Page 31 - Top 10 India's Financial Startup 2019
P. 31
as it truly is a multidisciplinary effort. technologies that would power the service. On
Fintech is still in a state of flux, at least the plus side, technologies such as machine
in the foreseeable future, so the ability learning and analytics engines are now being
to deliver or change direction quickly is offered as a service by cloud platform providers
essential. like Microsoft Azure and Google Cloud Platform,
5. Unique and valuable service which lowers the barrier for development.
However, these technologies have yet to fully
The fintech industry is starting to get mature. You should be prepared for growing
crowded now that many pioneers have pains and hiccups when using them.
done enough for new ventures to follow. 7. Funding
Still, a key entrepreneurial question to
ask is if your venture will be able to offer Forming a tech startup isn’t cheap. If your
something unique and high value. venture isn’t a partnership between experts who
All segments related to money are fair can develop the entire product and business
game for fintech. We can now see development, then be prepared to shell out a
fintech startups enter personal finance, good sum for talent. As traditional institutions
try to assimilate fintech talent for themselves,
startups would surely face competition in the
budgeting, payments, lending, investments and hiring.
insurance. All are trying to find solutions to
consumers’ problems and offer new ways to do There are also the typical capitalization and
things. The danger for startups is to be a “me- operating expenses associated with starting a
too.” Copying can be a bad strategy, especially business. What further increases the expense for
if there are already similar services that are fintech startups are integrations with traditional
established in the niche. institutions such as banks and brokerages.
6. Technology choices Focusing on Innovation
There are also a number of new technologies Fintech isn’t for everybody. It demands expertise,
that are hyped in fintech. Machine learning creativity and frankly a lot of grit to launch a
and artificial intelligence are now figuring in the startup in a volatile and competitive industry.
area of investments in the form of robo-advisors. There are arguments highlighting the supposed
This data and algorithm driven approach to disconnect between the slow-changing realm
investing is even challenging age-old financial of finance and the fast-changing world of
wisdom. Banks are also experimenting with using technology. The pressure for tech companies to
chatbots that would allow customers to deliver huge results rapidly can also be immense.
check account information within Facebook Still, if you believe that you will be able to solve
Messenger. financial issues for your users through innovative
means, go ahead. Fortune favors the bold. Just
Other hot ticket technologies in fintech include be smart with how you do it.
blockchain and distributed ledgers. Blockchain,
the technology powering the digital currency
Bitcoin, is a decentralized way of exchanging
value online. It is arguably the biggest threat to
banking.
As a startup, you may have to bet on
