All beginnings are bound to be challenging and equally difficult. Studies have revealed that nine out of every ten startups fail on an average. The finance industry particularly is notorious and presents numerous obstacles for tender Fintech startups so many of them are unable to flourish and perish away. As the owner of a Fintech startup, you should not be deterred by fierce competition and failure risks. Rather, you must grasp every opportunity to learn important lessons from the mistakes made by other Fintech startups. Let us discuss some of the common mistakes made by Fintech startups. If you can consciously steer clear of these mistakes, your startup could come out with flying colors.
Mistake: Making Investor Pitch Deck Mistakes
One of the investor pitch deck mistakes is not explaining properly the big issue your Fintech startup is planning to resolve. As per https://www.forbes.com, you must explain in detail the specific problem your Fintech firm is aiming to resolve and you need to essentially convince the potential investors that it is a major issue that could culminate in fantastic revenues if resolved.
You have to express clearly why your specific solution to that major problem is compelling enough. You must explain and demonstrate how your solution is way ahead in comparison to the already existing solutions. You have to highlight how your financial product or service is superior to the rest in terms of ease of use, functionality, features, cost, etc. You must also, demonstrate the reasons why your Intellectual property and technological rights are invaluable.
Mistake: Ignoring Legal Aspects
Fintech startups must necessarily conform strictly to existing financial laws and regulations. They must essentially comply with all the standard rules existing in the specific market where they would be operating. This should be including everything right from knowing your customer to anti-money laundering and anti-terrorist funding along with consumer data protection. We know that numerous Fintech founders forget to pay importance to do meticulous research and do not bother to understand all the rules. They often end up developing their startup as per their preferred compliance rule book which they conveniently abide but that may mean encountering risks such as not getting the chance to launch the company or mislaying the specific product.
Fintech startups must realize that the financial services landscape is heavily regulated. Moreover, certain sectors such as money transfers, investments, deposits, etc. are ultra-specialized in terms of the legalities. This should include laws safeguarding borrowers, laws existing in capital markets, privacy laws while applying to personal data. While you are chalking out a precise business plan, you must focus your attention to covering legal aspects. You must consider proper licensing rules and regulations.
Mistake: Ignoring the Concept of Money
Fintech startups must pay importance to the concept of money. Remember money could prove to be a tricky concept. Several Fintech companies have failed since they could not understand psychological behaviors and attitudes relating to money, savings, credit, payments, etc. Moreover, entrepreneurs need to realize that there is a massive difference in investing, spending, saving in institutional levels and retail. Startups cannot grow or flourish without an in-depth study of these subtle behavioral patterns closely. Money-associated behavior also impacts the way Fintechs go about doing their promotions and marketing campaigns. Most Fintech founders fail to sustain if they do not analyze these behaviors closely. Whenever you are encountering any money borrowing or lending issues, get in touch with one of the reputed sites for perfect debt relief solutions.
Mistake: Leaving Flaws in Managing Security
We know that one of the problems in the management of health records has been relating to the transmission and storage of patient records. Fintech data security is a critical issue and it could be ensured by encryption. All information and data must be encrypted while it is transmitted between company and partners, company and customers, and in-house. However, startup founders often tend to worry that their apps could be slowing down because of encryption but it could run well on any dedicated server. Encryption seems to be an easy technique but it necessitates expertise.
Mistake: Carrying on Non-Secure Payment Processing
Fintech would be involving insurance, banking, lending, etc. Payments are bound to be made and the payer would be looking for a convenient and easy method for making payments. Most importantly, he would want the necessary security measures to be perfectly in place to rule out any vulnerability to the hackers. Fintechs need to identify the most seamless merger of convenience and security.
Mistake: Using Public Cloud
You must stick to using private cloud and avoid public cloud because then your data could be vulnerable to certain security threats particularly if you are using a not so well-known and cheaper company. However, you are still vulnerable to privacy and security risks even with bigger organizations. You may even get locked out of your information and data. It is best to come up with an effective private cloud server to store data safely.
Mistake: Not Conducting Audits Regularly
You must follow an effective plan or schedule for vigilance and monitoring regularly so that you could assess or examine all systems to steer clear of potential threats. You must necessarily have an individual responsible for handling information from everywhere and everyone relating to potential issues. That could be a contracted expert for small Fintech firms or an experienced in-house security executive. These professionals must be equipped with sound knowledge of architecture for fixing gaps or bugs when they are discovered.
Audits must take place not only for your Fintech system but also for your current technology partner. You must find out about the people who are managing their security and understand if they have the necessary expertise and proficiency. Find out if they are monitoring and auditing themselves too. You must realize that there exists an incredible vulnerability in the data transmission process. Make sure that the interfaces between the two systems are completely secure before transmitting valuable data.
Conclusion: Always Stay Updated with Latest Developments in Cybersecurity
New and path-breaking technologies are coming up now and then. We understand that hackers are constantly developing cutting-edge technology for committing thefts and intrusions. Fintech security professionals must stay updated with all the latest developments and know more about the breaches that are taking place. Find out more about the technology used by hackers and other criminals to illegally access payment systems and databases. Fintech startups must consider making Cybersecurity their top priority and come up with effective solutions.
Cindy Hawthorne is a noted blogger who has thorough knowledge about the Business and Startup. You can follow her blogs on the same to know more about the conceptions. She has also worked as a Startup experts on this particular field and has a great deal of knowledge on the same. For more Please visit such as Nationaldebtrelief.com