HOW START A FINANCIAL TECHNOLOGY COMPANY IN NIGERIA
INTRODUCTION-STARTING A FINTEC
Financial technology (abbreviated fintech or FinTech) is the technology and innovation that aims to compete with traditional financial methods in the Technologies. Artificial intelligence (AI), big data, robotic process automation (RPA), and block chain are among the technologies used by fintech organizations. Financial organizations can gain a deeper understanding of their customers by using AI algorithms to provide insight into their spending habits. E- Delivery of financial service it is an emerging industry that uses technology to improve activities in Finance. The use of smartphone for mobile banking, investing and borrowing services, cryptocurrency and are Examples of technologies aimed at increasing the general public’s access to financial services. Financial technology companies include both new and established financial institutions, as well as technology firms that are attempting to replace or enhance the use of financial services provided by existing financial institutions. Insurtech or insuretech companies are a subset of fintech companies that focus on the insurance industry.
It is important to note that in Nigeria, finance companies are required to operate on a “stand alone” basis. As a result, unlike other financial institutions, the Guidelines expressly prohibit finance companies from providing services such as deposit taking, stockbroking, foreign exchange transactions, and non-financial activities such as trading, construction, and project management.
I make it a point to communicate my expectations to all stakeholders.
I keep in touch with department heads and participate in team meetings.
I give constructive feedback and concentrate on resolving communication issues.
I present my ideas in an expert, efficient, and professional manner.
Type of Staff required to run successfully run a Fintech are as follows:
PLANNING ROUTE: This has to do with the day-to-day activities of an organization, and it is normally spelled out in company policy on how the routing activities are to be done and the categories of people who are to carry out those jobs in a defined direction
TECHNOLOGY REQUIRE IN FINANCIAL COMPANY
Financial technology (abbreviated fintech or FinTech) is the technology and innovation that aims to compete with traditional financial methods in the Technologies. Artificial intelligence (AI), big data, robotic process automation (RPA), and block chain are among the technologies used by fintech organizations. Financial organizations can gain a deeper understanding of their customers by using AI algorithms to provide insight into their spending habits. E- Delivery of financial service it is an emerging industry that uses technology to improve activities in
Finance. The use of smartphones for mobile banking, investing and borrowing services, cryptocurrency, and are examples of technologies aimed at making financial services more accessible to the general as hall. Financial technology companies include both start-up and established financial institutions, as well as technology companies that are attempting to replace or enhance the use of financial services provided by existing financial institutions. Insurtech or insuretech companies are a subset of fintech firms that focus on the insurance industry.
Traditional businesses used to leverage existing celebrities and influencers, particularly artists, to boost the voices of their brands, but this is quickly becoming a thing among internet start-ups.
Rise has joined the ranks of other financial startups in hiring celebrities to help them showcase their company’s unique offerings to the rest of the world. Bitsika, which gained thousands of users on its first day after announcing Davido as an ambassador; WorldRemit, which had Patoranking as an ambassador; Kuda and the young superstar, Fireboy DML; and Chipper Cash, which has Burna Boy, the self-proclaimed African giant, flying its flag all over the world as an ambassador. What is the meaning of a brand?
Simply put, a customer’s overall perception of your company defines your brand.
Your brand is your reputation!
In today’s market, a successful brand must be consistent in communication and experience across multiple applications:
- The environment (storefront or office)
- Print materials, signage, and packaging • Website and online advertising • Content creation • Sales and customer service
- Interne (with employees)
How you build a brand? You need to do more.
Website & online advertising
Print materials, signage, and packaging
The environment (storefront or office)
Sales and service to customers
Internal (within the organization)
Now, how easy is it to build a brand? The truth is that branding does not happen overnight…or even in a matter of months.
Building a brand is unquestionably a process that necessitates a strategy. The ongoing effort, on the other hand, will result in long-term relationships with your customers.
This can result in a steady increase in leads and sales, as well as word-of-mouth referrals and advocacy for your company.
SOURCES OF FINANCING FOR FINTECH IN NIGERIA: There are many ways of getting money for your fintech start-up. These include
Angel investors, and Family, & friends financial gift
You must, however, have a minimum viable product (MVP) that serves as a proof of concept. The funds from MVP are sufficient to develop software or an app for your target market. Actually, the majority of these fintech behemoths began in this manner.
ADAVANTAGE OF FINANCE TECHNOLOGY
Increased accessibility this translates to an increase in the banked population because anyone with internet access can open an account and apply for a loan with ease.On average, fintech have response times for applicants that range from 10 minutes to 48 hours.
Optimization of time. Because all processes are carried out via the Internet, it is not necessary to visit a physical branch in most cases.
Various services are available. Fintech has been able to segment services so that a wide range of services are available, based on the needs of both financial service users and providers.
Financial services for users range from opening a savings account, applying for a credit card, various types of insurance, to investing in a company seeking funds to expand, as well as in international financial markets.
Fintech solutions for financial service providers include, among other things, analyzing credit applicant profiles, storing data in the cloud, and streamlining payment methods.
Disadvantages of Fintech
There are no physical branches. This can be a disadvantage when there is a problem with the service, because everything must be handled via email or social media.
Although some fintech companies use blockchain technology to improve security as a differentiator, not all of them do, putting the security of user data at risk.
Although for many, it is as simple as using their smartphones, the reality is that this condition immediately excludes a very large portion of the population that does not have access to the Internet and, as a result, will face difficulties in becoming banked, even with the existence of Fintech.
Inadequate regulation. It is a fact that it is such a well-known phenomenon that authorities all over the world continue to study and legislate on it in many cases. So, the world’s fintech regulations are not perfect, and there is a possibility that some of these may be potential fraud in the absence of regulation.world’s fintech regulations are not perfect, and there is a possibility that some of these may be potential fraud in the absence of regulation.
LICENCING/CERTIFICATION TO START-UP FINANCIAL TECHNOLOGY IN NIGERIA
Fintech companies have become an important element of the financial services industry, developing a wide range of products and services that have made money management easier and faster. Flutterwave, Interswitch, Paystack, Paga, Carbon, Remita, VoguePay, OPay Libya, Kuda, and Piggyvest are just a few of Nigeria’s Fintech companies. Crowdfunding, mobile payments, Robo-advisors, Insuretech, and Regtech are just a few of the Fintech services available. Global Fintech investments exceeded USD 100 billion in 2020, and this figure is likely to rise in 2022. Fintech companies have drawn at least USD 1 billion in foreign direct investment into Nigeria in the previous six years, according to the Central Bank of Nigeria.
REGULATIONS AND LICENSING REQUIREMENTS FOR THE CBN
The Fintech Regulatory Framework in Nigeria
Fintech providers in Nigeria are governed by a diverse set of regulations. Some regulators have a broad scope of authority, while others are more focused on specific activity. The following is a partial (non-exhaustive) list of the important Nigerian regulators with whom fintech companies may be required to register and comply.
Central Bank of Nigeria
The Nigerian Financial Services Sector is regulated by the Central Bank of Nigeria (CBN). The CBN has enacted Fintech-related rules in Nigeria. These rules include the following:
Guidelines for Nigerian Mobile Money Services; Guidelines for Nigerian International Money Transfer Services; Guidelines for Nigerian International Mobile Money Remittance Services
In Nigeria, there is a Regulatory Framework for the Use of Unstructured Supplementary Service Data (USSD) for Financial Services.
Nigerian Guidelines for the Operation of Electronic Payment Channels
Payment Service Bank Licensing and Regulation Guidelines
Sandbox Operation Regulatory Framework, 2021
Other authorities and legislation exist in addition to the CBN. Among them are the following:
The National Information Technology Development Agency (NITDA) is a government-run organization that (NITDA)
The Federal Trade Commission is in charge of overseeing the competition and consumer protection laws in the United
Commission National Communication (NCC)
Corporate Affairs Commission of the Securities and Exchange Commission (SEC) (CAC)
The Internal Revenue Service (IRS) is the federal government’s tax collection agency (FIRS)
Trade and Investment Ministry of the Federal Republic of Germany
National Trade Acquisition and Promotion Office (NOTAP)
Other rules and regulations
The Nigerian Investment Promotion Commission Act 16 of 1995;
The Value Added Tax Act Cap V1, LFN 2004;
The Companies and Allied Matters Act, 2020 (as amended);
The Money Laundering (Prohibition) Act, 2011 (as amended);
The Corrupt Practices and Other Related Offences Act, 2000;
The Economic and Financial Crimes Commission (Establishment, Etc.) Act, 2004;
The Terrorism (Prevention) Act, 2011 (as amended);
The Nigerian Foreign Exchange (Monitoring and Miscellaneous Provisions) NO. 17. 1995 ACT CAP F34 LFN 2004
Nigerian Data Protection Regulations, 2019 (NDPR) Cybercrimes (Prohibition, Prevention, and Other Provisions) Act, 2015 Nigerian Data Protection Regulations, 2019 (NDPR) Nigerian Data Protection Regulations, 2019 (NDPR)
HOW TO OPEN AN OLINE FINTECH ACCOUNT
You will need to go to any fintech website of your choice then click on open account and complete the FinTech Company’s online account opening application, which needs you to create a user profile, including a password and security questions, supply your personal information, details of your business experience, and details of your new company’s anticipated business activity
THE FULL ITEMS THAT A GOOD FINANCAL TECHNOLOGY BUSINESS PLAN MUST BE CONTAINED ARE:
Executive Summary: The executive summary is a synopsis of the entire business plan. It can only be assembled after the business plan has been completed. It provides a concise summary of the plan’s key features. The most important elements should be simple to grasp.
Founder (team) and business management the introduction of the founder is a critical component of the business plan. It is critical to stress why this individual should be in charge of the company’s success. You should differentiate between professional and entrepreneurial qualifications, i.e., between schooling and work experience, as well as leadership experience and teamwork ability.
Product or Service: The product (or service) of any company is its beating heart. The characteristics and stages of development of the company should be included in the strategy. What sets the product apart from the competition, and what is its ostensibly unique selling proposition? The product description should be understandable to even the most inexperienced consumer. It is necessary to provide an answer to the question of what you hope to achieve. This includes short- and long-term goals, as well as how you want the product to evolve. If you’re making a complicated product, you’ll need to list all of the steps in the manufacturing process. The functionality of a novel or unusual product should be thoroughly detailed..
Market and sector: A competent business founder should be well-versed in the market and its competitors. You will not get very far if you only see as far as your own nose. A market analysis is required. Not only should you be aware of your competitors, but you should also be intimately familiar with your potential buyer. A survey or questioning of other businesses in the sector is the simplest way to get to know your potential customers. There are current analyses for almost every industry. In most cases, the results are available from banks, and the corresponding theses can be viewed at universities. The business plan should show how you expect your company to grow in comparison to other companies in the industry.
Distribution and marketing: This is one of the most crucial aspects of the business plan. As a result, distribution and marketing can be divided into offer strategy, price strategy, distribution strategy, and marketing strategy.
The product offer is critical and provides an opportunity to differentiate yourself from your competitors. The business plan should emphasize the differences between you and your competitors, as well as what makes your product unique. Your development strategy should not be overlooked here.
The chosen price strategy: is also essential. Did you want high or low prices, or even a price-cutting strategy? Your business plan should demonstrate how your pricing strategy ensures cost recovery while also distinguishing you from your competitors. As a result, you should list your competitors’ prices for comparison. The price must be competitive, and this should be clearly stated in the business plan. You should also elaborate on the price’s composition, your profit margin, and the product’s minimum price. The distribution concept should be visible as an entity. Publicity is required to make your product known. The business plan also specifies which strategy will be pursued and why.
Some products and services can with the help of clever public relations strategies, some products and services can achieve a high level of visibility. This is not to be underestimated.
Co-workers and business coordination: Your business plan should outline your overall organizational philosophy: do you prefer a strict hierarchy or project teams? Where do the responsibilities lie? The selection of co-workers and the appropriate job description must follow suit. For individual projects, it may be preferable to hire part-time workers or consult with outside experts. The business plan should also show how the employee situation is expected to evolve. The number of employees may need to be increased as the company grows. You may, however, decide not to hire employees and instead hire external service providers for specific projects. This is beneficial in the field of bookkeeping.
Legal form: A good business plan should also include information about the company’s legal structure. Which individual or corporation owns a stake in the company? Why is the current legal structure the best? Are there any changes in the works as the economy expands? This is a component of the business plan.
Chances and risks: For investors, loan creditors, and bankers, the risks and opportunities are the most interesting parts of the business plan. Risks are, by definition, a touchy subject. However, if you are open and honest about them (and they are included in your business plan), they should not be a problem. Worst-case and best-case scenarios can help you make your point. The relevant phone numbers should also be listed.
Capital requirement: The start-up capital must come from somewhere. Nobody starts a business without resources. In most cases, equity capital is insufficient. As a result, the business plan should show where the capital goes and how it is used. The reserve capital is also crucial. People who work for themselves or as freelancers must budget for their personal needs. Loans, both current and prospective, should not be overlooked.
Finance plan: The finance plan is most likely the most complicated component of the business plan because it is difficult to show where the money comes from, where it goes, and how it is used.
The equity capital is one component of the financial plan. The amount you contribute should be noted in the business plan, as banks appreciate it when personal resources back up new-business loans.
External funds and their amount and distribution: are an important component of the financial plan Often, funding is obtained from capital providers such as investors or banks as loan providers. Subsidies (both public and private) are examples of external funds. If you intend to claim such funds, make sure to include it in your business plan.
The so-called liquidity projection demonstrates a company’s financial solvency over a set period of time. There are benchmarks for every industry that can assist you in orienting yourself. You should also mention the break-even point, which is the point in time when you transition from the red to the black. Your business plan should also include a plan for how you intend to survive until then.
The profitability statement or earnings forecast demonstrate: which proceeds are generated by a customer with which product (should there be more than one). Of course, these are only estimates, but they can be accurate. The profit and loss statement demonstrates how capital and value are expected to grow. The revenues are compared to the expenses.
Further documents: Other relevant documents, such as a CV, surveys, or drawings, should be included with your business plan.
The right measure: Many business plans are overly detailed because the authors (the business founders) believe they must describe every minor detail in great detail. You should avoid flowery phrases and instead make direct statements. It is beneficial to have friends who are unfamiliar with your line of business read your business plan. The plan is understandable if they can comprehend everything. You should be able to recite your business plan off the top of your head and know the numbers in your sleep. This ensures that a presentation or meeting with a bank or other investors goes smoothly.
COSTS OF START-UP A FINTECH COMPANY IN NIGERIA
The minimum shareholder fund for this category is three billion naira (3,000,000,000). After paying a one-time license charge of one million naira (1,000,000) and a renewal fee of five hundred thousand naira every three years, an application can be submitted (500,000)
LOCATION: choosing a business location is not something that can be done on a whim—it’s a crucial step in starting a business. First things first, the business location you choose will depend on the type of business you operate. Business parks, shopping malls, strip malls, professional buildings, and others are all designed to meet the specific needs of various businesses. If you’re expanding from online-only to online and brick-and-mortar, for example, your needs will be much different than if you’re an accountant looking to grow your firm and bring in new clients.
A business location strategy takes planning and research and a willingness to thoroughly vet all of your options. With these helpful tips, you can identify the best place to establish your new business. Commercial business spaces offer flexibility for even more growth down the road, but are typically best for businesses that don’t rely on heavy consumer traffic.
GOALS AND OBJECTIVE OF A FINANCIAL TECHNOLOGY COMPANY:
OBJECTIVE: it is utilized or to help companies, business owners and consumers better manage their financial operations, processes, and their desire lives.
GOALS: to be the leading company among it revise.
INSURANCE IN FINANCIAL TECHNOLOGY: The payment of losses is the most obvious and important benefit of insurance. An insurance policy is a contract that protects individuals and organizations against covered losses. The second advantage of insurance is that it helps to manage cash flow uncertainty. When a covered loss occurs, insurance pays for it.
The success of your startup is dependent on its founding team. However, as a start-up, it is difficult to find the right team. You must invest in and collaborate with the right people, which can be difficult to find or expensive to hire and retain.
According to successful Fintech founders, start-ups should hire low-cost offshore software developers to work alongside their in-house team until the entrepreneur can afford to pay top financial app developers.
HIRING: According to successful Fintech founders, start-ups should hire low-cost offshore software developers to work alongside their in-house team until the entrepreneur can afford to pay top financial app developers.
HR PROCESS: A human resources process is a method of bringing consistency and visibility to the HR department’s common function. This consistency makes it easier for employees to interact with their HR teams and allows HR managers to respond to employees in a timely and accurate manner.
GETTING STAFFS: The staffing process is a systematic attempt to implement the human resource plan by recruiting, evaluating, and selecting qualified candidates for job openings in the organization. Thus, just like planning and organization, staffing is an important management function.
LOGISTICS: OPPORTUNITIES FOR FINTECH IN LOGISTICS: Paper documents, which require manual signatures, retyping, and stamps, are frequently used to share information within logistics chains (invoice, bill of lading, letter of credit). Many logistics companies continue to rely on antiquated technological solutions that are no longer relevant in today’s networked world. In comparison to other industries, logistics services (data and transactions) are not fully integrated with existing digital infrastructures (e.g. cloud software, smart phones etc.). This is especially true for small and medium-sized enterprises. If the logistics industry takes advantage of the opportunities provided by fintech, it can make significant progress. However, logistics service providers have primarily focused on commodity delivery and are unaware of the benefits that fintech could bring to their processes. Collaboration can benefit both the financial and logistics industries. Information is distributed throughout logistics chains, with practical examples of fintech services relevant to the logistics industry.
HOW TO OBTAINING CUSTOMERS: We all secretly hope that the best product (ours, of course) would prevail on its own merits when we start a firm. As a result, even the most amazing apps might stagnate without finding an audience. As a result, many entrepreneurs struggle to make the transition from product design to customer acquisition and marketing. To paraphrase a product-market-fit guru, the question is: How do you get the dogs to consume the dog chow once you’ve produced it?
Customer acquisition is more difficult than ever before, as evidenced by the fact that more than half of Nigerian smartphone users download zero new apps each month. That means you’re probably too late if you wait until your product is finished to design a distribution strategy. This is especially true in the financial technology industry. Customers who are already hesitant to adopt your product.
As a start-up, you can rarely rely on word of mouth. Here are a few underutilized methods for fintech companies (and others!) to find users.
Become a member of the payroll
Services such as earned wage advances and robot-saving can now be seamlessly integrated into the payroll process, thanks to companies such as Square and Gusto. This idea not only creates a built-in client base, but it also lowers the risk of extending loans by lowering default rates when payments are automatically deducted from the borrower’s pay check. This method is used by Guideline, a start-up that provides low-cost 401(k) plans to small businesses.
Employers should be included as well. You sell your service to a company and gain that company’s customers as your own in the process. However, in this case, you are distributing a product to employees through their employer. Unlike a traditional channel strategy, these integrations work best when the product benefits both the employer and the employee. For example, in the case of Accolade Health, an on-demand digital assistant, employers see lower health-care costs from their risk pool, while consumers see improved health outcomes. This path has been taken in fintech by employer-distributed apps such as Infiltrate existing marketplaces.
They have the potential to grow into large-scale distribution networks in their own right.
. Sunder, an alternative home-rental company, lists its apartments on Airbnb to take advantage of the platform’s vast reach. When users come across Sunder’s postings, the Airbnb competitor can develop a direct relationship with them. Similarly, Capital One uses Credit Karma to provide cards and loans, then leverages those products to route customers into Credit Wise, its rival credit score monitoring app.
Activate social networks
So far, social networks in fintech have been mainly underutilized. Existing social relationships, on the other hand, can be a tremendous tool for encouraging saving and extending credit—an age-old (offline) example. In the future, a16z general partner Connie link discusses how WhatsApp and WeChat groups in China are being used to facilitate product experiences in travel, shopping, fitness, and other areas.
Revisit direct mail
Mail is a tried-and-true route that many start-up overlook. Mail, on the other hand, has a number of advantages for financial services firms in terms of reaching out to untapped customers. For one thing, targeting data can be combined with credit bureau information to make it easier to identify prime clients. It also provides a consistent, cost-effective alternative to Google’s ad auction strategy, because the cost of delivering mail is set.
Use Search Engine Optimization (SEO) is the process used to optimize a website’s technical configuration, content relevance and link popularity so its pages can become easily findable, more relevant and popular towards user search queries, and as a consequence, search engines rank them better.
Keep in mind the importance of local SEO. Search Engine Marketing (SEO)
Create infographics: “A visual representation of information or data, such as a chart or diagram.” A well-designed infographic is worth a thousand words.
Make use of paid advertisements. Leverage is a strategy that involves borrowing money in order to increase the return on an investment. You can make a significant profit if the return on the total value invested in the security (your own cash plus borrowed funds) is greater than the interest you pay on the borrowed funds.
Obtain reviews…. Is the process of obtaining more online reviews on the review sites for your business listings.. This includes Google and Facebook, as well as industry-specific sites like Apartments.com and Health Grades.
Marketing via social media. The use of social media and social networks to market a company’s products and services is referred to as social media marketing (SMM). Social media marketing allows businesses to engage with existing customers and reach new ones while promoting their desired culture, mission, or tone. For example, Facebook, Instagram, and WhatsApp. Marketing via social media. The use of social media and social networks to market a company’s products and services is referred to as social media marketing (SMM). Social media marketing allows businesses to engage with existing customers and reach new ones while promoting their desired culture, mission, or tone. For example, Facebook, Instagram, and WhatsApp.
Email marketing… Is a type of marketing that can inform customers on your email list about new products, discounts, and other services, it can also be a softer sell to educate your audience on the value of your brand or keep them engaged in between purchases it Marketing via social media. The use of social media and social networks to market a company’s products and services is referred to as social media marketing (SMM). Social media marketing allows businesses to engage with existing customers and reach new ones while promoting their desired culture, mission, or tone. For example, Facebook, Instagram, and WhatsApp. Could also be anything in the middle.
MANAGEMENT STRATEGY: Management strategies are a collection of processes that businesses use to ensure their activities remain aligned to the company’s mission, objectives and strategic plan.
TYPES OF FINTECH APP
MAJOR TECHNOLOGY TRENDING IN FINTECH APP DEVELOPMENT
Cybersecurity In today’s digital age, data security is becoming increasingly important. As a result, fintech apps should be worried about how they keep and manage sensitive data from clients.
To prevent data theft and security breaches, your team should use a variety of security approaches. They should create a better safe and reliable fintech app.
Blockchain: is a dependable technology that educates fintech entrepreneurs how to create transparent and trustworthy fintech apps. The reason for this is that blockchain stores data in time-stamped block series that you can’t change or delete. This information is stored in a decentralized fashion, ensuring its safety.
MICROSERVICES: an application is structured as a group of interconnected services using this technology. The fintech app becomes a distributed system with data management that is decentralized. You may now effortlessly include any new solution you develop into your system. The cost of developing your fintech software will be reduced if you follow the micro service, AI, and blockchain trends.
Data: In recent years, there has been a tremendous increase in the use and availability of various electronics. As a result, the amount of data produced and gathered has increased as well. Companies now have a lot of in-depth insights into business development potential because to data analytics.
You can utilize big data as an example to predict customer behaviour and develop purpose-driven marketing campaigns, making your fintech app your
Artificial intelligence: AI identifies and analyses real-time data before making recommendations for the best course of action. As a result, AI has a wide range of applications in the financial industry. It can, for example, be used to detect fraud in Insuretech, Regtech, Digital Banking, and other areas.
AI can assist you in brainstorming ways to create a smart and dependable financial application.
BENEFITS OR REASONS WHY YOU SHOULD START-UP YOUR FINTECH COMPANY NOW ARE AS FOLLOWS:
Incorporate into corporate bodies of organisation In the near future, major industries will be required to develop fintech apps and perhaps profit from them.
As the world shifts toward mobile apps, launching your financial firm today is an incredible opportunity that you don’t want to miss
High Range Technology to decide: from the Internet of Things, Machine Learning, Artificial Intelligence, and Robotics are all examples of cutting-edge development trends and technologies in the financial technology business.
You may use one of these technologies to construct a financial solution that is both effective and relevant. Financial technology is both exciting and profitable since it is a solution in and of itself.
High range of growth or development possibilities Because of the current market conditions, developing a fintech app now is a wise decision. By 2023, it is expected that mobile apps would produce $935 billion or more in revenue. If similar entrepreneurs construct their finance products by then, this number might be substantially higher.
High increate of adoption in the system show the profitability’s Almost every smartphone has at least one fintech app, and traditional financial institutions such as lenders, banks, and insurers have embraced fintech to a great extent.
Fintech is also being used by businesses to automate and streamline their operations.
GLOBAL MONEY TRANSFER
LOANS AND ADVANCE
BLOCKCHAIN- BASED SOLUATION
MARKET NICHE: A niche market is a subset of a larger market on which a specific product is concentrated. The market niche defines the product features that are aimed at meeting specific market needs, such as mobile banking, loans, data recharging, and so on.
The pricing strategy, production value, and demographics that it is aimed at. It is also a relatively small market segment. Insecticide, for example, is created to reduce the impact of mosquitos and other related insects on the human body. While financial technology is a platform that is being built in order to provide financial assistance to prospective customers.
Obtain a tax identification number: Individuals can apply on the JTB website with NIN or BVN (Bank Verification Number) or visit your nearest Federal Inland Revenue Service (FIRS) with Utility Bill, Valid ID (Government Approved) and a Passport Photograph.
Implementation process: Implementation is the process that turns strategies and plans into
Actions in order to accomplish strategic objectives and goals. HOW TO MAINTAIN A BUSINESS PLAN: A business plan is a written document that describes in detail how a business—usually a start-up—defines its objectives and how it is to go about achieving its goals. A business plan lays out a written roadmap for the firm from marketing, financial, and operational standpoints.
MISTAKE TO AVOID IN A FINANCIAL TECHNOLOGY COMPANY: Here is the five common financial technology mistakes and how to avoid them.
- Expecting things to be simple
Making your vision a reality, no matter how good it is, will never be easy. According to a recent research, 40% of founders reported a negative impact on their income, a third reported a bad impact on their family and social lives, and a quarter worked an average of 70 hours each week. It’s difficult, but at the end of the day, 75% of people would do it again.
Founders should only embark on this path if they are willing to put in the effort. They should surround themselves with a staff that is prepared to deal with failures, bad criticism, and unwelcome shocks. Founders must have unwavering passion, drive, and dedication.
- A lack of grasp of the market, the product, or the customer
Founders should never believe they know how their product will be received by the market; they should never underestimate the importance of this ignorance. A good product should provide a solution to a problem, not a problem in search of a solution. There is still more study to be done before bringing this product to market. Unfortunate unfamiliarity with the target market is responsible for 42% of start-up failures. This is completely avoidable, and there is no replacement for conducting study to determine what you are disturbing. Who are the current occupants? How will they put you to the test?
- Taking full responsibility for whatever
A great concept requires a team of people to help it succeed. Those that surround founders must challenge, push, and improve them. They’ll be successful if they can strike this equilibrium.
A board of directors should support a leadership team by complementing the founders’ deficiencies. To make this work, they should bring together industry credibility, sector experts, freedom, and the proper mind-set.
- Loss of command
It’s critical to maintain control by enlisting the help of the greatest investors. Always do your homework on your target investors, learning who they are and how they function so you can devise a strategy to engage them. Recognize that not every trade is in your best interests, and be prepared to walk away if necessary.
Additional dilution may assist attract early-stage investors, but later-stage investors will be wary of companies with insufficient CEO/founder stock.
It’s critical to recognize when you need to enlist the help of others to supplement your knowledge and skills. Early-stage funding can be done by the founding team, but as you progress to Series B and C, you’ll require market advice.
- Execution failure
Individual genius may have sparked a fintech journey, but it will not suffice on its own. A company’s survival, growth, and success are dependent on systematic processes and high-performing personnel. Start-ups can mix agility and creativity with stability and security by paying attention to repeatable, quantifiable procedures that enable predictable growth.
Starting a fintech company isn’t easy, as founders will attest. The business will align and begin to make sense with the correct counsel, relationships, processes, and plans. Once all of this is in place, the sky is the limit, and a brilliant idea can blossom into much more. My suggestion is to learn from other people’s mistakes.
KEY PLAYER IN FINANCIAL TECHNOLOGY INDUSTRIES
- Remita, etc.
Small competitive industry
Carbon paylater, etc.
BASIC COST OF HOW TO START THE BUSINESS
Cost of machine
Cost of renting
Cost of logistic
BUSINESS NAME AND SOLGAN
Slogan; send it now
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