Fintech is a fast-growing industry that uses technology to improve financial activities. The use of smartphones for mobile banking, investing, online lending, and cryptocurrencies are examples of technologies aimed at making financial services more accessible to the general public. If you think that is the end of the ideas to create something new, you are deeply mistaken. All areas of fintech still need improvement and new creative solutions are welcome. If you are connected with financial technologies but do not know what startup you can promote, we can help you with that. For this purpose let us rather clear up the intricacies of fintech and its types, because knowing this you will have a well-defined picture of which direction to move in.
What Is the FinTech Essence?
Financial technology helps financial companies and services manage various aspects of business finances. These can include applications, business models, software, and other internal processes that make work a lot easier. Also, by fintech, we often mean the sector, where companies use all kinds of new technologies and financial solutions, which perfectly compete with traditional financial organizations.
Technological startups that use different fintech tools to improve their services work well here. As an example, we can take online payments for various goods from a smartphone.
Previously, fintech was perceived exclusively in terms of internal developments of financial organizations. Now it is closer to the consumer of financial services, because it is at the core of all online transactions, from money transfers to utility bills.
There are many shortcomings in this diversity of process, which you can overcome with your own fintech startup idea. Maybe your idea is the one that will change the lives of millions?! Think about it.
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FinTech Directions: Choose Where to Move
Nowadays financial companies are working in different fields because during the active development of the fintech industry there appeared more than 10 directions in one of which you may also come up with a unique startup.
This direction is based on crediting without the participation of banks. The startups work based on distributed registries and help lenders and borrowers from the consumer and business spheres cooperate beneficially.
These startups allow customers to transfer money without banks. They use mobile platforms and simple authentication.
Startups here are based on making it easier and more secure for banks to process data. This covers everything from client authentication to fraud protection measures.
This is a direction aimed at solving the problems of mutual payments and data exchange in business. Here we can talk about smart contracts in the blockchain sphere. A smart contract is a condition that is written in a digital language. The parties who sign it must exchange certain assets when fulfilling it. The latter can be currency, shares, etc. This exchange is fixed in a contract and recorded in a blockchain. The solution is innovative because it cannot be tampered with or canceled.
We have already heard about it many times, but it is still underdeveloped. At the same time, all financial companies are determined to reduce personnel costs with it.
These are digital technologies that make life easier and save time. Now, new developments constantly appear in this field, and companies invest millions in creating unique products to get ahead of their competitors in the competition for the client. So, a great startup is sure to be a winner here. InsurTech traditionally includes machine learning technologies, developments in cybersecurity, big data analysis, and smartphone applications, which are now actively used in the insurance market.
It is a way to raise funds for the growth and development of a project, initiative, enterprise, or program through contributions from a large number of third parties, which may be unrelated to the project itself or professional business investment.
It is a fintech company that provides banking services digitally. It provides services exclusively on the Internet, so it is also known as an Internet bank, a virtual bank, a digital bank, and a challenger bank. It is a completely new bank built on new technological platforms that has more capabilities to create modern banking products.
It means managing regulatory processes in the financial sector through technology and it is one of the most useful areas for businesses right now. RegTech enables businesses to automatically adapt to changes in legislation and market conditions.
You have definitely heard about it more than once. The cryptocurrency sphere is actively developing now, so a lot of startups, exchanges, and investment platforms are built on it. Millions of dollars are invested in them, so to develop in this direction is also very advantageous.
It is a technology of distributed data registries. Each member of its chain is its own server, confirming the legitimacy of other users’ transactions. The technology is notable for its reliability. This technology has generated many solutions and startups. For example, it is used for smart contracts, biometric protection, transactions, energy distribution, etc.
These fields have not only strongly settled in the financial sphere, but they are also actively evolving. If you do not know how to proceed, then after finding out more about them you can safely start your work and come up with brilliant startups.
Top-5 FinTech Trends Worth Dealing With
Now let’s get to the top fintech startup ideas. But before that, remember that to help you in the promotion can professional team PRNEWS.IO. The experts will help you popularize your startup by using a variety of powerful marketing strategies. And this can lead to attracting investors to your idea. So, develop not only a steep startup but also think about its promotion in advance.
One of the major discoveries of the smartphone era is the ability to run a bank that provides services without physical branches, exclusively online. Mobile banking has long been a familiar part of our lives. The new generation of fintech startups is completely abandoning physical branches and focusing on innovation, attracting mass users with simple and convenient services. Online banks can offer users lower rates and higher interest rates.
The RegTech Evolution
The essence of this financial technology subtype we talked about above. So, how can your startup help with RegTech? One of the biggest challenges for fintech startup ideas is compatibility with industry regulations and standards. The financial world’s move to digital means not only new opportunities but also new fraud risks and new cybersecurity challenges. Regtech startups help ensure that fintech companies adjust to standards and legal requirements as quickly and cheaply as possible. But more importantly, they are designed to protect users’ assets from hackers and fraudsters. By protecting users, fintech also protects its competitive advantage and reputation.
Open banking today refers to an initiative where banks can share their data with fintech companies and other financial institutions. This can be implemented through software interfaces that give a website or app access to a bank’s database. Here you may work with customer credit risk assessment, set up programs for asset management, and so on.
FaaS and BaaS
FaaS and BaaS platforms are a bit like the idea of open banking, but they go even further. Instead of just sharing data, banks provide their own tools to partners. Here you may develop a startup related to payment processing, a lending system, KYC verification, and account management. There are already some solutions on the market, but the trend is still in demand and will grow very fast.
Blockchain and Decentralized Finance
We hear about blockchain now from all the headlines, especially if you are related to financial technology. The idea of decentralized finance has been discussed for years. Today, any financial system operates centrally. But what would happen if we created a system where everyone could freely use financial products, without the intermediary of banks and brokers? A new ecosystem is envisioned that would change every financial sector, from stock trading to insurance. Supporters of decentralization insist that it will reduce the risks of large-scale financial crises because then the finances of entire countries will no longer be dependent on a few systemic banks.
Why not try yourself in one of these fields and offer a revolutionary fintech startup idea? Choose ideas that you are sure of. Develop projects that will definitely help millions of people and improve their interaction with banks and finance. Be ambitious and good luck in your endeavors!
PR ideas for FinTech startups from experts in the field
Anita Chauhan, Director of Marketing at Fraction
As a start-up, driving awareness and building trust are paramount. but can be exceptionally difficult in the financial services space, given the number of incumbents and bans that we are up against. Our company has been focusing on creating good, trustworthy content, responding to media queries, and jumping on PR opportunities as they come along. The focus of 2023 will be:
– providing strong thought leadership content via op-eds, HARO, ebooks, and B2B content for our mortgage broker partners
– responding to conversations around the housing market, mortgages and finances to help educate and support homeowners through a challenging time
– announcing launches as we grow into new markets and release new features on our platform
Thankfully, we have a lot of good news that we are able to share regarding company ops, fundraising, and launches that we can speak to in the future that will bring some buzz in 2023. Further, as the market shifts and the refinance boom quiets, people will be seeking out alternatives to help them keep more cash in their pockets – this is where we step in. We know that with 6.3 trillion dollars in home equity locked in their homes, US homeowners are perfectly positioned to take advantage of this time and that our company is uniquely positioned to help them do so.
Allan Stolc, Founder and CEO of Bankly
As a fintech startup, timing is vital for successful public relations online. We often share business-related information during hours when our target audience is most active. This enables them to read the latest updates about our new offers and deals, giving us more chances to increase leads and turn them into clients.
Posting relevant information at the wrong time can hurt your PR campaign. In our business, we once had an issue identifying the best hour to publish our content. Some of our audience were early birds, while others were night owls.
Our best solution was to outsource PR specialists to help us with the timing of our social media posts. Their sole job revolved around sharing content and analyzing consumer behaviors. Through this, we successfully countered time inconsistency with flexibility. We are confident now that most of our followers no longer miss our updates, regardless of when they decide to go online.
Travis Lindemoen, Managing Director of Nexus IT Group
My FinTech company has created a comprehensive system for managing money and accountancy.
Customers don’t have to toggle between several hardware and software platforms to compile financial data and automate mundane chores.
Reviewing accounts, composing financial reports, and finishing other accounting activities are all simplified.
Gerrid Smith, Director of E-commerce of Joy Organics
I’ve started a FinTech company, and we’re using our cutting-edge proprietary technology to give traders actionable insights in real-time.
By using scrum and agile practices, the trading firm has developed state-of-the-art software platforms.
Therefore, it can efficiently evaluate markets and control financial risks during transactions.
Steve Elliott, Franchise Owner of Restoration1
Digital Banking App.
Digital banking is the most important fintech business idea, in my opinion. In recent years, consumers’ interactions with their banks and enjoyment of financial services have altered drastically. For money transfers and other activities, users no longer appreciate the need to visit their local bank or ATM. Digital banking is the golden goose that lays golden eggs for Fintech firms. It is due to its involvement in the automation of financial transactions and other traditional banking services. With a few clicks on their smartphones, users may now take use of the numerous digital banking services, such as conducting transactions, creating accounts and making deposits, investing, and adding beneficiaries, among others.
Abdul Saboor, a Full Stack Developer at The Stock Dor
Content is crucial.
My opinion is that the demand for high-quality material that focuses on the latest developments in financial technology is currently higher than the demand for any other subject matter.
There is a need for a guidepost that can illustrate the direction in which the industry is headed and how various financial technologies might enhance financial management. This guidepost is needed by both enterprises and customers.
Robert Smith, Head of Marketing at Psychometric Success
Promoting teamwork and cooperation.
My opinion is that one of the most important marketing trends that are now influencing the FinTech business is encouraging collaboration between different companies. You need to make new relationships with the people in your environment and strengthen the ones you already have. If you accomplish this, you will not only be able to spread the benefits of financial technologies, but you will also be laying the groundwork for the development of new systems that are technologically upgraded.
Michael Hess, eCommerce Strategy Lead at Code Signing Store
The latest news and events.
According to me, world events such as the Brexit brought about uncertainty for significant portions of the economy, but column inches will be covering the procedure as it develops in the coming days and weeks.
You will be able to create rapport with journalists in your specific industry if you keep up with the main dates when items will appear for events like these, and if you are able to publish and contribute additional comments, as well.
In a similar vein, you can make use of the news that has already been released or is soon to be released when it comes to government data, economic findings, and FinTech headlines. You can accomplish this by publishing your ideas and views regarding anything that is taking place.