Many of the Fintech companies are actually expanding at a rapid pace. That does not mean that there are no challenges in running a Fintech company. We will today highlight some of the challenges which are faced by the entrepreneurs when running a Fintech company.
In many of the developing economies, increasing reliance is on cash. This is because people transact using cash. That is why, the Fintech companies find it difficult to switch the consumers from cash driven transactions to digital transactions.
In many of the cases it is also been found that people are little hesitant on the offerings as well as the platforms of the Fintech company. Due to this very reason, they do not easily switch over to the platform which is developed by the Fintech Company. The Fintech Company has to provide them with extra incentive in order to use the platform.
With the increasing threats to data security on platforms like Facebook, many of the consumers are fearful of switching over to the Fintech companies. That is why; they use the tested economy in order to conduct their transactions. This ensures that they are not victims of any kind of data breach or any kind of hacking. That is why, the level of security is with the cash driven transactions.
The regulatory framework pertaining to the Fintech companies is always changing. One day, a transaction which is legal can be illegal the next day. That is why; the consumers are worried about having their money tap. This is another reason why they are not easily switching over to the platforms of the Fintech Company.
Moreover, the demand for information from the Fintech companies is ever increasing to comply with the regulatory framework. As a result, the companies have to gather more and more documents from the consumers. The consumers are not that comfortable in providing more and more information as well as documents to the authorities in order to use the products of the Fintech Company. This is one of the main hurdles which Fintech companies often face when trying to gain loyal customers. Only when the regulatory framework is predictable, the Fintech companies will be able to easily gain the customers.
Even though the Fintech companies are growing at a breakneck speed but these are the obstacles which are often faced by them in order to gain customers. Only once these obstacles are eliminated, it will be easier for the Fintech companies to go ahead and gain new customers.