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Financial sector hurdles to consider before starting your business

 

Opening a business in the financial sector can be rewarding but intimidating. There are several services you could provide such as card-scheme membership, e-commerce and financial consulting. With the evolution of financial technology and the growing dependence on it, the financial sector is rapidly expanding. SORQ is a consulting company that can help you move into many finance-related businesses. Understanding the different aspects of each business may seem difficult but SORQ is here to help.

E-commerce

E-commerce continues to expand, especially with the introduction of ‘drop shipping’ and the growth of Amazon, whose standards many admire. There are several ways to enter e-commerce but the most popular include B2B (business-to-business) and B2C (business-to-consumer).

B2B has much to do with supply chain, the exchange of information and even services. ‘In 2017, Forrester Research predicted that B2B e-commerce market will top $1.1 trillion in the U.S. by 2021, account for 13% of all B2B sales in the nation,’ said  Tech Target

B2C is the better-known side of e-commerce because it is related to retail. Amazon, the largest in the game has become an effective way to reach mass markets.

If you want to enter e-commerce, ensuring you have the proper set-up is important. One thing to consider is a payment facilitator (PF). Another step may include a connection to the acquiring banks, so called because they processes credit or debit card payments on behalf of a merchant. Lastly, you’ll want to ensure you have the proper monitoring services in place to ensure your business is running smoothly. 

Investment banking

Investment banking continues to be popular because people will always need their money managed and investment advice provided. They need to have things to invest in and that’s where investment funds come in. Opening or starting an investment fund can be rewarding, but as with any heavily regulated industry there are rules and requirements. 

SORQ can certainly help. If you are located in the EU, we can help you get your licences for investment funds. Examples include the Alternative Investment Fund Manager licence and the Investment Brokerage Company licence, both with the UK Financial Conduct Authority. 

Other things to consider when starting a financial-sector business include payment processing. You want to ensure your payments are handled accordingly and are secure. Education is important: even though your business may be able to operate, it’s nearly impossible to know everything. With SORQ, you have a consulting service AND a business partner.

Also, SORQ can assist if you are in FinTech or want to implement or start a business in the blockchain market. If you are in FinTech, SORQ can review your procedures on the safeguarding of funds, update your business model so you can increase income, and ensure compliance.

The financial sector offers endless opportunities but with them comes the need for proper licensing and processes. SORQ is here to assist, helping your business grow to its potential.  

 
Arthur Shah-Nazarov