Tag: Fintech ecosystem

The financial industry is changing rapidly. There’s never been a better time to build your own fintech company! In this blog post, we’ll show you how to start from scratch and create an innovative business in one of the most lucrative industries on earth.

SME lending: Where is it now, and where is it headed?

Small to medium enterprises (SMEs) are the backbone of many economies across the world. They create jobs, contribute greatly to innovation and offer a range of products and services that keep our society functioning. However, SMEs often lack access to financial resources such as working capital loans, mortgages, or other financing options traditionally available exclusively for large companies with deep pockets. In this article, we will present fintech solutions that can offer you finding solutions for small businesses. We will present existing funding schemes and the future of this sector.

What is SME lending market versus the traditional bank loan?

SME lending is part of a traditional bank loan service, which is typically reserved for large companies with deep pockets. When it comes to lending, size matters because banks see a company’s ability to repay as largely based on the business’s assets or collateral. Traditional banks are less worried when they have industry expertise. As you might know, each time you are asking for a loan, the bank has to analyze your company against existing data sets. If this status is narrowed the funding will just be impossible. The bank wants to limit credit risk.

What are the four types of business loans?

The four types of business loans are :

– Equity: Lenders supply money to a company in return for shares of the company’s equity.

– Debt: The lender supplies cash, and the borrower pays back with interest over time.

– Mezzanine finance: A mezzanine loan is one that falls between debt financing (with regular monthly payments).

– Angel investors: A group or an individual who provides funds to a new, small company in exchange for partial ownership (usually they are also looking for the opportunity to provide guidance). Angel investors can also be your friends and family.

Those four types of business loans can be organized around at the market portal. With our solution Investglass come up with builds a dozen loan portals. The portal connects clients, firms offering a perfect match between loans: lend and borrow.

Which SME business should you start?

Lending platforms

Lending platforms are an emerging development in the financial services industry. They provide transparent mortgage comparisons and, depending on the platform, advisory services to their customers. Building the platform with InvestGlass is a good start before building a neo bank.

Platforms have become popular due to easier access and the potential for standardization of product offerings among lenders. Lenders are increasingly looking to partner with platforms in order to provide their products for use on a platform.

One of the primary benefits that platforms offer lenders is access to the customer base, which typically exceeds what they would be able to attract on their own due to better conversion rates and lower marketing costs. Small businesses won’t mind searching for support for a new fintech solution.

Platforms can also be a key driver of innovation. For example, by using the customer data they have collected over time, platforms are able to provide lenders with information about their customers which may help them create more effective products and services. InvestGlass white label platform will help you build your own platform. In less than a day, you will build your own SME lending solution with InvestGlass as a backbone.

Government support changes the loans industry with COVID lending. Make a wise analysis as government COVID loan changed the landscape for 12 months offering money to any companies in the Western countries.

Digital processes and repayments algorithm

Digital processes have taken over the customer experience for banking institutions. They may offer digital-only lending to members eager for a quick response, and credit card companies often use advanced digital solutions, such as virtual card numbers or security chips on one’s physical reader to protect their investment from attacks common in the cryptocurrency marketplace.

Industries ecosystems and funding circle

Mortgages are an entry-level product and provide many connecting points for additional products to retail customers, such as insurance. For a long time, this opportunity was hardly used in Switzerland vs London; but when the search for alternatives sources of revenue is combined with opportunities in residential financing (first and foremost), there have been more market participants setting.

How small and medium-sized enterprises can leverage fintech solutions?

Small businesses can leverage invoice finance and benefit from fintech competitive advantage as traditional banks will usually answer with more conservative positioning.

Fintech usually offers modern schemes and understands medium-sized businesses faster than traditional banks tanks to digital onboarding and automated notation replacing manual expertise.

As we offer with InvestGlass and open banking solutions, lending can be connected directly with lenders in a cloud-based solution. Our solution offers secure access for funding and customers will find a range of credit services. Investglass does not provide financial service so we will connect the CRM to an accounting tool relevant to your country.

If you are specialized in UK finance, we have connections for UK SMEs lending fintech. Authentic specialists will look into your specific lending focus to help you purchase the best fintech solution driving your future growth.

The data is hosted on swiss servers in Geneva and Lausanne. If required by your industry regulator or local government, we can host the InvestGlass CRM system on your server. Hosting the system could be pricey for a small business and we suggest usually starting with the cloud-based solution and then moved to an on-premise server.

InvestGlass fintech specialists will first analyze your specific targeted business lending sector and then manage the orchestration of your cloud solution to invoicing finance fintech, risk management solutions, antimoney lending applications, and trading applications.

Bank as a service, CRM for banking, Fintech ecosystem

How to Start a Fintech Company: 6 Steps to follow

The financial industry is changing rapidly. There’s never been a better time to build your own fintech company! In this blog post, we’ll show you how to start from scratch and create an innovative business in one of the most lucrative industries on earth.

If you are wondering how to start a fintech company successfully, below are the 6 steps you need to follow:

1) Establish a great name for your company

Establish a name for your fintech company. A good one needs to be catchy and memorable, but not too long or complicated. The domain might already be taken by another fintech business or fintech app so use a few different variations of the same word until you find something available that works with what you’re trying to do as well as having an easy pronunciation.

2) Make great partnerships within the fintech startups ecosystem

Banking and finance industries tend to create valuable partnerships in the global market that help them reach a greater audience, minimize costs and share valuable expertise. It is crucial for a promising new fintech startup to create these mutual fintech industry partnerships in order to be able to grow sustainably and at a higher rate.

InvestGlass connects to a dozen applications in the fintech, food tech, health tech thanks to a modern API.

The Solution

InvestGlass artificial intelligence or A.I. is removing the complexity by unlocking the complexity of building enhanced intelligence. The solution is InvestGlass any point API enabling any financial advisor to deliver smarter, hyper-personalized, and more predictive investor experiences.

InvestGlass API can sit on top of any existing software to help them talk to each other. InvestGlass is the only platform to help to connect to any mainframe to optimize key performance indicators that matter to your business.

3) Get to know the regulations of the fintech companies scene

The changing regulatory environment of financial services and fintech startups should play an important role in the decision-making of any entrepreneur seeking to start a fintech company. A potential new regulatory framework might help a fintech app development team to create a niche fintech product but at the same time, it can potentially help a fintech company go out of business. A recent example is the 1 trillion infrastructure bill in the US, that was proposed in August and it involves a taxation framework for the blockchain and cryptocurrency world. If the act moves forward, it will have a major impact on the crypto markets since it will become more expensive to trade cryptocurrencies.

Regulations, restrictions, cross-border issues, and so forth are the main problems in today’s financial investments. InvestGlass and our partners provide a platform that automatically indicates when regulations concerning a client’s assets or securities change. An alert also arises when portfolio propositions are not compliant with cross-border regulations or other laws.

4) Hire a great team of IT professionals

Since an incredible product requires talent, teamwork should be a top priority. It is crucial for fintech startups to acquire fintech talent. You need to develop a positive business culture and trust amongst your team members, as the driving force behind your new fintech company. Financial service industries tend to invest heavily in people since it is clear that the driver for innovation in the fintech industry is always a talented workforce.

5) Choose your software provider wisely

Every fintech company should take under consideration the framework, database, and programming language they are going to use for their product. They need to ensure top-notch cybersecurity and strong infrastructure for their fintech app development. This will ensure limited or no data breaches and more safety for the client-sensitive data.

6) Find adequate funding for your fintech busines

it is crucial for fintech companies to be able to secure sufficient funding from both financial institutions and private investors in order to be able to finance their business operations, financial management tools research, and distinctive business offering of their fintech company. This can be achieved from multiple rounds of presenting your successful fintech app to target market venture capital companies.

Pro tip: Create a clear pitch that does not exceed 20 minutes in length and no more than 10 slides.

With more and more people turning to digital banking rather than traditional brick-and-mortar banks, there’s an opportunity for a new generation of entrepreneurs to get in on the action with innovative ideas and build a truly successful financial technology startup.

But what are the important aspects you need to consider if you want to start your own fintech startup? We can help!

InvestGlass fintech consultants and our digital tools of automation, AI, and digital marketing can assist your newly built fintech company to reach more customers, automate your processes and create more efficient campaigns.

So, if you want to build your own successful fintech company, Contact Us Today!

fintech, Fintech ecosystem, Fintech Startup, future of finance, Startup

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