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    Issues and Challenges of Fintech

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    Samridhi Gupta
    The document discusses several challenges facing the fintech industry including compliance with inconsistent regulations, data security, innovation, hiring talent, and acquiring venture capital funding. For fintech startups, the main challenges are raising venture capital, finding great investors, and competing with large brands. However, the fintech industry is experiencing exponential growth in investments over time.

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    Issues and Challenges of Fintech

    Uploaded by

    Samridhi Gupta
    48 views10 pages
    The document discusses several challenges facing the fintech industry including compliance with inconsistent regulations, data security, innovation, hiring talent, and acquiring venture capital funding. For fintech startups, the main challenges are raising venture capital, finding great investors, and competing with large brands. However, the fintech industry is experiencing exponential growth in investments over time.

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    The document discusses several challenges facing the fintech industry including compliance with inconsistent regulations, data security, innovation, hiring talent, and acquiring venture capital funding. For fintech startups, the main challenges are raising venture capital, finding great investors, and competing with large brands. However, the fintech industry is experiencing exponential growth in investments over time.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    48 views10 pages

    Issues and Challenges of Fintech

    Uploaded by

    Samridhi Gupta
    The document discusses several challenges facing the fintech industry including compliance with inconsistent regulations, data security, innovation, hiring talent, and acquiring venture capital funding. For fintech startups, the main challenges are raising venture capital, finding great investors, and competing with large brands. However, the fintech industry is experiencing exponential growth in investments over time.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 10

    Issues and Challenges of Fintech

    Some of the key challenges that the FinTech industry


    faces today include data and payment security,
    compliance, lack of awareness of end-users, working
    alongside legacy systems like banks, and ensuring user
    retention and user experience.
    Issues and Challenges of Fintech

    compliance with inconsistent regulations,


    innovation and competition,
    mitigating data security breaches in the face of growing
    infrastructure,
    adoption of new technologies
    hiring and retaining quality engineering talent in a hot job
    market,
    public relations and going public
    Rising inflation and higher interest rates will affect the
    availability of venture capital funding in 2022.
    Issues and Challenges of Fintech

    reduction in venture capital funding.


    Continuing to innovate and staying ahead of the
    competition will be a necessity alongside the exponential
    growth of fintech.
    Like in 2020, protecting data from internal and external
    threats is a top concern for key industry players in the
    coming year.
    Issues and Challenges of Fintech

    Lack of Mobile and Tech Expertise


    All fintech organizations are different and upgrading their
    tech stacks while embracing emerging technologies is a
    must.
    Big data and AI integration
    Have to innovate Marketing Tactics to Acquire Customers
    Personalized Services
    Fintech Challenges and Opportunities for Startups

    1. Raising Venture Capital: Venture capital is one of the


    key elements that make a startup grow. However,
    regardless of the increased interest in the industry,
    attracting the right investors is still a challenge.
    As the competition is high and the investors are attentive to
    financial benefits, convincing them requires a detailed
    financial plan, a long-term strategy, and validation of the
    idea. Validation may be completed based on existing
    statistics or unique user surveys.
    Fintech Challenges and Opportunities for Startups

    2. Finding a Great Investor: Here is where a fintech


    startup can find a great investor:
    Kickstarter, Angellist, Gust;
    Business summits and similar networking events;
    The next issue is to keep the investor’s attention. There
    are thousands of startups waiting for funding, so standing
    out from the crowd is obligatory. Preparing a
    comprehensive pitch deck presentation will provide the
    investor with all the required information to make a
    decision.
    Fintech Challenges and Opportunities for Startups

    3. Competing with Huge Brands: A modern startup has to


    compete with financial powerhouses like PayPal and
    technological giants like Amazon.
    If the startup aims to be a B2C solution, it must find a market
    where tech giants are the weakest. This could be an area
    where consumers don’t receive enough offerings or are
    dissatisfied with the current services.
    In the B2B segment, the startup must solve a significant issue
    to be noticed. It could cover potential pain points like huge
    expenses, regulatory fines, or even ease of use. Any option is
    great as long as it meets the business needs.
    Fintech Challenges and Opportunities for Startups

    4. Exponential Growth: Considering the growing number


    of startups and investments, the fintech industry is more
    likely to be considered a “balloon”.
    For example, the total number of recorded investments in
    Europe grows each year. Only 1,847 investments were
    made in 2015, while 8,397 were made in 2021. This
    proves the growing number of opportunities
    Change in Startup funding Worldwide from 2017-22
    Conclusion

    Although there are several challenges that has been faced


    by Fintech industry, technology is improving day by day
    and refined solutions are being offered by ML, AI, bigdata
    and Blockchain. The fintech industry has many benefits,
    challenges, and solutions. Among the leading issues, we
    may point out the lack of tech expertise and complicated
    regulatory compliance. However, these challenges are
    easily overcome with the usage of modern technologies
    and a trusted software development partner.

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