Fintech Startup Ideas for Aspiring Entrepreneurs and CEOs

Financial technology, also known as fintech, takes the world by storm. It is the science, innovation, and practice of competing with more traditional methods of providing financial services to the masses.

It is considered an emerging industry that leverages technology to enhance the financial experience of consumers. It can range from mobile banking and borrowing and investing services to blockchain technology like cryptocurrency. It’s no surprise that aspiring entrepreneurs and visionaries and their startups are racing to create and develop the most cutting-edge technology to get to the top.

Fintech is truly the future. Here are some startup ideas for aspiring visionaries and entrepreneurs who want to build something of value in this industry, competing with companies like Marqeta and others.

Consumer-centric loan services

There is no denying that the way the United States handles the collection of loans can be a bit impersonal at best and dehumanizing at worst. Once the loans are approved and given to the consumers, the onus to collect is on the servicer until the loan is paid off in full.

One of the best examples is college loans, which have been a big point of debate in the past few years. About 12.9 percent of people in the U.S. have student loan debts, which sums up to about $1.59 trillion. This is an enormous amount and a massive number of people, which is why going through the student loan processes can be pretty daunting and impersonal. This is where aspiring entrepreneurs can begin to dream up a system to make things easier for everybody:

• Find ways to create a loan service that provides consistent information and data about the loan payment plans, which can ultimately increase the payments received by the borrower.
• Create ways to make the process more customized and personalized so that the lender can administer the loan services in ways that are helpful to the borrower and suit their specific needs and context.
• Develop technology to ensure that the information given is always accurate so that the borrowers won’t be adversely affected.

The technology is so impressive now that the above endeavors are possible, especially with the help of skilled developers. Let your mind run wild and think of more than just profit and legacy—think of ways to help people who need it truly.

Tax management and preparations

There are already plenty of platforms and tools that aim to help consumers manage and prepare their taxes better. Still, many of these applications don’t always cover specific and unique needs like the following:

• Support for people who run a home-based side business
• Practical help for those who have many sources of income and who may not know how much they should ascribe to the government

You would be surprised by the number of people in the U.S. who want and need tax preparation consultations. If you genuinely want to create a startup that can make waves in the fintech industry and provide practical solutions to people, dig into these tax preparation problems and partner with people who can help you think of ways to offer solutions.

Personalized insurance

The issue of health insurance is still a hot-button topic for both sides of the political spectrum, but we cannot deny that many Americans want health insurance, and they want to know that they will be taken care of if their health takes a dip. Another fact about modern Americans is that we prefer easy access and gain everything at a single swipe or tap.

Why not fuse these two needs and desires by creating an insurance service that will allow them to go at their specific pace and find the insurance coverage that works for them?

Instead of having them run to a financial adviser and meet up with people during a pandemic, they can log on to an app or website that will allow them to explore various insurance offerings that meet their specific needs and context? This type of startup also does away with the hard-selling strategy, which might incentivize consumers to check it out more.

Finding Funding

Investors are always on the lookout for startups that provide practical solutions to consumers’ real-world problems, so getting into the fintech industry. At the same time, it’s early might be more than a brilliant idea. Look at people and their financial problems now and think of ways to help them through the startup or app you’re thinking of developing. Think beyond profit and legacy; practice foresight and see how your startup can be the channel to eliminate some financial issues.