Fintech Startup Business Plan [Sample Template]

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Are you about starting a fintech startup? If YES, here is a detailed sample fintech startup business plan template & FREE feasibility report.

It is no longer news that the advent of the internet has paved way for unlimited business opportunities that one can easily start and run from a location and have clients in different countries of the world. One of the businesses that can easily be started by leveraging on internet technology and financial expertise is a fintech startup business.

You might ask ‘what is Fintech?’

Simply put, fintech, which is also known as financial technology, is a technology and innovation that aims to compete with traditional financial methods in the delivery of financial services. It is an emerging industry that uses technology to improve activities in finance.

The use of smartphones for mobile banking, investing services and cryptocurrency are examples of technologies aiming to make financial services more accessible to the public.

Starting a fintech startup business can be rewarding but you would have to compete with other well – established fintech companies on the Web. The fact that you will be competing with people from all over the globe is enough reason for you to be result oriented and at the same time be creative with your fintech business.

If you are interested in starting a fintech company, then you should be ready to conduct thorough feasibility studies and market survey before committing your money and other resources to it.

Asides from feasibility studies and market survey, one of the important documents that will aid the success of the business is a good and workable business plan. Below is a sample fintech startup business plan template that can help you write your own business plan with little or no stress.

A Sample Fintech Startup Business Plan Template

1. Industry Overview

Players in the Financial Technology (FinTech) industry consist of both startups and established financial institutions and technology companies trying to replace or enhance the usage of financial services provided by existing financial companies.

Basically, they integrate finance and technology in ways that provide a variety of new services to businesses and consumers. Most of the services offered by FinTech companies had hitherto been delivered by traditional financial institutions such as banks.

If you are a close observer of happening in the FinTech industry, you will agree that the industry is highly fragmented and expanding quickly. Areas such as peer-to-peer lending, money transfer, and digital banks have performed especially strongly over the past five years.

The industry heavily relies on third-party financing. Improving economic conditions over the past five years have supported funding from both private and public sources.

Fintech companies in the united states raised .4 billion in 2018, a 43 percent increase over 2017 figures. Global investment in financial technology increased more than 2,200 percent from $930 million in 2008 to more than $22 billion in 2015.

The nascent financial technology industry in London has seen rapid growth over the last few years, according to the office of the Mayor of London. Forty percent of the City of London’s workforce is employed in financial and technology services.

In Europe, $1.5 billion was invested in financial technology companies in 2014, with London-based companies receiving $539 million, Amsterdam-based companies $306 million, and Stockholm-based companies receiving $266 million in investment. After London, Stockholm is the second highest funded city in Europe in the past 10 years.

Europe’s fintech deals reached a five-quarter high, rising from 37 in Q4 2015 to 47 in Q1 2016. Lithuania is starting to become a northern European hub for financial technology companies since the news in 2016 about the possible exit of Britain from the European Union. Lithuania has issued 51 fintech licenses since 2016, 32 of those in 2017.

For example, a report published by IBISWorld shows that in uk, the Financial Technology (FinTech) industry has grown strongly over the past five years, with revenue forecast to increase at a compound annual rate of 9.9 percent over the five years through 2018-19.

The industry has been supported by an accommodative regulatory environment, in addition to good access to skilled employees and external finance. However, UK FinTech companies face some headwinds, including strong competition with firms in other countries such as Singapore, New York and California.

In addition, the industry has had to contend with an increasingly volatile economic environment since the EU referendum, while comparatively high office rental costs have affected operators. Nonetheless, revenue is expected to increase by 10.5 percent during 2018-19 to reach £9.2 billion.

Despite the fact that financial technology (FinTech) business is still much of a Green business, the business will continue to blossom because more and more users will embrace the use of the services offered by financial technology (FinTech) companies in the nearest future.

So, if you have an entrepreneurial mentality and you wish to join a massive technological revolution, you can start your own financial technology business.

Some of the factors that encourage entrepreneurs to start their own financial technology (FinTech) business could be that the business is easy to set up and the startup capital is indeed affordable; you can actually start your own financial technology (FinTech) business from any part of the world.

All you need to do is to have the right network with financial institutions like banks et al and be ready to abide by the clearing rules. You don’t necessarily need to see the people you are doing business with since you can transact business with clients from any part of the world.

Lastly, starting a financial technology (FinTech) business requires professionalism, advance mathematics skills and good grasp of how cryptocurrency and a digital payment system works on a global platform. Financial services are among the most heavily regulated sectors in the world.

Besides, you would need to get the required certifications and license and also meet the required standard for such business before you can be allowed to start a financial technology (FinTech) business in the United States.

2. Executive Summary

Pay Net® FinTech, Inc. is a registered and licensed financial technology (FinTech) and a digital payment system company incorporated under the law of the United States of America. The business will be based in Silicon Valley – California and we are able to secure a well – positioned and standard office facility.

We are aware that to run a standard financial technology (FinTech) startup company can be demanding which is why we are well trained, certified and equipped to perform excellently in our chosen line of business.

Pay Net® FinTech, Inc. is a client – focused and result driven financial technology (FinTech) and a digital payment system company that provides tested, trusted and broad – based financial technology services at an affordable fee that won’t in any way put a hole in the pocket of our clients.

We will offer standard and professional financial technology (FinTech) services to all to our clients at local, state, national, and international level. We will ensure that we work hard to meet and surpass our clients’ expectations.

At Pay Net® FinTech, Inc., our client’s best interest would always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hire professionals from any part of the world who are experienced in financial technology.

Pay Net® FinTech, Inc. will at all – time demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Our plan is to position the business to become one of the leading brands in the financial technology (FinTech) industry in the whole of Silicon Valley – California, and also to be amongst the top 10 financial technology (FinTech) companies in the United States of America within the first 10 years of operation.

This might look too tall a dream but we are optimistic that this will surely be realized because we have done our research and feasibility studies and we are enthusiastic and confident that Silicon Valley is the right place to launch our financial technology business.

Pay Net® FinTech, Inc. is founded by Larry Willis and Justin Bob, his business partner for many years. The organization will be managed by both of them since they have adequate working experience to manage such business. Larry Willis has over 5 years’ experience working at various capacities within the financial technology (FinTech) and digital payment system industry in the United States of America.

Larry Willis graduated from both University of California – Berkley with a Degree in Information Technology, and University of Harvard (MBA). He is also a Certified Bitcoin Professional (CBP) and Justin Bob has Blockcerts Certification, Cryptocurrency certification, Ethereum certification, and Blockchain professional certification.

3. Our Products and Services

Pay Net® FinTech, Inc. is going to offer varieties of services within the scope of the financial technology (FinTech) and digital payment industry in the United States of America. Our intention of starting our financial technology company is to offer nothing but the best of services.

We are prepared to make profits from the industry and we will do all that is permitted by the law in the United States to achieve our business goals. Our business offerings are listed below;

Operating peer-to-peer lending platforms
Digital banking
Payment services
Investment platforms and management
Credit and lending
RegTech
Distributed ledger technology
Operating investment platforms
Investment management services
Unbanked/underbanked, services that seek to serve disadvantaged or low-income individuals who are ignored or underserved by traditional banks or mainstream financial services companies.

4. Our Mission and Vision Statement

Our vision is to disrupt incumbents in the finance industry by expanding financial inclusion and using technology to cut down on operational costs.
Our mission is to offer services that will integrate finance with technology in order to provide new or improved services to businesses and consumers in the United States and from all across the globe.

Our Business Structure

Ordinarily we would have settled for two or three staff members, but as part of our plan to build a standard financial technology company in Silicon Valley – California, we have perfected plans to get it right from the beginning which is why we will ensure that we have competent, honest and hardworking employees to occupy all the available positions in our firm.

The kind of financial technology business we intend building and the business goals we want to achieve is what informed the amount we are ready to pay for the best hands available in and around Silicon Valley – California. Below is the business structure that we will build Pay Net® FinTech, Inc. on;

Chief Executive Officer
FinTech Operations Specialist
Programmers and Software Developers
Admin and HR Manager
Digital Marketers (Marketing and Sales Executive)
Accountant
Customer Care Executive / Front Desk Officer

Roles and Responsibilities

Chief Executive Office:

Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
Responsible for fixing prices and signing business deals
Responsible for providing direction for the business
Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
Responsible for signing checks and documents on behalf of the company
Evaluates the success of the organization

FinTech Operations Specialist

Monitor and reconcile accounts
Assist in reconciling FED subaccounts
Act as liaison between various bank departments to facilitate account maintenance, resolve issues and escalate inquiries
Maintain proficient knowledge of the rules and regulations, including but not limited to, the Bank Secrecy Act (BSA), USA Patriot Act, OFAC, Regulation E, Truth In Savings Act and Unfair, Deceptive or Abusive Acts or Practices (UDAAP)
Participate in weekly status calls
Assist in maintaining policies, procedures and risk assessments
Compliance with all regulatory requirements

Software Developer/Programmer

Responsible for designing, installing, testing and maintenance of software systems for the organization
Reviewing current systems
Presenting ideas for system improvements, including cost proposals
Working closely with analysts, designers and staff
Producing detailed specifications and writing the programme codes
Testing the product in controlled, real situations before going live
Maintaining the systems once they are up and running

Admin and HR Manager

Responsible for overseeing the smooth running of HR and administrative tasks for the organization
Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
Defining job positions for recruitment and managing interviewing process
Carrying out induction for new team members
Responsible for training, evaluation and assessment of employees
Responsible for arranging travel, meetings and appointments
Oversee the smooth running of the daily office activities

Digital Marketers (Marketing and Sales Executive)

Identify, prioritize, and reach out to new partners, and business opportunities et al
Identifies development opportunities; follows up on development leads and contacts
Writing winning proposal documents, negotiate fees and rates in line with company policy
Responsible for handling business research, marker surveys and feasibility studies
Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
Document all customer contact and information
Represent the company in strategic meetings
Help increase sales and growth for the company

Accountant

Responsible for preparing financial reports, budgets, and financial statements for the organization
create reports from the information concerning the financial transactions as recorded
Prepare the income statement and balance sheet using the trial balance and ledgers
Provides managements with financial analyses, development budgets, and accounting reports
Responsible for financial forecasting and risks analysis.
Performs cash management, general ledger accounting, and financial reporting for one or more properties.
Responsible for developing and managing financial systems and policies
Responsible for administering payrolls
Ensuring compliance with taxation legislation
Handles all financial transactions for the company
Serves as internal auditor for the company

Associate Fraud Specialist- Call Center/Merchant Disputes Specialist / Help Desk Officer

Reviews and responds to suspected fraudulent service requests, queues, and transaction records to identify potentially fraudulent transactions or accounts.
Identifies problems by performing relevant research using the appropriate tools
Utilizes custom and standard software programs and applications as well as manual review to analyze transactional and customer record for fraud.
Maintains control of inbound calls
Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
Performs and understands systems such as Enhanced Chargebacks and debit network rules.
Explains decisions and outcomes to internal and external customers, clients and cardholders.
Exhibits specialized knowledge in regulatory rule requirements based upon review of non-standard, cardholder-provided documentation.

6. SWOT Analysis

Pay Net® FinTech, Inc. engaged the services of a core professional in the area of business consulting and structuring to assist the firm in building a well – structured financial technology company that can favorably compete in the highly competitive financial technology industry.

Part of what the business consultant did was to work with the management of our organization in conducting a SWOT analysis for Pay Net® FinTech, Inc. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Pay Net® FinTech, Inc.;

Strength:

We can boast of a team that has analytical and critical thinking skills that can help them find creative solutions for our clients. Aside from the synergy that exists in our carefully selected workforce, we have a very strong online presence and we are well positioned and we know we will attract loads of clients from the first day we open our doors for business.

Weakness:

One of the weaknesses that are obvious to us is the lack of capacity and inability to compete with big players in the industry especially as it relates to partnering with major players in the banking and finance industry. Most of them like partnering with businesses that have been in existence for a while.

Opportunities:

The opportunities in the financial technology (FinTech) and digital payment system industry is massive considering the number of online trading companies and people that make online transactions all over the world. As a standard financial technology (FinTech) startup company, we are ready to take advantage of any opportunity that comes our way.

Threat:

Businesses in the financial technology (FinTech) industry, particularly start-ups, face a host of technological, legal and regulatory challenges and unexpected events. For example, automation of processes and digitization of data makes fintech systems vulnerable to attacks from hackers.

Recent instances of hacks at credit card companies and banks are illustrations of the ease with which bad actors can gain access to systems and cause irreparable damage.

7. MARKET ANALYSIS

Market Trends

In this age and time when transactions worth multiple thousands of Dollars are conducted online, you can be rest assured that financial technology (FinTech) startups are in for good times. You will agree that there is hardly any serious player in the cyberspace who is not transacting with cryptocurrency and hosting digital payment system on their platform.

This goes to show that sooner than later, cryptocurrency and digital payment system will become the most used payment system in the globe. Trends toward mobile banking, increased information, data, and more accurate analytics and decentralization of access will create opportunities for all four groups to interact in unprecedented ways.

In recent time, financial services institutions offered a variety of services under a single umbrella. The scope of these services encompassed a broad range from traditional banking activities to mortgage and trading services. In its most basic form, Fintech unbundle these services into individual offerings.

The combination of streamlined offerings with technology enables fintech companies to be more efficient and cut down on costs associated with each transaction. Another notable trend shows that financial technology (FinTech) is also being leveraged to fight fraud by leveraging information about payment history to flag transactions that are outside the norm.

Lastly, operators in this industry ensure that they get all the testimonials they can and publish them on their website and promotional materials. This usually goes a long way to give them credibility and also to attract more clients to them.

8. Our Target Market

Pay Net® FinTech, Inc. will initially serve small to medium sized business, but that does not in any way stop us from growing to compete with the leading financial technology (FinTech) companies in the United States and from across the globe.

As a standard and licensed financial technology (FinTech) startup company, Pay Net® FinTech, Inc. offers a wide range of cryptocurrency and digital payment services hence we are well trained and equipped to service a wide range of clientele base such as;

B2B for banks
Banks business clients
B2C for small businesses
Consumers (everyday individual clients)

Our competitive advantage

It is indeed a growing competition in the industry hence a host of tech-savvy industry watchers warn that keeping apace of fintech-inspired innovations requires more than just ramped up tech spend. Rather, competing with lighter-on-their-feet startups requires a significant change in thinking, processes, decision-making, and even overall corporate structure.

Part of our competitive edge is that we can deploy new technologies, like machine learning / artificial intelligence, predictive behavioral analytics, and data-driven marketing, automated customer service technology, utilizing chatbots and AI interfaces to assist customers.

We also have access to highly skilled workforce, ready access to investment funding and the capacity to comply with government regulations.

9. SALES AND MARKETING STRATEGY

We are mindful of the fact that there is fast – growing competition amongst players in the financial technology industry in the United States of America and around the globe; hence we have been able to hire some of the best business developers cum digital marketers to handle our sales and marketing.

Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be equipped to meet their targets and the overall goal of the organization. We will also ensure that our excellent job deliveries speak for us in the marketplace. Pay Net® FinTech, Inc. is set to make use of the following marketing and sales strategies to attract clients;

Introduce our business by sending introductory letters alongside our brochure to all the bitcoin exchange and trading companies, programmers, investors, and internet – business oriented people and organizations within and outside the United States
Promptness in bidding for online payment platform contracts from bitcoin exchange and trading companies cum bitcoin traders, programmers, investors, and internet – business oriented people and organizations within and outside the United States
Advertise our business in relevant programming magazines, radio and TV stations
Attend international financial technology (FinTech) related seminars and business fairs et al
Create different packages for different category of clients in order to work with their budgets
Leverage on the internet to promote our business
Join related associations around us with the aim of networking and marketing our services; we are likely going to get referrals from such networks.

Sources of Income

Pay Net® FinTech, Inc. is established with the aim of maximizing profits in the financial technology (FinTech) and digital payment industry and we are going to ensure that we do all it takes to attract clients on a regular basis. Pay Net® FinTech, Inc. will generate income by offering the following services and products

Operating peer-to-peer lending platforms
Digital banking
Payment services
Investment platforms and management
Credit and lending
RegTech
Distributed ledger technology
Operating investment platforms
Investment management services
Unbanked/underbanked, services that seek to serve disadvantaged or low-income individuals who are ignored or underserved by traditional banks or mainstream financial services.

10. Sales Forecast

One thing is certain, there would always be bitcoin exchange and trading companies, people and organizations that make online transactions that would need the services of financial technology (FinTech) companies.

We are well positioned to take on the available market in Silicon Valley – California and in the cyberspace and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base beyond Silicon Valley to other cities in the United States of America and in the cyberspace.

We have been able to examine the financial technology (FinTech) market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Silicon Valley – California.

Below are the sales projections for Pay Net® FinTech, Inc., it is based on the location of our business and the services and products that we will be offering;

First Fiscal Year: $250,000
Second Fiscal Year: $450,000
Third Fiscal Year: $950,000

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and internet shutdown within the period stated above. Please note that the above projection might be lower and at the same time it might be higher.

11. Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to take the financial technology (FinTech) and digital payment system industry by storm which is why we have made provisions for effective publicity and advertisement of our financial technology (FinTech) startup company. Below are the platforms we intend to leverage on to promote and advertise Pay Net® FinTech, Inc.;

Place adverts on both print (community based newspapers and magazines) and electronic media platforms
Sponsor relevant community based events/programs
Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
Install our Billboards in strategic locations all around Silicon Valley
Distribute our fliers and handbills in target areas
Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our company’s logo et al.

12. Our Pricing Strategy

At Pay Net® FinTech, Inc. we will keep our fees a little bit below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to startups, nonprofits, cooperatives, and small social enterprises who want to transact with cryptocurrency and other digital payment platforms.

Payment Options

The payment policy adopted by Pay Net® FinTech, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America. Here are the payment options that Pay Net® FinTech, Inc. will make available to her clients;

Payment via bank transfer
Payment via online bank transfer
Payment via mobile money
Payment via check
Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payment without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients.

13. Startup Expenditure (Budget)

These are the areas we are looking towards spending our startup capital on;

The total fee for incorporating the Business in the United States of America – $750.
Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400.
The amount needed to acquire a suitable Office facility in a business district for 6 months (Re – Construction of the facility inclusive) – $40,000.
Marketing promotion expenses for the grand opening of Pay Net® FinTech, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
The total cost for hiring Business Consultant – $2,500
The cost for equipping the office (computers, software apps and hardware such as Application-specific integrated circuit (ASIC) machines and other cryptocurrency and digital payment system related software apps, internet server, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $45,000
The cost of launching our official Website – $2,000
Budget for paying at least two employees for 3 months and utility bills – $45,000
Additional expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
Miscellaneous – $1,000

Going by the report from the research and feasibility studies, we will need about Two Hundred and Fifty Thousand US Dollars ($250,000) to set up a small scale but standard financial technology company in the United States of America.

Generating Funds/Startup Capital for Pay Net® FinTech, Inc.

Pay Net® FinTech, Inc. will be owned and managed by Larry Willis and his business partner Justin Bob. They are the financiers of the company, but may likely welcome partners later which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.

Generate part of the startup capital from personal savings
Source for soft loans from family members and friends
Apply for loan from the bank

N.B: We have been able to generate about $50,000 (Personal savings $40,000 and soft loan from family members $10,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.

One of our major goals of starting Pay Net® FinTech, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our financial technology services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

Pay Net® FinTech, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more as determined by the board of the organization. We know that if that is put in place, we will be able to hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

Business Name Availability Check: Completed
Business Incorporation: Completed
Opening of Corporate Bank Accounts: Completed
Opening Online Payment Platforms: Completed
Application and Obtaining Tax Payer’s ID: In Progress
Application for business license and permit: Completed
Purchase of Insurance for the Business: Completed
Conducting Feasibility Studies: Completed
Leasing a standard and well positioned office facility in the heart of Silicon Valley – California: Completed
Generating part of the startup capital from the founder: Completed
Applications for Loan from our Bankers: In Progress
Writing of Business Plan: Completed
Drafting of Employee’s Handbook: Completed
Drafting of Contract Documents: In Progress
Design of The Company’s Logo: Completed
Printing of Promotional Materials: Completed
Recruitment of employees: In Progress
Purchase of the needed software applications, internet server, furniture, office equipment, electronic appliances and facility facelift: In progress
Creating Official Website for the Company: In Progress
Creating Awareness for the business (Business PR): In Progress
Health and Safety and Fire Safety Arrangement: In Progress
Establishing business relationship with vendors and key players in the industry: In Progress