Fintech is booming. With technology developing at a frightening rate and with traditional industries being changed like never before, there has arguably never been a better time or environment to start a fintech company. If you have a big idea then it is likely you want to know how to effectively bring that idea to market. In this guide, we are going to look at how to move from idea to execution when it comes to the fintech sector.
As well as simply getting a business off the ground, we will look at concerns that are around the sector including regulatory concerns and the options for those who are based outside of the UK but are looking to access the vibrant and fertile market that Britain offers to entrepreneurial spirits.
Research, Research And A Bit More Research
Like in any sector, fintech businesses require in-depth research to ensure not only market fit and viability but also so to ensure that the skills required are also available to be used in the intended fashion. It’s all well and good trying to create and define a new sector but if the skills do not exist then delivering on the idea will be impossible. That isn’t to say that a new business cannot create a new product, but you need to be certain that you will be able to create the product that you are selling.
As well as ensuring that the product can actually be built, you need to ensure that there is actually a requirement for it. Just because you think something is a good idea, doesn’t necessarily mean that it is. This is why research is so vital before committing significant funds into a business idea. One of the beauties of the internet is that ideas can be modelled and tested extremely cheaply. It is also best to do your research before you try and seek funding. While not all businesses will require funding, the vast majority will. If you are intending to bring a brand new product to market, investors will want to be certain that there is a market for it. Any research at this stage is likely to pay huge dividends going forward.
This research can be used to form the backbone of your business plan. If you are looking to take on outside funding (whether from a financial institution or any other type of external investment) or need to try and gain a visa to enter the UK in order to start your intended business, an in-depth, well-researched business plan will likely make or break your chances of success. By committing to in-depth research, you are giving yourself the best start possible on the route to long-term continuous business success and growth.
If you’re looking to bring your business to the UK, or you’re already based in the UK, you will need to take into consideration the vast regulatory concerns that will be imposed on businesses in the fintech space. As well as having to satisfy many rules regarding tax and employment law, many fintech sector businesses will also need to ensure that they comply with UK laws around the financial sector. As one of the world’s most well-known and developed financial centres, the UK has very specific laws regarding what can and cannot be done in the financial sector. It is vital that you understand this well before committing to starting your business, any failure to comply with UK law comes with significant and heavy penalties.
You will also need to ensure that you have taken into account regulatory concerns when it comes to raising outside funding. Anyone who is going to invest in a fintech business wants to know that the product or service that they are investing in is not only likely to make money but is also legal. You will also need to ensure that these concerns are taken into account if you wish to apply for a visa, as many would-be entrepreneurial migrant’s business ideas are now tested by appropriate bodies before endorsement is given. This new setup ensures that the business will comply with all UK law once it starts up, as well as being highly likely to succeed in the long-term.
Need A Visa?
Fintech is very much a global business. As we become ever more connected, opportunities exist across borders like never before. This means that many entrepreneurs are based away from the country in which they intend to launch their big business idea. Depending on where you come from, you may need a visa if you wish to move to the UK in order to start up a fintech business there. If you are from outside of the EEA, you will need either a Start-Up or Innovator Visa if you are looking to come to the UK in order to start a business in the fintech space.
In order to gain one of these two newly created visas, you will need to gain endorsement for your business idea. Endorsement is given by either a higher education institution or a business-minded approved body. For the vast majority of would-be migrants, they will need to apply to one of the business-minded bodies, as the higher education institutions tend to only offer endorsements to their alumni. This isn’t necessarily a bad thing and is actually good news for those in the fintech space. Many of the approved bodies actually specialise in the fintech sector. As well as offering you endorsement in order to apply for a visa, they can also help with other issues such as networking and funding.
So if you are looking to start up a fintech sector business, the UK should be very high on your list of potential places to launch. Not only is there a vibrant financial sector, there is also a lot of scope for help and assistance for those looking to start up. If you need general immigration-related assistance, then get in touch with one of our immigration lawyers, who are experienced and well-equipped to aid you along your journey.