AB Accelerator put together its second edition FinTech Bootcamp in Jordan. The 5-day bootcamp provided aspiring entrepreneurs with access to mentors and insights from key decision makers within Arab Bank and its wider network, to help fine-tune their ideas to become enterprise-ready.
The Entrepreneurial Advisor, Nidal Qanadilo, shares his best advice for fintech entrepreneurs looking to break into the industry and put their start-ups on the path to success.
Fintech is a booming industry and many of its products touch our lives every day whether we realize it or not. Simply put, fintech companies use technology to disrupt traditional financial models and provide innovative financial services
Fintech is disrupting nearly every area of the financial industry including security, efficacy and customer experience, and these transformations show no signs of slowing down. With the fintech market growth we are witnessing, it's clear that this trend is not slowing down anytime soon.
This growth presents a unique opportunity for fintech start-ups with innovative ideas for streamlining financial services. However, these start-ups often require substantial start-up capital to turn their ideas into reality. To attract investors, start-ups should focus on developing a clear and compelling value proposition that demonstrates how their product solves a real-world problem or capitalizes on a market opportunity.
First and foremost, identify the need and determine its worth by seeking validation for your product.
The one mistake many new entrepreneurs make is looking toward their social circle for feedback and using surveys for validation. Eventually, the consumer will be buying your product. So, your ultimate goal should be your audience’s validation of your product.
In today's market, where competition is fierce, your product must have value for the customer. Do not design products simply because you have an idea, design products that solve real-world problems.
Learn about the market and who needs this solution. Find out how high-touch and low-touch engagement models can assist you in catering to the customer.
The market size determines the number of people willing to pay for your product, which can be an attractive prospect for investors. Ideally, an investor would want to indulge in a business that has a big market size. Yet, other factors such as the potential for growth, quality of the product, and the experience of the team, can also influence the investor's decision.
A small number of competitors indicates high demand and low supply for the product, while too many competitors are a big indicator of a major market barrier. This indicates that demand and supply are high.
Plan your entry into the market. While a potential customer is important, real validation solely comes from a paying customer.
The investor would want to read about your milestones and how you will be using these funds in every period for the next three years.
Finally, it's important for entrepreneurs to be open to constructive criticism. It's essential to act wisely and not let emotions get in the way. Developing a thick skin and accepting feedback, whether it's about the unsuitability of your idea or the need for adjustments, is crucial for successfully executing an entrepreneurial plan. Embracing constructive criticism is a key component of the entrepreneurial mindset, as it allows you to refine your ideas and improve your chances of success.
