10+ Fintech Startups Lessons To Disrupt The Market

Do you know that revenues in the Fintech industry are expected to grow three times faster than the traditional banking sector by 2028?

Amazing, right? Fintech companies an even help the banks to enhance their financial and risk management practices. These companies are also based on data analytics to gain insights into customer behavior.

Thinking of a fintech startup that can lead to disrupt the market is easy, although, you need tips on how to have a fintech startup in this competitive market.

Do you want to be the next big fintech startup? If yes, then read this blog till the end.

Here, we shall discuss 10+ lessons for starting a fintech startup to disrupt the market are provided along with insights on how the biggest Fintech Companies are leading the world. Fintech startup company tips are detailed for creating an idea of how to start a Fintech company.

What are Fintech Startups?

Fintech are the companies that outrage the technology for improving the aspects of financial services. A start up is an organization in the first stage of the operations. Thus, it can be interpreted that a fintech startup is the initial stage of a financial company uses technology for satisfying the customer needs. The Fintech startups have disrupted traditional financial institutions by offering convenient, efficient, and cheaper alternatives to deal with lending, investment, banking, and payment services.

With the goal to enhance customer satisfaction, the Fintech startups deal in personal financial management, lending and borrowings as well as money transfers and payments. The types of Fintech startups include personal finance, crowdfunding, payments and money transfer, and Insurtech.

Why Fintech Startups is a Lucrative Idea?

The Fintech startups are one of the leading startups in the world. In this section, you will find Fintech market insights to learning the key statistical trends in Fintech with the reason to chase this industry.

1. High Scale for Market Expansion

Over the past years, it has been observed that the trend of digital payments has been increasing since 2017. The number of Fintech users is forecasted for exhibiting the fluctuations among the four different segments. Also, digital payment users can increase to 4.81 billion by 2028.

On the other hand, the number of digital assets users can grow to 0.99 billion by 2028. Thus, the current trend of digital payments is being enhanced in the coming years.

2. Easy Entry Into the Fintech Market

The Fintech global industry is booming based on the customer demand driving growth. Compared to traditional finance, fintech startups face low barriers to entry. The advances in technology, open APIs, and cloud computing have made the fintech companies to enhance support for the fintech innovation.

3. Scalable Industry

Another parameter to select the fintech industry is its scalability element. The rate of customer growth in the year 2020-2021 represented that the boom in the Fintech industry has been 76% as compared to 2021-2022, which has been observed at 66%. The financial services industry is vast, with multiple opportunities for disruptions, and innovations. With the help of entrepreneurship lessons for fintech start-ups, you can make the right decision based on the same scenario.

4. Ability to Stand up Among Established Fintech Companies

With the fintech startup best practices, you can explore the areas of the fintech industry that still need to be discovered. These areas can be green financial investments, providing financial education and literacy, providing cyber security to users, and personalized financial wellness solutions.

5. Positive Social Impact

The fintech apps are changing the banking industry; they are impacting people in a positive manner. These fintech apps are providing access to underserved populations, granting the facility to those who are being excluded from the traditional financial system. It also enhances economic empowerment; here the fintech startups can result in social as well as economic development goals.

6. Opportunities for Female Entrepreneurs

The above pie represents the extent to which fintech companies are providing opportunities for female entrepreneurs. With the growing interest of females in entrepreneurship, the female leading fintech companies are getting an amount of investment.

7. Digital Finance Boosts Small and Medium-sized Businesses

Digital finance is a game changer, small businesses around the world face persistent funding gaps. Although with the growing trend of Fintech companies, it can be stated that small businesses can increase their financial management accessibility.

8. Fintech Offers Banking Services to People in Remote Communities

Different digital payments and mobile banking platforms are bridging the gap, offering essential services such as money transfers, saving accounts, and bill payments. This is one of the reasons for increasing the fintech industry trend, as they are providing opportunities for people to manage their finances with anywhere, anytime facility.

However, in order to start a fintech company, you would need to learn fintech startup tips and tricks.

11 Important Lessons for Fintech Startups

Thinking of how to begin?

Read Also: Fintech Business Models

By understanding and learning the 11 important lessons for fintech startups, you need to observe their implementation on a practical scale. Business advice for fintech startups can help you reach out to significant steps that you can follow to start a fintech company.

1. Identify a Genuine Problem to Solve

With an understanding of the different types of users and their increasing interest in the fintech apps, you need to identify the unique issue that the customers are still facing. The issue should be unique and can become a unique selling point and reason behind developing the fintech app. Fintech startup businesses should recognize the core issue of the customers that can result in adopting unique selling points for your fintech brand.

2. Deeply Understand Your Target Audience

Thorough market research plays a vital role in gaining insights into the preferences and needs of your target customer. It is one of the most important business fintech start up tips as knowing your end user can help you in inserting the demanded features in the app. This fintech startup lesson can be helpful to the brand in enhancing the app valuation for your target audience.  Understanding the target audience can also be helpful in identifying the pain points, preferences, and needs of the user.

3. Build a Strong and Experienced Team

Hire dedicated developers with expertise in mobile app development. This trick is among the fintech start-up tips that can play a crucial value in building a strong and experienced team. Here you also need to bring together a team that contains diverse skills. The skills can be having a core knowledge base on finance, technology, operations, and marketing. Building a strong team contribute in fintech startup tips as an experienced team can help your app to stand out from competitors.

4. Focus on User Experience (UX) and Design

You now need to focus on the fintech app design process and here you can identify the type of user experience that your target audience can demand. The design of the app should be user-friendly so that the customers can easily navigate the fintech app and can achieve their tasks in simpler steps. A well designed app is one of the prominent advices for new business fintech start ups. It is the first appearance of your fintech app which should be attractive and simple to operate.

5. Embrace Agility and Adaptability

The fintech industry is a fast-paced and regularly evolving industry. The start up app Development Company should be built in a way to adopt the changing trends in finance and technology. It is an advice for fintech startup founders to make changes in their services based on customer feedback and market analysis. Embracing adaptability and flexibility can be useful for the fintech app to deal with any recent changes and is also a fintech start-up lesson to learn.

6. Prioritize Data Security and Privacy

One of the fintech startup’s best practices is to develop robust security measures that can be helpful to the fintech company to protect user data from cyber-attacks and from any unauthorized access. Ensure cyber security in fintech systems through data protection and regulations for your customers in order to connect with them and build their trust in the app. Consider data security concerns as an important parameter that can help your fintech app improve customer relations.

7. Comply with Regulations

It is important that your fintech application aligns with the laws and regulations of the government in this particular country and region. The app should work closely with legal advisors and regulatory experts to build an understanding to attain regulatory obligations. Please consider GDPR compliance and their guidance before pursuing your fintech app. knowing about the compliance is an entrepreneurship lesson for fintech startups due to the complexity of laws and regulations in the financial management practices of a country.

8. Leverage the Power of Technology & Trends

With the continuous changing trends in technology, it is essential to stay up-to-date with the trends. You should be aware of using artificial intelligence, decentralized finance, and blockchain systems in fintech mobile app development practices. Leverage technological patterns for innovating and differentiating fintech offerings to enhance the user experience with your app. This could be an entrepreneur tip for fintech startups as to align with the technological change is important phenomena.

9. Don’t Hoard, Outsource

Don’t make the mistake of considering either in-house or outsourcing as one of the alternative parameters. You can outsource different services including customer service, software development, and accounting practices. It can assist you in saving cost and time, which you can utilize in market research to make your app superior to competitors.

10. Market Your Solution Effectively

Now you need to build a comprehensive marketing strategy where you can create awareness regarding your fintech services. This can be one of the important tips for fintech start-up businesses, as marketing plays an important role in increasing your customer base and building a reputation for your brand.

11. Be Passionate and Persistent

If you want to develop a successful brand that indicates the image of your hard work and persistence, then you need to be consistent with the work. Stay passionate about the regular market research and key ideas that you can discover by attending customer feedback. Here you need to maintain a long-term perspective to remain focused on your goals.

Successful Fintech Startups and What to Learn From Them

Until then, you might have some fintech startup tips with you. With a list of the leading fintech startups in the world, you can take fintech app startup lessons. This can assist you to get an idea, of what not, as these successful fintech apps have discovered. What you can bring differently to customers in the market is to take over a highly competitive position.

1. MoneyLion

MoneyLion has become the leader in financial technologies strengthening the next generation. The mission of the fintech app is to provide everyone the power to make the best financial decisions. Here the individual can borrow, spend, and invest seamlessly by bringing together the best offers from the app.

With the mentioned graph, you can check that the annual revenue of Money Lion is continuously increasing. By the end of the fiscal year 2022, the growth rate has been reached to 99.18%.

Currently, MoneyLion has added over 2.2 million customers in the third quarter of the year 2023. MoneyLion offers unique perks and important features that assist the brand to enhance their position from its competitors. They treat their customers successfully by addressing their concerns towards the app.

You can learn about the differentiated patterns and unique features that they offer to their customers in order to retain them in the long run. Also, MoneyLion takes help from the customer’s feedback to improve their services and enhance their ratings and sustainability in the market.

2. Chime

Chime is a leading financial technology organization that relies on simple banking services. They target the user to operate their app with a simple and easy pattern. With the assistance of the bank partners, the company offers relevant and better banking services that are effective for their users to avail the financial assistance.

Chime’s mission is to unlock financial progress by empowering millions of people every day to have control over their finances.

Chime started its journey with less than a value of a billion U.S. dollars in the year 2018. Currently, the value of the company has reached over 25 billion U.S. dollars in the year 2021 and it has remained unchanged in the year 2022. The unique value that the company offers to its customers is no hidden fees, with early direct deposits and automatic savings features.

You can learn the frequency of the app that Chime had when they started working on the app. With a good mission and vision, the company has achieved a good pace in the market over established fintech apps. Hence, you need to be clear with your mission and vision to achieve a lead position among competitors.

3. Google Pay

Google Pay is a simple fintech mobile app that was developed by Google to power in-app, online, and in-person contactless payments. Through Google Pay, one can buy items online and within apps. Individuals can also form groups to enable transactions and referrals. Currently, the app is available in over 40 countries. However, the usage of the app by the customer differentiates the features of the app.

Google Pay’s global revenue comes from two sources – transaction fees (around $4.1 billion) and in-app advertising and product offers ($0.4 billion). The app offers multiple facilities in one place including insurance, EMI management, and credit card management, along with recurring deposits. This multiple functionality has created a unique position of the fintech app in the competitive market.

You can learn about the diversified facilities and know how they excel with their customers. This could become a takeaway fintech startup advice for your fintech app.

“Read Also: Top 22 Fintech Apps in 2024”

Nimble AppGenie – Helping Ambitious Startups Achieve Success

With Nimble AppGenie, you can move forward in making your own fintech app.

Nimble AppGenie is the best fintech app development company and we are here to help you. Our developers have done it before:

1. Pay by Check: It is a multi-currency E-wallet mobile app in the United States and America, it allows its users to transfer, pay, and even exchange the currency. The app can be downloaded on Android, iOS and Website.
2. Cut: The app is available in China and in Myanmar. It works well with RMB and MMK currencies. Available on Android, iOS and website.
3. Dafri Bank: Digital Bank of Africa: The DafriBank app is one of the leading banking portals, which allows an individual to trade within cryptocurrencies and also provides e-wallet advantages to the customers.

Above mentioned are some of the fintech apps that are developed by Nimble AppGenie. Hire mobile app developers with us, in just a click.

Contact us to learn more about your next fintech app.

Bottom line

Concluding the above blog, it has been found that fintech app development is a growing industry. Having a startup in the fintech industry can result in increasing your revenue.The lessons that you can learn know about your audience can assist you in complying with the regulations related to fintech start up.

Other important lessons from fintech startups can be leveraging the power of technology and trends, building a strong and experienced team that can improve the customer experience. A Fintech App Development Company can help you in dealing with the issues that your customers may face while using fintech app.

FAQs

Niketan Sharma

Niketan Sharma is the CTO of Nimble AppGenie, a prominent website and mobile app development company in the USA that is delivering excellence with a commitment to boosting business growth & maximizing customer satisfaction. He is a highly motivated individual who helps SMEs and startups grow in this dynamic market with the latest technology and innovation.