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I couldn’t help but cringe when I see FinTech – financial technology – companies run their operations like some sort of garage business, typical of the famous Silicon Valley startups that we see in movies. The scenario is very popular – its lack of organization is at the heart of their operation, running the startup-like some sort of junkie stuff, where the software developer is also the chief accountant and at the same time the brand developer.  The truth is that all big software companies began that way. Little wonder, they often run into the law and collapse or nearly disintegrate under one breath. It is not enough to have a unique software solution that can help users optimize their financial lives but must have a structure that can guarantee sanity in the whole business operation. No matter how small your FinTech startup is, having an organized structure is very pivotal to its survival and growth. However, organizing and structuring a FinTech startup is different from any other business venture. Some things need to be put in place to ensure that the company is strengthened and can have a unique sense of direction. In this article, I discuss what your FinTech must be in place to thrive, grow and stand the storms of business life.
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  • Board of Directors

Whether great or small, every FinTech company should have a Board of Directors in place. This consists of the CEO and the other C-level executives. First, the Chief Executive Officer (CEO) is the one that sits at the top of the startup, monitoring and ensuring that the goals and objectives of the startup are met. He or she ensures that the clients are truly satisfied. The CEO gives a go-ahead to every project after scrutiny. He works with supplied information to set the startup’s goals.

  • Operations

The Operations Department oversees the essential processes that keep the startup operating effectively.  The head of Operations is popularly known as the Chief Operating Officer (COO) or Vice President of Operations. The COO is responsible for making sure that the company is operating as it should—and meeting the CEO’s expectations. The role of the COO includes:
  • Creating standard policies and procedures
  • Project management
  • Supply chain management
However, when a fintech company is still in its infant phase, Operations may also include:
  • Human Resources
  • Finance
  • Marketing
Nevertheless, as the company grows, for the sake of administrative convenience, these generally become different departments.

  • Finance

The Finance department is in charge of the startup’s financial, monetary, and economic strategy. The role of the Finance Department is to ensure that the finance of the startup is effectively managed and distributed, that is in the case of running the day-to-day operations. Dept. of Finance’s goal is to optimize the company’s business model and maintain the ideal balance of operating cash flow, debt, and equity. The other functions include:
  • Accounting
  • Bookkeeping
  • Financial modeling
  • Fundraising operations
  • Statutory and investor reporting
  • Fraud risk management
  • Payment management
  • Tax management
  • Internal auditing
The Finance department is led by the Chief Financial Officer (CFO). As with all C-level executives, the CFO reports directly to the CEO.
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  • Product

The Product Team according to my opinion is the backbone of the startup. The team’s role is to identify and ensure that the startup meets the needs of its ideal customer base. It ensures that the startup product is tailored to meet the needs of the customers. Other functions include: 
  • Customer research
  • Data analysis
  • Product development
  • Product optimization
They are responsible for drafting the roadmap for a product after which they submit it to the Technology Department to make it a reality. Product is headed by a Chief Product Officer (CPO) or Vice President of Product.

  • Technology

The Technology department oversees the startup’s technological needs. They are responsible for building and developing the software from draft to reality. The also manages the startup’s IT infrastructure. The also does the following:
  • Front- and back-end development
  • Network analysis
  • Software engineering
  • Design
  • Database administration
  • Cybersecurity
  • Payment infrastructure
  • IT support
This department is run by a Chief Technology Officer (CTO).

  • Marketing

This department is responsible for reaching out to the customer base. Their job is to spread awareness around the company’s product and inform the populace about what solutions it has to offer or how it meets their needs. Marketing will also work to develop your company’s image and inspire brand loyalty. Relying on the features of your business model, your marketing department may need to take a business-to-customer (B2C) or business-to-business (B2B) approach. They will also do the following:
  • Customer research
  • Digital marketing
  • Ad campaigns
  • Branding
  • Strategic partnerships
Marketing departments are generally led by a Chief Marketing Officer (CMO), Head of Marketing, or Vice President of Marketing.
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  • Human Resources

This department is charged with managing the people in your company. The head of Human Resources is often known as a Chief People Officer (CPO). Human Resources is responsible for:
  • Recruiting
  • Hiring
  • Onboarding
  • Training
  • Employee performance reviews
  • Conflict management

  • Legal

The Legal Department of your startup is extremely important as they ensure that you are within the good books of law as instituted by the government. Money is a serious business and it would be detrimental if you’re not licensed to operate. It is your legal team that works up the papers and ensures that you’re operating within the legal framework of the country. Furthermore, in a case where there is a lawsuit, the Legal Department is there to save you.  An effective FinTech Legal team should include:
  • Counsels
  • Compliance Officers
  • Privacy Law Specialists
  • Regulatory Lawyers
  • This team will report to a Chief Legal Officer (CLO) or General Counsel.
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This article was first published on 27th April 2022

nnaemeka-emmanuel

Nnaemeka is an academic scholar with a degree in History and International Studies from the University of Nigeria, Nsukka. He is also a creative writer, content creator, storyteller, and social analyst.

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