How we want to leverage technology in fintech startups is an important question that Execs need to answer. It spans from using technology for internal tools e.g.: reporting, daily operation, or a product that is a source of revenue to the company.

 

Building an internal tool is considered as cost center, thus its effectiveness is measured by how much value it brings or will bring in the long run. It’s key to figure out how much to spend and by when.

 

When We build internal tools, the following aspects should be considered:

Purpose

How will it benefit? Will it save time, will it impact my revenue indirectly or will it give insights to the business?

Priority

It’s critical to identify the priority of the work. For example: There is no point in automating project management when the volume is not big and can be managed on an Excel sheet

Security

Prioritize security measures to protect sensitive data and ensure compliance with relevant regulations and standards. Implement authentication, authorization, encryption, and other security best practices.

 

Discover The Ultimate Guide to Building Internal Tools in 2024!

 

So, what’s the process shall We follow? Fail early, be open to feedback, and if something is not working, drop the plan rather than invest in it. It’s also critical to build MVPs (Minimal Viable Products) to start with to make sure tools get the job done and add value to the organization. E.g.: There is no need to build a mobile App for an organization to start with, we don’t enable a lot of user interactivity to start with.

 

One needs to carefully measure the ROI for all the internal tools we develop for the business, it’s ok to hold on to nice-to-have items. 

 

The same question arises when We build a product for our prospect. The key thing to determine is whether We reach the market faster with a concept or build everything and then reach out to prospects. 

A Startup always faces challenges with budget, thus is it better to acquire a logo with MVP and keep on iterating the product. Another thought is prospects might not be ready to buy the product if they don't see a full set of features.

 

For Fintech Products following areas can explored before making the final decision.

 

Validation 

An MVP allows you to validate your product idea with real users in the market. In the current competitive world, by getting an early version of your product into the hands of users, you can gather feedback and data to understand whether your product solves a real problem and meets user needs. If your MVP can have a distinguished feature that others don’t have that’s probably the best way to move forward.

 

Speed to Market

Developing an MVP typically requires less time and resources compared to building a fully featured product. This means you can get to market faster, allowing you to start generating revenue sooner and gaining a competitive advantage.

 

Iterative Development

Launching an MVP allows you to adopt an iterative approach to development. You can release new versions of your product based on user feedback and iterate on features and functionalities over time (dot releases can be deployed as soon as in a day), rather than waiting until everything is perfect before launching.

 

Cost Efficiency

Developing an MVP typically requires fewer resources, which can save on development costs. This is particularly important for startups and small businesses with limited budgets.

 

However, the decision of whether to launch with an MVP or with all functionalities depends on various factors including your specific product, target market, competition, and resources available. In some cases, especially for certain products or industries, launching a fully featured product may be necessary to compete effectively in the market or meet regulatory requirements.

 

Ultimately, it's important to carefully consider your unique circumstances and objectives when deciding whether to launch with an MVP or with all functionalities. Additionally, it's worth noting that even if you choose to launch with an MVP, it's crucial to prioritize the key functionalities that provide the most value to users and differentiate your product in the market. It can be a specialized service aka feature for a couple of prospects just to make sure they become customer at the early stage.

 

Learn more about technology with our Tech Articles on the TCB Pay Blog.