The ever-increasing dependence on technology for undertaking financial transactions boosts the fintech industry that recorded a CAGR of 8.6%. Financial transaction volumes aided by Fintech companies rose from $5.47 trillion in 2020 to $6.6 trillion in 2021. Financial transactions involving Fintech companies have seen a steady rise year on year, and the trend will only gather more speed in 2022. It is an excellent time to be a part of the $300 billion Fintech industry that saw a steady rise in startups over the years. Next, it could be your turn to be a part of the industry. If you are an entrepreneur looking for ideas to startup a fintech company, then you can pick any of the fintech startup ideas discussed in this article.
Any fintech startup idea must start with the Digital Banking App
As smartphones become a part of our lives, more and more people use the device for banking transactions for convenience and speed. It gives immense satisfaction and pleasure to complete transactions in a few taps or clicks from anywhere and anytime. Mobile banking is the most used tool of the fintech industry that has the most comprehensive application. Banks had never been so friendly for the average consumer as mobile banking removes all barriers to address the daily banking needs. Almost 65% of US citizens use mobile banking, of which more than 50% are Millennials. To tap into the vast business potential of digital banking that serves 150 million adults in the US, it makes perfect sense to start a Digital Banking App and become another fintech startup like Grasshopper Bank, Mercury Technologies, Novo, to name a few.
P2P Payment App
Peer-to-peer money transfer (P2P) is yet another smartphone-driven solution that allows users to transfer money instantly to another person’s account through a linked bank account or card. The ease and convenience of transferring money from the phone make the process highly popular. A survey shows that 43% of respondents chose P2P transfer over 34% preferred transfer via bank account. Most inspiring is the CAGR figure of the P2P market, which experts feel will be 30% in 2027. Therefore, it is safe to suggest that a P2P fintech startup will never leave any room to lament later for making a wrong choice.
Investment app
Financial investment advisors usually help their clients through the investment process that entails everything from choosing funds to opening accounts and making deposits. Despite the hand-holding by the investment advisors, clients often find the processing time taking due to several interactions between the client and the advisor. Moreover, the advisor is an intermediary, and there are chances of communication gaps that can delay the process and cause unhappiness to the clients.
Investment Apps can streamline the process by allowing clients to interact directly with the fund operators or banks. The process is fast and convenient that eliminates the chances of fraudulent transactions. Fintech companies use investment apps because they use blockchain technology. The technology uses Distributed Ledger Technology or DLT, like an open ledger that allows simultaneous access, validation, and recording of data to create data blocks. After filling up a data block completely, a new block is created. All data blocks remain connected to form the blockchain. Once a data input is complete, it becomes permanent, and no one can change it unless changing the data across the entire blockchain. Hence, all data is tamperproof and secured. The insurance sector is already adopting blockchain technology for more transparency, speed, and generating smart contracts.
The most futuristic fintech startup idea is to launch some wallet or app-driven blockchain technology. The app will offer diverse financial opportunities to users who can even start dealing in cryptocurrencies besides undertaking the usual financial activities like asset management, money lending, etc.
