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The fintech industry has undergone an unprecedented surge in capital investment during the latter half of the previous decade. Venture capital (VC) funding skyrocketed from $19.4 billion in 2015 to an impressive $33.3 billion in 2020, marking a remarkable 17 percent year-over-year increase.
This remarkable growth underscores the immense potential and opportunities within the fintech sector, making it an incredibly inviting field for aspiring entrepreneurs and investors alike.
However, in the dynamic world of fintech, investments alone are not enough. A team of intelligent and skilled professionals is crucial to propel your business to new heights and stay ahead of the competition.
It’s all skill-based hiring for your team, which makes the difference!
If you were looking for an extensive guide for building the right team for your fintech app, you landed in the best place possible! In this blog, we will cover all the necessary steps to make a high-performing team.
Let’s go!
The Flipside of Fintech Funding: Not All Startups Shine
Fintech is a hot industry, but not all companies within it are created equal, especially when it comes to attracting funding. This research reveals some interesting trends and highlights the challenges specific fintech startups face.
Early Birds Get the Seed Money
The study shows that more mature companies (those past Series C funding) faced a significant funding drop last year. In contrast, startups in the very early stages (seed and pre-seed) saw increased financing. This makes sense because investors might see these younger companies having more time to weather economic storms and recover before an eventual sale.
B2B vs. B2C: Different Funding Climates
The research also found a difference between funding for businesses that sell directly to consumers (B2C) and those that sell to other companies (B2B). B2C fintechs, especially those focused on payments, saw a steeper funding decline than B2B segments. This suggests that investors prioritize solutions supporting other businesses during uncertain times.
Why B2B Fintech Might Be More Attractive?
The study points out that many businesses still need to rely on updated technology that’s slow, inflexible, and expensive. B2B fintech companies that offer “off-the-shelf” solutions, like digital payment systems or core banking technology, are helping businesses overcome these challenges. This creates a strong demand for B2B fintech, especially for services like Banking-as-a-Service (BaaS) and embedded finance, allowing businesses to integrate financial services into their offerings seamlessly.
The Underserved Market: Why SMEs Matter?
The research highlights the crucial role of Small and Medium Enterprises (SMEs). Despite making up a large portion of businesses globally, SMEs have often been neglected by traditional financial institutions. Fintech companies have stepped in to address this gap, particularly in developing countries where the lack of financial services for SMEs is even more significant.
Looking at the Darker Side
While the research paints a positive picture of fintech’s potential to address challenges, it also highlights the difficulties faced by some startups. Securing funding can be challenging, especially for established companies during economic downturns. Additionally, B2C fintech might face stiffer competition for investor dollars than B2B solutions. These insights are essential to consider when building your fintech team (which we’ll discuss next!).
Building the Right Team for Your Fintech App (B2B vs. B2C Focus)
When developing a FinTech app, assembling the right team is crucial to your success. The team composition may vary significantly depending on whether your app is designed for a Business-to-Business (B2B) or Business-to-Consumer (B2C) market. Here’s how to tailor your team for each focus:
B2B Focus:
- Sales and Relationship Managers: B2B fintech apps require team members who can nurture long-term relationships with business clients. Sales professionals with experience in enterprise sales and a deep understanding of the financial industry are invaluable.
- Product Managers: They should have expertise in creating products that meet the complex needs of businesses and can integrate seamlessly with existing corporate systems.
- Customer Support Specialists: B2B support needs to be highly responsive and knowledgeable, capable of handling intricate queries and providing solutions that align with business operations.
- Technical Experts: Your team should include individuals with experience in data security, compliance, and enterprise software development to ensure your app meets the stringent requirements of business clients.
- Business Analysts: To analyze market trends and provide insights for strategic decision-making. Moreover, they are responsible for gathering and interpreting data, creating reports, and analyzing key areas to improve business processes and performance.
- Project Managers: To oversee development cycles and ensure timely delivery of app features. Project managers play an important role in the success of fintech app development, especially in a B2B environment. They are responsible for planning, executing, and finalizing projects based on strict deadlines and within budget.
- Quality Assurance Engineers: To maintain high app performance and security standards, which is crucial for business clients. They develop and execute an exploratory and automated testing strategy to ensure that every aspect of the app performs as intended. Their work is critical in maintaining the reliability, functionality, and user-friendliness of the app, which are essential for retaining the trust of business clients.
B2C Focus
- User Experience Designers: A B2C fintech app must be intuitive and engaging. Designers with a knack for creating user-friendly interfaces will help minimize your app’s UI/UX complexities.
- Marketing Specialists: Professionals skilled in digital marketing can help your fintech app stand out in a crowded market and attract individual consumers.
- Data Analysts: Understanding consumer behavior through data will allow you to tailor your app to better meet individual users’ needs. By anticipating user needs and tailoring the app experience accordingly, you can create a more engaging and successful fintech product.
- Customer Service Representatives: A team that provides quick and empathetic support will enhance user satisfaction and foster consumer loyalty.
- Content Creators: Content Creators are the educational pillars of a B2C fintech app. Their role involves producing various materials, such as how-to guides, tutorial videos, blog posts, and FAQs, that empower users to make the most of the app’s features.
- Social Media Managers: Social Media Managers are the voice of the fintech app in the digital world. Their tasks include curating content, running campaigns, and engaging with followers to build a community around the app.
- App Store Optimization (ASO) Experts: ASO Experts make the fintech app discoverable in an overcrowded marketplace. They use a mix of SEO strategies, keyword research, and market analysis to enhance the app’s visibility in app stores. Their work includes optimizing the app’s title, description, and metadata and encouraging positive reviews and ratings.
Need to Build Your Fintech Team in 7 Days? Contact Supersourcing Today!
Building a dream team for your fintech app can be challenging, especially against the clock. But don’t worry; Supersourcing is here to help you! Here’s how:
- Speed & Efficiency: We leverage our extensive network and expertise to identify top-tier talent quickly. You won’t waste valuable time sifting through endless resumes.
- Quality Focus: We don’t just fill seats; we find the perfect fit. Our rigorous screening process ensures you get highly skilled and experienced professionals aligned with your specific needs, whether B2B or B2C expertise.
- Reduced Risk: Building an in-house team can be risky. We handle the vetting and onboarding process, minimizing risk and maximizing your peace of mind.
Don’t let time constraints stall your fintech dream. Contact Supersourcing today, and let’s assemble your all-star team in record time!
Conclusion
The fintech industry has experienced a significant surge in capital investment, presenting numerous opportunities for entrepreneurs and investors. However, it’s important to note that not all startups receive equal funding, with B2B fintech companies faring better than B2C counterparts in specific scenarios. Building the right team is essential for the success of a fintech app, and the team composition may vary based on whether the focus is on B2B or B2C markets. Understanding these dynamics and tailoring your team accordingly is crucial for navigating the competitive landscape of the fintech industry.