you also need to spend a lot of money.
- Internal contradictions between the owners. Not one project was “frozen” due to some understatement between the owners that arose at the very beginning of the partnership. It is worth noting here that it is extremely important to consciously approach the choice of partners.
If we pay attention to the statistics, we can note that in 2020 the UK issued about 84 payment licenses, in Lithuania 23 projects became the owners of such licenses, in Spain – 9, and in Germany and Sweden – 7. Estonia closes this rating by issuing only 3 licenses. However, it should be understood that obtaining a payment license does not mean the actual opening of so many neobanks in one or another state. Few of these institutions are gaining real customer acceptance and profitability.
What is the secret of the projects that have won consumer recognition?
Here we should highlight the presence of a close-knit team, a well-thought-out business strategy, a clear vision and positioning of your product, flexibility of the mechanism and the right choice of the market. These are some of the basic ingredients. Many of the founders of successful fintech startups, such as Niklas Adalbert, Oleg Tinkov and Oleg Gorokhovsky literally live with their ideas and projects. That is why, before starting your own business, you should think about all the attendant factors. Your project is a complete long-term commitment and a huge responsibility.