2020 showed that to fulfill basic needs, it is not necessary to leave houses. We have technologies for everything, so it resulted in the booms of web and app usage. For example, according to Statista, the weekly usage of finance apps went up by 55% in Japan, 20% in the USA, and 15% in Germany and Italy. Although this trend occurs due to the necessity to avoid redundant human contact, it doesn’t mean we will see a decrease in users’ engagement. People who experienced the convenience while using finance apps now are less likely to spend their mornings in the queue to the bank when the lockdown is over. That’s why, despite the crisis, it is profitable to build a fintech startup.
What are the necessary qualities of a fintech application?
First of all, there is no need to rush and implement every single feature that other fintech products of your industry have. First, make your MVP (Minimum viable product) of high quality so that you could gain early users. It means it has to contain basic functionality that is reliable, usable, and with great design. For example, if you build a payment solution, your basic functionality would be secure transactions and reliable authorization. This way, you need to bring it to perfection, making these features working fast, behaving logically, and looking good. Then, step by step, build new functionality on top of the basic one.
Time to pitch an idea! What are the steps of fintech startup creation?
Make a business plan
Before the practical development and production, you need to work on theoretical questions that decide business’ vitality. What problems is your app going to solve? Who is your target audience? Find out how much do you intend to scale? How are you planning to grow? What are the stages of development? How much money do you need for each stage? What software development team are you going to hire? You need to answer all questions that may arise during the development. Also, the more precise and clear the business plan is, the easier it will be to find investors.
Finding people who will fund your startup seems to be a daunting task. However, it is possible if you constantly enlarge your social circle. Your investor may be your groupmate’s friend or a guy who used to work with you. It may be your ex-client or an acquaintance from the Internet. If you feel like you need outside help, you can refer to startup accelerators. They already have a network of funders who look for fresh and interesting startups. Before providing you with a platform to pitch your ideas, they can also teach you how to build a business plan and go through all stages of startup creation.
Work, work, work!
Now, it’s time to choose a relevant tech stack for startups, create plans, and choose a methodology for time management. You will hear keyboards tapping and mouses clicking – the great signs of intense development, design, testing, and debugging! If you haven’t yet found a development team – be sure to write SapientPro!
While your development team creates a product, your marketing team needs to think of all ways how your early users can find out about it. Nowadays, we have so many channels where to promote products! However, it is necessary to understand what media platform to choose and what tools to use (bloggers, targeted ads, youtube ads, etc.)
Production and feedback gathering
Chances are, your MVP will not be perfect, and it is okay. That’s why there is a separate stage of gathering feedback. It’s an important source of information that tells you what to change and where to move on.
As you find out what your customers need from an app, implement new features, improve the old ones, and enjoy your startup yielding results!