Fintech labs or companies which come into existence with the sole vision of providing easy financial access to people across all strata of life. Fintech startups provide power to the lending ecosystem through various technology thus minimizing the need of intermediaries.
Top Features That a Top Fintech Lab Must Have
Since the fintech companies are all startups, it is highly necessary for them to first understand the traditional banking system and the challenges that it suffers with. Once that is understood these fintech labs need to get some good funding to be able to sustain themselves in this competitive market. With that done their first and foremost goal should be to remove the friction that the common people face while banking through the traditional banking system.
The second most important feature of the fintech companies is that they should create affiliate services. These fintech startups don’t really attack the traditional banking system, instead they try and work around the issues that the banking sector deals with and with the help of technology works towards bringing about a change. Examples of two such fintech startups are - Square and Simple.
Focus on the team is another very important thing that these startups need to keep in mind. With a strong core team which is even resilient, these fintech labs can grow in leaps and bounds and even go ahead and make relevant connections in the industry.
A good fintech lab must also have a team which along with having people a degree in fintech courses, it must also be an amalgamation of people from various sectors and disciplines of study. Mixing the talent pool is the key! This would help in bringing together some of the best minds from all over thus, in turn, helping in reinvention.
Also, one must not fear to put ideas into action even at the cost of a few trials and errors before something scalable comes up!
A good fintech company would also know its regulator(s) thus confirming to the fact that these companies know what they are in for. These companies would also not make the mistake of focusing exclusively on selling to banks. Instead of competing with them and creating a separate client base is what which is needed to grow in this field.
Banks, in fact, create a lot of bureaucratic and regulatory issues hence working hand in hand with them by the fintech companies tend to become next to impossible.
Lastly, a successful fintech startup would always value data over money! Focusing purely on a digital exchange of data will help in making the company go a long way in the industry. After all, it’s the data be it the data of customers or money made by competition, information such as these always helps businesses stay a step ahead of their rivals.
In fact with the focus on data along with the help of technology, one can create whole new business models around those which the traditional banking system fails to do largely.