Entrepreneurship in FinTech
FinTech is described as the amalgamation of technology and innovation to compete with traditional financial methods in the delivery of financial services of any kind. FinTech is a now referred to as a completely new industry catering finance. Investopedia describes FinTech as “any innovation in how people transact business, from the invention of digital money to double-entry bookkeeping”.
The government’s vehement encouragement of cashless technologies – digital wallets, Internet banking, the mobile-driven point of sale (POS) and others have also managed to restructure the financial sector, disrupting the monopoly of traditional institutions like banks.
As per a leading blog, to get a sense of how much you could earn, the founder and CEO of Stripe online payments service, Patrick Collison is currently worth $1.1 billion. When considering one of the most famous FinTech startups, PayPal, founders Peter Thiel and Elon Musk are now worth $2.6 billion and $20.8 billion respectively.
What are the key responsibilities of a Fintech Entrepreneur?
A Fintech entrepreneur is no different from a traditional entrepreneur. Just like every entrepreneur has to research and be skilled at his startup domain, as a Fintech Entrepreneur, you’ll have to navigate the complex worlds of financial services and technology while keeping in consideration to establish a trusted tech product in a time bludgeoned by cyber-attacks and illegal hacking.
Gaining skills in the following key areas of financial knowledge will allow a Fintech Entrepreneur to realize their goals and achieve success:
- Financial regulations: Finance is a heavily regulated sector, and creating disruption through a FinTech innovation will require adherence to these laws especially in a strict normed country like India.
- Competition from the already existing institutions: Banks/Credit Unions/Investment Firms may have identified the threat FinTech innovators pose to their revenue, but it’s a still a golden opportunity as they look to partner up with Fintech Entrepreneurs or buy them completely.
- Cyber risk and customer trust: Cyber attacks and data breaches are rampant, and the type of information FinTech companies hold makes them prime targets.
What are the education and training requirements for a Fintech Entrepreneur?
You don’t need a superficial degree/ course/ credits to become a FinTech Entrepreneur. Some with a plain bachelor’s degree has made a cut and started a multi-billion dollar company. Identify which industry you want to start your FinTech startup in or the type of commodity you wish to develop, you could require anything from a trained team or beneficial collaborations with various institutions or take part to enhance government schemes.
Gaining expertise in the following key areas of knowledge will allow a Fintech Entrepreneur to realize their goals and achieve success:
- Generate and identify new business opportunities to capitalize on and make appropriate business plans.
- Explore the legal situation of the market by starting a business and planning accordingly
- Most importantly, develop an effective marketing plan that is best suited to your organization
- Your product/service should set you apart from the already existing flooded market of FinTech startups. Think, Draft, strategize and develop competitive FinTech innovations using appropriate techniques and innovations.
- Always keep in consideration of the effect new regulations will have on future commerce products.
- Adequate Knowledge of the future value of money, markets expansion and transactions innovation, and possible future trends in FinTech is a must for FinTech entrepreneur.
- Assess the vulnerabilities of an organization’s critical business systems, networks, and data and employ the best team to cater to this section.
- Distinguish the variants of risks for an organization or sector.
- Hypothesize an event of a cyber attack and develop a cyber risk mitigation strategy.
- One way to set yourself up to succeed as a FinTech entrepreneur is to take equip yourself with the ability to identify opportunities for disruption in the financial services sector, and make you competent enough to try new Fintech opportunities and excel in them.