Recommendations for fintech startups navigating the procurement process
The expanding scope of fintech has been well documented in these digital pages. Payments, investing, financial planning and lending often spring to mind as "classic" fintech startups, but other business models like regtech, compliance, human resources and marketing are on the ascent.
For passionate and talented founders, the tireless pursuit of building innovative technology is critical and fundamental. That said, to be successful in financial services, significant time and effort needs to be dedicated to other business fundamentals: corporate setup, privacy and security. The financial services customer base presents unique challenges for fintech startups as the regulatory and operational requirements for third-party vendor assessment and management are, in comparison to most other industries, brutal. Issues that might go overlooked during the early stages of product design and team-building could turn into obstacles during the sales process.
Understanding the dynamics of the financial services procurement process is essential if you want to negotiate it as quickly and seamlessly as possible. And before diving head-first into the development of your killer fintech app, consider the following questions:
- Is my technical architecture secure?
- Who is responsible for cybersecurity in the organization?