Technology has changed just about every aspect of our lives. The financial sector, in particular, has seen enormous growth within a short amount of time. Financial technology becomes more innovative by the day, which makes it easier for businesses to help people with their finances. If you’re hoping to be part of the rapid growth in the tech market as it pertains to the financial sector, get into the fintech industry, here are four tips to help you get situated in the field.
Define Your Specialty
Knowing what you’re going to specialize in is the first step of your fintech journey. Figuring out your specialty or niche takes research and a general interest in the field. Since there are many facets in the field, you need to identify which ones interest you the most. Below is a shortlist of the types of niches to help you get on the right track:
- Asset management
- Peer-to-peer lending
- Tax preparation
- Financial planning
One thing we should mention is that you’re going to need at least a BA in accounting in order to truly shine in this industry. If you’ve already obtained your BA, acquiring a master’s is a great way to prove you’re a trustworthy source to clients. College is an investment within itself, so you do need to plan a bit. Regardless of your situation, you can easily finance your education by taking out a student loan from a private lender. Their reduced interest rates can help you afford the monthly payments. Moreover, you can also use a student loan calculator to get a good look into how much you’ll be spending for each payment.
Focus on Your Competitors
As with any business, regardless of your chosen niche, you’d best be prepared to face your competition. Every business, fintech included, is always competing with each other. You need to keep a watchful eye on what your competitors are doing, especially if you’re both involved in the same niche.
Study the Rules and Regulations
Fintech, although a bustling industry, is a government-regulated field, so it does have regulations you must follow. Knowing what rules, you need to follow, like what and how much data you’re allowed to collect from clients, is very important. If you don’t comply with these regulations, you could be taken to court or have your business shut down. Obviously, you don’t want that to happen. So, be sure to take the time to learn the rules and regulations of fintech before opening up shop.
Decide on Your Funding
Perhaps the trickiest part of opening a fintech business is funding it. In some cases, people are able to afford it out-of-pocket. However, that’s not the majority of people. Many others aren’t financially secure enough to do so. But that doesn’t mean you’re unable to fund your new business. Taking out a small business loan or a personal loan is an easy way to get what you need. You can also get crowdfunding, which is when people donate money to support you. If you’re lucky, you’ll stumble upon an angel investor. Angel investors are people who donate large sums of money in exchange for a percentage of ownership.
