Evaluate and analyse
Conduct a thorough analysis of the macro- and microeconomic environment as well as the product to see if it will aid the economy or if it’s just a fad. Look for products that are going to be essential to the economy for at least the next five years. It is crucial to analyse the product’s impact on society and monitor how it performs through different cycles.
Separate the wheat from the chaff
Examine the competition and business model for the product. For every innovative solution, you could have 20 companies doing the same thing with slight product variations. Beyond product innovation – it is equally important to find capable founders who are far-sighted, quick around product pivots, inspiring to their teams and collaborative with other business partners.
Working with regulators
Fintech companies provide technology that are either regulated or unregulated. Unregulated technologies open up a whole new world of disruption and progress. Always ask founders about their business plan in the event that their technology becomes regulated. Look out for companies that are aware of potential regulations and have a clear plan on how to work with regulators. They should also be able to create a solution that allows the company to work successfully in a regulated environment.
Ability to expand
Look for fintech companies that are able to scale across different countries. Singapore is one of the best places to incorporate a company’s headquarters because it has good corporate governance and is one of the easiest places to conduct business. But the company also needs to demonstrate its capability in expanding to other key markets in Asia such as Indonesia, Malaysia, Vietnam, Thailand and the Philippines as the domestic market in Singapore is too small.
High user frequency
Consider fintech solutions that offer high frequency usage to users. Financial technology primarily deal with money – which is frequently managed in everyday life. Hence, monetary solutions generate a high level of interest.
Ability to change behavioural norms
New technology can look very appealing initially, but consumers may revert to their old behaviour after trying it several times. Look for fintech companies whose founders are capable of changing behavioural norms and sustaining new habits in the long term. Changing consumers’ behavioural norms also depends on how much they trust the platform and product as well as how the company works towards achieving such trust.