There were more than 26,000 startups worldwide in the fintech sector. Fintech products are unique and successful, because they have the ability to solve problems that affect other startups.
If you are in the fintech business and looking to build a successful product, then Bahaa Abdul Hussein lists out certain things to keep in mind. We look at all the factors to ensure success of fintech products.
Factors contributing to the success of fintech
Capital
There is no doubt that capital is a key factor for the success of fintech. Investments are needed for fintech companies to succeed. Over the past ten years, the investments have increased reaching $125.5 billion.
Improved investment by VCs can help businesses. It is important that the capital should be allocated and used in the right way to ensure success. This is the most important factor as per the experience of Bahaa Abdul Hussein.
Talent
Talent is critical for the success of fintech. There are three vital domains in fintech. Finance, technology, and Entrepreneurship are the three domains where specialized talent is needed.
Talent is needed to ensure success of fintech startups. This is a vital factor.
Demand
The success of fintech depends on demand. It is important to generate demand from the public. Finding the right market is important to increase demand.
Regulation and policy
Another critical factor in fintech success are regulatory issues. Policies of the government and regulations play a role in the growth of fintech.
Problems in fintech and resolving them
There are certain common problems in the fintech sector. The following is information related to fintech problems and how to solve & prevent them.
- Lack of market validation and product/market fit is why nearly half of startups fail.
- Missing functionalities and latent projects risks is another key startup problem.
- Using a technology stack not suited for scaling and growth is another problem.
- Improper scope of work is a problem.
- When the solution architecture does not integrate well with third party systems, it is a problem.
- Handling regulatory roadblocks is a problem.
- Not addressing cybersecurity risks and data privacy protection issues is a problem.
- Handling competition is another problem.
- Poor navigation, improper user interface, and lack of contextual information are issues that affect user experience.
- Improper design issues and lack of brand identity are other issues.
- Other user experience problems include lack of personalization, complex onboarding improper terminology, and lack of transparency.
Solving these problems calls for taking the help of professionals and domain experts. Working with the right fintech partner can help handle these problems better.
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