We can’t think of too many sectors with as much potential as fintech right now. Between P2P lending and decentralized finance (DEFI Crypto), the possibilities in this field seem almost endless and anyone with a good idea has a chance to succeed if they execute it properly. The pandemic also did a lot to boost interest in fintech apps. They made it convenient for people to sign up for accounts and access important financial services from home, and we can expect more people to see this as the norm from now on. Let’s take a look at a few great fintech business ideas you could consider for 2022.
1. Crypto Exchange Platform
One of the most potentially lucrative businesses you could start in fintech right now is a cryptocurrency exchange. Fintech and crypto are intertwined and many see them as the golden goose of the fintech field since they take away all intermediaries.
In an exchange, you will be the person coordinating transactions between buyers and sellers. You’ll also need to store and secure some of the crypto being exchanged using a combination of software and hardware. You’ll need to abide by all sorts of regulations, such as KYC rules and anti-money laundering laws as well.
For this, you will need to have a clear verification system in place. This will also help prevent fraud and allow people to make deposits from their bank accounts with as little risk as possible.
If this is something that interests you, we suggest you start looking at Envestnet | Yodlee and their bank identity verification solutions. You can use their API to allow clients to quickly identify banking information. Their API connects different applications at once to allow you to verify a user’s information using information such as their phone number, email, or address only which will facilitate the process for everyone.
2. Decentralized Finance App
A lot of people have been closed off from the main banking system for a variety of reasons. But decentralized finance could change all that.
Decentralized finance is a system that allows independent organizations and even individuals to work as banks. They principally use the blockchain and cryptocurrencies, but they don’t have to. The blockchain will usually be used to verify transactions, but they can be made in fiat dollars or other assets like commodities.
Decentralized, or DeFi apps can be started from scratch with a proprietary blockchain, or they can be built on an existing one like Ethereum’s. Both have their pros and cons but starting on an existing blockchain is generally the best idea as it doesn’t require as much of an investment.
3. P2P Payment Apps
A lot of people want to make payments, and not everyone can accept them conveniently. If you can manage to target a niche, you could start a very profitable P2P payment system. You might have tough competition here, but there are many emerging markets where this kind of service would be needed. This is another solution that could build on the blockchain and a relatively light application.
Now is a great time to be in fintech, and if you are looking for ways to get in the field, we hope we were able to inspire you. Know that there are plenty of other models that you could try, so keep your mind open and look at as many options as you can until you find something that piques your interest.