Fintech startups across the globe are now coming up with a lot of fresh new ideas. There are a considerable number of RFS (requests for startups) also being raised daily across the globe. There are many investors also like angel investors who are ready to fund for innovative startups. The objective of many online platforms for startup establishments is to connect entrepreneurs with investors in any industries like software, healthcare, logistics, or infrastructure development, etc.
Many of the corporate firms like Y Combinator and Plaid etc. have their RFS platforms for fintech startups through which anyone can raise a request for their business ideas to get funds. When you consider any successful startup, one can find a common thread as they all are focusing on solving some real-world problems. Here, considering the real-world problems of our times, we are putting forth some startup ideas, which the investors may blindly put their funds into.
1. Clear bills
You also may have found it troublesome to see many incomprehensible items on the service bills you get. Some of the providers, especially services, may have made it more difficult for the users to identify what the given charges are all about and what they are paying for. So, benchmarking the services is a key aspect to consider, which has a huge potential as a startup business idea, how the bills are compared with other providers offering the same services and who ensures the best return on investment, etc.
2. Consumer-centric loans
In the United States, once the loans are paid to the consumers, next the servicer is responsible for the collection of the loans until completely paid off. This is a highly impersonal relationship, and things may often go out of control also to become a bit dehumanized. You may consider the education loan, for example. There are about 44 million Americans who borrowed student loans, which may sum up to about 1.5 trillion dollars. It could be a very daunting experience to go through the student loan processes. Some major issues to address in this domain are:
- The services may give you inconsistent information about the plans which may ultimately reduce the payments received.
- Lenders may not administer the services you avail in a way you desire.
- Lenders may report some inaccurate info to the credit agencies, which may adversely affect you.
Fintech startups which could address these issues may have a scope.
3. Hardware and software support for branches
As we see, digital banking has now grown big, and the majority of the consumers too prefer this mode of financial transactions. Majority of the day to day financial interactions with the banks are now done through internet banking or ATMs. Financial services providers like libertylending offer their end-to-end service online; however, there is still a significant volume of conventional banking operations done in person.
Many banking applications you see now may seem to be far-fetched; however, there are many new technology prototypes which are tested now as video ATMs which may centralize all financial services from the same terminal, interacting with remote banking assistance, conversational-based artificial intelligence applications playing a big role in supporting the customers, etc.
4. Tax preparations
There is much software which exists for tax preparation. However, many of these applications hardy cover the unique needs of special taxpayers, i.e., someone running a home-based side business, etc. It is estimated that only about 30% of the tax preparations in the US are done by using some software. There are more than three hundred thousand people in the US into tax preparation consulting, and it is a $10 billion industry. So, this also puts forth huge opportunities for the startups which can dig into this problem and come up with practical solutions.
5. Mobile banking
Visiting a bank brand to go through hectic paperwork to open a bank account is not liked by all. This is difficult for even the city dwellers, so what about more than four billion living in rural areas. So, there is still huge, but a potential underserved category of the population who may like to have a bank account and access to financial services.
A reassign stat is that about six billion out of the total seven billion global population now have mobile phones. A UN study even shows that several people now have access to cell phones than toilets. Having mobile-based banking applications for account opening, doing bank transactions without visiting the branches, etc. can make a huge impact on the financial market.
6. Core banking
There are bigger expectations now from the core banking systems than just recording the account transactions. Internet banking services and fintech mobile applications now demand the banks to offer end-to-end integration, which their proprietary and branch banking systems.
The new generation banking is all about branchless banking over traditional banking. However, it could be a huge task to replace or upgrade the existing systems. However, the digital banking applications may effectively close this gap, and from the customer perspective, third-party API services may offer them innovative ways to surpass traditional banking hazards.
7. Stock brokerage as a service
Buying and selling of stocks at a brokerage now cost about $65 on an average per transaction. This is one major reason why the small-scale investors who are even willing to trace stay out the game. There are many fintechs now offering their clients some free trading platforms without any transactions limits. Thinking this way can further create a much flexible and cost-effective ecosystem of trading services.
8. Personalized insurance
The new-generation consumers are very much used to the ease of access to services and product at a click of the mouse or swipe on the cell-phone screen. They don’t want insurance services too to be different from this practice they are used to. Rather than running to advisors, consumers want to explore their insurance offerings whey they want it the most and also when they have time to explore it. Latest technologies like IoT are now offering small devices to collect relevant and use them for the benefits of the users. All these data can be valuable input for the insurance providers to offer customized and flexible policies for the users and also monitor the policy terms and services.
Even though fintech is a feasible and profitable startup business idea, it required thorough knowledge and perfect planning to launch and survive.