What is the structure of a Fintech company?

Some of the world’s fastest growing businesses are found in financial technology, or the fintech sector. Fintech notables include Kuda, PiggyVest, Flutterwave, Paga and many others.

As you might expect, many business owners are looking to launch their own fintech companies in an attempt to emulate these titans

But having the right organizational structure is essential to developing a profitable business, whether in the fintech sector or not.

The organizational structure of a fintech company

Steering Committee

A board may be present if a fintech company is sufficiently large. The organizations that make up this board ultimately decide how the company is run.

They may actively manage the business operations of the company, or they may delegate such responsibilities to the CEO and other C-level executives.

CEO

Most fintech organizations place the Chief Executive Officer (CEO) at the top of the direct line. The CEO reports directly to other C-level managers and department heads, who handle the majority of the day-to-day tasks. The CEO uses this data to guide the business and establish goals.

Operation

The basic operations that keep a fintech business running are handled by the operations department.

This involves project management, supply chain management and the development of standard rules and procedures.

Operations can also include human resources, finance and marketing when a fintech company is at the start-up stage.

When a business expands, these usually separate into their own departments.

A Chief Operating Officer (COO) or Vice President of Operations is responsible for operations. The COO is mainly responsible for ensuring that the business functions as it should and maintains the CEO’s goals.

Also read, Is the valuation of Fintech startups going down?

Product

A great product team is always behind a high-quality product, and fintech is no different. The product team researches the target market to identify their particular requirements and preferences before crafting a product strategy to satisfy both.

Product development and optimization are also among the product team’s responsibilities.

The technology department then gets the concept to make it a reality after they have developed a clear roadmap for a product. But ultimately it is the product’s success or failure.

Technology

The company’s technological requirements are handled by the technology department. For financial businesses, this involves both internal IT infrastructure and the development of software products.

Technology typically controls:

• Back-end and front-end development
• Network survey
• Software development
• Design
• Database management
• Cyber ​​security
• Monetary infrastructure
• IT help

The Chief Technology Officer (CTO) heads this division.

Finance

The financial strategy of a company is managed by the finance department. Their responsibility is to ensure that the business uses its resources as efficiently as possible and, most importantly, that it does not run out of money.

This involves managing a range of tasks including payment administration, accounting, bookkeeping, financial modelling, fundraising operations and statutory and investor reporting.

The aim of Finance in all this is to maintain an appropriate ratio between operational cash flow, debt and equity, while at the same time optimizing the company’s business model.

The finance manager is responsible for the finance division (CFO). The CFO reports directly to the CEO, as do all C-level officials.

Marketing

Your financial product must be known to users to be effective. In this situation, marketing is helpful.

The marketing team will increase brand visibility, generate interest and demonstrate to the public how your product meets consumer demands or solves problems.

The image of your business will be developed through marketing and brand loyalty will be encouraged.

Depending on the specifics of your business model, your marketing department may be required to adopt a B2B or B2C strategy. In any case, they will succeed:

• Customer surveys
• Internet advertising
• Publicity
• Brand building
• Strategic alliances

A Vice President of Marketing or a Chief Marketing Officer (CMO) leads this unit.

Human resources

The focus of human resources is on the employees of your business. In truth, the title Chief People Officer is often applied to the head of Human Resources (CPO). These human resources include:

• Recruitment
• Onboarding
• Training
• Employee performance reviews
• Conflict resolution

You can hire qualified people for your fintech company, build a solid workplace culture and keep morale high with the right HR strategy.

Lawful

Being informed about the law is essential when running a fintech business. Even unintentional breaking of the law can have major consequences because money is a sensitive topic.

Additionally, it helps to have some professional assistance on your side if someone tries to file a lawsuit against your business for any reason.

Your business will be in compliance with all relevant rules and regulations thanks to the efforts of your legal department. They can also analyze contracts, make decisions and represent your business in court if necessary.

A strong fintech legal team should consist of:

• Advice
• Supervisors
• Experts in private law
• Regulatory lawyers

Establishing an organization chart is among the easiest ways to improve your company’s organizational structure.

Organizational charts provide a visual representation of the structure of your company and quickly show the connections between departments and employees. Then you can quickly identify ways to improve your action plan.

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