6 Detailed Steps to Start a SaaS FinTech Company in 2024

A fintech or Financial Technology company provides software and technological solutions for businesses and customers who require automation of financial services.

Fintech companies can provide solutions that include banking, payment and investment services or solve other financial problems that may arise.

Fintech startups usually depend on technology to address the needs of their customers in the financial aspect with a primary goal of competing with or replacing the traditional primary services already available to consumers.

One should note that a fintech company is not the same as a bank. Not every company that starts as a fintech is meant to become a bank in future years.

Steps to Follow to Build a Fintech SaaS Company

01. Consider the regulation of the targeted Country

Both banking businesses and fintech services usually have to follow various regulations. Therefore, it is more than important that you have proper knowledge of this complex industrial sphere’s dos and don’ts. Some important ones are:

1. This sphere includes all limitations and regulations, such as authoritative law, legal matters, and regulatory requirements. In countries like the USA, fintech regulations include several policies such as anti-money laundering (AML) and the well-known know-your-customer (KYC) requirements. Moreover, after the implementation of the General Data Protection Regulation or GDPR, all businesses that connect and interact with customers’ data are under supervision.
2. Apart from these policies, businesses must strictly adhere to the PCI DSS.
3. Those building a fintech startup should further be acquainted with the operation of other standardized authentications and digital certificates that are now required for the foundation of any business.
4. It is also important to note that the laws tend to be different in every country or even state, and therefore those planning to launch a global business should be aware of what kind of laws and regulations they must keep in mind. Examples include several countries requiring specific market regulations for acquiring such licenses, while others require regular licenses for the same.

02. Identify your niche

Before starting any business, it is extremely important to know the niche of the field. Understanding the niche better will help you formulate strategies and plans accordingly to ensure your business’s success and progress.

While fintech has been considered mainstream until a few years ago, there are several aspects that you can look into to choose your expertise from:

1. Open banking or open API has a great scope for advancement in the future. Open banking refers to a third party gaining a customer’s bank data with the owner’s consent and then using it for the benefit of the bank user. These third parties include insurance companies, online shops, or other organizations that use this data to provide better products that are likely to catch the customer’s attention. This data helps them to understand the customers’ solvency before they can approve loan insurance or allow any kind of financial activity with the client’s finances.
2. Another idea that may gain popularity in the future is RegTech, which works as a platform helping institutions to agree or comply with complex industrial rules and regulations. This technology finds business challenges associated with complying with the rules and then makes them compatible with the business system. It includes monitoring data security, warning banks and customers against fraudulent activities, and automating repetitive tasks.
3. Biometric authentication has gained popularity in recent years, where such authentication is said to be safer or more secure than the usual passwords and pins that have been used until now. It is often a hassle for users to remember or form various passwords for multiple sites, and considering this, biometric authentication has been one of the greatest options that customers have opted for.

03. What you will bring to the table

The next step after knowing your niche is understanding what and who you are competing against.

Hence, you must study not only the competitors’ names but also the competitors’ production, background, and history to further produce ideas that can attract customers to you. This will ensure that you can produce unique and distinctive products that are more desirable and can provide better solutions than existing companies.

04. Start with the consultation services

You can start providing consultation services and assisting other companies in the same field in the decision-making processes. After you get the confidence, this will help you start your own business. Moving forward, you can take some steps toward choosing the right advisors and team strategists.

05. Get funded

To build the right company and hire your team, you must now look into getting funds for your startup so that you can start laying the foundation of your fintech SaaS company. This will allow your company to get skilled personnel and the required infrastructure to enter the market.

There are multiple ways to get funded, including bank loans to bootstrapping. You can choose the most relevant and fulfilling option for your business.

06. Create, manage, experiment, and improve (hire a team of developers)

It is advised that your fintech company should not rely on third-party CMS (content management systems) for its financial transactions or handling. Therefore, it is important to hire a team of developers who have advanced knowledge and experience in programming languages such as Node.js, C#, Python, Java, as well as frameworks and databases such as MySQL, MongoDB, and Redis. These skills will be crucial for building and maintaining a robust and secure in-house system for financial handling.

It takes a village to build a Fintech SaaS company from scratch. So, it’s best to partner up with brands who understand your vision and can help you achieve your goals. If you want to automate your workflows, adhere to compliances, increase productivity, and make insightful business decisions, check out Satva Solutions, which is a one-stop for all kinds of fintech development services.

Solutions: FinTech Solutions

FAQs-

01. Is it a good decision to invest in a fintech startup today?

Since the beginning of the pandemic, the world has been more receptive toward the finance industry in general. They have been one such field in the pandemic that has grown significantly and has come under the radar of smaller companies and marketing brands.

02. What other criteria must fintech companies fill other than the ones mentioned above?

Right from the beginning, your fintech company must prioritize data protection at all costs because that will lay the foundation of your business. Providing financial solutions to businesses and customers requires the value of security and protection of personal data among clients.

03. What are some fields where fintech startups might be relevant?

The most prominent niches in recent times among fintech include Digital-only banks, AI or machine learning, Blockchain, biometric security, and more.