High-speed internet and widespread usage of smartphones has significantly contributed to the growth of this industry. In the USA alone, Fintech companies raised over $12.4 billion in 2018, a 43% increase to the amount raised in the previous year (2017).
If you are still wondering what fintech is…. Fintech is basically the use of technology to improve the way financial services are offered to people. With fintech, financial services are executed at a faster rate and at lower costs compared to traditional financial services. It’s for this reason that Fintech has disrupted the way the traditional players in the financial industry have been offering these services. Some of the sectors that have been affected by fintech include; insurance, banking services, trading, risk management, etc.
In the past decade, Fintech has led to the birth of several startups around the world. Some of these include; Ant Financial in China, Qudian also in China, SoFi in USA, Avant also in USA, and many more. The common problems that all these startups are trying to address are difficulty in accessing financial services, slow transactions speeds and high transition rates. These are the same problems that most cryptocurrencies are trying to address as well.
If you intend to start a career or business in Fintech, I’m guessing the question you are asking yourself right now is whether Fintech is really worth pursuing in terms of financial gain. The short answer is yes but after some level of investment in terms of money, time or both. Depending on which financial service you intend to disrupt, you will clearly do some work in order to see positive results.
What you need to do stand a chance of earning big in Fintech include;
Have a clear problem you intend to solve
This should be your first step if you want to do business in fintech. Identify the main problem in the current traditional systems or even in the fintech industry that you want to put right. It could be the cost of transactions, easy of access of financial services or making a particular financial service processes to be done much faster. Your ideas should focus on a particular problem or a set of problems that you want to solve
Get knowledge about the industry
After identifying the problem, you want to solve, you will have to get sufficient knowledge about the industry. Having a financial or tech background will give you an advantage but even you don’t have this kind if background, you can still learn with time. The best way to learn can be through working with another Fin-tech company or even a traditional financial company to understand how things work. This will not only help you shape your idea in fintech, but will also give you an opportunity to learn how the industry works and the challenges involved.
Most of the fintech companies earn through getting a very small percentage of the money involved in each transition. That means for the money to add up, you will need to process as many transactions as possible. This will require many users to adopt your fintech solution and at times your local area alone may not be enough to get you these numbers.
Get some like minded people to work with you
Like any other company, the journey of building a Fintech company is not an easy one and having some like-minded people around you is really important for your motivation. I would highly encourage you not to try convincing friends and family who have never shown any interest in entrepreneurship. You should rather consider attending Fintech events and share your idea with a couple of people while there. Chances are high, you will most likely get some people who will be interested in your idea and ready to join you
Start as soon as possible
If you really feel convicted to get into Fintech and you have an idea that can solve a certain problem then get moving. Start as soon as possible to avoid wasting a lot of time trying to refine the idea using assumptions that may not even be true. Build the minimum viable product as soon as you can and start testing your idea in the real market. This will help you save a lot of money, energy and time.
Fintech is one of the most growing industries around the world and this trend is likely to stay the same for a couple of years to come. So, the answer of whether FinTech pays well is obviously a YES. Because if it wasn’t a paying industry, it wouldn’t be growing at the rate its currently growing at. But this will entirely depend on the energy, time and money you’re willing to put in.