Fintech, which is also known as financial technology, is the technology 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 general public. Even though this segment of fintech may see the most headlines, the big money still lies in the traditional global banking industry and its multi-trillion-dollar market capitalization.

Available data shows that globally, the number of fintech companies grew to 1,463, with 2,745 unique investors. They also acquired $25.6 billion in investments in H1 2020. The total transaction value of digital payments grew from $4.1 trillion in 2019 to $5.2 trillion in 2020.

Steps on How to Write a Fintech Startup Business Plan

1. Executive Summary

Money Net© FinTech Company, Inc. is an American-based financial technology company. Our head office will be located in an office facility in the heart of New York City. Money Net© FinTech Company, Inc. is a global fintech payment system that will store and transfer payment information.

Consumers will make use of our applications to pay for goods and services directly as well as make peer-to-peer fund transfers using their mobile devices. David Williams is the founder and CEO of Money Net© FinTech Company, Inc.

  1. Company Profile

a. Our Products and Services
  • 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.
b. Nature of the Business

A fintech business is meant to operate the business-to-consumer model or transfer completely to a business-to-business approach.

c. The Industry

Money Net© FinTech Company, Inc. will operate under the Financial Technology (FinTech) industry.

d. Mission Statement

Our mission is to make financial services more accessible to all and sundry and our services will include traditional financial transactions like saving, investing, loan processing, and also blockchain and cryptocurrency transactions.

e. Vision Statement

Our vision is to be known as the leading innovative digital technology solutions fintech company that aim to optimize financial services for her clients.

f. Our Tagline (Slogan)

Money Net© FinTech Company, Inc. – Your Safe and Trusted FinTech Company!

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Money Net© FinTech Company, Inc. will be formed as a Limited Liability Company (LLC).

h. Our Organizational Structure
  • Chief Executive Officer
  • Company’s Lawyer/Secretary
  • FinTech Operations Specialist
  • Programmers and Software Developers
  • Admin and HR Manager
  • Digital Marketers (Marketing and Sales Executive)
  • Accountant
  • Customer Service Executive/Front Desk Officer
i. Ownership/Shareholder Structure and Board Members
  • David Williams (Owner and Chairman/Chief Executive Officer) 51 Percent Shares
  • Olsen Vincent (Board Member) 14 Percent Shares
  • Jude Soares (Board Member) 10 Percent Shares
  • Paul Nelson (Board Member) 10 Percent Shares
  • Zara Mack (Board Member and Sectary) 10 Percent Shares.
  1. SWOT Analysis

a. Strength
  • Effective structure in place to help consumers enjoy a seamless digital experience
  • Highly experienced and qualified employees and management
  • Highly secured payment platform
  • Access to finance from business partners
  • Water-tight strategies on how to expand beyond major markets
  • Good returns on investment for our investors.
b. Weakness
  • Financial Constraints
  • We will be competing with well-established fintech companies and traditional banks
  • Inability to retain our highly experienced and qualified employees longer than we want
c. Opportunities
  • Partnerships and mergers between established companies and fintech startups are becoming more frequent.
  • Digital banking services are taking over as 46 percent of people exclusively use digital channels for their financial needs
  • Good support structure for fintech companies in the United States of America.
i. How Big is the Industry?

It is safe to say that the Financial Technology (FinTech) industry is massive. This is because the per-share value of the Global X Fintech ETF has more than tripled from $15 in 2016 to $47 in 2022.

ii. Is the Industry Growing or Declining?

The Financial Technology (FinTech) industry is growing rapidly and available data shows that the total transaction value of digital payments grew from $4.1 trillion in 2019 to $5.2 trillion in 2020. Globally, the number of fintech companies grew to 1,463, with 2,745 unique investors.

iii. What are the Future Trends in the Industry

New technologies, like machine learning/artificial intelligence, predictive behavioral analytics, and data-driven marketing, are what will determine the future trends in the Financial Technology (FinTech) industry. Fintech is also a keen adaptor of automated customer service technology, utilizing chatbots and AI interfaces to assist customers with basic tasks and also keep down staffing costs.

Fintech is also being leveraged to fight fraud by leveraging information about payment history to flag transactions that are outside the norm.

iv. Are There Existing Niches in the Industry? 

Yes, there are niche ideas when it comes to the fintech business, and they are as follow;

  • Digital Banking App
  • Investment App
  • P2P Payment Apps (Peer-to-peer lending)
  • Insurance Apps (Alternative insurance underwriting)
  • Money-Saving Apps (Digital wallets)
  • Crypto Exchange Platform
  • RegTech Apps
  • Crowdfunding Applications
  • Payment gateways
  • Transaction delivery.
v. Can You Sell a Franchise of your Business in the Future?

Money Net© FinTech Company, Inc. has plans to sell franchises in the nearest future and we aim to have a strong physical presence in key financial hubs (cities all across the world).

d. Threats
  • Unfavorable government policy and regulations.
  • Cyber security challenges
  • Differences in management and culture
  • Liability problems
  • Continuously changing consumer demands especially as it relates to how they expect fintech companies to serve them.
i. Who are the Major Competitors?
  • Stripe
  • Kraken
  • Klarna
  • Wise
  • Current
  • Chime
  • Gemin
  • Robinhood
  • Plaid
  • Brex
  • Three-way tie
ii. Is There a Franchise for FinTech Business? 

Yes, there are franchises for FinTech business, and they include;

  • Libertex (Forex Club Group)
  • BI Analytics & Consulting (BI Group)
  • Paysera
iii. Are There Policies, Regulations, or Zoning Laws Affecting FinTech Business?

In the United States of America, Fintech is regulated at both the state and federal levels. Each of the 50 states and the federal government has passed its own body of laws that may apply to financial services and providers of financial services.

Please note that because of the scope, scale, and dynamism of the FinTech industry, the sector is often regulated by multiple regulators, both within certain types (e.g., multiple government regulators) and across types (e.g., governmental, self-regulators, and market regulators). Please check with your zoning or planning department to find out what options are available to you.

  1. Marketing Plan

a. Who is Your Target Audience?

i. Age Range

Our target market comprises adults above 18 years who have the finance to do business with us.

ii. Level of Education

We don’t have any restriction on the level of education of those we are ready to work with.

iii. Income Level

There is no cap on the level of income of the people that can use our platform.

iv. Ethnicity

There is no restriction when it comes to the ethnicity of the people that can make use of our platform.

v. Language

We have no restrictions when it comes to language.

vi. Geographical Location

People from any geographical location will be welcome to partner with us or do business with our company.

vii. Lifestyle

Money Net© FinTech Company, Inc. will not restrict any investor or client from partnering or doing business with us based on their lifestyle, culture, or race.

b. Advertising and Promotion Strategies
  • Host Themed Events That Catch Attention.
  • Tap Into Text Marketing.
  • Make Use of Billboards.
  • Share our Events in Local Groups and Pages.
  • Turn our Social Media Channels into a Resource
  • Develop our Business Directory Profiles
  • Build Relationships with players in the Financial Technology industry.
i. Traditional Marketing Strategies
  • Marketing through Direct Mail.
  • Print Media Marketing – Newspapers & Magazines.
  • Broadcast Marketing -Television & Radio Channels.
  • OOH Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
  • Leverage direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.
ii. Digital Marketing Strategies
  • Social Media Marketing Platforms.
  • Influencer Marketing.
  • Email Marketing.
  • Content Marketing.
  • Search Engine Optimization (SEO) Marketing.
  • Affiliate Marketing
  • Mobile Marketing.
iii. Social Media Marketing Plan
  • Start using chatbots.
  • Create a personalized experience for our customers.
  • Create an efficient content marketing strategy.
  • Create a community for our target market
  • Gear up our profiles with a diverse content strategy.
  • Use brand advocates.
  • Create profiles on relevant social media channels.
  • Run cross-channel campaigns.
c. Pricing Strategy

When working out our pricing strategy, Money Net© FinTech Company, Inc. will make sure it covers profits, insurance, premium, license, and economy or value and full package for each transaction, In all our pricing strategy will reflect;

  • Cost-Based Pricing
  • Value-Based Pricing
  • Competition-Based Pricing.
  1. Sales and Distribution Plan

a. Sales Channels

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, strategic alliances in the Financial Technology industry, and the finance and banking industry to help refer clients to us.

Money Net© FinTech Company, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all of these marketing strategies into a marketing mix, so we can have a visible, in-demand service that is competitively priced and promoted to our customers.

b. Inventory Strategy

The fact that we will need office supplies means that Money Net© FinTech Company, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.

c. Payment Options for Customers

Here are the payment options that Money Net© FinTech Company, Inc. will make available to her clients;

  • Payment via bank transfer
  • Payment with cash
  • Payment via credit cards
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
  • Payment via bank draft
d. Return Policy, Incentives, and Guarantees

At Money Net© FinTech Company, Inc. we do not have a return policy but we will use our discretion when necessary. This is because there are no federal laws that require a merchant to refund money unless the product they sell turns out to be defective.

e. Customer Support Strategy

Our customer support strategy will involve seeking customers’ feedback. This will help us provide an excellent return on investment (ROI) and customer service to all our clients and investors. It will also help us to understand their needs, experiences, and pain points. We will work with effective CRM software to be able to achieve this.

We will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.

  1. Operational Plan

Overall, we plan to expand our revenue by 50 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting investors and strategic partners like banks et al that will enable us to boost our service offerings and to support revenue growth.

a. What Happens During a Typical Day at a FinTech Business?
  • The office is open for the day
  • Documentation and other administrative works are conducted throughout the day
  • Marketers go out in the field to market our services
  • Transactions are facilitated and pending queries are resolved
  • Maintenance of the server and all payment gateways are carried out as scheduled.
  • Report for the day is written and submitted to the required authority
  • The office is closed for the day.
b. Production Process (If Any)

There is no production process when it comes to FinTech Business.

c. Service Procedure (If Any)

Fintech payment systems perform two key service functions; they store and transfer payment information. Consumers use these applications to pay for goods and services directly as well as make peer-to-peer funds transfers using their mobile devices.

At its core, fintech is utilized to help companies, business owners and consumers better manage their financial operations, processes, and lives by utilizing specialized software and algorithms that are used on computers and, increasingly, smartphones.

d. The Supply Chain

Money Net© FinTech Company, Inc. will rely on key players in all industries to refer business deals and clients to us.

e. Sources of Income

Money Net© FinTech Company, Inc. will make money from offering the following services;

  • 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
  1. Financial Plan

a. Amount Needed to Start your Financial Technology (FinTech) Company?

Money Net© FinTech Company, Inc. would need an estimate of $1.2 million to successfully set up our Financial Technology (FinTech) company in the United States of America. Please note that this amount includes the salaries of our staff for the first month of operation.

b. What are the Costs Involved?
  • Business Registration Fees – $750.
  • Legal expenses for obtaining licenses and permits – $7,300.
  • Marketing, Branding, and Promotions – $15,000.
  • Business Consultant Fee – $2,500.
  • Insurance – $5,400.
  • Rent/Lease – $200,000.
  • Internet Infrastructure and Software Development – $250,000
  • Other start-up expenses including, commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
  • Operational Cost (salaries of employees, payments of bills et al) – $80,000
  • Start-up Inventory – $15,000
  • Store Equipment (cash register, security, ventilation, signage) – $4,750
  • Furnishing and Equipping – $80,000
  • Capitalization Base: $1 million
  • Website: $600
  • Opening party: $3,000
  • Miscellaneous: $2,000
c. Do You Need to Build a Facility? If YES, How Much will it cost?

Money Net© FinTech Company, Inc. will not build a new facility for our Financial Technology company; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.

d. Ongoing Expenses for Our Financial Technology Company?
  • Server maintenance
  • Transaction fee to a third-party provider
  • Utility bills (internet, phone bills, signage and sewage et al)
  • Salaries of employees
e. Average Salary of Our Staff
  • Chief Executive Officer – $65,000 Per Year
  • Company’s Lawyer/Secretary – $50,000 Per Year
  • FinTech Operations Specialist – $48,000 Per Year
  • Programmers and Software Developers – $47,000 Per Year
  • Admin and HR Manager – $45,000 Per Year
  • Digital Marketers (Marketing and Sales Executive) – $42,000 Per Year
  • Accountant – $40,000 Per Year
  • Customer Service Executive/Front Desk Officer – $30,000 Per Year.
f. Sources of Funding for Our Financial Technology Company
  • Raising money from personal savings and sale of personal stocks and properties
  • Raising money from investors and business partners
  • Sell shares to interested investors
  • Applying for a loan from your bank/banks
  • Pitching your business idea and applying for business grants and seed funding from, government, donor organizations, and angel investors
  • Source for soft loans from your family members and your friends.
  1. Financial Projection

a. How Much Should You Charge for your Service?

At Money Net© FinTech Company, Inc. our fee will be based on the type and volume of transactions on our payment platform. But averagely, we charge $3.50 per transaction.

b. Sales Forecast
  • First Fiscal Year (FY1): $3.5 million
  • Second Fiscal Year (FY2): $5 million
  • Third Fiscal Year (FY3): $9 million
c. Estimated Profit a Year

The ideal profit margin we hope to make at Money Net© FinTech Company, Inc. will be between 25 and 40 percent.

d. Profit Margin of a Financial Technology (FinTech) Company Product/Service

The average net profit margin for Money Net© FinTech Company, Inc. is approximately 17%. The average net profit margin can be higher or lower depending on our additional service offerings and the amount of our overhead expenses.

  1. Growth Plan

Money Net© FinTech Company, Inc. will grow our Financial Technology company by first opening other offices in key cities in the United States of America within the first five years of establishing the business, then we will start selling franchises from the sixth year.

Money Net© FinTech Company, Inc. plans to expand to first to Los Angeles – California, San Francisco – California, Chicago – Illinois, Washington, D.C., Boston – Massachusetts, Miami – Florida, Seattle – Washington, Dallas – Texas, and Philadelphia – Pennsylvania.

The reason we intend to expand to these geographical locations is the fact that available statistics show that the cities have the highest FinTech market in the United States.

  1. Exit Plan

The founder of Money Net© FinTech Company, Inc. plans to exit the business via merger and acquisition. We have put structures and processes in place that will help us achieve our plan of successfully merging with one of the leading players in the finance and banking industry. With that, we can be rest assured that the business will be under the care of a safe and well-structured management team and board of trustees.