The financial world is changing. Thanks to technological advancements like big data, cloud computing, and the Internet of things (IoT), the financial industry is experiencing a sea of change that has been unprecedented in the last few decades, to say the least.
It can even be said that the world is witnessing a new era for this industry; technological advancements will play a key role in society and the economy going forward. So, it’s only correct to say that one of the best ways to keep up with this change is by keeping abreast of what’s happening in the financial industry.
The rise of Fintech companies has been propelled by a demand from society to add convenience and improve financial services, such as lending and asset management. Aside from those, Fintech has also been supported by the growing availability of technology that can facilitate financial transactions.
There’s also an increasing demand for more innovative business models, such as peer-to-peer lending, marketplace lending, crowdfunding, blockchain and cryptocurrency, machine learning (ML), digital wallets, and product tracking.
So it only makes sense that you should join the growing number of Fintech startups in this new era, where there’s a need for more effective financial services. If you’re still hesitant about starting a Fintech company, here are five reasons that could convince you otherwise:
1. The industry will see explosive growth
The financial industry presents ample opportunities for people who are willing to explore the possibilities in it. Not only are the big players working overtime to come up with new products for this industry, but there is also a growing number of investors who are ready to put their money behind promising startups.
This means that you’ll have more chances of getting funding for your innovative Fintech startup. If you can prove the viability and potential of what you plan to offer, you’ll get a positive response from these investors.
2. You will not have competition at that level
Technology has helped eliminate middlemen and presented an opportunity for even the smallest businesses to compete in this industry. The opportunities are limitless, and the only way to discover them is to look for business ideas that could bring value to your target market.
Of course, you’ll have to come up with a product or service that’s innovative enough. However, you will not face the same amount of competition once you find something that works because there are not a lot of companies that have the same aim as you.
3. You will see massive changes within three years
Due to the rapid pace of innovation in this field, you can easily develop an innovative idea that can be transformed into a successful company. This is one of the reasons why you should start a Fintech startup because it’s likely that most of your competitors will have already been wiped out by the time your idea gains momentum.
So don’t be afraid to explore the opportunities that Fintech presents. There is so much room for creativity in this field because there are still many things to change, even if some players have already made an impact on the industry.
4. You will have a platform to create new opportunities
You can use blockchain in a myriad of ways, which means that the possibilities in Fintech are endless. Whether you’re dealing with payments, loans, or investments, you can easily incorporate blockchain into your business model if you want to provide something unique for your target market.
Or if you’re interested in central bank digital currencies (CBDCs), this could also be a chance for you to explore digital currency management systems (DCMS) to deploy stablecoins and CBDCs into the mainstream. And this is only the beginning because blockchain can help transform many aspects of Fintech.
This is also an advantage if you’re up against larger companies because it can present a competitive edge. Even the smallest Fintech startup has the chance to compete with established players in this industry by offering something different and better, such as blockchain-powered services, portability, and decentralization features.
5. It’s a high-risk, high-reward business
The financial industry has been one of the most lucrative industries in the world for ages, and it’s likely to stay that way for a long time. Several startups are already changing the financial industry, so why not add your name to the list?
You may be wondering what you can do if you’re not an experienced entrepreneur or don’t have enough capital at your disposal. Well, you can still start a Fintech startup by focusing on what you do best and leveraging your skills to deliver something that will benefit your target market. This is a chance for you to explore the possibilities of blockchain and transform it into something useful for other people.
And if you’re an experienced entrepreneur, this is also a good time to invest in Fintech instead of the traditional industries that may not be as dynamic and profitable as the financial industry.
Either way, it’s never too late to start your own business to take control of your career and finances. So make the most of this opportunity and harness the power of blockchain technology to transform the financial industry because it’s an exciting time.