Banks and all of the other traditional financial institutions have only just begun to explore the possibilities offered by technological innovation, paving the road for a whole range of promising fintech (financial technology) companies and startups.
Technological innovation in the financial industry
Fintech can describe a wide array of technologies used in the financial services sector. It started with the first innovations in the financial field, from things that today are considered simple, such as double-entry bookkeeping.
Now, aided by the internet and mobile revolution, fintech encompasses all technological innovations related to banking, financial education, investment and, more recently, even the ever so popular cryptocurrencies.
Fintech is used by banks, small businesses, business clients, and lastly consumers. With an increase in mobile banking, the existence of mobile trading, digital wallets and money managing apps, this field has numerous opportunities to develop and provide for financial innovation.
Hong Kong is one of the Asian cities that have been at the forefront of fintech evolution in the region. The city has an extremely welcoming business regime, not only because English is an official language, but also because of the easy company formation procedure and the low corporate taxes. A team of Hong Kong company incorporation experts can help you start your own fintech business in the city.
What to consider when starting a fintech company
Fintech entrepreneurs looking to launch their innovative ideas have access to a dynamic market, an increasingly larger pool of talented workers and even opportunities for financing or crowdfunding.
One of the top reasons to start a fintech company is that the field is a growing one that offers numerous opportunities and niches for development and can become a lucrative business venture.
Fintech companies can provide different types of financial solutions, from financial advice or billing to business tools and integration with existing financial systems. Having a clearly determined and focused business idea is important.
Choosing a good location for your company is equally important. Estonia is a European country that encourages developments in the financial technology field. Companies in the country provide banking and insurance solutions.
The country has a stable and strong financial sector, making it a good location to base a fintech company in Europe. You can find out more about how to open a company in Estonia from a team of local experts.
Moving further away from Europe, Japan is another country that has encouraged investments in fintech in recent years. While Japan’s banks are moving slowly away from the traditional model, regulators are constantly keeping an eye on the evolution and health of the banking system.
Examples of successful fintech companies in Japan include budget management apps, accounting software for free and medium- sized businesses, virtual investment advisers and others.
Foreign investors can obtain special assistance for setting up a company in Japan. Starting a fintech business will require adequate financing and a solid business idea. Investors who want to open a company can explore the local options for startups and R&D activities and any existing incentives for these types of companies.
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