11 Mistakes Fintech Entrepreneurs Make When Pitching their Idea

The Major Winners Will Be Financial Services Companies That Embrace Technology. – Alexander Peh, Paypal, and Braintree.

The global financial technology market is growing steadily.

It is forecasted to be a $324 Billion Industry by 2026, with an Annual Incremental Rate of 23.41%.

A recent assessment by the World Bank revealed that the fintech sector is booming, measured by various performance parameters.

Impact of COVID-19 Pandemic on FinTechs

As a result of the ongoing pandemic, numerous industries, including Fintech had to re-strategize in the battle for survival.

Initially, the financial sector was hit by the global lockdown restrictions and quarantine periods.

But, within a few months, the fintech companies were on their feet.

With the persistence of the pandemic, FinTechs played an indispensable role in facilitating payments & remittances, offering working capital and urgent loans as well as other essential financial services to consumers and MSMEs worldwide.

Ever since the start of the coronavirus pandemic, there have been enormous success stories of FinTechs such as After Pay - An Australian Financial Technology Company - Its Sales Increased by 112%.

To sum up, the coronavirus pandemic has blurred the lines between Fintechs and banks, thus accelerating digital adoption.

The Berenberg Ban anticipated that the decline in revenues in American and European banks would amount to 8 .5% in 2020 while profit was 30% lower than expected a year ago.

In Asia, the situation is similar as banks are experiencing a sudden dip in revenues.

So, with the pandemic here to stay, now is the right time to start a FinTech startup or expand your business operations.

But, for that, you need funds, and this is by no means a stroll in the park.

This is where the entrepreneurs have their work cut out to pitch their idea to investors in a manner that seems both exciting and convincing.

In this article, we will be enlisting the prevalent mistakes entrepreneurs make in their Fintech startup pitch deck and how you stay clear of them.

Here Are Eleven Mistakes When Drafting a Fintech Startup Pitch Deck:-

Mistake 1: Overlooking the Company Overview

This is a kind of mistake that even experienced entrepreneurs make, as they perceive that what angel investors care about is numbers, revenue, and market size.

Yes, this is true to an extent, but by not introducing your company, you are losing the opportunity to leave an authoritative mark in your prospective investors' minds.

The business summary slide must have a dedicated section of the Vision Statement —A One-Liner That States What the Company Is, and a Quick Overview of What the Company does.

Don't forget to define the services of your FinTech platform.

To make a significant impact include a graph that illustrates the Rise in Transaction Volume in FinTech for the past few years.

Mistake 2: Missing Out on the Key Facts

Never make the mistake of undermining the worth of crucial facts associated with your FinTech platform.

These facts can be related to the number of customers your business is associated with, average savings per company, the average time to roll out programs, and time finance teams.

This slide-in our FinTech template is 100% Editable and Compatible With Google Slides.

Mistake 3: Not Effectively Presenting Company's Progress

The slide aims to make the potential angel investor and venture capitalists in the presentation room aware of the milestone your FinTech company has accomplished over the years.

For instance, the company unveiled its prepaid and debit card and mobile App in 2007, and in 2010, the company acquired its full banking license.

But the most significant milestone was in 2020 when their customer base soared to 50,000 clients.

The investors would hardly remember the numbers at the end of the presentation, but they will know that the company has made tremendous progress and that their idea is worth investing in.

Mistake 4: Not Interlinking Solution to Problems

Every problem has a solution, right?

But does every solution have problems to address?

If that's not the case, the odds of startup failure are considerably high.

So, in your FinTech pitch deck, there must be a dedicated slide that explains how company solutions cater to problems faced by their target client base.

If you effectively link both the solution and problems, no investors would reject your investment prospect.

For Example, in Our Template, We Have Put Forth Four Solutions:-

The First is to Streamline approvals.
The Second is Overall Expense reduction.
The Third is to Spend Tracking and Control.
And, Last is Accounting Automation.

The problems resolved by each solution are described briefly.

Mistake 5: Ignoring the Importance of the Fintech Market Growth Potential Slide

The way you present the Fintech market growth slide acts as a fine line between a deal and a no-deal.

First things first include impactful statistics, such as the CAGR of the global FinTech sector is 9.2%.

Visually demonstrating the exponential growth of the FinTech industry is worth an idea.

Have one graph that shows the Tremendous Rise in Transaction Value.

Another graph demonstrates the Rise in Global Fintech Financing Across the Globe.

Mistake 6: No SWOT Analysis

A powerful analysis tool, SWOT, stands for Strengths, Weaknesses, Opportunities, and Threats.

Strengths and Weaknesses are determined by internal factors, while External factors determine opportunities and threats.

The purpose of a SWOT analysis of the FinTech industry is to assure the potential investors that your company is well-aware of the threats posed by cybercrime, limited regulatory and supervisory capacity.

The analysis also enlists the strengths of the industry, which include effective risk management and overall cost reduction.

The weaknesses involve financial risk, financial data privacy concerns, etc.

And, finally coming to opportunities, this is where you have the "Opportunity." The opportunity lies in increasing smartphone penetration and reducing the cost of Internet services.

Mistake 7: No Competitive Analysis Slide

The competition slide in a pitch has often been a conversation starter as the angel investors access founders' knowledge with regards to the key players in the market.

Never make the blunder of overestimating your startup and downplaying other rivals.

What's worse is that some founders claim that there is no competition to secure funding.

However, investors consider this as a red flag.

The comparison must be based on the qualitative performance parameters.

For instance, your FinTech platform comes with an advanced feature of real-time transactions, while your competitors don't have such a feature.

Mistake 8: Not Having a Slide That Illustrates Your Business Performance

It is advisable to include a slide in your pitch deck that throws weight behind your claim that your FinTech platform is making considerable progress.

Rather than telling long stories, have one or two graphs that visually show a company's outstanding performance using various parameters.

One bar graph could be for the Rise in "Active Customers" and another one for "Rise in Revenue."

Mistake 9: Not Putting Forth Your Platform's Unique Value Proposition

Most of us have heard the term "Value Proposition" at some point. We know that it is crucial, but we don't know it.

The value proposition is a term, first used by Michael Lanning in 1991, defining how well your product or service meets your customer's needs. It's a way of figuring out what your customers need and want and then creating a product or service that meets those needs.

Creating a value proposition is important because it can help you focus on what's important to your customers. It also helps to ensure that you are not trying to offer too many things to your customers, making it difficult for them to understand what you do and why you do it.

The term value proposition is often used in discussions about business development. The idea behind the term is that focusing on the customers' needs is essential.

This can be important in terms of marketing, but it can also be helpful for what products or services a company offers.

So, What's Your Fintech Value Proposition?

Your Value Proposition could be rapid Sign-up, no security deposit, and increased limits.

Use this slide to make a bold statement that sets your FinTech platform apart from other platforms in the market.

Include such a slide in your pitch deck to gain your potential investors' trust further.

Mistake 10: Not Mentioning your Clients

The clients associated with your FinTech platform are the positive testimonial of your business idea that you want to pitch to a group of investors.

So, don't refrain from having a dedicated slide that introduces your FinTech platform's top clients.

The template below is impressive, it includes logos of your major clients, and below there is a section with two client testimonials with professional pictures and company names.

You can edit it to create your company's authoritative image in the minds of your prospective investors.

Mistake 11: Do Not Forget the Financial Projections

No wrap-up of a FinTech startup pitch deck is better than having a slide that puts forth the company's financial projections —It's Like the Cherry on Top.

Give numbers such as Total Revenue, Total Cost, and Total Assets.

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