There was a lot of talk at a recent technology conference about the power of fintech startups these days. However, a lot of these startups fail. So, what makes for a successful fintech startup these days? William Mills Agency, a financial public relations and content marketing services company, released a white paper detailing the top factors leading to failure for fintech startups and how to avoid them. Here’s what they found:
The white paper, written by WMA executive vice president Kelly Williams, is a compilation of the most frequent “fintech startup killers” that Williams and his WMA management associates have observed during almost four decades in the financial industry. A few of the deadly mistakes cited in the white paper include: underfunding the fintech startup; underestimating length of fintech sales cycles; not understanding the fintech customer markets; no relations with the bank core providers and poor fintech sales and marketing strategies.
“It would seem that these mistakes are failures to follow common business sense, but they happen so often that we felt compelled to address them,” said Williams, executive vice president, William Mills Agency. “This white paper is a useful resource for fintech startups because it also gives simple advice on how to steer clear of these mistakes altogether and to become successful, profitable companies.”
“There are lots of great innovations happening in fintech, but it’s a tough and unforgiving environment for startups,” said WMA CEO, William Mills III. “Given the concerns regarding financial regulations, cybersecurity, and the entrenched legacy technologies and processes of this industry, there is little room for error – especially for startups. We hope fintech executives will use this document as a guide to keep them on the road to successful company launches and beyond.”