Every week, a new startup entrepreneur surfaces to change the world in the banking and payments space, every week, another failed startup has to close its doors. It is a game that has no fixed formula and as a matter of fact, one should be suspicious of anyone who claims to have the secret method to succeed. Although there are just too many uncertainties but one can act wise by learning from other’s mistakes. Likewise, my interest on the subject exposed me to facts which are common and hence easily goes unnoticed.

The first and foremost thing is to be vigilant about security. To run a secure online service one needs to buy into the idea that ‘security is a process’. The one-size-fits-all approach is one of the reason which leads to failure.

Legal challenges are another significant aspect for fintech startups. Intellectual property protection and maintaining proper security of customer data are some of the concerns. To combat these, one requires procurement of licenses, file for patents and register trademarks in a timely fashion.

Similarly, startups need to be well-informed about investors and should prefer stakeholders with experience in the fintech ecosystem to avoid fraudulent operations like money laundering.

Smart entrepreneurs know that the journey is long and one needs to focus on both the destination as well as the journey itself. Therefore, before designing a business plan, it is important to investigate the space and most of all have your heart in it too!