• The modern global economy has undergone a fundamental digital transformation in recent years. For this reason, FinTech companies have become more relevant and essential for their development than ever before.
• Additionally, they have been promoted by the global pandemic, which has forced consumers to spend more money online and control and manage their finances similarly.

Thanks to FinTech companies, people on self-isolation managed and still manage, even after the COVID-19 recession, to get loans remotely through their gadgets, invest their money, store cryptocurrency, and make everyday purchases. It was fintech companies that managed to popularize virtual banking services and products. Now they are used online not by just a few but by a mass of clients.

Forecasts for FinTech

The demand for FinTech solutions overgrows, even though competition in this sphere is also massive. The whole point is that only some companies offer qualitative and convenient software for working with payment instruments. In the example of the Wallester platform, we can see what should be the software for financial services. Such a solution will help you compete in the market and meet customers’ ever-growing needs.

According to experts, financial technology will continue to develop relentlessly. Already in 2028, the capitalization of this market will exceed 330 billion dollars, with an annual growth of 19.8%. It is an excellent signal for those thinking about launching their own fintech company. There is a window of opportunity open to them in the coming years. You need to take a few simple steps to take advantage of this window. They are all listed in this quick guide to launching your own fintech company.

Trends in FinTech

First, before setting up your own fintech company, you need to decide on the business model under which it will operate. Let us list the most popular and profitable projects in this sphere.

Neobanks

A neo-bank is a digital bank. It does not require a banking license, which traditional banks do. This financial institution can only be accessed online via phone.

Non-banks have no physical branches or representative offices. Because of this, there is no need to maintain a large staff or rent premises, equipment, and transportation. It allows neobanks to offer comprehensive services to clients at an affordable price and on favorable terms for them.

Another advantage of neobanks is the provision of online transactions for the majority of currencies around the world. Making payments through them is profitable, secure, and fast, allowing businesses to become more flexible and competitive.

Digital exchangers

It can be exchanged for fiat or other digital currencies to make it easier to pay for goods and services with cryptocurrency. Unique platforms for buying, selling, and exchanging cryptocurrencies have been developed. The most famous of them are Coinbase, Binance, and Crypto.com. At each of them, many assets and cryptocurrency pairs are available for exchange.

Also, Wallester has already partnered with KuCoin Exchange Exchange. As a result Visa physical and virtual card, named KuCard, will be available in the EU market soon. This opens up new opportunities both for cardholders in general and for those who have chosen a cryptocurrency platform for earning.

The popularity of cryptocurrency has increased dramatically in recent years. In addition to traditional bitcoin, lightcoin, ether, and other well-known cryptocurrencies, many new digital coins have appeared. If you launch your centralized digital platform, there will be no liquidity shortage. When launching such a project, the first thing that must be carefully taken care of is the platform’s security, as the main problem is constant attacks by hackers. These attackers can easily steal customers’ money from their wallets without proper protection. To prevent this from happening, you need to use a reliable fintech platform that is well-protected against hacker attacks.

Personal finance apps last a long time

Personal finance management apps help users make intelligent and efficient financial decisions. It is not surprising that the demand for such developments has recently increased. With their help, any user can achieve the following goals:

• complete financial independence;
• proper budget allocation;
• allocation of funds for recreation;
• starting and developing a business with your savings.

Such applications are equipped with many useful functions. With their help, you can track the flow of finances, forecast your expenses, and manage your accounts. It’s not just an app but a universal financial platform to access all banking services in a single window.

Steps in launching a fintech company

To launch a startup, you need to develop a plan of action for its creation initially. Let’s look at the initial steps you need to take to create this plan.

Decide on a niche

For a startup to start making a profit as quickly as possible, you need to set the exact goals you want to achieve by launching it. First, you need to decide on the niche in which you want to operate. It can be a neobank or a lending company. You can also try your hand at personal finance management, mobile banking, trading, and crowdfunding. There are many options. The main thing is to take a severe and balanced approach to choosing one.

After choosing a specific niche, you need to determine your target audience. The answer to this question will allow you to develop customer offers, marketing, and advertising campaigns. It is best to start by selecting one small demographic, and only after a successful start of the project make attempts to enter global markets.

Familiarize yourself with the rules of the industry

To operate effectively and legally in the financial markets, you need to know and comply with the various rules and standards stipulated by various regulations and documents:

• GDPR – General Data Protection Regulation;
• AML – anti-money laundering policy;
• KYC – “Know Your Customer” requirements;
• PCI DSS – payment card industry data security standard.

Depending on the project’s specifics, various digital certificates, licenses, and other documents may be needed to operate legally in the financial market. For example, EMI and API licenses are needed to run a neobank or an application to manage your finances.

There are a lot of laws and legal restrictions in the financial industry. To succeed in this field, it is crucial to comply with all these regulations. It is best to turn to fintech platform providers to get rid of this headache. They take care of all administrative issues and ensure that the software follows the law.

Find a technology solution provider

WhiteLabel solutions offered by modern providers are relatively easy to set up and integrate seamlessly into a company’s existing system. For this reason, they are much faster to market than traditional banking products. All a fintech provider needs are to mention the specifics and requirements. Then they will develop a ready-to-use fintech application or a multifunctional platform to access the software system, which works based on an open API.

Collaboration with fintech providers is cheaper than working with traditional banking institutions. The main problem is finding a reliable and secure service provider among various offers that can implement the business idea voiced by a customer.

If a company offers a customized product, it will first offer you a demo version, then discuss the project’s costs and clarify its details. Based on the client’s wishes, a prototype will be created, coding will be done, and the solution will be tested.

Launch a marketing campaign

The promotion of any startup requires a well-thought-out marketing strategy. The advertising activity should be thoroughly thought out and focused on a particular target audience, defined in the first stage. If you aspire to make a viral startup, severe market research should be done before launching an advertising campaign.

Suppose the right fintech provider was chosen at the previous stage. In that case, you could not worry about advertising the finished product because it will help to bring the platform or application to release. With his help, you will launch a ready-made solution in just a few weeks, be able to expand your customer base significantly, and get a new source of income.