The fintech industry is estimated to be worth around $226.76 billion and is projected to reach $917.17 billion by 2032 growing at a CAGR of 16.8%. This growth is attributed to the growing number of innovations given by fintech startups. With around 30,000 fintech startups in the world, which is the highest for any industry in terms of number of startups, one can wonder why starting a new business in fintech can be successful. 

The main reason behind these effective operations is how they easily integrate with other businesses in terms of simplifying cross-border payments or providing instant loans through apps. In this blog, we are going to look at five key reasons why fintech startups have a higher chance of success. 

Collaborating With Gaming Platforms

Fintech startups have thrived in the gaming space since it presents a huge opportunity to provide more accessible payment options. One such area where fintech can be of huge help is digital casino offerings since they require fast, secure, and reliable financial solutions. As the demand for online casino games has increased, those platforms are looking for reliable partners to make their offerings efficient, and one of those is the financial part of the business.

Online casinos these days focus more on creating a good experience to survive the competition. This means they need to provide services like instant deposits, withdrawals, advanced fraud prevention measures, and multi-currency support including cryptocurrencies. Fintech startups have identified these issues and have come up with solutions to fill this gap that make digital casinos more efficient and trustworthy.

For example, fintech startups these days have focused on blockchain-based solutions to completely change how casino transactions are handled. Since cryptocurrencies like Bitcoin and Ethereum are already known for their asset value and anonymity in transactions, integrating them into casinos can enable anonymous, low-cost, and borderless transactions. 

This means players around the globe can get into casinos without the need for traditional banking systems like debit cards or bank transfers. Moreover, many fintech startups also specialize in e-wallets that allow users to manage their funds with ease. 

Seamless Financial Transactions At Scale

As discussed before, one of the greatest advantages of fintech startups is their ability to provide services across industries. Fintech platforms mainly focus on speed and a user-centric design that makes everyday transactions more efficient. A report has stated how the global digital payments market is expected to exceed $10 trillion by 2025 which shows the huge potential in the sector. 

For example, mobile payment apps like Google Pay or Apple Pay or startups like SuperMoney have significantly reduced the time to transfer money or make purchases. Any business of any size can use these fintech solutions – whether it is a small store selling groceries or a customer trying to split the bill. 

Use Of Advanced Technology

Fintech startups are able to provide AI-powered chatbots that can instantly handle queries without the need for a human. They also use blockchain technology as discussed before that has introduced transparency and security in everyday transactions. All these go on to show how fintech startups use advanced technology to survive in the startup world. 

Big data analytics provided by fintech startups helps companies to understand consumer behavior even better which can help them better strategic decisions. This might be the reason why 97.2% of businesses invest in big data solutions, leading to the growth of fintech startups. 

Adaptability To Changing Consumer Preferences

The reason why most startups fail is their inability to adjust to changing demand; Many startups fail because they are not able to meet demand or there is a lack of demand for their offerings. However, fintech startups can survive this decline phase since they are able to adjust to changing demand while being influential enough. In this context, fintech startups meet these expectations by providing mobile-first solutions, intuitive interfaces, and 24/7 customer support. 

For this, neo-banks are a great example. These are new forms of banks that operate without any physical branches. They are popular since they provide all the essential services of traditional banks minus the bureaucracy. This is why there are hundreds of neo-banks in the world with a market cap of $143.29 billion.

A Global Focus With Local Impact

Fintech startups also have a higher chance of success because even though they operate on a global scale, they also provide customized offerings to meet the needs of the local market. This dual approach has helped them to gain an advantage over regions where these traditional financial systems fail to operate. 

This means in developing countries, they can provide essential services like digital wallets and peer-to-peer lending while in developed countries, they can focus more on user experiences through advanced analytics and personalized recommendations.