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Fintech Startup Business Plan [Sample Template]

By: Author Tony Martins Ajaero

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Are you about starting a fintech startup? If YES, here is a detailed sample fintech startup business plan template & FREE feasibility report.

It is no longer news that the advent of the internet has paved way for unlimited business opportunities that one can easily start and run from a location and have clients in different countries of the world. One of the businesses that can easily be started by leveraging on internet technology and financial expertise is a fintech startup business.

You might ask ‘what is Fintech?’

Simply put, fintech, which is also known as financial technology, is a technology and innovation that aims to compete with traditional financial methods in the delivery of financial services. It is an emerging industry that uses technology to improve activities in finance.

The use of smartphones for mobile banking, investing services and cryptocurrency are examples of technologies aiming to make financial services more accessible to the public.

Starting a fintech startup business can be rewarding but you would have to compete with other well – established fintech companies on the Web. The fact that you will be competing with people from all over the globe is enough reason for you to be result oriented and at the same time be creative with your fintech business.

If you are interested in starting a fintech company, then you should be ready to conduct thorough feasibility studies and market survey before committing your money and other resources to it.

Asides from feasibility studies and market survey, one of the important documents that will aid the success of the business is a good and workable business plan. Below is a sample fintech startup business plan template that can help you write your own business plan with little or no stress.

A Sample Fintech Startup Business Plan Template

1. industry overview.

Players in the Financial Technology (FinTech) industry consist of both startups and established financial institutions and technology companies trying to replace or enhance the usage of financial services provided by existing financial companies.

Basically, they integrate finance and technology in ways that provide a variety of new services to businesses and consumers. Most of the services offered by FinTech companies had hitherto been delivered by traditional financial institutions such as banks.

If you are a close observer of happening in the FinTech industry, you will agree that the industry is highly fragmented and expanding quickly. Areas such as peer-to-peer lending, money transfer, and digital banks have performed especially strongly over the past five years.

The industry heavily relies on third-party financing. Improving economic conditions over the past five years have supported funding from both private and public sources.

Fintech companies in the united states raised .4 billion in 2018, a 43 percent increase over 2017 figures. Global investment in financial technology increased more than 2,200 percent from $930 million in 2008 to more than $22 billion in 2015.

The nascent financial technology industry in London has seen rapid growth over the last few years, according to the office of the Mayor of London. Forty percent of the City of London’s workforce is employed in financial and technology services.

In Europe, $1.5 billion was invested in financial technology companies in 2014, with London-based companies receiving $539 million, Amsterdam-based companies $306 million, and Stockholm-based companies receiving $266 million in investment. After London, Stockholm is the second highest funded city in Europe in the past 10 years.

Europe’s fintech deals reached a five-quarter high, rising from 37 in Q4 2015 to 47 in Q1 2016. Lithuania is starting to become a northern European hub for financial technology companies since the news in 2016 about the possible exit of Britain from the European Union. Lithuania has issued 51 fintech licenses since 2016, 32 of those in 2017.

For example, a report published by IBISWorld shows that in uk, the Financial Technology (FinTech) industry has grown strongly over the past five years, with revenue forecast to increase at a compound annual rate of 9.9 percent over the five years through 2018-19.

The industry has been supported by an accommodative regulatory environment, in addition to good access to skilled employees and external finance. However, UK FinTech companies face some headwinds, including strong competition with firms in other countries such as Singapore, New York and California.

In addition, the industry has had to contend with an increasingly volatile economic environment since the EU referendum, while comparatively high office rental costs have affected operators. Nonetheless, revenue is expected to increase by 10.5 percent during 2018-19 to reach £9.2 billion.

Despite the fact that financial technology (FinTech) business is still much of a Green business, the business will continue to blossom because more and more users will embrace the use of the services offered by financial technology (FinTech) companies in the nearest future.

So, if you have an entrepreneurial mentality and you wish to join a massive technological revolution, you can start your own financial technology business.

Some of the factors that encourage entrepreneurs to start their own financial technology (FinTech) business could be that the business is easy to set up and the startup capital is indeed affordable; you can actually start your own financial technology (FinTech) business from any part of the world.

All you need to do is to have the right network with financial institutions like banks et al and be ready to abide by the clearing rules. You don’t necessarily need to see the people you are doing business with since you can transact business with clients from any part of the world.

Lastly, starting a financial technology (FinTech) business requires professionalism, advance mathematics skills and good grasp of how cryptocurrency and a digital payment system works on a global platform. Financial services are among the most heavily regulated sectors in the world.

Besides, you would need to get the required certifications and license and also meet the required standard for such business before you can be allowed to start a financial technology (FinTech) business in the United States.

2. Executive Summary

Pay Net® FinTech, Inc. is a registered and licensed financial technology (FinTech) and a digital payment system company incorporated under the law of the United States of America. The business will be based in Silicon Valley – California and we are able to secure a well – positioned and standard office facility.

We are aware that to run a standard financial technology (FinTech) startup company can be demanding which is why we are well trained, certified and equipped to perform excellently in our chosen line of business.

Pay Net® FinTech, Inc. is a client – focused and result driven financial technology (FinTech) and a digital payment system company that provides tested, trusted and broad – based financial technology services at an affordable fee that won’t in any way put a hole in the pocket of our clients.

We will offer standard and professional financial technology (FinTech) services to all to our clients at local, state, national, and international level. We will ensure that we work hard to meet and surpass our clients’ expectations.

At Pay Net® FinTech, Inc., our client’s best interest would always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hire professionals from any part of the world who are experienced in financial technology.

Pay Net® FinTech, Inc. will at all – time demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Our plan is to position the business to become one of the leading brands in the financial technology (FinTech) industry in the whole of Silicon Valley – California, and also to be amongst the top 10 financial technology (FinTech) companies in the United States of America within the first 10 years of operation.

This might look too tall a dream but we are optimistic that this will surely be realized because we have done our research and feasibility studies and we are enthusiastic and confident that Silicon Valley is the right place to launch our financial technology business.

Pay Net® FinTech, Inc. is founded by Larry Willis and Justin Bob, his business partner for many years. The organization will be managed by both of them since they have adequate working experience to manage such business. Larry Willis has over 5 years’ experience working at various capacities within the financial technology (FinTech) and digital payment system  industry in the United States of America.

Larry Willis graduated from both University of California – Berkley with a Degree in Information Technology, and University of Harvard (MBA). He is also a Certified Bitcoin Professional (CBP) and Justin Bob has Blockcerts Certification, Cryptocurrency certification, Ethereum certification, and Blockchain professional certification.

3. Our Products and Services

Pay Net® FinTech, Inc. is going to offer varieties of services within the scope of the financial technology (FinTech) and digital payment industry in the United States of America. Our intention of starting our financial technology company is to offer nothing but the best of services.

We are prepared to make profits from the industry and we will do all that is permitted by the law in the United States to achieve our business goals. Our business offerings are listed below;

  • Operating peer-to-peer lending platforms
  • Digital banking
  • Payment services
  • Investment platforms and management
  • Credit and lending
  • Distributed ledger technology
  • Operating investment platforms
  • Investment management services
  • Unbanked/underbanked, services that seek to serve disadvantaged or low-income individuals who are ignored or underserved by traditional banks or mainstream financial services companies.

4. Our Mission and Vision Statement

  • Our vision is to disrupt incumbents in the finance industry by expanding financial inclusion and using technology to cut down on operational costs.
  • Our mission is to offer services that will integrate finance with technology in order to provide new or improved services to businesses and consumers in the United States and from all across the globe.

Our Business Structure

Ordinarily we would have settled for two or three staff members, but as part of our plan to build a standard financial technology company in Silicon Valley – California, we have perfected plans to get it right from the beginning which is why we will ensure that we have competent, honest and hardworking employees to occupy all the available positions in our firm.

The kind of financial technology business we intend building and the business goals we want to achieve is what informed the amount we are ready to pay for the best hands available in and around Silicon Valley – California. Below is the business structure that we will build Pay Net® FinTech, Inc. on;

  • Chief Executive Officer

FinTech Operations Specialist

  • Programmers and Software Developers

Admin and HR Manager

Digital Marketers (Marketing and Sales Executive)

  • Customer Care Executive / Front Desk Officer

Roles and Responsibilities

Chief Executive Office:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
  • Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Monitor and reconcile accounts
  • Assist in reconciling FED subaccounts
  • Act as liaison between various bank departments to facilitate account maintenance, resolve issues and escalate inquiries
  • Maintain proficient knowledge of the rules and regulations, including but not limited to, the Bank Secrecy Act (BSA), USA Patriot Act, OFAC, Regulation E, Truth In Savings Act and Unfair, Deceptive or Abusive Acts or Practices (UDAAP)
  • Participate in weekly status calls
  • Assist in maintaining policies, procedures and risk assessments
  • Compliance with all regulatory requirements

Software Developer/Programmer

  • Responsible for designing, installing, testing and maintenance of software systems for the organization
  • Reviewing current systems
  • Presenting ideas for system improvements, including cost proposals
  • Working closely with analysts, designers and staff
  • Producing detailed specifications and writing the programme codes
  • Testing the product in controlled, real situations before going live
  • Maintaining the systems once they are up and running
  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Defining job positions for recruitment and managing interviewing process
  • Carrying out induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Oversee the smooth running of the daily office activities
  • Identify, prioritize, and reach out to new partners, and business opportunities et al
  • Identifies development opportunities; follows up on development leads and contacts
  • Writing winning proposal documents, negotiate fees and rates in line with company policy
  • Responsible for handling business research, marker surveys and feasibility studies
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Document all customer contact and information
  • Represent the company in strategic meetings
  • Help increase sales and growth for the company
  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • create reports from the information concerning the financial transactions as recorded
  • Prepare the income statement and balance sheet using the trial balance and ledgers
  • Provides managements with financial analyses, development budgets, and accounting reports
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting for one or more properties.
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensuring compliance with taxation legislation
  • Handles all financial transactions for the company
  • Serves as internal auditor for the company

Associate Fraud Specialist- Call Center/Merchant Disputes Specialist / Help Desk Officer

  • Reviews and responds to suspected fraudulent service requests, queues, and transaction records to identify potentially fraudulent transactions or accounts.
  • Identifies problems by performing relevant research using the appropriate tools
  • Utilizes custom and standard software programs and applications as well as manual review to analyze transactional and customer record for fraud.
  • Maintains control of inbound calls
  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
  • Performs and understands systems such as Enhanced Chargebacks and debit network rules.
  • Explains decisions and outcomes to internal and external customers, clients and cardholders.
  • Exhibits specialized knowledge in regulatory rule requirements based upon review of non-standard, cardholder-provided documentation.

6. SWOT Analysis

Pay Net® FinTech, Inc. engaged the services of a core professional in the area of business consulting and structuring to assist the firm in building a well – structured financial technology company that can favorably compete in the highly competitive financial technology industry.

Part of what the business consultant did was to work with the management of our organization in conducting a SWOT analysis for Pay Net® FinTech, Inc. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Pay Net® FinTech, Inc.;

We can boast of a team that has analytical and critical thinking skills that can help them find creative solutions for our clients. Aside from the synergy that exists in our carefully selected workforce, we have a very strong online presence and we are well positioned and we know we will attract loads of clients from the first day we open our doors for business.

One of the weaknesses that are obvious to us is the lack of capacity and inability to compete with big players in the industry especially as it relates to partnering with major players in the banking and finance industry. Most of them like partnering with businesses that have been in existence for a while.

  • Opportunities:

The opportunities in the financial technology (FinTech) and digital payment system industry is massive considering the number of online trading companies and people that make online transactions all over the world. As a standard financial technology (FinTech) startup company, we are ready to take advantage of any opportunity that comes our way.

Businesses in the financial technology (FinTech) industry, particularly start-ups, face a host of technological, legal and regulatory challenges and unexpected events. For example, automation of processes and digitization of data makes fintech systems vulnerable to attacks from hackers.

Recent instances of hacks at credit card companies and banks are illustrations of the ease with which bad actors can gain access to systems and cause irreparable damage.

7. MARKET ANALYSIS

  • Market Trends

In this age and time when transactions worth multiple thousands of Dollars are conducted online, you can be rest assured that financial technology (FinTech) startups are in for good times. You will agree that there is hardly any serious player in the cyberspace who is not transacting with cryptocurrency and hosting digital payment system on their platform.

This goes to show that sooner than later, cryptocurrency and digital payment system will become the most used payment system in the globe. Trends toward mobile banking, increased information, data, and more accurate analytics and decentralization of access will create opportunities for all four groups to interact in unprecedented ways.

In recent time, financial services institutions offered a variety of services under a single umbrella. The scope of these services encompassed a broad range from traditional banking activities to mortgage and trading services. In its most basic form, Fintech unbundle these services into individual offerings.

The combination of streamlined offerings with technology enables fintech companies to be more efficient and cut down on costs associated with each transaction. Another notable trend shows that financial technology (FinTech) is also being leveraged to fight fraud by leveraging information about payment history to flag transactions that are outside the norm.

Lastly, operators in this industry ensure that they get all the testimonials they can and publish them on their website and promotional materials. This usually goes a long way to give them credibility and also to attract more clients to them.

8. Our Target Market

Pay Net® FinTech, Inc. will initially serve small to medium sized business, but that does not in any way stop us from growing to compete with the leading financial technology (FinTech) companies in the United States and from across the globe.

As a standard and licensed financial technology (FinTech) startup company, Pay Net® FinTech, Inc. offers a wide range of cryptocurrency and digital payment services hence we are well trained and equipped to service a wide range of clientele base such as;

  • B2B for banks
  • Banks business clients
  • B2C for small businesses
  • Consumers (everyday individual clients)

Our competitive advantage

It is indeed a growing competition in the industry hence a host of tech-savvy industry watchers warn that keeping apace of fintech-inspired innovations requires more than just ramped up tech spend. Rather, competing with lighter-on-their-feet startups requires a significant change in thinking, processes, decision-making, and even overall corporate structure.

Part of our competitive edge is that we can deploy new technologies, like machine learning / artificial intelligence, predictive behavioral analytics, and data-driven marketing, automated customer service technology, utilizing chatbots and AI interfaces to assist customers.

We also have access to highly skilled workforce, ready access to investment funding and the capacity to comply with government regulations.

9. SALES AND MARKETING STRATEGY

We are mindful of the fact that there is fast – growing competition amongst players in the financial technology industry in the United States of America and around the globe; hence we have been able to hire some of the best business developers cum digital marketers to handle our sales and marketing.

Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be equipped to meet their targets and the overall goal of the organization. We will also ensure that our excellent job deliveries speak for us in the marketplace. Pay Net® FinTech, Inc. is set to make use of the following marketing and sales strategies to attract clients;

  • Introduce our business by sending introductory letters alongside our brochure to all the bitcoin exchange and trading companies, programmers, investors, and internet – business oriented people and organizations within and outside the United States
  • Promptness in bidding for online payment platform contracts from bitcoin exchange and trading companies cum bitcoin traders, programmers, investors, and internet – business oriented people and organizations within and outside the United States
  • Advertise our business in relevant programming magazines, radio and TV stations
  • Attend international financial technology (FinTech) related seminars and business fairs et al
  • Create different packages for different category of clients in order to work with their budgets
  • Leverage on the internet to promote our business
  • Join related associations around us with the aim of networking and marketing our services; we are likely going to get referrals from such networks.

Sources of Income

Pay Net® FinTech, Inc. is established with the aim of maximizing profits in the financial technology (FinTech) and digital payment industry and we are going to ensure that we do all it takes to attract clients on a regular basis. Pay Net® FinTech, Inc. will generate income by offering the following services and products

  • Unbanked/underbanked, services that seek to serve disadvantaged or low-income individuals who are ignored or underserved by traditional banks or mainstream financial services.

10. Sales Forecast

One thing is certain, there would always be bitcoin exchange and trading companies, people and organizations that make online transactions that would need the services of financial technology (FinTech) companies.

We are well positioned to take on the available market in Silicon Valley – California and in the cyberspace and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base beyond Silicon Valley to other cities in the United States of America and in the cyberspace.

We have been able to examine the financial technology (FinTech) market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Silicon Valley – California.

Below are the sales projections for Pay Net® FinTech, Inc., it is based on the location of our business and the services and products that we will be offering;

  • First Fiscal Year:  $250,000
  • Second Fiscal Year:  $450,000
  • Third Fiscal Year:  $950,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and internet shutdown within the period stated above. Please note that the above projection might be lower and at the same time it might be higher.

11. Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to take the financial technology (FinTech) and digital payment system industry by storm which is why we have made provisions for effective publicity and advertisement of our financial technology (FinTech) startup company. Below are the platforms we intend to leverage on to promote and advertise Pay Net® FinTech, Inc.;

  • Place adverts on both print (community based newspapers and magazines) and electronic media platforms
  • Sponsor relevant community based events/programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
  • Install our Billboards in strategic locations all around Silicon Valley
  • Distribute our fliers and handbills in target areas
  • Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our company’s logo et al.

12. Our Pricing Strategy

At Pay Net® FinTech, Inc. we will keep our fees a little bit below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance.  In addition, we will also offer special discounted rates to startups, nonprofits, cooperatives, and small social enterprises who want to transact with cryptocurrency and other digital payment platforms.

  • Payment Options

The payment policy adopted by Pay Net® FinTech, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America. Here are the payment options that Pay Net® FinTech, Inc. will make available to her clients;

  • Payment via bank transfer
  • Payment via online bank transfer
  • Payment via mobile money
  • Payment via check
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payment without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients.

13. Startup Expenditure (Budget)

These are the areas we are looking towards spending our startup capital on;

  • The total fee for incorporating the Business in the United States of America – $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
  • The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400.
  • The amount needed to acquire a suitable Office facility in a business district for 6 months (Re – Construction of the facility inclusive) – $40,000.
  • Marketing promotion expenses for the grand opening of Pay Net® FinTech, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The total cost for hiring Business Consultant – $2,500
  • The cost for equipping the office (computers, software apps and hardware such as Application-specific integrated circuit (ASIC) machines and other cryptocurrency and digital payment system related software apps, internet server, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $45,000
  • The cost of launching our official Website – $2,000
  • Budget for paying at least two employees for 3 months and utility bills – $45,000
  • Additional expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
  • Miscellaneous – $1,000

Going by the report from the research and feasibility studies, we will need about Two Hundred and Fifty Thousand US Dollars ($250,000) to set up a small scale but standard financial technology company in the United States of America.

Generating Funds/Startup Capital for Pay Net® FinTech, Inc.

Pay Net® FinTech, Inc. will be owned and managed by Larry Willis and his business partner Justin Bob. They are the financiers of the company, but may likely welcome partners later which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.

  • Generate part of the startup capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from the bank

N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.

One of our major goals of starting Pay Net® FinTech, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our financial technology services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

Pay Net® FinTech, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more as determined by the board of the organization. We know that if that is put in place, we will be able to hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

  • Business Name Availability Check : Completed
  • Business Incorporation: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Conducting Feasibility Studies: Completed
  • Leasing a standard and well positioned office facility in the heart of Silicon Valley – California: Completed
  • Generating part of the startup capital from the founder: Completed
  • Applications for Loan from our Bankers: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Printing of Promotional Materials: Completed
  • Recruitment of employees: In Progress
  • Purchase of the needed software applications, internet server, furniture, office equipment, electronic appliances and facility facelift: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business (Business PR): In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with vendors and key players in the industry: In Progress

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Home » Financial Services

A Sample Fintech Startup Business Plan Template

Fintech, which is also known as financial technology, is the technology that aims to compete with traditional financial methods in the delivery of financial services. It is an emerging industry that uses technology to improve activities in finance.

The use of smartphones for mobile banking, investing services, and cryptocurrency are examples of technologies aiming to make financial services more accessible to the general public. Even though this segment of fintech may see the most headlines, the big money still lies in the traditional global banking industry and its multi-trillion-dollar market capitalization.

Available data shows that globally, the number of fintech companies grew to 1,463, with 2,745 unique investors. They also acquired $25.6 billion in investments in H1 2020. The total transaction value of digital payments grew from $4.1 trillion in 2019 to $5.2 trillion in 2020.

Steps on How to Write a Fintech Startup Business Plan

1. executive summary.

Money Net© FinTech Company, Inc. is an American-based financial technology company. Our head office will be located in an office facility in the heart of New York City. Money Net© FinTech Company, Inc. is a global fintech payment system that will store and transfer payment information.

Consumers will make use of our applications to pay for goods and services directly as well as make peer-to-peer fund transfers using their mobile devices. David Williams is the founder and CEO of Money Net© FinTech Company, Inc.

Company Profile

A. our products and services.

  • Operating peer-to-peer lending platforms
  • Digital banking
  • Payment services
  • Investment platforms and management
  • Credit and lending
  • Distributed ledger technology
  • Operating investment platforms
  • Investment management services
  • Unbanked/underbanked, services that seek to serve disadvantaged or low-income individuals who are ignored or underserved by traditional banks or mainstream financial services.

b. Nature of the Business

A fintech business is meant to operate the business-to-consumer model or transfer completely to a business-to-business approach.

c. The Industry

Money Net© FinTech Company, Inc. will operate under the Financial Technology (FinTech) industry.

d. Mission Statement

Our mission is to make financial services more accessible to all and sundry and our services will include traditional financial transactions like saving, investing, loan processing, and also blockchain and cryptocurrency transactions.

e. Vision Statement

Our vision is to be known as the leading innovative digital technology solutions fintech company that aim to optimize financial services for her clients.

f. Our Tagline (Slogan)

Money Net© FinTech Company, Inc. – Your Safe and Trusted FinTech Company!

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Money Net© FinTech Company, Inc. will be formed as a Limited Liability Company (LLC).

h. Our Organizational Structure

  • Chief Executive Officer
  • Company’s Lawyer/Secretary
  • FinTech Operations Specialist
  • Programmers and Software Developers
  • Admin and HR Manager
  • Digital Marketers (Marketing and Sales Executive)
  • Customer Service Executive/Front Desk Officer

i. Ownership/Shareholder Structure and Board Members

  • David Williams (Owner and Chairman/Chief Executive Officer) 51 Percent Shares
  • Olsen Vincent (Board Member) 14 Percent Shares
  • Jude Soares (Board Member) 10 Percent Shares
  • Paul Nelson (Board Member) 10 Percent Shares
  • Zara Mack (Board Member and Sectary) 10 Percent Shares.

SWOT Analysis

A. strength.

  • Effective structure in place to help consumers enjoy a seamless digital experience
  • Highly experienced and qualified employees and management
  • Highly secured payment platform
  • Access to finance from business partners
  • Water-tight strategies on how to expand beyond major markets
  • Good returns on investment for our investors.

b. Weakness

  • Financial Constraints
  • We will be competing with well-established fintech companies and traditional banks
  • Inability to retain our highly experienced and qualified employees longer than we want

c. Opportunities

  • Partnerships and mergers between established companies and fintech startups are becoming more frequent.
  • Digital banking services are taking over as 46 percent of people exclusively use digital channels for their financial needs
  • Good support structure for fintech companies in the United States of America.

i. How Big is the Industry?

It is safe to say that the Financial Technology (FinTech) industry is massive. This is because the per-share value of the Global X Fintech ETF has more than tripled from $15 in 2016 to $47 in 2023.

ii. Is the Industry Growing or Declining?

The Financial Technology (FinTech) industry is growing rapidly and available data shows that the total transaction value of digital payments grew from $4.1 trillion in 2019 to $5.2 trillion in 2020. Globally, the number of fintech companies grew to 1,463, with 2,745 unique investors.

iii. What are the Future Trends in the Industry

New technologies, like machine learning/artificial intelligence, predictive behavioral analytics, and data-driven marketing, are what will determine the future trends in the Financial Technology (FinTech) industry. Fintech is also a keen adaptor of automated customer service technology, utilizing chatbots and AI interfaces to assist customers with basic tasks and also keep down staffing costs.

Fintech is also being leveraged to fight fraud by leveraging information about payment history to flag transactions that are outside the norm.

iv. Are There Existing Niches in the Industry? 

Yes, there are niche ideas when it comes to the fintech business, and they are as follow;

  • Digital Banking App
  • Investment App
  • P2P Payment Apps (Peer-to-peer lending)
  • Insurance Apps (Alternative insurance underwriting)
  • Money-Saving Apps (Digital wallets)
  • Crypto Exchange Platform
  • RegTech Apps
  • Crowdfunding Applications
  • Payment gateways
  • Transaction delivery.

v. Can You Sell a Franchise of your Business in the Future?

Money Net© FinTech Company, Inc. has plans to sell franchises in the nearest future and we aim to have a strong physical presence in key financial hubs (cities all across the world).

  • Unfavorable government policy and regulations.
  • Cyber security challenges
  • Differences in management and culture
  • Liability problems
  • Continuously changing consumer demands especially as it relates to how they expect fintech companies to serve them.

i. Who are the Major Competitors?

  • Three-way tie

ii. Is There a Franchise for FinTech Business? 

Yes, there are franchises for FinTech business, and they include;

  • Libertex (Forex Club Group)
  • BI Analytics & Consulting (BI Group)

iii. Are There Policies, Regulations, or Zoning Laws Affecting FinTech Business?

In the United States of America, Fintech is regulated at both the state and federal levels. Each of the 50 states and the federal government has passed its own body of laws that may apply to financial services and providers of financial services.

Please note that because of the scope, scale, and dynamism of the FinTech industry, the sector is often regulated by multiple regulators, both within certain types (e.g., multiple government regulators) and across types (e.g., governmental, self-regulators, and market regulators). Please check with your zoning or planning department to find out what options are available to you.

Marketing Plan

A. who is your target audience.

i. Age Range

Our target market comprises adults above 18 years who have the finance to do business with us.

ii. Level of Education

We don’t have any restriction on the level of education of those we are ready to work with.

iii. Income Level

There is no cap on the level of income of the people that can use our platform.

iv. Ethnicity

There is no restriction when it comes to the ethnicity of the people that can make use of our platform.

v. Language

We have no restrictions when it comes to language.

vi. Geographical Location

People from any geographical location will be welcome to partner with us or do business with our company.

vii. Lifestyle

Money Net© FinTech Company, Inc. will not restrict any investor or client from partnering or doing business with us based on their lifestyle, culture, or race.

b. Advertising and Promotion Strategies

  • Host Themed Events That Catch Attention.
  • Tap Into Text Marketing.
  • Make Use of Billboards.
  • Share our Events in Local Groups and Pages.
  • Turn our Social Media Channels into a Resource
  • Develop our Business Directory Profiles
  • Build Relationships with players in the Financial Technology industry.

i. Traditional Marketing Strategies

  • Marketing through Direct Mail.
  • Print Media Marketing – Newspapers & Magazines.
  • Broadcast Marketing -Television & Radio Channels.
  • OOH Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
  • Leverage direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.

ii. Digital Marketing Strategies

  • Social Media Marketing Platforms.
  • Influencer Marketing.
  • Email Marketing.
  • Content Marketing.
  • Search Engine Optimization (SEO) Marketing.
  • Affiliate Marketing
  • Mobile Marketing.

iii. Social Media Marketing Plan

  • Start using chatbots.
  • Create a personalized experience for our customers.
  • Create an efficient content marketing strategy.
  • Create a community for our target market
  • Gear up our profiles with a diverse content strategy.
  • Use brand advocates.
  • Create profiles on relevant social media channels.
  • Run cross-channel campaigns.

c. Pricing Strategy

When working out our pricing strategy, Money Net© FinTech Company, Inc. will make sure it covers profits, insurance, premium, license, and economy or value and full package for each transaction, In all our pricing strategy will reflect;

  • Cost-Based Pricing
  • Value-Based Pricing
  • Competition-Based Pricing.

Sales and Distribution Plan

A. sales channels.

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances in the Financial Technology industry, and the finance and banking industry to help refer clients to us.

Money Net© FinTech Company, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all of these marketing strategies into a marketing mix, so we can have a visible, in-demand service that is competitively priced and promoted to our customers.

b. Inventory Strategy

The fact that we will need office supplies means that Money Net© FinTech Company, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.

c. Payment Options for Customers

Here are the payment options that Money Net© FinTech Company, Inc. will make available to her clients;

  • Payment via bank transfer
  • Payment with cash
  • Payment via credit cards
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
  • Payment via bank draft

d. Return Policy, Incentives, and Guarantees

At Money Net© FinTech Company, Inc. we do not have a return policy but we will use our discretion when necessary. This is because there are no federal laws that require a merchant to refund money unless the product they sell turns out to be defective.

e. Customer Support Strategy

Our customer support strategy will involve seeking customers’ feedback. This will help us provide an excellent return on investment (ROI) and customer service to all our clients and investors. It will also help us to understand their needs, experiences, and pain points. We will work with effective CRM software to be able to achieve this.

We will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.

Operational Plan

Overall, we plan to expand our revenue by 50 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting investors and strategic partners like banks et al that will enable us to boost our service offerings and to support revenue growth.

a. What Happens During a Typical Day at a FinTech Business?

  • The office is open for the day
  • Documentation and other administrative works are conducted throughout the day
  • Marketers go out in the field to market our services
  • Transactions are facilitated and pending queries are resolved
  • Maintenance of the server and all payment gateways are carried out as scheduled.
  • Report for the day is written and submitted to the required authority
  • The office is closed for the day.

b. Production Process (If Any)

There is no production process when it comes to FinTech Business.

c. Service Procedure (If Any)

Fintech payment systems perform two key service functions; they store and transfer payment information. Consumers use these applications to pay for goods and services directly as well as make peer-to-peer funds transfers using their mobile devices.

At its core, fintech is utilized to help companies, business owners and consumers better manage their financial operations, processes, and lives by utilizing specialized software and algorithms that are used on computers and, increasingly, smartphones.

d. The Supply Chain

Money Net© FinTech Company, Inc. will rely on key players in all industries to refer business deals and clients to us.

e. Sources of Income

Money Net© FinTech Company, Inc. will make money from offering the following services;

  • Unbanked/underbanked services

Financial Plan

A. amount needed to start your financial technology (fintech) company.

Money Net© FinTech Company, Inc. would need an estimate of $1.2 million to successfully set up our Financial Technology (FinTech) company in the United States of America. Please note that this amount includes the salaries of our staff for the first month of operation.

b. What are the Costs Involved?

  • Business Registration Fees – $750.
  • Legal expenses for obtaining licenses and permits – $7,300.
  • Marketing, Branding, and Promotions – $15,000.
  • Business Consultant Fee – $2,500.
  • Insurance – $5,400.
  • Rent/Lease – $200,000.
  • Internet Infrastructure and Software Development – $250,000
  • Other start-up expenses including, commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
  • Operational Cost (salaries of employees, payments of bills et al) – $80,000
  • Start-up Inventory – $15,000
  • Store Equipment (cash register, security, ventilation, signage) – $4,750
  • Furnishing and Equipping – $80,000
  • Capitalization Base: $1 million
  • Website: $600
  • Opening party: $3,000
  • Miscellaneous: $2,000

c. Do You Need to Build a Facility? If YES, How Much will it cost?

Money Net© FinTech Company, Inc. will not build a new facility for our Financial Technology company; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.

d. Ongoing Expenses for Our Financial Technology Company?

  • Server maintenance
  • Transaction fee to a third-party provider
  • Utility bills (internet, phone bills, signage and sewage et al)
  • Salaries of employees

e. Average Salary of Our Staff

  • Chief Executive Officer – $65,000 Per Year
  • Company’s Lawyer/Secretary – $50,000 Per Year
  • FinTech Operations Specialist – $48,000 Per Year
  • Programmers and Software Developers – $47,000 Per Year
  • Admin and HR Manager – $45,000 Per Year
  • Digital Marketers (Marketing and Sales Executive) – $42,000 Per Year
  • Accountant – $40,000 Per Year
  • Customer Service Executive/Front Desk Officer – $30,000 Per Year.

f. Sources of Funding for Our Financial Technology Company

  • Raising money from personal savings and sale of personal stocks and properties
  • Raising money from investors and business partners
  • Sell shares to interested investors
  • Applying for a loan from your bank/banks
  • Pitching your business idea and applying for business grants and seed funding from, government, donor organizations, and angel investors
  • Source for soft loans from your family members and your friends.

Financial Projection

A. how much should you charge for your service.

At Money Net© FinTech Company, Inc. our fee will be based on the type and volume of transactions on our payment platform. But averagely, we charge $3.50 per transaction.

b. Sales Forecast

  • First Fiscal Year (FY1): $3.5 million
  • Second Fiscal Year (FY2): $5 million
  • Third Fiscal Year (FY3): $9 million

c. Estimated Profit a Year

The ideal profit margin we hope to make at Money Net© FinTech Company, Inc. will be between 25 and 40 percent.

d. Profit Margin of a Financial Technology (FinTech) Company Product/Service

The average net profit margin for Money Net© FinTech Company, Inc. is approximately 17%. The average net profit margin can be higher or lower depending on our additional service offerings and the amount of our overhead expenses.

Growth Plan

Money Net© FinTech Company, Inc. will grow our Financial Technology company by first opening other offices in key cities in the United States of America within the first five years of establishing the business, then we will start selling franchises from the sixth year.

Money Net© FinTech Company, Inc. plans to expand to first to Los Angeles – California, San Francisco – California, Chicago – Illinois, Washington, D.C., Boston – Massachusetts, Miami – Florida, Seattle – Washington, Dallas – Texas, and Philadelphia – Pennsylvania.

The reason we intend to expand to these geographical locations is the fact that available statistics show that the cities have the highest FinTech market in the United States.

The founder of Money Net© FinTech Company, Inc. plans to exit the business via merger and acquisition. We have put structures and processes in place that will help us achieve our plan of successfully merging with one of the leading players in the finance and banking industry. With that, we can be rest assured that the business will be under the care of a safe and well-structured management team and board of trustees.

More on Financial Services

How to write a business plan for a fintech business?

fintech business business plan

Putting together a business plan for a fintech business can be daunting - especially if you're creating a business for the first time - but with this comprehensive guide, you'll have the necessary tools to do it confidently.

We will explore why writing one is so important in both starting up and growing an existing fintech business, as well as what should go into making an effective plan - from its structure to content - and what tools can be used to streamline the process and avoid errors.

Without further ado, let us begin!

In this guide:

Why write a business plan for a fintech business?

What information is needed to create a business plan for a fintech business.

  • How do I build a financial forecast for a fintech business?

The written part of a fintech business business plan

  • What tool should I use to write my fintech business business plan?

Understanding the document's scope and goals will help you easily grasp its structure and content. Before diving into the specifics of the plan, let's take a moment to explore the key reasons why having a fintech business business plan is so crucial.

To have a clear roadmap to grow the business

It's rarely business as usual for small businesses. The economy follows cycles where years of growth are followed by recessions, and the business environment is always changing with new technologies, new regulations, new competitors, and new consumer behaviours appearing all the time...

In this context, running a business without a clear roadmap is like driving blindfolded: it's dangerous at best. That's why writing a business plan for a fintech business is essential to create successful and sustainable businesses.

To write an effective business plan, you will need to take stock of where you are (if you are already in business) and where you want the business to go in the next three to five years.

Once you know where you want your fintech business to be, you'll have to identify:

  • what resources (human, equipment, and capital) are needed to get there,
  • at what pace the business needs to progress to get there in time,
  • and what risks you'll face along the way.

Going through this process regularly is beneficial, both for startups and existing companies, as it helps make informed decisions about how best to allocate resources to ensure the long-term success of the business.

To anticipate future cash flows

Regularly comparing your actual financial performance to the projections in the financial forecast of your fintech business's business plan gives you the ability to monitor your business's financial health and make necessary adjustments as needed.

This practice allows you to detect potential financial issues, such as unexpected cash shortfalls before they escalate into major problems. Giving you time to find additional financing or put in place corrective measures.

Additionally, it helps you identify growth opportunities, like excess cash flow that could be allocated to launch new products and services or expand into new markets.

Staying on track with these regular comparisons enables you to make well-informed decisions about the amount of financing your business might require, or the excess cash flow you can expect to generate from your main business activities.

To secure financing

A detailed business plan becomes a crucial tool when seeking financing from banks or investors for your fintech business.

Investing and lending to small businesses are very risky activities given how fragile they are. Therefore, financiers have to take extra precautions before putting their capital at risk.

At a minimum, financiers will want to ensure that you have a clear roadmap and a solid understanding of your future cash flows (like we just explained above). But they will also want to ensure that your business plan fits the risk/reward profile they seek.

This will off-course vary from bank to bank and investor to investor, but as a rule of thumb. Banks will want to see a conservative financial management style (low risk), and they will use the information in your business plan to assess your borrowing capacity — the level of debt they think your business can comfortably handle — and your ability to repay the loan. This evaluation will determine whether they'll provide credit to your fintech business and the terms of the agreement.

Whereas investors will carefully analyze your business plan to gauge the potential return on their investment. Their focus lies on evidence indicating your fintech business's potential for high growth, profitability, and consistent cash flow generation over time.

Now that you recognize the importance of creating a business plan for your fintech business, let's explore what information is required to create a compelling plan.

Writing a fintech business business plan requires research so that you can project sales, investments and cost accurately in your financial forecast.

In this section, we cover three key pieces of information you should gather before drafting your business plan!

Carrying out market research for a fintech business

As you consider writing your business plan for a fintech business, conducting market research becomes a vital step to ensure accurate and realistic financial projections.

Market research provides valuable insights into your target customer base, competitors, pricing strategies, and other key factors that can significantly impact the commercial success of your business.

Through this research, you may uncover trends that could influence your fintech business.

Your market research may reveal that customers may be looking for more personalized financial services, such as tailored advice or tailored investments. Additionally, your research may indicate that customers may be seeking out more digital and mobile-based services for their financial needs, such as apps to help track their finances or digital wallets.

Such market trends play a significant role in forecasting revenue, as they offer valuable data about potential customers' spending habits and preferences.

By incorporating these findings into your financial projections, you can present investors with more accurate information, helping them make informed decisions about investing in your fintech business.

Developing the sales and marketing plan for a fintech business

As you embark on creating your fintech business business plan, it is crucial to budget sales and marketing expenses beforehand.

A well-defined sales and marketing plan should include precise projections of the actions required to acquire and retain customers. It will also outline the necessary workforce to execute these initiatives and the budget required for promotions, advertising, and other marketing efforts.

This approach ensures that the appropriate amount of resources is allocated to these activities, aligning with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of a fintech business

Whether you are at the beginning stages of your fintech business or expanding its horizons, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is vital to ensure your business's success.

To achieve this, both the recruitment and investment plans must align coherently with the projected timing and level of growth in your forecast. It is essential to secure appropriate funding for these plans.

A fintech business might incur staffing costs such as salaries for software engineers, data scientists, and customer support staff. They might also need to purchase equipment such as computers, servers, software licenses, and other hardware or software related to development and operations.

To create a financial forecast that accurately represents your business's outlook, remember to factor in other day-to-day operating expenses.

Now that you have all the necessary information, it's time to dive in and start creating your business plan and developing the financial forecast for your fintech business.

What goes into your fintech business's financial forecast?

The financial forecast of your fintech business will enable you to assess the profitability potential of your business in the coming years and how much capital is required to fund the actions planned in the business plan.

The four key outputs of a financial forecast for a fintech business are:

  • The profit and loss (P&L) statement ,
  • The projected balance sheet ,
  • The cash flow forecast ,
  • And the sources and uses table .

Let's take a closer look at each of these.

The projected P&L statement

Your fintech business forecasted P&L statement enables the reader of your business plan to get an idea of how much revenue and profits your business is expected to make in the near future.

forecasted profit and loss statement in a fintech business business plan

Ideally, your reader will want to see:

  • Growth above the inflation level
  • Expanding profit margins
  • Positive net profit throughout the plan

Expectations for an established fintech business will of course be different than for a startup. Existing businesses which have reached their cruising altitude might have slower growth and higher margins than ventures just being started.

The projected balance sheet of your fintech business

Your fintech business's forecasted balance sheet enables the reader of your plan to assess your financial structure, working capital, and investment policy.

It is composed of three types of elements: assets, liabilities and equity:

  • Assets: represent what the business owns and uses to produce cash flows. It includes resources such as cash, equipment, and accounts receivable (money owed by clients).
  • Liabilities: represent funds advanced to the business by lenders and other creditors. It includes items such as accounts payable (money owed to suppliers), taxes due and loans.
  • Equity: is the combination of what has been invested by the business owners and the cumulative profits and losses generated by the business to date (which are called retained earnings). Equity is a proxy for the value of the owner's stake in the business.

example of forecasted balance sheet in a fintech business business plan

Your fintech business's balance sheet will usually be analyzed in conjunction with the other financial statements included in your forecast.

Two key points of focus will be:

  • Your fintech business's liquidity: does your business have sufficient cash and short-term assets to pay what it owes over the next 12 months?
  • And its solvency: does your business have the capacity to repay its debt over the medium-term?

The cash flow forecast

A projected cash flow statement for a fintech business is used to show how much cash the business is generating or consuming.

cash flow forecast in a fintech business business plan example

The cash flow forecast is usually organized by nature to show three key metrics:

  • The operating cash flow: do the core business activities generate or consume cash?
  • The investing cash flow: how much is the business investing in long-term assets (this is usually compared to the level of fixed assets on the balance sheet to assess whether the business is regularly maintaining and renewing its equipment)?
  • The financing cash flow: is the business raising new financing or repaying financiers (debt repayment, dividends)?

As we discussed earlier, cash is king and keeping an eye on future cash flows an imperative for running a successful business. Therefore, you can expect the reader of your fintech business business plan to pay close attention to your cash flow forecast.

Also, note that it is customary to provide both yearly and monthly cash flow forecasts in a business plan - so that the reader can analyze seasonal variation and ensure the fintech business is appropriately funded.

The initial financing plan

The initial financing plan - also called a sources and uses table - is an important tool when starting a fintech business.

It shows where the money needed to set up the business will come from (sources) and how it will be allocated (uses).

initial financing plan in a fintech business business plan

Having this table helps understand what costs are involved in setting up the fintech business, how the risks are distributed between the shareholders and the lenders, and what will be the starting cash position (which needs to be sufficient to sustain operations until the business breaks even).

Now that the financial forecast of a fintech business business plan is understood, let's focus on what goes into the written part of the plan.

The written part of a fintech business business plan is composed of 7 main sections:

  • The executive summary
  • The presentation of the company
  • The products and services
  • The market analysis
  • The strategy
  • The operations
  • The financial plan

Throughout these sections, you will seek to provide the reader with the details and context needed for them to form a view on whether or not your business plan is achievable and your forecast a realistic possibility.

Let's go through the content of each section in more detail!

1. The executive summary

The first section of your fintech business's business plan is the executive summary which provides, as its name suggests, an enticing summary of your plan which should hook the reader and make them want to know more about your business.

When writing the executive summary, it is important to provide an overview of the business, the market, the key financials, and what you are asking from the reader.

Start with a brief introduction of the business, its name, concept, location, how long it has been in operation, and what makes it unique. Mention any services or products you plan to offer and who you sell to.

Then you should follow with an overview of the addressable market for your fintech business, current trends, and potential growth opportunities.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Finally, you should detail any funding requirements in the ask section.

2. The presentation of the company

As you build your fintech business business plan, the second section deserves attention as it delves into the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide valuable insights into the legal structure of the business, the identities of the owners, and their respective investments and ownership stakes. This level of transparency is vital, particularly if you're seeking financing, as it clarifies which legal entity will receive the funds and who holds the reins of the business.

Moving to the location part, you'll offer a comprehensive view of the company's premises and articulate why this specific location is strategic for the business, emphasizing factors like catchment area, accessibility, and nearby amenities.

When describing the location of your fintech business, you could mention its access to a modern infrastructure with reliable internet and power supply. You may also talk about the potential access to a large, diverse talent pool that could help you grow your business. Additionally, you could highlight the potential for a supportive local business climate and any incentives or tax benefits that may be available. Finally, you might emphasize the potential for customers in the area who could benefit from the services or products you offer.

Lastly, you should introduce your esteemed management team. Provide a thorough explanation of each member's role, background, and extensive experience.

It's equally important to highlight any past successes the management team has achieved and underscore the duration they've been working together. This information will instil trust in potential lenders or investors, showcasing the strength and expertise of your leadership team and their ability to deliver the business plan.

3. The products and services section

The products and services section of your fintech business business plan should include a detailed description of what your company sells to its customers. 

For example, your fintech business could offer customers financial planning services to help them budget, save, and plan for their retirement. It could provide payment processing solutions that allow customers to make payments online or through a mobile app. Finally, it could offer loan origination services to help customers access funds quickly and easily. These services would enable customers to access the financial assistance they need to achieve their goals, while also providing convenience and ease of use.

The reader will want to understand what makes your fintech business unique from other businesses in this competitive market.

When drafting this section, you should be precise about the categories of products or services you sell, the clients you are targeting and the channels that you are targeting them through. 

4. The market analysis

When outlining your market analysis in the fintech business business plan, it's essential to include comprehensive details about customers' demographics and segmentation, target market, competition, barriers to entry, and relevant regulations.

The primary aim of this section is to give the reader an understanding of the market size and appeal while demonstrating your expertise in the industry.

To begin, delve into the demographics and segmentation subsection, providing an overview of the addressable market for your fintech business, key marketplace trends, and introducing various customer segments and their preferences in terms of purchasing habits and budgets.

Next, shift your focus to the target market subsection, where you can zoom in on the specific customer segments your fintech business targets. Explain how your products and services are tailored to meet the unique needs of these customers.

For example, your target market might include millennials who are tech-savvy and financially savvy. They may have already invested in the stock market and are looking for a way to make their investments more efficient. They may also be looking for a way to manage their finances more efficiently and to keep track of their credit score.

In the competition subsection, introduce your main competitors and explain what sets your fintech business apart from them.

Finally, round off your market analysis by providing an overview of the main regulations that apply to your fintech business.

5. The strategy section

When writing the strategy section of a business plan for your fintech business, it is essential to include information about your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

The competitive edge subsection should explain what sets your company apart from its competitors. This part is especially key if you are writing the business plan of a startup, as you have to make a name for yourself in the marketplace against established players.

The pricing strategy subsection should demonstrate how you intend to remain profitable while still offering competitive prices to your customers.

The sales & marketing plan should outline how you intend to reach out and acquire new customers, as well as retain existing ones with loyalty programs or special offers. 

The milestones subsection should outline what your company has achieved to date, and its main objectives for the years to come - along with dates so that everyone involved has clear expectations of when progress can be expected.

The risks and mitigants subsection should list the main risks that jeopardize the execution of your plan and explain what measures you have taken to minimize these. This is essential in order for investors or lenders to feel secure in investing in your venture.

Your fintech business could face the risk of a data breach. Hackers may try to access customer data stored on your servers, which could lead to a loss of customer trust and a resulting drop in your customer base. Additionally, your fintech business could experience a liquidity crisis. If the market experiences a downturn, you may not have enough cash on hand to cover your liabilities, leading to a cash flow problem.

6. The operations section

The operations of your fintech business must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your fintech business - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

You may have key assets such as customer data and proprietary software. Customer data could include customer financial information, account details, payment history, and even customer preferences. Proprietary software could include a custom-built platform for customers to view their financial data, manage financial products, or transfer money. Additionally, a fintech business might have intellectual property such as patents, trademarks, copyright, or trade secrets. Patents could cover processes, algorithms, or inventions used to provide financial services, while trademarks could identify a brand. Copyright could protect the software code, while trade secrets could protect confidential business information.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of the content of a fintech business business plan, let's look at some of the tools you can use to create yours.

What tool should I use to write my fintech business's business plan?

There are two main ways of creating your fintech business business plan:

  • Using specialized business planning software,
  • Hiring a business plan writer.

Using an online business plan software for your fintech business's business plan

The modern and most efficient way to write a fintech business business plan is to use business plan software .

There are several advantages to using specialized software:

  • You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
  • You are guided through the writing process by detailed instructions and examples for each part of the plan
  • You can access a library of dozens of complete business plan samples and templates for inspiration
  • You get a professional business plan, formatted and ready to be sent to your bank or investors
  • You can easily track your actual financial performance against your financial forecast
  • You can create scenarios to stress test your forecast's main assumptions
  • You can easily update your forecast as time goes by to maintain visibility on future cash flows
  • You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your fintech business's business plan

Outsourcing your fintech business business plan to a business plan writer can also be a viable option.

Business plan writers are experienced in writing business plans and adept at creating financial forecasts without errors. Furthermore, hiring a consultant can save you time and allow you to focus on the day-to-day operations of your business.

However, hiring business plan writers is expensive as you are paying for the software used by the consultant, plus their time, and their profit margin of course.

From experience, you need to budget at least £1.5k ($2.0k) excluding tax for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with lenders or investors).

You also need to be careful when seeking investment. Investors want their money to be used to grow the business, not spent on consulting fees. Therefore, the amount you spend on business plan writing services (and other consulting services such as legal services) needs to be negligible relative to the amount raised.

The other drawback is that you usually don't own the business plan itself: you just get the output, while the actual document is saved in the consultant's business plan software - which makes it difficult to maintain the document up to date without hiring the consultant on a retainer.

For these reasons, outsourcing the fintech business business plan to a business plan writer should be considered carefully, weighing both the advantages and disadvantages of hiring outside help.

Ultimately, it may be the right decision for some businesses, while others may find it beneficial to write their business plan using online software.

Why not create your fintech business's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a fintech business business plan is a terrible idea.

For starters, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

As a result, it is unlikely anyone will trust your numbers unless - like us at The Business Plan Shop - you hold a degree in finance and accounting and have significant financial modelling experience in your past.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Also, using software makes it easy to compare actuals vs. forecasts and maintain our forecasts up to date to maintain visibility on future cash flows - as we discussed earlier in this guide - whereas this is a pain to do with a spreadsheet.

That's for the forecast, but what about the written part of my fintech business business plan?

This part is less error-prone, but here also software brings tremendous gains in productivity:

  • Word processors don't include instructions and examples for each part of your business plan
  • Word processors don't update your numbers automatically when they change in your forecast
  • Word processors don't handle the formatting for you

Overall, while Word or Excel may be viable options for creating a fintech business business plan for some entrepreneurs, it is by far not the best or most efficient solution.

  • Having an up-to-date business plan is key to maintaining visibility on your future cash flows.
  • A business plan has 2 parts: a financial forecast highlighting the expected growth, profitability and cash generation of the business; and a written part which provides the context needed to interpret and assess the quality of the forecast.
  • Using business plan software is the modern way of writing and maintaining business plans.

We hope that this guide helped you to better understand how to write the business plan for a fintech business. If you still have questions, do not hesitate to contact us.

Also on The Business Plan Shop

  • How to write a 5 years business plan
  • Business plan myths

Know someone who owns or wants to start a fintech business? Share this article with them!

Guillaume Le Brouster

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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How To Write a Business Plan for Fintech in 9 Steps: Checklist

By alex ryzhkov, resources on fintech.

  • Financial Model
  • Business Plan
  • Value Proposition
  • One-Page Business Plan

According to Statista , the global fintech market is expected to reach a value of USD 309.98 billion by 2022, growing at a CAGR of 24.8% between 2018 and 2022.

If you're planning to start a fintech business, a well-crafted business plan is essential to help you navigate the complex industry landscape. Here's a nine-step checklist to help you write a winning business plan for your retail banking mobile app.

  • Conduct market research and analyze industry trends
  • Identify target market and potential customers
  • Evaluate competition and determine unique value proposition
  • Develop a clear business model and revenue streams
  • Determine necessary funding and create financial projections
  • Identify key team members and talent acquisition strategy
  • Research legal and regulatory requirements
  • Define marketing and sales strategies
  • Create a roadmap of milestones and goals for the business plan

Conduct Market Research And Analyze Industry Trends

Before building a business plan for your fintech mobile app, you should conduct thorough market research and analyze industry trends. This will help you understand the target market, customer needs and preferences, competitive landscape, and opportunities for growth.

Market research involves collecting and analyzing data about the market, including size, growth potential, segmentation, and trends. This information will help you determine the demand for your product, the competition, and the pricing strategy.

  • Use online surveys and focus groups to gather data from potential customers.
  • Conduct secondary research using industry reports, government statistics, and trade associations.
  • Analyze trends in technology, social media, and consumer behavior to stay ahead of the competition.

Industry trends refer to the broader developments impacting the fintech industry, such as regulatory changes, technological innovations, and new consumer preferences. Keeping abreast of these trends will help you identify opportunities and challenges for your business, as well as stay ahead of the competition.

  • Subscribe to industry publications and attend relevant conferences and seminars to stay informed.
  • Monitor regulatory changes and stay compliant with relevant laws and regulations such as GDPR, PSD2, and data protection laws by performing KYC and AML checks on your customer.
  • Watch out for emerging technologies such as AI, blockchain, and open banking, and explore their potential for your business.

Overall, conducting market research and analyzing industry trends is a crucial step in building a successful business plan for your fintech mobile app. It will help you identify opportunities and challenges, develop a clear value proposition, and make informed decisions about your target market, business model, and marketing strategy.

Identify Target Market And Potential Customers

Creating a mobile app for retail banking is a great business idea. However, it is essential to identify who your target market is and who your potential customers are before launching the app. Understanding your target market and potential customers are crucial steps towards building a successful fintech business.

Define Your Target Market

Defining your target market involves identifying a specific group of people who are most likely to use your app. Your target market should be well-defined, and your marketing strategies should align with this group’s preferences. Some factors you need to consider include age, gender, occupation, income, and location. Conduct research to determine the needs and preferences of your target market to build an app that meets their needs.

Identify Your Potential Customers

After defining your target market, you need to identify your potential customers. These are people who are most likely to download and use your app. Consider the characteristics of your target market to identify potential customers. For example, if your target market is college students, your potential customers might be those who use mobile apps for budgeting, or those who prefer to make digital transactions.

  • Create customer personas to better understand your target market and potential customers.
  • Use social media platforms like Facebook, Twitter and LinkedIn to find out where your potential customers spend their time online.
  • Conduct surveys and focus group studies to gather more information about your target market and potential customers.

Research Your Competition

Knowing your competition can help you understand their target market and potential customers. Analyze their marketing strategies, pricing models, and the features of their apps. This information can help you identify gaps in the market and areas where you can improve your app’s features.

In conclusion, identifying your target market and potential customers is an essential step in building a successful fintech business. Once you have defined your target market and identified your potential customers, you can create marketing campaigns that appeal to them specifically, ultimately driving engagement and growth for your business.

Evaluate Competition And Determine Unique Value Proposition

One major aspect of creating a successful business plan for fintech is identifying your competition and determining your unique value proposition. With so many options available in the market, it’s crucial to differentiate your app from others and offer something that customers can’t find anywhere else. This step requires thorough research and analysis of what other industry players are offering and what your target market wants.

When evaluating your competition, concentrate on the following aspects:

  • Product Offering: Analyze what your competitors are offering – what products and features do they have in their app? What benefits do they provide?
  • Pricing: Look at the pricing structure of your competitors. Determine how much they charge for their products and services.
  • Marketing Strategies: Evaluate how your competition promotes their products to customers. How are they differentiating themselves in their marketing materials?
  • User Experience: Look at their app and use it yourself. Determine what you like and dislike, what works and doesn't, and what you can do differently to improve the overall user experience.

Some tips to consider:

  • Don't limit yourself to direct competitors. Look at indirect competitors who might offer similar features or benefits to your app.
  • Know your target market and what they want. Different demographics will have different needs and preferences in financial apps.
  • Focus on your unique selling proposition – the one aspect of your app that sets it apart from the competition. Highlight this in your marketing materials and messaging.

After evaluating your competition, determine your unique value proposition – the one thing that makes your app better than the competition. It can be the combination of features, pricing, or marketing strategies that sets you apart. Your unique value proposition should be a short, compelling statement that tells customers why your app is better than others. This statement should be included in your pitch deck and throughout your marketing campaigns.

Creating a unique value proposition can be a challenging process, but it’s a crucial step in creating a successful fintech business plan. By doing thorough research and analysis, you'll be able to differentiate yourself from the competition and provide customers with something they can't find anywhere else.

Develop A Clear Business Model And Revenue Streams

Creating a business model and identifying revenue streams is an essential part of any successful fintech business and requires careful consideration. Here are some key steps to help you develop a clear business model and revenue streams:

  • Identify your target market: Understanding your target market is critical to the success of your business. Determine who your ideal customer is, their pain points, and how your mobile app can solve their problems and meet their needs.
  • Determine your pricing strategy: Determine how you will charge customers for your services and determine a pricing structure that is competitive and profitable for your business. Consider if you will charge a subscription fee, transaction fees, or a combination of both.
  • Assess your revenue streams: Identify all the opportunities for revenue generation for your business. Determine how you will optimize revenue through cross-selling, upselling, referral programs, and partnerships, among other options.
  • Develop a cost structure: It is important to understand the cost structure of your business, including expenses associated with development, marketing, customer acquisition, and operations. Determine how you will balance revenue and expenses to ensure profitability.
  • Identify key metrics: Identify the key metrics that you will use to measure the success of your business. These metrics might include monthly recurring revenue, customer acquisition cost, lifetime value, and churn rate.
  • Consider offering a free trial or introductory offer to attract new customers and encourage them to try your mobile app.
  • Explore partnerships with complementary businesses or financial service providers to expand your reach and offer additional services to your customers.
  • Continuously monitor and adjust your pricing and revenue model to ensure that it remains competitive and profitable in the market.

Developing a clear business model and revenue streams is critical to the success of any fintech business, especially in the crowded mobile banking market. It is important to carefully evaluate your target market, pricing strategy, and revenue streams to maximize revenue and ensure long-term profitability.

Determine Necessary Funding And Create Financial Projections

Once you have identified your target market, competition, and unique value proposition, it's time to determine the funding necessary to bring your mobile app for retail banking to life. Creating a solid financial projection is critical to secure investment from stakeholders and lenders. A comprehensive financial projection will provide estimates of revenue, expenses, and profits for a specific period, typically over three to five years.

  • Be realistic with your projections. Your financial projections are your promise to investors and stakeholders. Overstating your potential financial returns could backfire and demotivate potential investors.
  • Consider the potential costs and expenses. Don't just focus on projected revenue. Consider all the possible expenses you might incur in your business operations, including personnel, overhead costs, marketing, and legal fees.
  • Adapt your financial model to changes in economic conditions and industry trends. Be flexible in updating your business plan to reflect any changes in market conditions to mitigate any potential financial risks.

To create your financial projections, start by estimating your startup costs, such as legal fees, equipment, and marketing expenses, and divide these expenses over a three to five-year period. Identify your revenue streams, determining how you will generate revenue from your mobile app and projected growth over time.

Consider creating a revenue model based on user acquisition, including advertising, in-app purchases, and subscription-based fees. It may take time to acquire new users, so, when estimating your revenue, project a realistic timeline, factoring in your competitors and their market position.

Next, project your costs and expenses. Determine how many employees you will need and forecast their salaries and benefits. Determine the costs of running your mobile app, including development and maintenance costs. Be sure to factor in any costs for integrating with other financial service providers and any referral bonuses you plan to offer.

Once you have estimated your revenue streams and costs, it's time to calculate your profits. Subtract your expenses from your total revenue, and then project your profit over the next three to five years. This part of the financial projection is critical to securing investment from potential stakeholders and lenders, so be sure to show a clear path to profitability.

Remember that your financial projections are dynamic and should be updated regularly to reflect changes in market conditions, shifts in consumer behavior, and growth results over time. A comprehensive financial projection is a critical part of your business plan as it provides a roadmap to investors, potential stakeholders, employees, and partners on how you plan to grow your mobile app for retail banking.

Identify Key Team Members And Talent Acquisition Strategy

One of the most crucial aspects of building a successful business is identifying the right team members to help bring your vision to life. In the case of a fintech startup, it's essential to find individuals who have the necessary technical skills and experience in the financial industry. Therefore, identifying key team members and creating a talent acquisition strategy should be a top priority.

Identifying the right team members:

  • Look for individuals with relevant experience: When hiring for a fintech startup, it's essential to find individuals who have experience in the financial sector. Look for candidates who have knowledge of financial regulations, compliance, and security protocols that are crucial in the industry.
  • Look for technical expertise: In addition to financial knowledge, it's also essential to look for individuals with technical expertise. Look for individuals who are proficient in programming languages used in fintech such as Java, Python, and Ruby.
  • Cultural fit: It's essential to find individuals who share the startup's vision and values. Cultural fit is just as crucial as technical expertise and relevant experience.
  • Work with a recruiting agency or a consultant who specializes in fintech hiring to find the right candidates.
  • Network at industry events or meetups to find potential candidates with the right experience and skills.
  • Consider hiring interns or offering apprenticeships to train individuals in-house.

Talent acquisition strategy:

  • Define job roles and responsibilities: Define what roles and responsibilities are necessary for the business and the skills required for each position. It will help create clear job descriptions and find the right candidates.
  • Create a compensation and benefits package: Offer competitive compensation and benefits packages to attract top talent. Consider offering equity options or flexible work arrangements as a part of the benefits package.
  • Promote the startup's vision: Promote the startup's vision and values to attract candidates who share the same vision and values.
  • Use job boards such as LinkedIn, Indeed, or Glassdoor to post job openings.
  • Use social media platforms such as Facebook, Twitter, or LinkedIn to promote job openings and attract candidates.
  • Offer referral bonuses to employees who recommend qualified candidates for the job openings.

Identifying key team members and creating a talent acquisition strategy is a crucial step in building a successful fintech startup. Finding individuals with the right skills and experience and creating a culture that promotes the startup's vision and values will help drive success and growth.

Research Legal And Regulatory Requirements

Before launching a fintech business, it's crucial to research and understand the legal and regulatory requirements in the industry. A thorough understanding of these requirements is necessary to ensure that the business is compliant with the law and to avoid legal issues in the long run.

Below are some essential regulatory requirements for a fintech mobile app:

  • The app must comply with data protection and privacy regulations such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA).
  • The app must comply with anti-money laundering (AML) regulations to prevent money laundering and terrorist financing activities.
  • The app must comply with know-your-customer (KYC) regulations to verify the identity of its customers and ensure that they are not engaged in fraudulent activities.
  • The app must adhere to banking licenses and regulatory compliance, based on the country or region that it operates in.
  • Consult with a lawyer specialized in fintech and payments regulation to guide you on legal matters.
  • Stay up-to-date with regulatory updates and changes to prevent regulatory non-compliance and potential penalties.
  • Understand the legal implications of partnering with other financial service providers and regulators.

It's important to keep in mind that regulations and compliance requirements vary depending on the country and region of operation. Therefore, it's essential to research and understand the legal and regulatory requirements specific to the location where the fintech business will operate.

Being compliant with legal and regulatory requirements not only keeps the business in good standing with regulators and financial service providers but also builds customer trust and confidence in the fintech brand.

Define Marketing And Sales Strategies

Now that you've developed a clear business model and identified your target customers, it's time to develop your marketing and sales strategies. These strategies will define how you will attract and retain customers, and ultimately drive revenue for your business.

Identify Your Unique Selling Proposition (USP)

Before creating your marketing and sales strategies, it's important to identify your unique selling proposition (USP). Your USP is what sets you apart from your competitors and gives customers a reason to choose your mobile app for retail banking over others in the market. Once you've identified your USP, you should tailor your marketing and sales strategies to highlight it so that potential customers can easily understand the value of your offering.

  • Consider conducting customer surveys or focus groups to gain a better understanding of what customers are looking for in a mobile app for retail banking.
  • Create a catchy slogan that captures the essence of your offering and resonates with your target customers.

Digital Marketing Strategies

In today's digital age, it's important to leverage digital marketing strategies to reach your target customers and drive brand awareness. These strategies include search engine optimization (SEO), content marketing, social media marketing, email marketing, and pay-per-click (PPC) advertising. You should define which channels are most relevant to your target customers and develop a plan for how you will leverage them to attract and engage potential customers.

  • Consider partnering with social media influencers to promote your mobile app for retail banking to their followers.
  • Develop a blog that provides personal finance tips and leverages keywords related to your offering to improve SEO.

Offline Marketing Strategies

While digital marketing strategies are important, offline marketing strategies can also be effective in driving brand awareness and attracting customers. These strategies include events and sponsorships, print advertising, direct mail, and networking. You should determine which offline marketing strategies are most relevant to your target customers and develop a plan for how you will leverage them to attract and engage potential customers.

  • Partner with local businesses to offer discounts or bonuses to their customers who use your mobile app for retail banking.
  • Participate in personal finance events or conferences to network with potential customers and demonstrate the value of your offering.

Sales Strategies

Once you've attracted potential customers, it's important to have a sales strategy in place to convert them into paying customers. Your sales strategy should define how you will convert leads into customers and drive revenue for your business. This may include offering a free trial, providing demos of your mobile app for retail banking, or providing incentives for customers to refer others to your business.

  • Consider offering a referral program that provides discounts or incentives to customers who refer others to your mobile app for retail banking.
  • Ensure that your mobile app for retail banking has a user-friendly interface and offers excellent customer support to increase customer satisfaction and retention.

Create A Roadmap Of Milestones And Goals For The Business Plan.

A roadmap of milestones and goals is crucial for tracking the progress of your business plan and ensuring that you are on track to achieving your objectives. Developing a clear roadmap will also help you identify potential challenges and take proactive measures to address them.

The following are some tips to help you create a roadmap of milestones and goals for your fintech business:

  • Begin by breaking down your business plan into smaller, more manageable segments.
  • List the key tasks and deliverables required for each segment.
  • Assign clear timelines and responsible team members for each task and deliverable.

Once you have broken down your business plan into smaller segments, you can create a timeline of milestones and goals that align with your overall business plan objectives. This timeline should outline the key deliverables and tasks that you need to achieve within specific timelines.

It is important to regularly review your roadmap and adjust it as necessary to ensure that it remains realistic and aligned with the needs of your business. Regular reviewing helps you assess your progress and make necessary adjustments.

  • Include clear and measurable objectives in your roadmap of milestones and goals.
  • Ensure that your objectives align with your overall business plan.
  • Set target dates for achieving each of your objectives and regularly review and revise them.

Your roadmap of milestones and goals should not only outline the objectives that you hope to achieve but also include specific metrics that allow you to measure progress against those objectives. Ensure that you are clear regarding the metrics that you will use to measure your progress and adjust them if necessary.

In conclusion, a roadmap of milestones and goals is a critical component of the business plan for your fintech startup. By following the tips and best practices outlined above, you can develop a roadmap that helps you track your progress, achieve your objectives and overcome potential challenges along the way.

In conclusion, creating a business plan for a fintech startup, like a mobile banking app, requires careful consideration and planning. By following the 9 steps checklist outlined above, you can ensure that your business plan is thorough and well-developed. with a clear understanding of the market, competition, business model, funding needs, and regulatory requirements, you can establish a solid foundation for your fintech startup to succeed.

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Best practices for building a fintech company, from four startups

Insights to help you design, build, and grow a successful fintech company

  • Introduction

Examples of a fintech

1. identify a high-need and underserved audience, 2. solicit customer feedback to inform your product roadmap, 3. diversify your revenue streams, 4. determine the infrastructure you’re going to build on, 5. formalize your customer acquisition strategy, 6. test and iterate, how stripe can help.

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The advent of banking-as-a-service (BaaS) tools has significantly lowered the barrier to entry for founders to build new fintech companies or for businesses to embed financial services into their existing offerings. This allows companies to integrate financial services into their product experience, drastically reducing the development effort, product complexity, and regulatory burdens to offer loans, financial accounts, and card products.

With technology making it easier than ever to build a fintech company, there has been a surge of new companies and products entering the market, all aiming to offer financial services tailored to different users’ needs. However, while BaaS has reduced the overhead and complexity of building a fintech, software development and engineering is only one piece of building a new fintech business. Founders also need to think about product-market fit, monetization strategies, customer acquisition, and more.

This guide outlines some of the steps and best practices for businesses looking to build a successful fintech, focusing on fintechs that offer financial accounts and cards. We paired our internal knowledge with insights from fintech startups to help you design, build, and grow your business.

Fintech basics

A fintech is a business that offers any financial service—such as financial accounts, cards, or loans—and makes them accessible to their customers via software. It can refer to a “pure play” fintech business, where the core product offering is a financial service (e.g., a fintech whose primary offering is loans to small businesses). It can also refer to a business that embeds financial services into their platform to supplement their core offering (e.g., an appointment software tool for salons that also allows salon owners to process payments and spend on an expense card).

With the proliferation of companies building and offering financial services, determining whether a company is a fintech isn’t straightforward anymore. Because financial services play a larger role in the product and business strategy for many companies, more and more businesses today can be defined as a fintech.

There are a variety of ways you can offer financial services, including:

  • Becoming the primary banking relationship with users: The goal of these fintechs is to be the primary banking relationship for their customers, supplanting their existing banking relationships (if any). These businesses generally need to offer a wide range of financial offerings that meet all or most of a user’s financial needs, including checking and savings accounts, credit and debit cards, loans, and more.
  • Building a fintech point solution: Point-solution fintechs are focused on solving a targeted problem or need in financial services, differentiating their offering against existing offerings in some particular manner. Examples of this include making it easier to send money via remittances, increasing accessibility to capital via loans, enabling corporate expense management via cards, and more.
  • Developing financial infrastructure: These businesses improve and solve pain points with existing financial services infrastructure for other fintech businesses, which can range from providing compliance and security capabilities, payments and financial services infrastructure, and more. (Stripe is an example of a financial infrastructure business.)

Businesses building an expense card or spend management solution, such as Ramp , Emburse , and Brex , are examples of fintechs (specifically, fintech point solutions). These companies have built products that enable their business customers to easily facilitate, manage, and track corporate expenses made by their employees.

Traditionally, corporate expense management is a highly manual, resource-intensive, and error-prone process. Employees need to pay out of pocket for corporate expenses and then wait for reimbursements after filing their expense reports. Additionally, finance and accounting teams need to spend significant amounts of time managing expense report submissions, validating receipts, and managing expense reimbursements.

Modern expense management solutions provide businesses and their employees with virtual or physical cards that have specific spend controls in place, all while streamlining and automating the expense management and reimbursement process.

Expense management solutions are just one type of fintech business. The fintech landscape is vast and constantly evolving, and there are many other types of fintech businesses in the market, including neobanks and challenger banks, benefit disbursement cards, business-to-business (B2B) lending providers, remittance companies, bill payment tools, wealth management platforms, and many more. With all of these businesses, customers can access financial services directly within the fintech’s platform or product rather than needing to visit or interact with a traditional financial institution.

Key things to consider when building a fintech

We interviewed several fintech startups to learn how they identified their product offering and monetized it, how they built their technology infrastructure, and how they acquired their first customers. Here, we highlight their insights and anecdotes and share the key questions for your business to consider based on their learnings.

Traditional banks and financial institutions typically build general offerings for the entire market (as opposed to building products tailored for a specific audience). As a result, there are many underserved audiences who can’t easily access the financial services they need or leverage solutions tailored to their specific business needs. For example, only 48% of small businesses have access to all of the financing they require, and 33% of businesses were denied a line of credit because financial institutions determined that they didn’t have a sufficient credit history or were too new. Identifying high-need and underserved customers like these creates opportunities for your fintech to pursue and solve substantial problems.

Paperchain , an instant payments app for creators, identified a major source of friction for music creators. According to Paperchain, creators are the primary contributors to the $30 billion music streaming industry , but they often have issues with their cash flow, waiting up to 18 months for income payments. The same is also true for video streamers, influencers, and game and app developers, but Paperchain decided to specifically focus on music creators, believing Paperchain was best equipped to solve their pain points.

Two-thirds of Paperchain’s founders were music producers, giving them unique insights into their target audience because they had worked closely with other creators before and experienced their challenges firsthand. They knew that creators needed to invest in production and promotion, but they were often waiting for their next income check because of cash-flow constraints.

As a result, Paperchain built a fintech business focused on solving music producers’ biggest pain point by enabling them to get paid instantly via a digital wallet and card. Not only do their products specifically target creators, but Paperchain’s marketing strategy is also laser focused on their ability to best serve this high-need audience.

Image source: Paperchain website

Key questions for your business to consider:

  • Who is my target audience?
  • How big is this market or opportunity?
  • What are my potential customers currently using for financial services?
  • What are their financial pain points today? Where do they currently experience friction?

It is essential to have a deep understanding of your target audience as you build your core product. However, simply learning your potential customers’ pain points isn’t always enough to help you build the best fintech offering. Sending surveys and creating personas have value, but many times—especially when you’re starting out—the best course of action is to talk directly to customers to find out what they want you to build.

According to the Arc team, whose mission is to build the future of finance for startups, this meant engaging with “thousands of founders across the country.” Through one-on-one conversations, the team noted major pain points about the startup fundraising process: It takes “too much time,” is “incredibly distracting for founders who are already stretched too thin,” and “who you know [matters more] than how your business actually performs.” For founders seeking institutional capital, neither available option was ideal—they were forced to choose between traditional debt that “burdens startups with all-asset liens, covenants, transaction fees, and warrant coverage” and the “uncapped cost of dilution and loss of control” that comes with selling equity. As Arc added hundreds of paying customers to its platform, it soon uncovered a much larger pain point for these high-growth, early-stage companies. “The same distracting, offline, and manual processes that plague startup fundraising also persist across the B2B finance stack,” said the Arc team.

These insights, combined with the team’s mission to help startups grow, fueled Arc to create a vertically integrated financing, cash management, and insights platform. With Arc, startups can seamlessly “tap into their future revenue streams to access non-dilutive capital, deposit these funds into a virtual treasury account held by Evolve Bank (member FDIC), and instantly deploy spend to drive growth”—all via one digitally native account.

Image source: Arc website

  • How does my fintech offering solve my target user’s pain points?
  • How is my offering an improvement from their existing financial services?
  • Have I talked with potential users about my idea? Have I tested the idea with users?
  • What do users like and not like about my idea? Is there anything they think is missing?

Fintechs, like all other businesses, need to be profitable (or have a clear path to profitability). Depending on the type of fintech business you’re building, there are a variety of monetization levers available to control. Here are a few options:

  • Interchange: If you offer a card product, you may be able to keep a share of the interchange fees that are generated for every card transaction.
  • Lending: You can make money by offering loans and charging origination fees and interest.
  • Earn fees on funds held: If you allow customers to store funds, you can earn fees as a share of the funds held. You can capture this entire revenue, share it with the customer, or some combination of the two.
  • Subscription or service fees: Charge customers a recurring fee for subscription or membership plans in exchange for access to your offerings or services.
  • Mark up money movement services: Mark up the costs of various money movement services (e.g., accelerated access to funds, wire transfers, currency exchange, etc.).

Many fintechs leverage more than one of these revenue streams to diversify their income and improve the profitability of their business. They can also test different monetization strategies and see where the majority of their revenue comes from long term, adjusting their strategy accordingly. For example, Persona , a business management solution for self-employed professionals and independent business owners, has five revenue streams for their business:

  • Capturing a portion of the interchange fee from transactions on their Persona Visa card
  • Charging payment processing fees when businesses accept payments on their platform
  • Generating deposit fees from funds held in financial accounts on their platform
  • Charging fees for short-term financing
  • Offering affiliate deals with businesses where both Persona and their customers are compensated for specific purchases

Image source: Persona website

  • When am I going to start monetizing my offering? Will I start trying to generate revenue from the very start? Am I going to focus on acquiring users and evolving my product first before determining how I should monetize?
  • How can I monetize my offering in the long term? What monetization levers could I leverage?
  • What conditions and requirements are necessary for me to successfully monetize my offering?
  • What do the unit economics of my business look like?

Unit economics refers to the revenue and costs of your business on a per-unit basis (e.g., a customer) to determine your business’s profitability and overall financial health. An example of this would be evaluating your customer lifetime value (LTV) to customer acquisition cost (CAC) ratio, which determines how much revenue a customer brings in versus the costs needed to acquire the user.

A fintech doesn’t need to own the financial infrastructure or technology it is using (though it can certainly choose to do so). The vast majority of fintechs use a BaaS solution to help them build and go to market with their offering more quickly and easily. BaaS providers act as an intermediary between the fintech business and banks, providing the underlying infrastructure on which fintechs can build their financial products.

Once you’ve decided what you’re going to build, you need to decide how you’re going to build it. This is a key decision for any fintech, because it determines the underlying foundation of your product, and it will be costly to switch your infrastructure after you’ve started building.

There are two primary ways to build your fintech offering:

1. Work with a bank directly

Partnering with a bank gives you more control over your financial offering, since you’re building everything yourself. However, this also requires significantly more resources and investment, both to get started and to continually manage after launch. When working directly with a bank partner, you have to manage all elements of building a new financial service on your own. This includes managing the relationship with your banking partner, building core money storage and money movement infrastructure from scratch, handling compliance and regulatory requirements, and more—in addition to building your actual financial product.

2. Partner with a BaaS provider

Alternatively, you can partner with a BaaS provider that offers the core infrastructure necessary to build a new financial offering, absorbing most of the product and compliance complexity. The diagram below shows exactly how a BaaS provider takes on most of the responsibilities and brings bank services to fintechs at scale.

Working with a BaaS provider can drastically reduce your time to market so you can quickly find product-market fit and build differentiating features on top of core financial offerings. However, you aren’t able to customize your offering to the same extent that you can when working directly with a bank partner.

When you’re evaluating BaaS providers, you want to consider factors such as what capabilities they support (both now and planned for the future), their reliability, geographic availability, customer service, and more.

The route you choose will depend on what you’re prioritizing. You might identify that you want to build and scale quickly with a BaaS provider or build a more custom solution by partnering with a bank for more control.

Persona decided to work with a BaaS provider, because they didn’t have the resources to build banking infrastructure as a small startup. By working with a BaaS provider like Stripe, they could “rely on Stripe’s infrastructure, which enabled [them] to build a set of features that [they] couldn’t build otherwise.” Stripe also offered all of the capabilities their business needed at launch and might potentially need in the future. “The last thing you want is to select a vendor, start building, and then completely change your architecture when you need additional features,” said the team at Persona.

  • Do I have the engineering and development resources to build a fintech offering on my own?
  • Do I have a deep understanding of the financial ecosystem (e.g., Nacha Operating Rules, card BINs, fair lending laws, etc.)? Do I want to be responsible for navigating this?
  • How quickly am I trying to go live with my product?
  • What are all of the capabilities or functionalities that I need (or might need) for my long-term roadmap?

When evaluating BaaS providers:

  • Do they offer the capabilities I need today and capabilities I might need in the future?
  • Are they an established business in the fintech space? What other fintechs have they supported?
  • Do they have expertise in fintech? In compliance? In risk management and fraud prevention?
  • What level of support can they provide my business?

As with most new businesses, your marketing and go-to-market approach will play a significant role in determining your business’s success. You may be able to benefit from some organic adoption and word-of-mouth awareness, but you’ll need to have a formal user acquisition strategy to make sure that you grow your customer base.

Take advantage of the relevant marketing channels at your disposal to reach your target customers. Determine what channels and approaches will be most impactful for your specific audience, and continue to experiment with your marketing and awareness strategies to see what works best. Owned channels, such as emails, your blog, social media, your website, and your product dashboard, are free and easy to experiment with. Other channels, such as paid search, retargeting ads, or display ads, require more investment and a dedicated budget to successfully pursue.

The marketing teams at Arc, Paperchain, and Persona tested a variety of channels to see what was most effective for their respective businesses:

  • “Founders are adopting alternative financing at an accelerating rate in order to preserve ownership in the business they’ve worked so hard to build. Rather than giving up 5–10% of ownership prematurely, founders can unlock growth capital today by tapping into their future revenue streams and raise from a position of strength later when revenues are higher and the equity markets come back. Given the macro and the non-dilutive nature of Arc Advance, we’ve seen strong traction through word-of-mouth referrals from our existing customers. This has influenced our inbound and outbound marketing efforts as well as our messaging. Over the coming months (and years), we’ll continue to lean into customer highlights and serve as a resource for founders in the journey of growing their business.” —Arc
  • “Word of mouth has delivered 5,000 creators to our waitlist that we’re laser focused on unlocking. As we scale our onboarding process, we also leverage our B2B partners. We partnered with UnitedMasters [a major music distributor], and we have 100,000 artists wanting to use our app.” —Paperchain
  • “Our team has a background in performance marketing and user acquisition, so we leverage every major advertising platform for user acquisition campaigns and put a lot of time and effort into hyper-optimizing them for specific sub-niches of businesses. Partnerships with organizations such as vocational schools, trade unions, certificates, and such have been a great way for us to grow using their referrals.” —Persona

Your customers’ pain points and needs may evolve over time, so you should always be prepared to adapt and scale as needed. For example, the team at Karat was initially looking to build software that would help creators handle taxes, but it was met with a lukewarm reception. Karat found that their product wasn’t addressing creators’ immediate needs. When they would talk to their target audience, creators would always ask for a $5,000 or $10,000 loan up front to help them cover upcoming invoices, because they didn’t have the necessary working capital.

Based on this demand, Karat initially launched a merchant cash advance product to offer credit to creators, but they found that the product wasn’t resonating. They learned that a card product would provide creators with easy access to funding in a way that creators wanted. This led them to evolve their product again and build a business expense card product where they would provide financing for creators based on their revenue from different digital platforms. Their product today has processed over eight figures in transactions.

Similarly, the team at Persona found that being adaptable, especially when first building their product, was important to their startup.

“The first set of features that we set out with weren’t the ones that we ended up with,” said the team at Persona. Their app initially allowed users to process payments, but they found that their users were constantly asking for the ability to receive their funds immediately. Because of this user feedback and demand, their team prioritized building an Instant Pay feature for their platform.

“When you first go to market, that’s your learning period for what people actually want from your product and the capabilities they’re looking for,” said the Persona team.

Stripe is the easiest and most flexible way for companies to build and launch their own full-featured, scalable fintech—whether it’s payments, lending, cards, or bank account replacements. Stripe’s BaaS APIs, along with our entire ecosystem of financial infrastructure offerings, let businesses easily build a new fintech offering or embed financial services directly into their existing software.

Each of our BaaS products offers APIs that are building blocks you can combine in different ways, depending on what your customers need and what makes sense for your business.

  • Stripe Issuing enables you to instantly create, manage, and distribute virtual or physical cards. With Issuing, you can build fintech businesses such as expense management platforms; buy now, pay later (BNPL) financing; and more.
  • Stripe Treasury provides a flexible BaaS API to build a full-featured financial product for your customers, whether it’s a store and spend account or spend management offering. With Treasury, you have the core building blocks to create financial accounts, store funds, move money between parties, and attach cards for spending.
  • Stripe Capital enables you to provide fast and flexible financing to help your customers grow their businesses. Many businesses struggle to get the financing they need to scale their business, and Stripe removes that barrier with a complete lending program through a single integration.
  • Stripe Connect allows you to embed multiparty payments and offer a variety of financial services, like collecting payments from customers and paying out third parties. Platforms earn revenue by collecting fees for services provided.
  • Stripe Financial Connections lets your users securely connect their existing financial accounts and share their financial data with your platform.
  • Stripe Identity lets you programmatically confirm the identity of global users to comply with Know Your Customer (KYC) regulations.

Get in touch with our team to learn more about how you can use Stripe to build your fintech.

Visa® commercial credit cards are issued by Celtic Bank, a Utah-chartered industrial bank, member FDIC.

Stripe Treasury is provided by Stripe Payments Company, licensed money transmitter, with funds held at Evolve Bank & Trust and Goldman Sachs Bank USA, members FDIC.

Capital loans are issued by Celtic Bank, a Utah-chartered industrial bank, member FDIC. All loans subject to credit approval.

Ready to get started? Get in touch or create an account.

Create an account and start accepting payments—no contracts or banking details required. Or, contact us to design a custom package for your business.

5 Innovative FinTech Business Models (+Real Examples)

  • Updated on 29 Dec 2023

Fintech continues to disrupt traditional financial services with new innovations and business models.

Over the past decade, fintech startups have unleashed a wave of creativity, leveraging emerging technologies and meeting evolving consumer needs.

In this article, we will discuss five innovative fintech business models that are making a significant impact today.

We will explain how each model works and its unique value proposition and provide examples of companies implementing these approaches in the real world.

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Understanding FinTech Business Models

FinTech, a sector with about 26,000 active startups innovating financial technology solutions, is gradually getting competitive as more fintech startups emerge.

The financial expectations of the sector’s service users are also expanding; thus, newbies need to adopt an innovative business model to thrive.

What is a FinTech Business Model?

A FinTech business model is a plan for a financial technology business; this includes operating strategy, revenue sources, and intended customer base.

FinTech organizations generally adopt inclusive approaches to finance, enabling consumers to have apt access to a wide range of financial services and products.

Furthermore, these services and products are available across mobile devices and don’t require a convoluted sign-up process. So, what determines a suitable business model?

Factors that Determine the Right Business Model for Your Startup

Before choosing a FinTech operation model that can complement your startups’ goal, it’s sacrosanct that you first highlight the following factors.

After which, you should opt for a business model that aligns with them.

Now that you’re acquainted with what a business model is, and the factors to consider before choosing one.

Let’s go into a detailed discussion on the most prominent FinTech business models.

What a fintech business model is and what factors can be used to determine the right model for a startup

Most Prominent FinTech Business Models

As entrepreneurs, founders, and investors strive to synthesize revolutionary ideas for fintech startups , the list of 5 FinTech business models below can help to point out a suitable direction for your startup’s product.

1. Alternative Credit Scoring

An alternative credit score is a FinTech creation that helps borrowers determine lenders’ creditworthiness by using relatable, current, and easily available data such as their digital footprint.

This business model is valuable for FinTech companies willing to issue loans to individuals not properly captured by the traditional credit score system .

E.g., small business owners or private loans for college.

As a startup, you can request a wide range of alternative data and synchronize the result alongside some traditional records for a robust credit assessment.

Many FinTech companies are already using this FinTech business model in their financial product by developing credit applications , with some noteworthy examples being:  Nova Credit, Canopy, Cortera, etc.

Why You Should Own a Lending Platform that uses Alternative Credit Score Model

Here are some statistics suggesting that adopting an alternative credit score model would be an intelligent business move;

  • As of October 2020, it’s reported that as many as 45.1 percent of U.S.-based black consumers had subprime credit scores.
  • One out of ten Americans is considered to be “credit invisible.”

Owning a lending platform ranks among the most profitable ventures in the globe. However, for noteworthy profit, the statistics above show that it’s best to adopt an alternative credit scoring model as it helps to capture a greater audience pool.

Pros and Cons of Alternative Credit Score

Now that you have a concise idea of the intricacies of the alternative credit score business model let’s take a look at another FinTech business model.

The main inputs to FinTech's first business model - alternative credit rating

2. Alternative Insurance Underwriting

Traditional insurance underwriting determines insurance premiums based on some predetermined quantifiable factors. But, those components are often termed un-encompassing enough as they don’t capture non-quantifiable but important factors like exercising.

Let’s take, for example, two individuals of the same weight and height who don’t take alcohol and are non-smokers will likely get the same insurance policy value. However, one may be an exercise freak while the other spends most of his day on the couch, increasing his risk of diabetes.

To help capture an intending policy holder’s risk more effectively, alternative insurance underwriting captures both quantifiable and unquantifiable data like medical history, lifestyle, social signals.

Combined with self-learning and intelligent algorithms, Insurtech startups and insurance companies now have a smarter way to choose policyholders, provide better terms and conditions, and offer alternative payment options.

Some FinTech startups using this model to take a cue from include: Next Insurance, Clover Health, etc.

Why you Should Use this Model

As a startup with a penchant for quick growth, it’s imperative to adopt a business model that appropriately exemplifies your developmental strategy as a business.

By using this operation model, there’s a guarantee that you’ll appropriately weigh all scenarios and give policyholders the premium that they truly deserve.

Doing this, in turn, leads to a top-notch user experience and a high customer retention rate.

Customers will get premiums they feel that they truly deserve.

Pros and Cons of Alternative Insurance Underwriting

Before adopting this model, carefully weigh its pros and cons vis-a-vis a traditional alternative insurance underwriting.

Now that you have a fairer understanding of alternative insurance underwriting, let’s dig into another FinTech business model.

The determinants of the second FinTech operating model alternative insurance underwriting

3. Small Dollar Loans

It’s a common phenomenon to see banks and lenders reject applications for small-ticket loans due to its low margins and its relatively high cost of setting up and recovering those loans.

However, some FinTech companies adopt a business model that allows them to cater to this target market’s needs.

Some FinTech lending startups have crafted an effective impulse buy mechanism strategy.

This is a one-click buy now button that is placed on e-commerce websites to allow customers to make quick purchases through consumer loans without a need to enter their credit card details or some form of authentication.

These loans are often underwritten at a 0% interest, and consumers are given an option to make payments in scheduled installments.

As a startup interested in this business model, you can earn some profit by opting to request interest on your loans or by sharing customers’ data with the original equipment manufacturers.

An example of a FinTech company thriving with this business model is Upgrade.

Like every other model mentioned above, this strategy helps you target the market most traditional lenders shy away from exploring.

This business operating model is very easy for businesses to adopt as they’ll be getting valuable consumer data from your FinTech startup.

At the same time, consumers also enjoy easy access to cheap credit.

Pros and Cons of Small Ticket Loans

Here is a tabular depiction of the pros and cons of this method;

The third FinTech type - small ticket loans and its structural elements

4. Investment Management

Most consumers find it challenging to make investments and keep track of their assets accounts.

As a startup, you can take advantage of this business model by creating a wealth management platform that’ll enable investors to trade seamlessly from any location.

Trades are executed on an intuitively built trading application , and signals are sent to high-frequency traders that can influence asset prices.

Investors’ positions are executed instantaneously, and asset liquidation is carried out within a short duration.

Prominent examples of successful FinTech startups with this new business model are Robinhood, eToro, Betterment, etc.

Check out these statistics that suggest why you should use this model in the financial sector;

  • A recent study by Gallup shows that about 56% of the U.S. population invests in stocks, while a significant proportion of them are active traders.
  • Similar research conducted by the University of Chicago suggests that more than 16% of Americans invest in cryptocurrencies .

There’s no doubt that this FinTech business model will witness significant growth in the years to come.

Owning an investment solution puts your business in a perfect position to make noteworthy gains from the demand that’s poised to come.

To be profitable with this business model, your business may charge a profit for executed trades.

Pros and Cons of the Investment Business Model

Like any FinTech model, it also has its pros and cons to consider. Here are two distinct ones.

With the concise information we’ve detailed above, you now have an idea of what it takes to build an investment application . Let’s discuss another FinTech business model.

The basic elements of the fourth type of Fintech app development company - investment management

5. Digital Banking

This business model encompasses web-based services and a high level of automation that may include generating and integrating APIs that enable cross-institutional service for delivering banking services and financial transactions.

With this FinTech business model, users can now access financial data, initiate money transfers through mobile, smartphone, desktop, and ATM devices, and make payments via debit cards.

Some examples of FinTech using this initiative in the financial services industry are Alliant, Revolut, TransferWise, Venmo, PayPal, Stripe.

Why you Should Adopt a Digital Banking Business Model

There are multiple reasons to adopt this business model in the FinTech industry. However, let’s first consider some verifiable statistical pieces of evidence:

  • 78% of Americans use at least one digital banking product
  • Over 80 million people in Europe will use neobanks.
  • 31% of the world  population is unbanked.

From the statistical evidence above, it’s logical to conclude that digital banks have wide acceptance amongst consumers.

However, over 31% of the population is without a bank account.

With a digital bank, you can easily advertise yourself to those already acquainted with an online bank and the unbanked.

Include blockchain technology in your product to help you create a more secure ecosystem for your consumer base, thereby giving you an edge over other financial institutions.

Pros and Cons of Digital Banking Business Model

Here are some pros and cons to appropriately consider before opting for this business model;

With the apt understanding of the FinTech operating models you now have, let’s discuss some examples of small businesses that have adopted these models in the FinTech market.

The main advantages of the fifth Fintech app development company category - digital banking

FinTech Startup Business Models – 3 Real-World Examples

Some well-known startups such as Rupeek, Solarisbank, and Revolut are examples of FinTech companies thriving by adopting one or some of the business operating methods above. Read on!

Revolut’s Business Model

Revolut is a digital banking platform that builds a fair and frictionless platform for making transactions and managing money worldwide.

Essentially, it acts as bank alternatives for both businesses and people.

Revolut offers cost-effective international funds transfers and free global spending at the interbank exchange rate to attract a large customer base.

Another unique selling point for this FinTech is that users can easily open an account within 60 seconds.

Revolut also supports the use of crypto such as Bitcoin, Ethereum, etc. on its platform.

If you’re wondering how to buy cryptocurrency in Australia, you’ll be pleased to know that Revolut allows its users to trade and invest in various cryptocurrencies, including Bitcoin and Ethereum, on its platform.

How Revolut Makes Money

This platform makes money by collecting interest on loans issued.

The interest fee it charges depends on the customers’ credit score, loan sum, and length loan. An overdraft fee is also charged on late payments.

What to Learn From Revolut

Revolut understood that it was an underdog compared to traditional banks when it started operating; thus, the startup offered prospective users incentives such as feeless transaction, top-notch exchange rate, and fast account opening process.

A detailed description of the Revolut business model, which is one example of a Fintech app development company

Solarisbank’s Business Model

Solarisbank is a German banking-licensed technology company that generates APIs for other FinTech products.

This FinTech service provider has mastered the technical and regulatory complexities of banking to deliver an apt user experience.

Solaris is quite distinct from other digital banks as they only offer APIs to innovators in need of trustworthy partnerships for online banking platforms, payment systems, and payment gateways while moving away from online payment application development partners

How Solarisbank Make Money

Solarisbank gets its revenue from its clients as they pay to make use of the startup’s APIs. The tech giant also collects interchange fees on card transactions.

What to Learn from Solarisbank

Due to the over-saturation of the B2C banking space, the company decided to create solutions that can empower prospective digital banking to function with ease.

The detailed characteristics of the Solarisbank business model, which is one of the successful examples of fintech app development company

Rupeek’s Business Model

Rupeek is India’s foremost asset-backed lending platform. The platform helps Indians access credit most fairly and conveniently possible. The company recently made the news for pioneering innovative solutions that can be instrumental in monetizing India’s $2 trillion gold.

How Rupeek Make Money

Rupeek makes money from the interest it charges on its loan. Due to its strategy of reducing its overall cost, they offer interest at the best rate obtainable.

What to Learn from Rupeek

Rupeek gives consumers gold loans at the doorstep to complete the loan underwriting-to-disbursal process in less than an hour. This innovation puts the company in a niche of its own.

The detailed characteristics of the Rupeek business model, which is one of the successful examples of fintech app development company

Turn FinTech Ideas Into Reality

As we explored, many innovative FinTech business models are disrupting finance. But an idea needs the right execution.

Our engineers and designers have decades of experience building digital financial products for major banks, startups, and more.

We can guide you from idea validation to launch and beyond:

  • Architecting scalable cloud platforms
  • Integrating financial data sources
  • Ensuring banking-grade security
  • Crafting intuitive user experiences
  • Launching an MVP to validate your concepts

Contact us today if you have a promising FinTech model needing expert implementation. Our team is ready to turn your vision into reality.

Our CEO, Max, has an impressive 11-year background in SaaS development. His strong analytical skills have played a critical role in driving the company's growth and success in the highly competitive tech landscape.

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business plan fintech pdf

Fintechs: A new paradigm of growth

Over the past decade, technological progress and innovation have catapulted the fintech sector from the fringes to the forefront of financial services. And the growth has been fast and furious, buoyed by the robust growth of the banking sector, rapid digitization, changing customer preferences, and increasing support of investors and regulators. During this decade, fintechs have profoundly reshaped certain areas of financial services with their innovative, differentiated, and customer-centric value propositions, collaborative business models, and cross-skilled and agile teams.

As of July 2023, publicly traded fintechs represented a market capitalization of $550 billion, a two-times increase versus 2019. 1 F-Prime Fintech Index. In addition, as of the same period, there were more than 272 fintech unicorns, with a combined valuation of $936 billion, a sevenfold increase from 39 firms valued at $1 billion or more five years ago. 2 Dealroom.co; McKinsey analysis.

In 2022, a market correction triggered a slowdown in this explosive growth momentum. The impact continues to be felt today. Funding and deal activity have declined across the board, and there are fewer IPOs and SPAC (special purpose acquisition company) listings, as well as a decline in new unicorn creation. The macro environment also remains challenging and uncertain. In such a scenario, fintechs are entering a new era of value creation. The last era was all about firms being experimental—taking risks and pursuing growth at all costs. In the new era, a challenged funding environment means fintechs can no longer afford to sprint. To remain competitive, they must run at a slower and steadier pace.

About the authors

This report is a collaborative effort by Lindsay Anan, Diego Castellanos Isaza, Fernando Figueiredo, Max Flötotto , André Jerenz, Alexis Krivkovich , Marie-Claude Nadeau , Tunde Olanrewaju , Zaccaria Orlando, and Alessia Vassallo, representing views from McKinsey’s Financial Services Practice.

In this report, we examine how fintechs can continue to grow in strength and relevance for customers, the overall financial ecosystem, and the world economy, even in disruptive times. Based on research and interviews with more than 100 founders, fintech and banking executives, investors, and senior ecosystem stakeholders, we have identified key themes shaping the future of fintechs. To help fintechs capitalize on these themes, we also provide a framework for sustainable growth, based on an analysis of the strategies used by long-established public companies that have weathered previous economic cycles.

Fintech growth then and now

The fintech industry raised record capital in the second half of the last decade. Venture capital (VC) funding grew from $19.4 billion in 2015 to $33.3 billion in 2020, a 17 percent year-over-year increase (see sidebar “What are fintechs?”). Deal activity increased in tandem, with the number of deals growing 1.2 times over this period.

What are fintechs?

We define fintech players as start-ups and growth companies that rely primarily on technology to conduct fundamental functions provided by financial services, thereby affecting how users store, save, borrow, invest, move, pay, and protect money. For the analysis of this report, we included the following fintech sectors: daily banking; lending; wealth management; payments; investment banking and capital markets; small and medium-size enterprise (SME) and corporate services; operations; and infrastructure (including embedded finance, and banking as a service). The analysis excluded cryptocurrency, decentralized finance, and insurtech.

The industry fared even better in 2021, thriving on the backs of the pandemic-triggered acceleration in digitization and a financial system awash with liquidity. Funding increased by 177 percent year over year to $92.3 billion, and the number of deals grew by 19 percent.

The funding surge proved to be a one-off event. Funding levels in 2022 returned to long-term trend levels as inflated growth expectations from the 2021 extraordinary results were reanchored to business-as-usual levels, and as deteriorating macroeconomic conditions and geopolitical shocks destabilized the business environment. The correction caused fintech valuations to plummet. Many private firms faced down rounds, and publicly traded fintechs lost billions of dollars in market capitalization. VC funding was hit hard globally and across sectors, dropping to $459.6 billion in 2022 from $683.1 billion in 2021. Fintech funding faced a 40 percent year-over-year funding decline, down from $92 billion to $55 billion. Yet, when analyzed over a five-year period, fintech funding as a proportion of total VC funding remained fairly stable at 12 percent, registering only a 0.5 percentage point decline in 2022.

Looking ahead, the fintech industry continues to face a challenging future, but there are several opportunities yet to be unlocked. Investors are adapting to a new financial paradigm with higher interest rates and inflation, which has altered their assessment of risk and reward. At the same time, the once-in-a-generation technology revolution under way is generating more value creation opportunities. Our research shows that revenues in the fintech industry are expected to grow almost three times faster than those in the traditional banking sector between 2022 and 2028. Compared with the 6 percent annual revenue growth for traditional banking, fintechs could post annual revenue growth of 15 percent over the next five years.

McKinsey’s research shows that revenues in the fintech industry are expected to grow almost three times faster than those in the traditional banking sector between 2023 and 2028.

These trends are also coinciding with—and in many ways catalyzing—the maturation of the fintech industry. Based on our research and interviews, three themes will shape the next chapter of fintech growth. First, fintechs will continue to benefit from the radical transformation of the banking industry, rapid digital adoption, and e-commerce growth around the world, particularly in developing economies. Second, despite short-term pressures, fintechs still have room to achieve further growth in an expanding financial-services ecosystem. And finally, not all fintechs are being hit equally hard during the market correction: fintechs in certain verticals and at particular stages of growth are more resilient than their peers.

Radical transformation of the banking industry

Banking is facing a future marked by fundamental restructuring. As our colleagues wrote recently, banks and nonbanks are competing to fulfill distinct customer needs in five cross-industry arenas in this new era: everyday banking, investment advisory, complex financing, mass wholesale intermediation, and banking as a service (BaaS). 3 Balázs Czímer, Miklós Dietz, Valéria László, and Joydeep Sengupta, “ The future of banks: A $20 trillion breakup opportunity ,” McKinsey Quarterly , December 20, 2022.

At the same time, macro tailwinds are powering the growth of fintechs and the broader financial-services ecosystem. Digital adoption is no longer a question but a reality: around 73 percent of the world’s interactions with banks now take place through digital channels.

Moreover, retail consumers globally now have the same level of satisfaction and trust in fintechs as they have with incumbent banks. 4 McKinsey Retail Banking Consumer Survey, 2021. In fact, 41 percent of retail consumers surveyed by McKinsey in 2021 said they planned to increase their fintech product exposure. The demand—and need—for fintech products is higher across developing economies. In 2022, for example, Africa had almost 800 million mobile accounts, almost half of the whole world’s total. 5 The state of the industry report on mobile money , GSM Association, April 2023.

B2B firms’ demand for fintech solutions also is growing. In 2022, 35 percent of the small and medium-size enterprises (SMEs) in the United States considered using fintechs for lending, better pricing, and integration with their existing platforms. And in Asia, 20 percent of SMEs leveraged fintechs for payments and lending. 6 McKinsey 2022 US SMB Banking Survey, 2022 (n = 955).

To capitalize on this demand, fintechs will need to keep up with fast-evolving regulations and ensure they have adequate resources and capacity to comply. Some European Union member states, such as Ireland, are bringing buy-now-pay-later providers under the scope of financial regulation. 7 Miroslav Đurić and Verena Ritter-Döring, “Regulation of buy-now-pay-later in the EU: New regime on the horizon,” Law Business Research, February 8, 2023. Meanwhile, the US Consumer Financial Protection Bureau aims to issue a proposed rule around open banking this year that would require financial institutions to share consumer data upon consumers’ requests. 8 Farouk Ferchichi, “The US is one step closer to making open banking a reality,” Finextra, January 19, 2023. This would make it necessary for fintechs to ensure they have the available resources and capacity to respond to these requests.

A nascent industry in an expanding ecosystem

The banking industry generated more than $6.5 trillion in revenues in 2022, with year-over-year growth in volume and revenue margins. 9 “ McKinsey’s Global Banking Annual Review ,” McKinsey, December 1, 2022. Given the fintech market dynamics, this suggests there is still plenty of room for further growth in both public and private markets.

In 2022, fintechs accounted for 5 percent (or $150 billion to $205 billion) of the global banking sector’s net revenue, 10 Net revenue equals revenue after risk minus direct costs. according to our analysis. We estimate this share could increase to more than $400 billion by 2028, 11 Estimate based on historical growth at regional level and expert inputs from regional leaders in the banking industry (for example, forecast of roughly 80 percent 2021–22 revenue increase in Latin America). representing a 15 percent annual growth rate of fintech revenue between 2022 and 2028, three times the overall banking industry’s growth rate of roughly 6 percent (Exhibit 1).

Emerging markets will fuel much of this revenue growth. Fintech revenues in Africa, Asia–Pacific (excluding China), Latin America, and the Middle East represented 15 percent of fintech’s global revenues last year. We estimate that they will increase to 29 percent in aggregate by 2028. On the other hand, North America, currently accounting for 48 percent of worldwide fintech revenues, is expected to decrease its share to 41 percent by 2028.

While fintech penetration in emerging markets is already the highest in the world, its growth potential is underscored by a few trends. Many of these economies lack access to traditional banking services and have a high share of underbanked population. Fintechs have had some success in addressing these unmet needs. In Brazil, for example, 46 percent of the adult population is said to be using Nubank, a fintech bank in Latin America—double the share two years ago. 12 Oliver Smith, “Nubank turns $141m profit in Q1 as Brazilian market share nears 50%,” AltFi, May 16, 2023.

Moreover, while the market cap of private fintech companies has increased substantially over the past decade, the sector’s penetration of the public market remains small. 13 Michael Gilroy, Chase Packard, and Leslie Wang, Fintech and the pursuit of the prize: Who stands to win over the next decade? , Coatue, October 24, 2022. In the eight years leading up to October 2022, 44 modern fintechs (those that were founded in 1999 or later and went public after 2014) did an IPO, creating a combined market cap of $0.3 trillion. In contrast, during the same period, there were more than 2,500 legacy public financial-services companies (whose average year of founding was 1926) with a combined market cap of $11.1 trillion. 14 Michael Gilroy, Chase Packard, and Leslie Wang, Fintech and the pursuit of the prize: Who stands to win over the next decade? , Coatue, October 24, 2022.

Not all fintech businesses are created (or funded) equal

Last year was turbulent for fintechs, but there were differences in the fundraising performance of firms based on maturity and segments.

Maturity stage

Companies in the growth stage (series C and beyond) showed the highest sensitivity to last year’s funding downturn, with a sharp year-over-year funding decline of 50 percent. Meanwhile, fintechs in the early seed and pre-seed stages were more resilient and increased funding by 26 percent year over year (Exhibit 2). This funding outperformance of firms in the early and pre-seed stages was a consequence of the longer time to maturity, which gives start-ups more time to get through periods of economic uncertainty and recover any losses before an eventual sale.

Funding for B2B fintech segments last year was more resilient than for those in B2C, with smaller funding declines (Exhibit 3). The two B2B verticals that were least affected were (1) BaaS and embedded finance and (2) SME and corporate value-added services. These two verticals recorded year-over-year funding declines of 24 and 26 percent, respectively. In contrast, funding for payments-focused fintechs dropped 50 percent. Even then, payments and lending received the largest shares of total fintech funding.

Funding for B2B segments grew at more than 25 percent annually between 2018 and 2022, driven by an increasing number of businesses adopting off-the-shelf solutions provided by digital-native firms (including payments, open banking, and core banking technology) to address challenges arising from using legacy banking infrastructure—for example, limited flexibility, slower speed, and high costs.

Many businesses continue to rely on legacy banking infrastructure that limits flexibility and speed and can often be more costly. To address these challenges, businesses are benefiting from using off-the-shelf solutions provided by digital natives for services such as payments, open banking, and core banking technology.

For BaaS and embedded finance, demand is led by customer-facing businesses looking to control their users’ end-to-end experience. Meanwhile, SMEs have been underserved by traditional financial-services providers, despite the fact they represent about 90 percent of businesses and more than 50 percent of employment worldwide. 15 “Small and medium enterprises (SMEs) finance,” The World Bank, accessed October 10, 2023. And in developing countries, the finance gap for micro, small, and medium-size enterprises (MSME) is estimated to be approximately $5 trillion, or 1.3 times the current level of MSME lending. 16 “MSME finance gap,” IFC, accessed October 10, 2023. Fintech firms have successfully addressed some of SMEs’ needs worldwide, especially in developing countries.

The path to sustainable growth

The current churn in the markets makes it prudent for fintechs to define their next move carefully. After all, they are operating in a much different environment than in years past. In their hypergrowth stage, fintechs had access to capital that allowed them to be bold in their business strategy. They could make revenue generation their foremost objective; profits were expected to follow.

The narrative has shifted since last year. The time between funding rounds for fintechs increased by more than five months from the first to the fourth quarter of 2022. The average value of funding rounds decreased by 50 percent over the same period. 17 “SVB’s challenges will accelerate valuation down rounds, startup mortality, and layoffs,” CB Information Services, March 15, 2023. These changes are forcing fintechs to find newer ways to extend runways and adjust their operating models to make decreasing amounts of cash last longer.

The days of growth at any cost are behind the industry, for now at least. In a liquidity-constrained environment, fintechs and their investors are emphasizing profitability, not just growth in customer adoption numbers or total revenues. “In the past, the reward went to fintechs that showed growth at all costs, which led to healthy valuations,” said one Africa-based growth equity investor. “Now it is about the sustainability of the business, the addressable market, and profitability.”

In a liquidity-constrained environment, fintechs and their investors are emphasizing profitability, not just growth in customer adoption numbers or total revenues.

So how can fintechs get on a path of sustainable, profitable growth?

In 2019, McKinsey conducted an in-depth study of the growth patterns and performance of the world’s 5,000 largest public companies over the preceding 15 years. The researchers’ analysis identified ten rules for value-creating growth. 18 Chris Bradley, Rebecca Doherty, Nicholas Northcote, and Tido Röder, “ The ten rules of growth ,” McKinsey, August 12, 2022. According to the research, companies that set growth strategies addressing all available pathways to growth were 97 percent more likely to achieve above-peer profitable growth. 19 “ Choosing to grow: The leader’s blueprint ,” McKinsey, July 7, 2022.

This set of rules adopted by public companies that have lived through economic cycles and periods of uncertainty can also be useful for fintechs as they transition to a sustainable growth model. Based on our analysis of these rules and interviews with more than 40 fintech industry leaders, we expect four pathways to deliver the most impact for fintechs.

Cost discipline

When fintechs had access to abundant cash and funding was easy, they placed more emphasis on growing rapidly than on managing costs. Targeted cost savings have become a bigger priority today, as fintechs seek ways to lower expenses and achieve profitability while maintaining customer satisfaction and pursuing customer growth and acquisition. Our research has found that 50 percent of public fintechs (following their IPO) were profitable in 2022. And the key differentiator between profitable and nonprofitable fintechs was cost management, not revenue growth (Exhibit 4). While both categories recorded year-over-year revenue growth of 13 percent, profitable fintechs posted a median 3 percent decrease in costs. Nonprofitable fintechs, in contrast, saw costs rise by 27 percent, which affected their profit margins.

Successful implementation of cost management efforts is the key for fintechs in their next phase of evolution. Several leaders are already making moves: 60 percent of our survey respondents said their firms are significantly managing costs. An executive at an African mobile payments firm said they are now negotiating every cost and making sure the firm is thinking for the long run.

Consider the example of the Indian fintech company Paytm, which specializes in digital payments and financial services. The firm had had a target of achieving breakeven by September 2023 but was able to achieve this six months ahead of schedule. It did so through disciplined cost management, revenue growth across businesses, and a business model with strong operating leverage. 20 “Our discipline in cost management sustains and grows profitability,” Paytm, February 20, 2023.

While fintechs establish a clear focus on costs, they should also consider adjusting how they operate, thereby creating a more agile and flexible organization that can deal with the current environment. Around 80 percent of the interviewed fintechs report that they are currently making changes to their operating models. Of these, 66 percent cite a focus on profitability and a sustainable cost structure as being among their top three reasons. Such adjustments to the operating model are most sustainable when institutions also reinforce the control functions to protect customers and stay on top of regulatory changes.

A shift from hypergrowth to sustainable growth would also result in a greater focus on strong unit economics. To do this, fintechs ensure that the profitability view is embedded across the business. For example, assessment of the value of adding new customers would evolve from efficiency-only metrics such as the customer acquisition cost (CAC) to a more holistic approach. In this example, one way to embed profitability into acquisition investment and decision making is to compare the CAC with the projected lifetime value (LTV) of a customer, using the LTV/CAC ratio to assess the marginal return on investment for acquiring every new customer. In Latin America, for example, 68 percent of fintechs self-reported an LTV/CAC greater than five, which indicates a potential for fintechs to increase spending and further fuel growth without sacrificing profitability.

Measured growth

As leaders develop growth strategies, an important question is where growth should come from. Fintechs can grow sustainably by taking three steps: building a strong core, expanding into adjacent industries and geographies, and shrinking to grow. Identifying which steps will be most accretive to growth will depend on the unique circumstances of each fintech; some might find value in pursuing all three steps, while others could choose to focus on one. Regardless of the circumstances, this decision will have greater longer-term consequences in the current environment, compared with the earlier high-funding phase.

Focus on building a strong core as a precursor for expansion

The first step in cracking the growth code involves focusing on the local market and developing a healthy core business. According to our research, companies that focus on their core business and have a strong home market are 1.6 times more likely to generate peer-beating returns. 21 Chris Bradley, Rebecca Doherty, Tido Röder, and Jill Zucker, “ Growth rules: Which matter most? ,” McKinsey, March 6, 2023.

For fintechs, the key will be to relentlessly focus on growth in their core business. As a North American fintech executive told us: “It’s a bit of back to basics. On a core product or offering, 18 to 24 months ago, you would have built additional pieces on it to upsell and cross-sell. Now, we’re looking to double down on the core business and make sure it’s a stable, viable operation.”

To do this, fintechs must tailor their value propositions to their focus markets. Let’s take the example of B2C fintechs. Our recent research (McKinsey’s Retail Banking Consumer Survey and Global Banking Pools ) quantified the potential drivers for growth at B2C fintechs. Cross-selling will likely drive growth for fintechs in emerging economies, while those in developed countries will likely see greater growth from capturing new customers. Around 72 percent of revenue growth for companies in Brazil, for example, is expected to come from cross-selling, in contrast with 25 percent and 30 percent for the United Kingdom and the United States, respectively, with the remaining growth coming from new customers (Exhibit 5). There is arguably less potential for new-customer development in developing economies, given their high fintech penetration.

Across the competitive landscape, as markets are highly heterogenous, a dedicated strategy for each region is recommended. For example, our analysis found that in the United Kingdom and the United States, fintech revenue share is split almost equally between incumbent digital banks and pure fintech players. In contrast, digital incumbents in Germany and pure fintech players in Brazil could dominate banking’s revenue share in their respective markets.

Expand into adjacent segments and geographies

After building a strong core, fintechs can consider expanding into other segments and geographies as a second source of growth. According to our previously published research, companies that do so are 1.2 to 1.3 times more likely to generate sizable returns than peers that focus solely on their core. 22 Chris Bradley, Rebecca Doherty, Tido Röder, and Jill Zucker, “ Growth rules: Which matter most? ,” McKinsey, March 6, 2023.

Today, however, expansion is no longer a must-do strategy. It may be most advantageous for companies that have strong footholds in their core markets and can use some competitive or ownership advantage to expand elsewhere. The key is to pursue measured, value-creating growth. A case in point is OPay, which started as a mobile money platform in Nigeria and has since expanded across financial-services verticals. OPay now offers peer-to-peer payments and merchant and card services.

Shrink to grow

Fintechs are moving from hypergrowth to sustainable growth, but that growth may not necessarily be consistent across all parts of the business. If fintechs divest from underperforming parts of their portfolios and scale back from regions recording limited growth, they can reinvest that capital into high-performing segments—a strategy we call “shrinking to grow.” In our research, companies that use this approach are 1.4 times more likely to outperform their peers.

“In the past, many fintechs expanded geographically, even if it didn’t make much sense,” an executive at a Latin American fintech told us. “Now they will have to focus on their profitable segment and geography and stop expanding where they are not.”

Some fintechs have been deliberate about using a shrink-to-grow strategy, changing track if an expansion strategy did not materialize as expected or the local market had more potential for growth. German robo-adviser Scalable Capital, for example, announced plans to discontinue its Swiss operations as of 2020 to focus on other markets because the implementation of the Financial Services Act in Switzerland would have required the company to manage two regulatory frameworks simultaneously. Meanwhile, Wealthsimple, a Canadian online investment platform, exited from the United Kingdom and the United States in 2021 to concentrate on its local retail market and expand its product portfolio into new financial-services areas. Similarly, in late 2020, San Francisco–based fintech LendingClub shut down its retail peer-to-peer platform called Notes to focus on other products.

Programmatic M&A

Many companies will conclude they can achieve the steps outlined in this report—launching new features, building new capabilities, and pivoting toward new revenue streams and segments—more swiftly through thoughtful acquisitions and partnerships than by relying on pure organic development. Fintech firm Block, for example, completed its acquisition of the buy-now-pay-later platform Afterpay in January 2022 to accelerate its strategic priorities for its seller and cash app ecosystems. 23 “Block, Inc. completes acquisition of Afterpay,” Block, January 31, 2022. Nearly 60 percent of fintech executives in our survey told us they are considering an acquisition in the next 18 months.

Moreover, with IPO and SPAC (special purpose acquisition company) activity slowing considerably since last year, many fintechs that might otherwise go public are turning to private markets for funding. Take the example of the British fintech Zopa, which intended to list by 2022 but eventually decided to put IPO plans on hold in response to challenging market conditions. In the interim, the firm has been raising capital from its shareholders, including $92 million in February. 24 “Zopa raises £75 million,” Zopa Bank Limited, February 1, 2023.

M&A transactions increase significantly during periods of economic uncertainty, when they also tend to deliver higher returns. During the global financial crisis, around 45 percent of banking M&A deals showed positive excess two-year total shareholder returns (TSR) between 2007 and 2009. 25 As of the year of the deal’s announcement. In comparison, less than 30 percent of banking deals posted positive excess two-year TSR between 2010 and 2020. 26 McKinsey Fintech Quarterly Radar, Q1 2023. Across industries, companies actively making acquisitions worth 10 percent or more of their market cap in total had an average TSR of 6.4 percent between January 2007 and January 2008, compared with −3.4 percent for the less active companies. 27 Brian Salsberg, “The case for M&A in a downturn,” Harvard Business Review , May 2020.

However, not all M&As are successful. Many fail to create value due to contrasting values and cultures, mismatched product–market fit, and inflated revenue forecasts in the pursuit of customer engagement and growth at all costs.

Keeping the culture alive

What has made fintechs so disruptive over the years? The answer lies largely in their ability to innovate and differentiate. Since fintechs are not as encumbered by legacy systems and processes, they can be more agile in using emerging technologies to anticipate and solve customer needs. Typically, they also have a customer-centric and collaborative approach to deliver innovation with cross-skilled teams.

Innovations have happened across fintech verticals. Neobanks like Chime and Monzo, designed around a simple and intuitive user experience, have changed assumptions about the role of branches in traditional retail banking. In the United Kingdom, for example, the total number of bank and building society branches fell by 40 percent between 2012 and 2022. 28 Lorna Booth, Statistics on access to cash, bank branches and ATMs , House of Commons, September 1, 2023. Robo-advisers such as Wealthfront and Nutmeg disrupted the traditional wealth management industry by offering low-cost, accessible alternatives to individuals lacking access to personalized financial advice. Funding Circle introduced the peer-to-peer lending concept to the financial sector, bypassing traditional banks (which had owned this relationship) and enabling direct lending between parties.

Incumbents are fast catching up with these innovations by ramping up investments in new technologies. Around 94 percent of banks in a recent survey said they plan to invest more in modern payments technology to support end user demand for better payment capabilities over the next two to three years. Of these, 65 percent said they intend to make significant or moderate levels of investment. 29 “94% of banks eyeing investment in modern payment tech, to keep pace with fintech innovation,” Finastra press release, March 8, 2023. Many incumbents are also partnering with BaaS platforms to overhaul their digital capabilities. Examples include Fifth Third Bank’s acquisition of Rize Money in May 2023 and NatWest Group’s partnership with Vodeno Group in October 2022 to create a BaaS business in the United Kingdom.

Generative AI and the future of banking

Artificial intelligence (AI) technologies are increasingly integral to the world we live in, and investors are taking notice. Generative AI is among the advanced technologies for which investments are accelerating, thanks to its potential to transform business. According to McKinsey research published in June 2023, generative AI could add the equivalent of $2.6 trillion to $4.4 trillion annually  across as many as 63 use cases.

Generative AI’s impact on the banking industry will be significant, delivering benefits beyond existing applications of AI in areas such as marketing. As our colleagues have written, this technology could generate an additional $200 billion to $340 billion annually in value, arising from around 2.8 to 4.7 percent increase in the productivity of banking’s annual revenues—if the use cases are fully implemented. 1 “ The economic potential of generative AI: The next productivity frontier ,” McKinsey, June 14, 2023. For fintech, we expect a commensurate impact, if not more, given the already high exposure to tech.

Generative AI’s impact—and resulting reinvention—will span three broad categories:

  • Automation. Half of today’s work activities could be automated between 2030 and 2060, according to McKinsey estimates. 2 “ The economic potential of generative AI: The next productivity frontier ,” McKinsey, June 14, 2023. Fintech firm Intuit, for example, has introduced a generative AI operating system on its platform. Its custom-trained large language financial models specialize in solving tax, accounting, cash flow, and personal finance challenges, among others. 3 “Intuit introduces generative AI operating system with custom trained financial large language models,” Intuit press release, June 6, 2023.
  • Augmenting and enhancing productivity to do work more effectively. Generative AI could enable labor productivity growth of 0.1 to 0.6 percent annually through 2040, depending on the rate of technology adoption and redeployment of workers’ time to other activities. Morgan Stanley is building an AI assistant using GPT-4 to help the organization’s wealth managers quickly find and synthesize answers from a massive internal knowledge base. 4 “Morgan Stanley Wealth Management announces key milestone in innovation journey with OpenAI,” Morgan Stanley press release, March 14, 2023.
  • Acceleration. Organizations can use generative AI to extract and index knowledge to shorten innovation cycles, thereby enabling continuous innovation.

To capture these opportunities, fintechs need an ecosystem of capabilities and partners that will allow them to move fast. First movers will accrue competitive advantage as they build their capabilities and mobilize with a focus on value, rather than rushing to deliver pilots. To do this, fintechs should consider investing more in people and change management, given generative AI’s unique potential to influence the future of work. Fintechs could think about developing a medium- to longer-term talent strategy and find ways to emphasize change management and adoption. Fintechs that delay building their capabilities risk becoming the disrupted instead of the disruptors.

To retain their competitive advantage, fintechs must continue to innovate. The next big disruptor is always around the corner. Technologies like generative AI are predicted  to revolutionize the competitive landscape of finance over the next decade (see sidebar “Generative AI and the future of banking”). WeBank’s CFO Arthur Wang is one executive who appreciates the urgency. He told us, “Even though our bank has been around for almost eight years, we consider ourselves a start-up. We’re always exploring better fintech technology. WeBank’s strategy is to provide better, more inclusive financial services—to the mass population as well as small and medium-size enterprises—with leading technology. We do business 100 percent online, so we rely on technology.” 30 See “ Making financial services available to the masses through AI ,” McKinsey, August 9, 2022.

A tight labor market has also made it more challenging for fintechs to attract and hire tech talent. Our survey uncovered a shift in the perception of fintechs as riskier employers. As a Europe-based fintech executive told us: “Fintechs are less attractive now because it is clearer that it is a ‘high risk’ job compared with established institutions. On the other hand, large fintechs are laying off, which can create a new pool of talents to attract.”

In such an environment, fintechs must work toward strengthening their culture and mission and, consequently, their hiring strategy. One European payments fintech, for example, has differentiated strategies based on the profile of open roles. An executive at the firm says it has been easier to recruit people for junior roles, since these workers are more eager to join a growing organization. “It is a different story with experienced profiles—for example, management team or 35-plus years—where recruiting is more difficult and retention is crucial,” he said. To attract such people, the firm offers stock options and other incentive packages. Meanwhile, an Africa-based payments and remittances fintech casts a more global net: “We hire globally, regardless of location, gender, or race,” an executive told us. “We have no quotas and try to just find the best person for each role.”

The fintech industry is undergoing a sea change, so players will have to evolve to survive. Approaches will vary, depending on each fintech’s maturity level and its vertical and geographic focus. The framework for sustainable growth, described in this report, provides a strong foundation:

  • Measured growth based on a stable core. Ensure there is a strong and stable core business with a targeted and proven market fit before expanding, rather than trying to grow while strengthening the core.
  • Programmatic M&A. Pursue M&A strategically and establish mutually beneficial partnerships based on a programmatic strategy rooted in value sharing (with incumbents and other fintechs), as opposed to pursuing M&A only as a response to a low-valuation environment.
  • Cost discipline. Control costs to withstand the new funding environment while remaining flexible, nimble, and compliant.
  • Keep the culture alive. Maintain the agility, innovation, and culture that have been the bedrock of disruption so far.

Decisions taken today will likely set the pace for fintechs over the mid to long term. The present conditions therefore call for a careful evaluation and focused implementation.

Lindsay Anan is an alumna of McKinsey’s San Francisco office, where Alexis Krivkovich and Marie-Claude Nadeau are senior partners; Diego Castellanos Isaza is a consultant in the London office, where Fernando Figueiredo is a partner and Tunde Olanrewaju is a senior partner; Max Flötotto is a senior partner in the Munich office; André Jerenz is a partner in the Hamburg office; and Zaccaria Orlando and Alessia Vassallo are associate partners in the Milan office.

The authors wish to thank Sonia Barquin, François Dorléans, Carolyne Gathinji, Eitan Gold, Carolina Gracia, Sheinal Jayantilal, Uzayr Jeenah, Yelda Kayik, Mayowa Kuyoro, Marina Mansur, Farid Minnikhanov, Bharath Sattanathan, Rinki Singhvi, and Katharine Watson for their contributions to this report.

This report was edited by Arshiya Khullar, an editor in the Gurugram office.

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Here's why Capital One is buying Discover in the biggest proposed merger of 2024

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  • Capital One's recently announced $35.3 billion acquisition of Discover Financial is a bid to protect itself against a rising tide of fintech and regulatory threats.
  • The deal, if approved, enables Capital One to leapfrog JPMorgan as the biggest credit card company by loans, and solidifies its position as the third largest by purchase volume.
  • But it's Discover's payments network — the "rails" that shuffle digital dollars between consumers and merchants, collecting tolls along the way — that is key to understanding this deal.

In this article

Capital One's recently announced $35.3 billion acquisition of Discover Financial isn't just about getting bigger — gaining "scale" in Wall Street-speak — it's a bid to protect itself against a rising tide of fintech and regulatory threats.

It's a chess move by one of the savviest long-term thinkers in American finance, Capital One CEO Richard Fairbank . As a co-founder of a top 10 U.S. bank by assets, his tenure is a rarity in a banking world dominated by institutions like JPMorgan Chase that trace their origins to shortly after the signing of the Declaration of Independence.

Fairbank, who became a billionaire by building Capital One into a credit card giant since its 1994 IPO, is betting that buying rival card company Discover will better position the company for global payments' murky future. The industry is a dynamic web where players of all stripes — from traditional banks to fintech players and tech giants — are all seeking to stake out a corner in a market worth trillions of dollars by eating into incumbents' share amid the rapid growth of e-commerce and digital payments.

"This deal gives the company a stronger hand to battle other banks, fintechs and big tech companies," said Sanjay Sakhrani, the veteran KBW retail finance analyst. "The more that they can separate themselves from the pack, the more they can future-proof themselves."

The deal , if approved, enables Capital One to leapfrog JPMorgan as the biggest credit card company by loans, and solidifies its position as the third largest by purchase volume. It also adds heft to Capital One's banking operations with $109 billion in total deposits from Discover's digital bank and helps the combined entity shave $1.5 billion in expenses by 2027.

'Holy Grail'

But it's Discover's payments network — the "rails" that shuffle digital dollars between consumers and merchants, collecting tolls along the way — that Fairbank repeatedly praised Tuesday when analysts queried him on the strategic merits of the deal. There are only four major card networks: giants Visa and Mastercard , then American Express and finally the smallest of the group, Discover.

"That network is a very, very rare asset," Fairbank said. "We have always had a belief that the Holy Grail is to be able to be an issuer with one's own network so that one can deal directly with merchants."

From the time of Capital One's founding in the late 1980s, Fairbank said, he envisioned creating a global digital payments tech company by owning the payment rails and dealing directly with merchants. In the decades since, Capital One has been ahead of stodgier banks, gaining a reputation in tech circles for being forward-thinking and for its early adoption of cloud computing and agile software development.

But its growth has relied on Visa and Mastercard, which accounted for the vast majority of payment volumes last year, processing nearly $10 trillion in the U.S. between them.

Capital One intends to boost the Discover network, which carried $550 billion in transactions last year, by quickly switching all of its debit volume there, as well as a growing share of its credit card flows over time.

By 2027, the bank expects to add at least $175 billion in payments and 25 million of its cardholders onto the Discover network.

Owning the toll road

The true potential of the Discover deal, though, is what it allows Capital One to do in the future if it owns the toll road, according to analysts.

By creating an end-to-end ecosystem that is more of a closed loop between shoppers and merchants, it could fend off competition from rapidly mutating fintech players like Block and PayPal , as well as buy now, pay later firms like Affirm and Klarna, who have made inroads with both businesses and consumers.

Capital One aims to deepen relationships with merchants by showing them how to boost sales, helping them prevent fraud and providing data insights, Fairbank said Tuesday, all of which makes them harder to dislodge. It can use some of the network fees to create new loyalty plans, like debit rewards programs, or underwrite merchant incentives or experiences, according to analysts.

"Owning a network allows us to deal more directly with merchants rather than a network intermediary," Fairbank told analysts. "We create more value for merchants, small businesses and consumers and capture the additional economics from vertical integration."

It's a capability that technology or fintech companies probably covet. The Discover network alone would be worth up to $6 billion if sold to Alphabet, Apple or Fiserv , Sakhrani wrote Tuesday in a research note.

Will regulators approve?

The Capital One-Discover combination could fortify the company against another potential threat — from Washington.

Proposed legislation from Sen. Dick Durbin, D-Ill., aims to cap the fees charged by Visa and Mastercard, potentially blowing up the economics of credit card rewards programs. If that proposal becomes law, the competitive position of Discover's network, which is exempt from the limitations, suddenly improves, according to  Brian Graham , co-founder of advisory firm  Klaros Group. That mirrors what an earlier law known as the  Durbin amendment did for debit cards.

"There are a bunch of things aimed, in one way or another, at the card networks and that ecosystem," Graham said. "Those pressures might be one of the things that creates an opportunity for Capital One in the future if they have control over this network."

The biggest question for Capital One, its customers and investors is whether the merger will ultimately be approved by regulators. While Fairbank said he expects the deal to be closed in late 2024 or early 2025, industry experts said it was impossible to know whether it will be blocked by regulators, like a string of high-profile takeovers among banks, airlines and tech companies.

On Tuesday, Democratic Sen. Elizabeth Warren of Massachusetts urged regulators to swiftly block the deal, calling it "dangerous." Sen. Sherrod Brown, D-Ohio, chairman of the Senate Banking Committee, said he would be watching the deal to "ensure that this merger doesn't enrich shareholders and executives at the expense of consumers and small businesses."

The Discover deal's survival may hinge on whether it's seen as boosting an also-ran payments network, or allowing an already-dominant card lender to level up in size — another reason Fairbank may have played up the importance of the network.

"Which thing you are more concerned about will define whether you think this is a good deal or a bad deal from a public policy point of view," Graham said.

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comscore

Artificial Intelligence Computing Leadership from NVIDIA

Press Release Details

Nvidia announces financial results for fourth quarter and fiscal 2024.

  • Record quarterly revenue of $22.1 billion, up 22% from Q3, up 265% from year ago 
  • Record quarterly Data Center revenue of $18.4 billion, up 27% from Q3, up 409% from year ago
  • Record full-year revenue of $60.9 billion, up 126%

SANTA CLARA, Calif., Feb. 21, 2024 (GLOBE NEWSWIRE) -- NVIDIA (NASDAQ: NVDA) today reported revenue for the fourth quarter ended January 28, 2024, of $22.1 billion, up 22% from the previous quarter and up 265% from a year ago.

For the quarter, GAAP earnings per diluted share was $4.93, up 33% from the previous quarter and up 765% from a year ago. Non-GAAP earnings per diluted share was $5.16, up 28% from the previous quarter and up 486% from a year ago.

For fiscal 2024, revenue was up 126% to $60.9 billion. GAAP earnings per diluted share was $11.93, up 586% from a year ago. Non-GAAP earnings per diluted share was $12.96, up 288% from a year ago.

“Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations,” said Jensen Huang, founder and CEO of NVIDIA.

“Our Data Center platform is powered by increasingly diverse drivers — demand for data processing, training and inference from large cloud-service providers and GPU-specialized ones, as well as from enterprise software and consumer internet companies. Vertical industries — led by auto, financial services and healthcare — are now at a multibillion-dollar level.

“NVIDIA RTX, introduced less than six years ago, is now a massive PC platform for generative AI, enjoyed by 100 million gamers and creators. The year ahead will bring major new product cycles with exceptional innovations to help propel our industry forward. Come join us at next month’s GTC, where we and our rich ecosystem will reveal the exciting future ahead,” he said.

NVIDIA will pay its next quarterly cash dividend of $0.04 per share on March 27, 2024, to all shareholders of record on March 6, 2024.

Q4 Fiscal 2024 Summary

Fiscal 2024 Summary

Outlook NVIDIA’s outlook for the first quarter of fiscal 2025 is as follows:

  • Revenue is expected to be $24.0 billion, plus or minus 2%.
  • GAAP and non-GAAP gross margins are expected to be 76.3% and 77.0%, respectively, plus or minus 50 basis points.
  • GAAP and non-GAAP operating expenses are expected to be approximately $3.5 billion and $2.5 billion, respectively.
  • GAAP and non-GAAP other income and expense are expected to be an income of approximately $250 million, excluding gains and losses from non-affiliated investments.
  • GAAP and non-GAAP tax rates are expected to be 17.0%, plus or minus 1%, excluding any discrete items.

NVIDIA achieved progress since its previous earnings announcement in these areas: 

Data Center

  • Fourth-quarter revenue was a record $18.4 billion, up 27% from the previous quarter and up 409% from a year ago. Full-year revenue rose 217% to a record $47.5 billion.
  • Launched, in collaboration with Google, optimizations across NVIDIA’s data center and PC AI platforms for Gemma , Google’s groundbreaking open language models.
  • Expanded its strategic collaboration with Amazon Web Services to host NVIDIA ® DGX™ Cloud on AWS.
  • Announced that Amgen will use the NVIDIA DGX SuperPOD ™ to power insights into drug discovery, diagnostics and precision medicine.
  • Announced  NVIDIA NeMo™ Retriever , a generative AI microservice that lets enterprises connect custom large language models with enterprise data to deliver highly accurate responses for AI applications. 
  • Introduced NVIDIA MONAI™ cloud APIs to help developers and platform providers integrate AI into their medical-imaging offerings. 
  • Announced that Singtel will bring generative AI services to Singapore through energy-efficient data centers that the telco is building with NVIDIA Hopper™ architecture GPUs.
  • Introduced plans with Cisco to help enterprises quickly and easily deploy and manage secure AI infrastructure.
  • Supported the National Artificial Intelligence Research Resource pilot program , a major step by the U.S. government toward a shared national research infrastructure.
  • Fourth-quarter revenue was $2.9 billion, flat from the previous quarter and up 56% from a year ago. Full-year revenue rose 15% to $10.4 billion.
  • Launched GeForce RTX™ 40 SUPER Series GPUs , starting at $599, which support the latest NVIDIA RTX™ technologies, including DLSS 3.5 Ray Reconstruction and NVIDIA Reflex.
  • Announced generative AI capabilities for its installed base of over 100 million RTX AI PCs, including Tensor-RT™ LLM to accelerate inference on large language models, and Chat with RTX, a tech demo that lets users personalize a chatbot with their own content.
  • Introduced microservices for the NVIDIA Avatar Cloud Engine , allowing game and application developers to integrate state-of-the-art generative AI models into non-playable characters.
  • Reached the milestone of 500 AI-powered RTX games and applications utilizing NVIDIA DLSS, ray tracing and other NVIDIA RTX technologies.

Professional Visualization

  • Fourth-quarter revenue was $463 million, up 11% from the previous quarter and up 105% from a year ago. Full-year revenue rose 1% to $1.6 billion.
  • Announced adoption of NVIDIA Omniverse ™ by the global automotive-configurator ecosystem.
  • Announced the NVIDIA RTX 2000 Ada Generation GPU , bringing the latest AI, graphics and compute technology to compact workstations.
  • Fourth-quarter revenue was $281 million, up 8% from the previous quarter and down 4% from a year ago. Full-year revenue rose 21% to $1.1 billion.
  • Announced further adoption of its NVIDIA DRIVE ® platform , with Great Wall Motors, ZEEKR and Xiaomi using DRIVE Orin™ to power intelligent automated-driving systems and Li Auto selecting DRIVE Thor™ as its centralized car computer.

CFO Commentary Commentary on the quarter by Colette Kress, NVIDIA’s executive vice president and chief financial officer, is available at https://investor.nvidia.com .

Conference Call and Webcast Information NVIDIA will conduct a conference call with analysts and investors to discuss its fourth quarter and fiscal 2024 financial results and current financial prospects today at 2 p.m. Pacific time (5 p.m. Eastern time). A live webcast (listen-only mode) of the conference call will be accessible at NVIDIA’s investor relations website, https://investor.nvidia.com . The webcast will be recorded and available for replay until NVIDIA’s conference call to discuss its financial results for its first quarter of fiscal 2025.

Non-GAAP Measures To supplement NVIDIA’s condensed consolidated financial statements presented in accordance with GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP other income (expense), net, non-GAAP net income, non-GAAP net income, or earnings, per diluted share, and free cash flow. For NVIDIA’s investors to be better able to compare its current results with those of previous periods, the company has shown a reconciliation of GAAP to non-GAAP financial measures. These reconciliations adjust the related GAAP financial measures to exclude acquisition termination costs, stock-based compensation expense, acquisition-related and other costs, IP-related costs, other, gains and losses from non-affiliated investments, interest expense related to amortization of debt discount, and the associated tax impact of these items where applicable. Free cash flow is calculated as GAAP net cash provided by operating activities less both purchases related to property and equipment and intangible assets and principal payments on property and equipment and intangible assets. NVIDIA believes the presentation of its non-GAAP financial measures enhances the user’s overall understanding of the company’s historical financial performance. The presentation of the company’s non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the company’s financial results prepared in accordance with GAAP, and the company’s non-GAAP measures may be different from non-GAAP measures used by other companies.

About NVIDIA Since its founding in 1993, NVIDIA (NASDAQ: NVDA) has been a pioneer in accelerated computing. The company’s invention of the GPU in 1999 sparked the growth of the PC gaming market, redefined computer graphics, ignited the era of modern AI and is fueling industrial digitalization across markets. NVIDIA is now a full-stack computing infrastructure company with data-center-scale offerings that are reshaping industry. More information at https://nvidianews.nvidia.com/ .

Certain statements in this press release including, but not limited to, statements as to: demand for accelerated computing and generative AI surging worldwide across companies, industries and nations; our Data Center platform being powered by increasingly diverse drivers, including demand for data processing, training and inference from large cloud-service providers and GPU-specialized ones, as well as from enterprise software and consumer internet companies; vertical industries led by auto, financial, services and healthcare now at a multibillion-dollar level; NVIDIA RTX becoming a massive PC platform for generative AI enjoyed by 100 million gamers and creators; the year ahead bringing major new product cycles with exceptional innovations to help propel our industry forward; our upcoming conference at GTC, where we and our rich ecosystem will reveal the exciting future ahead; NVIDIA’s next quarterly cash dividend; NVIDIA’s financial outlook and expected tax rates for the first quarter of fiscal 2025; the benefits, impact, performance, features and availability of NVIDIA’s products and technologies, including NVIDIA AI platforms, NVIDIA DGX Cloud, NVIDIA DGX SuperPOD, NVIDIA NeMo Retriever, NVIDIA MONAI cloud APIs, NVIDIA Hopper architecture GPUs, NVIDIA GeForce RTX 40 SUPER Series GPUs, NVIDIA DLSS 3.5 Ray Reconstruction, NVIDIA Reflex, NVIDIA TensorRT-LLM, Chat with RTX, microservices for the NVIDIA Avatar Cloud Engine, NVIDIA DLSS, ray tracing and other NVIDIA RTX technologies, NVIDIA Omniverse, NVIDIA RTX 2000 Ada Generation GPU, NVIDIA DRIVE platform, NVIDIA DRIVE Orin and NVIDIA DRIVE Thor; and our collaborations with third parties are forward-looking statements that are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: global economic conditions; our reliance on third parties to manufacture, assemble, package and test our products; the impact of technological development and competition; development of new products and technologies or enhancements to our existing product and technologies; market acceptance of our products or our partners’ products; design, manufacturing or software defects; changes in consumer preferences or demands; changes in industry standards and interfaces; and unexpected loss of performance of our products or technologies when integrated into systems, as well as other factors detailed from time to time in the most recent reports NVIDIA files with the Securities and Exchange Commission, or SEC, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. Copies of reports filed with the SEC are posted on the company’s website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.

© 2024 NVIDIA Corporation. All rights reserved. NVIDIA, the NVIDIA logo, GeForce, GeForce RTX, NVIDIA DGX, NVIDIA DGX SuperPOD, NVIDIA DRIVE, NVIDIA DRIVE Orin, NVIDIA DRIVE Thor, NVIDIA Hopper, NVIDIA MONAI, NVIDIA NeMo, NVIDIA Omniverse, NVIDIA RTX and TensorRT are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and/or other countries. Other company and product names may be trademarks of the respective companies with which they are associated. Features, pricing, availability and specifications are subject to change without notice.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/38343cb8-8bc8-42b0-aa76-e3d280ae5507

business plan fintech pdf

NVIDIA Corporate Offices

business plan fintech pdf

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IMAGES

  1. Craft a Winning Fintech Business Plan: Proven Sample for Success

    business plan fintech pdf

  2. A Complete Guide to Fintech Payments Business Model

    business plan fintech pdf

  3. Votre Business Plan Fintech (35 pages) à télécharger

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  4. Fintech Business Plan Financial Model Excel Template

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  5. Consolidated business model canvas of FinTech startups

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  6. What Is A Fintech Business Model? Fintech Business Model Examples

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VIDEO

  1. Investor Roadmap Workshop

  2. Diversification 5.0 Masterclass

  3. Introduction to Business Finance

  4. Newrgy IMEX 2024 Strategic Plan: Leading the Global FinTech Frontier

  5. Update Fintoch V3.0.1 Full Mining FTC

  6. Fintoch Blockchain Real Or Fake

COMMENTS

  1. Fintech Startup Business Plan [Sample Template]

    Below is a sample fintech startup business plan template that can help you write your own business plan with little or no stress. A Sample Fintech Startup Business Plan Template 1. Industry Overview

  2. A Sample Fintech Startup Business Plan Template

    A Sample Fintech Startup Business Plan Template Fintech, which is also known as financial technology, is the technology that aims to compete with traditional financial methods in the delivery of financial services. It is an emerging industry that uses technology to improve activities in finance.

  3. Craft a Winning Fintech Business Plan: Proven Sample for Success

    Fintech Business Plan $59.00 $39.00 ADD TO CART Refund & Terms Instant Download, Editable on MAC & PC Resources On Fintech Financial Model Value Proposition One-Page Business Plan SWOT Analysis Business Model (0) (0) (0) (0) C 02/04/2023 Carlos Tommasetti BUSINESS PLAN

  4. How to write a business plan for a fintech business?

    What information is needed to create a business plan for a fintech business? How do I build a financial forecast for a fintech business? The written part of a fintech business business plan What tool should I use to write my fintech business business plan? what resources (human, equipment, and capital) are needed to get there,

  5. Master Fintech Success: Write a Winning Business Plan in 9 Steps

    Canvas According to Statista, the global fintech market is expected to reach a value of USD 309.98 billion by 2022, growing at a CAGR of 24.8% between 2018 and 2022. If you're planning to start a fintech business, a well-crafted business plan is essential to help you navigate the complex industry landscape.

  6. Business Plan for Fintech start ups -simplified and explained

    This detailed article sketch out innovative Business plan for Fintech firm using various tools , models and analysis and explains underlying tech used like AI , ML , Blockchain, Cloud

  7. Best practices for building a fintech company, from four startups

    A fintech is a business that offers any financial service—such as financial accounts, cards, or loans—and makes them accessible to their customers via software. It can refer to a "pure play" fintech business, where the core product offering is a financial service (e.g., a fintech whose primary offering is loans to small businesses).

  8. Fintech Business Models

    Inside this Super Guide, you'll discover: - How Fintech companies are different from traditional banks - How Fintech companies make money - The financial benefits of the Fintech business model - Career options, salaries and job outlook in the industry - How to value a Fintech startup and more! Take a look inside! Featured excerpt: "Although the fintech business models have gained ...

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    Fintech Financial Model Excel Template used to evaluate startup ideas, plan startup pre-launch expenses, and get funded by banks, angels, grants, and VC funds. Unlocked - edit all - last updated in Sep 2020. Solid package of print-ready reports, including a fintech projected p&l statement, cash flow statement by month, a startup valuation ...

  10. PDF Business Models and Sustainability Plans in the FinTech, InsurTech, and

    Business Models and Sustainability Plans in the FinTech, InsurTech, and PropTech Industry: Evidence from Spain Javier Sada Bittini 1, Salvador Cruz Rambaud 2,*, Joaquní López Pascual 3 and Roberto Moro-Visconti 4 1 Department of Professional Orientation, Instituto de Estudios Bursátiles (IEB), C/ Alfonso XI, 6, 28014

  11. PDF So, you want to be a bank?

    Disruptors and innovators in the financial services field, so-called "fintech companies," are facing important strategic decisions and perhaps opportunities regarding the next phase of their development. As we approach 2019, fintech companies are internally asking: Does my business plan have long-term viability?

  12. Create a Tech Startup Business Plan: 199+ Business Plan Templates

    1. Begin your company overview section by describing what your business specializes in and the technology behind it. This part of the company overview is intended to give readers and investors a general idea of your business. 2. Next, proceed to explain the nature of the industry and marketplace. 3.

  13. PDF Fintech and the Future of Finance

    The technology-enabled innovation in financial services—known as fintech— is one such example, accelerating rapidly as pandemic shutdowns amplified its importance for maintaining business activity and financial services during a time of social distancing. Every day, headlines attest to the seismic shifts that fintech is bringing to the

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    of the home-sharing market; and the characteristics and trends of the FinTech sector in Spain. • Business plan: this project's starting point is Comillas Emprende contest, in which Coabit was awarded with the 3rd prize, for the development of its business plan. An elevator pitch was recorded by the members of Coabit team, including this

  15. PDF Fintech and the digital transformation of financial services

    Fintech refers to digital technologies that have the potential to transform the provision of financial services spurring the development of new - or modify existing - business models, applications, processes, and products. In practice, the term "fintech" is also broadly used to denote the ongoing wave of new DFS. Examples of these

  16. 5 Innovative FinTech Business Models in 2024 (+Real Examples)

    Updated on 29 Dec 2023 10 min Max Babych CEO Fintech continues to disrupt traditional financial services with new innovations and business models. Over the past decade, fintech startups have unleashed a wave of creativity, leveraging emerging technologies and meeting evolving consumer needs.

  17. FinTech Business Plan

    Financial Model Financial technology companies that wish to successfully enter the market should have a feasible financial model. This means having a financial model that is both scalable and with a budget that makes sense. Some financial technology companies have subscription based revenue model, while others have a pay per use model.

  18. PDF Fintech Strategy Roadmap

    the plan on an ad-hoc basis between annual reviews. Those same processes should apply to fintech projects—if a fintech project rises to the level of business materiality that would generally require board approval and inclusion in the strategic plan, the fintech project should be approved by the board and incorporated into the strategic plan

  19. PDF Fintech: Ecosystem, business models, investment decisions, and challenges

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  20. The future of fintech growth

    We define fintech players as start-ups and growth companies that rely primarily on technology to conduct fundamental functions provided by financial services, thereby affecting how users store, save, borrow, invest, move, pay, and protect money. For the analysis of this report, we included the following fintech sectors: daily banking; lending; wealth management; payments; investment banking ...

  21. Fintech Company Go To Market Strategy Plan Template

    Download and personalize the fintech company go-to-market strategy plan template now, ... download as PDF with bleed marks. For regular printing, download as image (JPG or PNG) or PDF without bleeds marks. ... From marketing plans and project plans to complete business plan templates, these documents are designed by professionals and contain ...

  22. PDF 2017

    on the opportunities. KPMG's Global Fintech practice comprises of partners and staff in over 50 fintech hubs around the world, working closely with financial institutions and fintech companies, to help them understand the signals of change, identify the growth opportunities and to develop and execute on their strategic plans. Twitter

  23. PDF Regulating fintech financing: digital banks and fintech platforms

    New technologyis -enabled business models related to deposit-taking, credit intermediation and capital-raising have emerged. These are digital banking, fintech balance sheet lending and crowdfunding platforms (the latter two are referred to as fintech platform financing)In this paper, we provide a cross. -country overview of the regulatory

  24. Why Capital One is buying Discover in the biggest merger yet of 2024

    Capital One's recently announced $35.3 billion acquisition of Discover Financial is a bid to protect itself against a rising tide of fintech and regulatory threats. The deal, if approved, enables ...

  25. PDF 2024 Draft Business Plan

    2024 Draft Business Plan • Required by PUC Section 185033 » Every two years (even years) • 2022 Business Plan » Included limited updates to forecasts at the time » COVID impacted release date of final 2020 Business Plan to 2021, so the 2022 updates were more limited • 2023 Program Update Report (PUR)

  26. NVIDIA Announces Financial Results for Fourth Quarter and Fiscal 2024

    Record quarterly revenue of $22.1 billion, up 22% from Q3, up 265% from year ago Record quarterly Data Center revenue of $18.4 billion, up 27% from Q3, up 409% from year ago Record full-year revenue of $60.9 billion, up 126% SANTA CLARA, Calif., Feb. 21, 2024 (GLOBE NEWSWIRE) - NVIDIA (NASDAQ: NVDA) today reported revenue for the fourth quarter ended January 28, 2024, of $22.1 billion, up 22% ...

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    SAN JOSE, Calif., Feb. 21, 2024 - Intel Corp. (INTC) today launched Intel Foundry as a more sustainable systems foundry business designed for the AI era and announced an expanded process roadmap designed to establish leadership into the latter part of this decade. The company also highlighted customer momentum and support from ecosystem ...