Many of the mistakes below are common across FinTech entrepreneurs who had an undesirable exit. Discover what these traps are so that you can avoid joining a long list of disappearing brands.
Insufficient capital
No matter what type of business you’re starting, underfunding could bring it crashing down.
Take into consideration, an adequate capital for a newer business should cover pre-opening startup costs plus keep you staying afloat for the next year, until you attract plenty of paying customers.
Wrong business partner
To get your fintech off the ground, find a trustworthy investment partner, be it a VC firm, angel investor or a bank. Whatever you choose, your investment partner should have an extensive background and understanding in the financial services sector to help you successfully navigate a new industry. Otherwise, you set up your company for serious challenges.
Overlooking legalities
For we are living in an era of economic globalization, and many fintechs operate across several jurisdictions with different financial regulators and regulations, following the letter of the law is critical. Many startups were forced to close their doors just because they delayed seeking legal advice and had no well-planned legal strategy.
Poor security
From our perspective, cybersecurity is about more than technology. While technical controls play a large role, people’s behavior is even more important, since 95% of cybersecurity breaches are caused by human mistakes. So, putting stress on building a security-minded culture in your company along with the use of powerful cyber security tools can prevent your fintech business from facing failure.
Gaining success in the FinTech industry is quite a challenging task for a startup. Reach out to get in touch with our seasoned fintech development experts to get your product built to perfection.
