Some of the world’s most rapidly expanding businesses are found in the financial technology, or fintech, sector. Fintech notables include Kuda, PiggyVest, Flutterwave, Paga, and numerous others.
As you can expect, many business owners want to launch their own fintech companies in an effort to emulate these titans
But having the proper organizational structure is essential for developing a profitable business, whether it is in the fintech sector or not.
The organizational structure of a fintech company
Committee of Directors
A Board of Directors may be present if a fintech company is sufficiently large. The organizations who make up this board ultimately decide how the company will be run.
They may actively manage the business operations of the company, or they may delegate such responsibility to the CEO and other C-level executives.
CEO
Most fintech organizations place the Chief Executive Officer (CEO) at the top of directly accountable. The CEO reports directly to other C-level executives and department heads, who handle a majority of the daily tasks. The CEO uses this data to guide the business and establish objectives.
Operations
The fundamental operations that keep a fintech business running smoothly are handled by the operations department.
This involves project management, supply chain management, and developing standard rules and procedures.
Operations may also encompass Human Resources, Finance, and Marketing when a fintech company is in its beginner stage.
When a business expands, these typically separate into their own departments.
A Chief Operating Officer (COO) or Vice President of Operations is in charge of operations. The COO is principally accountable for ensuring that the business is operating properly and upholding the CEO’s objectives.
Also read, Is the Valuation of Fintech Startups Going Down?
Product
A fantastic product team is always behind a high-quality product, and fintech isn’t any different. The product team investigates your target market to identify their particular requirements and preferences before creating a product strategy to satisfy both.
Product development and optimization are also among the responsibilities of the product team.
The Technology department is then given the concept to turn it into a reality after they have developed a clear roadmap for a product. But ultimately, the success or failure of the product rests with the Product.
Technology
The company’s technological requirements are handled by the technology department. For financial businesses, this entails both internal IT infrastructure and software product development.
Technology typically controls:
- The back-end and front-end development
- Network examination
- Software development
- Design
- Database management
- Cybersecurity
- Monetary infrastructure
- IT assistance
The Chief Technology Officer (CTO) heads this division.
Finance
The economic strategy of a corporation is managed by the finance department. Their responsibility is to ensure that the business uses its resources as effectively as possible and, most importantly, that it doesn’t run out of money.
This entails managing a variety of tasks, including payment administration, accounting, bookkeeping, financial modeling, fundraising operations, and statutory and investor reporting.
The objective of Finance in all of this is to maintain the appropriate ratio of operational cash flow, debt, and equity while also optimizing the company’s business model.
The Chief Financial Officer is in charge of the Finance division (CFO). The CFO answers directly to the CEO, as do all C-level officials.
Marketing
Your financial product needs to be known to users to have an effect. In this situation, marketing is useful.
The marketing team will raise brand visibility, spark 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.
Your marketing department may be required to adopt a B2B or B2C strategy, depending on the specifics of your business model. In any case, they’ll succeed:
- Customer surveys
- Internet advertising
- Publicity
- Branding
- 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 Chief People Officer title is frequently applied to the head of Human Resources (CPO). Those human resources include:
- Recruiting
- Onboarding
- Training
- Reviews of employee performance
- Conflict resolution
You can hire qualified people for your fintech company, build a solid workplace culture, and keep morale high with the correct HR strategy.
Legal
Being informed of the law is crucial while running a fintech business. Even unintentionally breaching the law could have major repercussions because money is a sensitive issue.
Additionally, it assists to have some professional assistance on your side if someone tries to file a lawsuit against your business for any reason.
Your company will be in compliance with all pertinent rules and regulations thanks to the efforts of your legal department. They can also analyze contracts, create resolutions, and represent your business in court if necessary.
A strong fintech legal team should consist of:
- Counsels
- Regulatory Officers
- Private Law Experts
- Regulation Attorneys
Establishing an org chart is among the simplest ways to enhance your company’s organizational structure.
Organizational charts provide a visual representation of the structure of your company and quickly display the connections between departments and staff members. You can then quickly identify methods to improve your plan of action.
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