In Nigeria, the
FinTech industry is booming, however, it is much nascent. Every month, we see the rise of new FinTech startups and at the same time the decline of several others.
Read more about FinTech
Starting a FinTech
business requires in-depth research, and its structure is way too different from other startups. However, many people think that starting a FinTech company is rocket science. But the truth remains that all it takes to get your FinTech startup up and running is to conceive an idea that can solve human problems and create a potential customer base. It’s also about doing what your potential competitors are not doing or offering what isn’t.
Nevertheless, starting a FinTech company requires lots of research that has to do with possible market acceptance, geography, demographics, and legitimacy. In this article, we are going to look at six things to consider when starting a FinTech company.
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Get To Know The Regulations
This is the first and foremost thing to know about starting a fintech company. As a co-founder of a FinTech startup, you need to know that any company that has to do with financial transactions and services will be highly regulated by the government and the apex bank of the nation. In the case of Nigeria, the Central Bank of Nigeria regulates the operations of FinTechs in Nigeria. There are over a hundred financial acts, regulations, regulatory authorities, laws, legal limitations, and requirements that the FinTech and banking industry. For example, you can’t start a FinTech startup in Nigeria without an asset capital of N20 billion.
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Know Your Niche
The FinTech industry is a vast one with so many niches and subdomains. As a co-founder or founder, you mustn’t get to muddle up yourself with so much niche. Be known for a specific or few niches. For example, Patricia is known for its cryptocurrency trade, sales, and transactions, while Flutterwave Inc. is a company that provides a payment infrastructure for global merchants and payment service providers. Therefore, know the various niches that are available in the industry and stick to providing solutions in an area. Some of the niches in the FinTech industry include;
- Payments and international money transfers.
- Lending.
- Personal finance management.
- Mobile banking.
- Trading and investments.
- Insuretech.
- Crowdfunding.
- Financial products for small businesses (e.g. accounting or tax services).
- Data analysis and financial decision making.
- Cryptocurrencies and blockchain-based solutions.
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Find Your Competitive Advantage
Having chosen your niche, the next thing is to know your competitors and what they’re doing to bring something innovative or to fill a gap that they’re not filling. For example, Patricia’s CEO, Fejiro Hanu Agbodje, stated that the goal of his company is to simplify the use of cryptocurrencies and to enable all persons, rather than a few people, to understand the dynamics of crypto transactions.
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Hire The Right Team
Hiring the right team will determine the growth and success of your FinTech company. The right team should include financial app developers, co-founders, management executives, websites developers, media managers, marketing and sales team, and so on. It will be detrimental to micromanage in a FinTech company. Getting the right app developers might be challenging, especially in Nigeria, where a shortage of technical expertise might exist. It’s advisable to look offshore like getting programmers from Eastern Europe and Asia (India) on your team.
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Choose And Use A Suitable Tech Stack For Your App
When thinking of starting a FinTech company, it’s advisable to be tech-savvy and know your tech books. Building a FinTech app where all transactions will be executed by users will require custom software development. It is risky to rely on third-party CMSs or platforms to handle all the transactions because your app will be custom-made to suit the peculiarities of the service you intend to offer, which might not be available in other ready-made frameworks. FinTech companies use the following tech stacks:
Programming Languages
- C/C++
- Python,
- Javascript
- Java
Frameworks
Databases
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Get Funded
Another thing to know about starting a FinTech company is getting funded. Starting a FinTech startup requires huge capital. You can get funding through the following means: bootstrapping, bank loans, crowdsourcing to venture capital, etc. Also, there are various competitions littered all over the internet, where you can enter to pitch your idea and win several thousands of dollars.
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