Girts Straujums's Insights on Overcoming Challenges Faced by Fintech Startups

Most startups face significant challenges, and many don't succeed—often for similar reasons: not solving the right problems, not building the right team, or struggling with leadership issues.

Solving the right problem

A decade ago, as the Age of the Smartphone established itself, Wise and Revolut disrupted traditional banking by making payments cheaper, more convenient, and accessible for customers. They identified a specific problem and solved it with a fresh approach: a way to send money anywhere on your phone. 

I've seen payment startups make the mistake of trying to copy the success of fintech giants like Wise and Revolut without truly improving on what these companies offer. Their approach often revolves around attracting big investments, hoping to eventually match the scale and profits of these major players. The problem? They don’t bring anything significantly better to the table.

Solving the problems these giants address for the retail market requires enormous capital. They burn through funds quickly, and while some manage to secure major investment, it can end up being more harmful than helpful. Investors often expect quick returns, which can push startups to rush growth and broaden their product without building a strong foundation. The lesson here is simple: focus on creating something genuinely better and building a solid foundation first. You might find that your strengths lie in serving a different market with unique needs.

What problem should you solve?

Broadly speaking, there are two types of payment startups: tech-focused and finance-focused.

Fintech startups blend both tech and finance, but within the broader category of fintech, companies tend to lean more toward one side or the other. Tech-focused startups aim to improve banking infrastructure—making payments faster, cheaper, and more seamless. Finance-focused startups often concentrate on traditional challenges like building strong correspondent partnerships and navigating regulatory frameworks.

No matter where your focus lies, be cautious about trying to do everything at once—like building a leaner, faster banking infrastructure while also becoming a leader in regulatory compliance. Startups often fail by spreading themselves too thin.

If your strength is finance, focus on it and partner with those who have the tech expertise you need.

If your strength is tech, invest in building compliance expertise and partner with leading KYC/KYB tools and transaction monitoring platforms to ensure a strong regulatory foundation.

This way, you can focus on what you do best—delivering exceptional financial services—while your partners handle the areas they excel in. Outsource where you lack expertise, and stay focused on growing your core strengths.

Building the right team

While money isn’t a prerequisite for success, building the right team is.

I've seen some of WeavePay's competitors struggle, often because their teams lacked cohesion.

Startups are small, and one person's toxic behavior can easily affect the morale of the entire team. Unlike large corporations with many departments and locations, startups feel the impact of each individual much more. A single bad hire can make or break the company.

Yes, you need talented, experienced people, but even more importantly, you need a team that works well together. A cohesive team is far more valuable than a group of all-stars, each only focused on their own success. Hire carefully—take the time to make sure each candidate fits both the team dynamics and company values.

Also, some startups fall into the trap of hiring well-known names from prestigious institutions, mainly to impress investors. This can lead to high salary costs that drain resources, and these hires may struggle to adapt to the fast-paced, flexible startup environment. Instead, focus on hiring people who genuinely fit the team and culture—this is what good leaders do.

Leading with focus

Great leaders understand that while they don’t have to be experts in everything, they do need to know what’s crucial for their product and customers.

Identify your strengths, and outsource where you’re weak. If you’re strong in finance, find the right tech partners. If you excel in operations, bring in someone to handle compliance.

Leaders who know how to focus, delegate, and stay humble about their weaknesses are the ones who build lasting companies.

Above all, enjoy the ride. Only work on a product you really believe in. And only work with people you actually like talking to on a daily basis.