FinTech industry, which offers services to the customers in the finance and banking sector with technological innovations, shows big growth year by year. FinTech startups aim to improve customer experience and keep customer satisfaction at the top with their innovative and beneficial solutions. The number of financial technology companies that do business with fast and affordable costs is overgrowing all over the world. While the number of financial technology startups is increasing, financial technology startups should pay attention to some issues since their establishment. You can read our six suggestions for the new FinTech below.
1-Customer-Oriented Service
The biggest factor behind successful financial technology companies' growth year by year is undoubtedly the customer-oriented services they provide. Startups should satisfy customers with fast and agile solutions suitable for the digital age. Fintech Startups should be open to new technologies within the scope of sustainability, and these startups should continue to please their customers using new technologies.
2-Easy Access and Fast Integration
New technologies such as artificial intelligence, blockchain, and complex algorithms are areas where financial technology companies are starting to adapt. New technologies provide companies with a variety of possibilities, such as preventing possible revenue losses, accessing the right customer, and making more accurate decisions.
Fintech startups should be easily reached by customers to grow. They need to be able to offer attractive services to their customers with easy and fast services that adapt to customer expectations. However, Fintech companies providing B2B services should provide fast and reliable integration between systems.
Fintech startups are complementary to banks, not competitors. Financial technology startups will have excellent growth potential if they support the services they provide with easy access to the banking sector and rapid integrations.
3-Fast Adaptation Against Changes
Regulations, one of the most challenging issues of financial service providers, change over time. Financial technology startups should be prepared for regulations in advance and quickly adapt to these regulations. Financial technology startups that do not take into regulations or provide adaptation may lag behind the competition and face fines from regulators.
4-Cash Flow and Financial Management
Cash flow is the most critical factor affecting the continuity of a startup. According to the researches, the most common result that causes unsuccessful startups to fail is that the cash flow is not managed correctly.
Setting up a fintech startup can be very costly compared to ventures in different industries. Therefore, financial technology startup should proceed with solid steps by establishing long-term cash flow and financial statements from the establishment stage.
5-Reliability and Price Advantage
The price advantage and trust of companies in the financial sector are very important. Customers act according to the feeling of trust when deciding on the company from which they will perform their financial transactions. Therefore, new Fintechs should aim to increase the trust in their brand and services over time with the quality of their services. Therefore, new fintech companies should pay attention particular attention to these two issues (trust and price advantage).
6-Combating Financial Crimes / Anti-Money Laundering Compliance
Financial crimes pose important threats all over the world. Financial service providers need to take various measures to prevent money laundering, financing of terrorism, corruption, and fraud crimes. These measures ensure that financial crimes are prevented, and there are no developments that will harm the company's reputation. Financial technology companies are among the companies that have to fight financial crimes effectively. They need to take measures so that the various financial services they provide do not mediate financial crimes.
Anti-Money Laundering Guidance for FinTech
The Fintech sector is a very frequently regulated sector. Anti-money laundering and countering financing of terrorism are at the top of these regulations. Financial technology companies are startups that are required to comply with AML regulations and fulfill their obligations.
Although Fintech companies, whose focus is customer satisfaction and speed, have various concerns against these regulations, compliance software such as our product, Sanction Scanner, provides great convenience in Fintech's processes to protect from financial crimes and ensure AML obligations. Financial technology companies and startups can realize in seconds by automating all control processes by integrating their systems with API with Sanction Scanner. Sanction Scanner eliminates AML problems in all processes, from digital onboarding processes to money transfer operations with its affordable solutions for Fintech.
Financial technology companies that do not take measures against financial crimes and not comply with AML regulations face serious consequences such as trust, loss of reputation, and regulatory penalties. These results can cause various losses to financial technology startups in the growth phase. Therefore, financial technology startups should take solid steps toward growth by taking the necessary precautions. You can
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