Investment projects in FinTech: Types and ideas

Investment projects are meant to be seen as a way to improve a business. No matter the type, these projects will take an in-depth look at how the business is running in every aspect. You’ll find that different areas can be updated just by investing back into the company. 

See how to improve and invest by looking at different projects including entering new markets, new products, expansions, and reducing costs.

What is an investment project in FinTech?

Regardless of the sector, an investment project’s overall goal is to achieve either economic or financial goals with a set of tasks or activities. Take a look at the types of investment projects we see across the board in businesses. FinTech companies tend to have low overhead, but it’s still worth taking a look at.

Types of investment projects in FinTech

It takes time and money to invest in your own business and help it grow. Helping your company, and its services and products, improve should always be a goal.  

This might entail listening to customers or finding a new way to get the business out there. With the development in FinTech, there is always a way to improve services or products for consumers.

New products or new markets

As a business grows, so do the products or services that it offers. It is the only way to stay on top of the game. Each business should have a research and development department that will determine how to expand.  

Moving into new markets is an important aspect, as well.  A new product or service that is added can also help tap into a new market.  

Expansion of current products or market

Expansion of current products or in your current market can prove to be a positive move.  

Creativity can go a long way, you already have a product or service but feel it can benefit from a new set of customers. Products or services could be updated or introduced into different sectors of the market, therefore attracting a whole new group of customers. 

We have seen this happen with a variety of companies such as Coca-Cola. They’ve dipped their toes into more than just soda, offering sports drinks, waters, and juices for the company to expand into different markets based on consumer needs.

Replacements for normal operations

To keep up with consumer demand, you must turn profits back into investments in your own company. Replacing equipment, hiring more employees, or expanding an area for the business… this requires budgeting to evaluate how these upfront costs will later turn into profits.

There are also ways to avoid such disturbances in normal operations which can include preventive maintenance for equipment used. For staffing, reevaluation of their tasks can allow you to see how their productivity is used and the tools needed to complete their jobs. Work smarter, not harder!

Replacements to reduce overhead costs

Can you spot a way to reduce costs for the company? Is there a change in the economy?  There comes a time where a project will focus on the financial analysis of how a business is running. This could mean replacing equipment based on how it generates cash flow. It could mean the use of specific materials in the business that can be cut or reduced.

Overhead costs come in different types:

1. Fixed
2. Variable
3. Semi-Variable

Fixed costs relate to the musts, like rent, insurance, payments for loans, and taxes. The business pays these regardless of the revenue and most of the time, these stay the same.

Variable costs are closely tied to sales in terms of shipping products, marketing for the company or its products, buying supplies or materials needed to make the products, and even the maintenance of equipment mentioned earlier.

Semi-variable costs have some changes that correlate to the number of sales. This could be the gas used for delivering products to stores or customers, repairs, and payment of bonuses or commissions based on sales.

How to Find Investment Project Ideas

Investment projects will be focused on the business type. Using your creativity can help develop new ways to add to the company whether it is additional services or products. FinTech covers such a vast area of our daily lives that you can dip a toe in anywhere and find ways to expand.

Ask customers what they feel could be better in the project or services you already provide.  Chances are there is always room for improvement.

Finnovating’s platform allows a network of corporations, FinTech, and investors to come together to help meet the challenges that a company is facing. This then opens up a way for out-of-the-box thinking in order to get over a hurdle. 

Within the platform, the projects can be based off of investments or collaborations. It can provide a one-stop place for a startup company to find investors or partners. It is a great way to network for corporations, FinTech companies and investors alike. You’ll be able to find a challenge that best fits with your company which provides resources to help your company take off.