Helping fintechs avoid the spiral of death in the age of COVID-19


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Stefan Pajkovic, CEO at TradeCore discusses how the COVID environment has made it even more difficult to transition to a market-ready fintech but also talks about the hassle-free help that is available.

A Lot of investment, both in terms of money and time, goes into creating a new fintech. In fact, on average, it takes at least 2 to 3 years to transition from initial proposition to being market ready, often at the cost of millions of pounds. The current COVID environment, where it’s more difficult to develop products and prove profitability to investors, has made things even more difficult, with many industry commentators warning of a ‘fintech spiral of death’, where complicated market developments and a lack of access to funds are combining to end startups’ development cycles before they even begin.

But this doesn’t have to be the case. We now live in an age where a plethora of fintechs exist to make growing an early stage business easier, quicker and more cost effective. The real issue now is connecting a new business with the ecosystem of partners required to make growing their operations, and getting to market, hassle free. 

The regulation distraction 

Perhaps one of the most daunting aspects of creating a new business is ensuring that operations and products meet all legal and regulatory requirements. Businesses just starting out often get bogged down with regulatory concerns due to the complexities surrounding the matter. Access to the right regulatory technologies can also prove cumbersome to implement and expensive.

Failing to take out the right cover however, and ensuring a business is fully compliant, can present major hindrances for new fintechs starting out, and have knock-on effects when it comes to growing revenue or attracting and raising capital to grow and expand from investors. Progressing a business without the right regulatory compliance in place can lead to significant delays in getting to market, or in worst case scenarios, such as what we saw recently with Robinhood, put an end to a business’s launch completely. 

Access to emerging technologies

Sitting alongside regulatory concerns there is also the issue of access to emerging technologies such as those that streamline payments and banking. Investing in such technology infrastructure is not just by nature technical, but also extremely costly and time consuming. Many early stage businesses, consisting of just a few people that might not be experienced in the world of technology, are unable to access these technologies to help them grow and get to market. 

Whereas previously, early stage entrepreneurs would often operate from bricks and mortar outlets and rely on physical transactions and customer interactions, in today’s increasingly digitally driven world, investment in the right technologies has become vitally important to succeed and grow. This includes investing in technologies that can help speed up customer onboarding, those that enable access to secure payments and multi-currency accounts and much more. 

 A one stop shop for startups

Fortunately, help is to hand and we are now seeing a new proposition enter the market, where established fintechs such as TradeCore work closely with fintech partners to create a one stop shop for those new businesses starting out. 

New businesses now have access to a secure, cost-effective premium ecosystem of more established organisations that can guide them through the complexity of their specific sector, supporting the technologies that can help with processes such as compliance, licensing, payments infrastructure and more. 

Not only do these organisations provide emerging fintech startups with a tech-layer to build the business logic on top of, but they also remove the time and investment needed to build and maintain complex back-end systems. This means fintech startups can save valuable time and money and shift focus towards what really matters – building and perfecting their projects and enabling them to get market-ready. 

Stefan Pajkovic

Stefan Pajkovic is CEO and founder of TradeCore, the fast growth fintech that supports emerging market players innovate and get to market faster by removing ecosystem complexity and regulatory barriers. A derivatives trader turned data-driven internet entrepreneur, Stefan has successfully launched a number of financial technology and internet ventures across the world, including in the UK, South Africa, Canada, Thailand, Russia and Israel.

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