Fintech SaaS – Financial Model made by Oak Business Consultant is designed for Startups or SME’s who are seeking financial projections for their businesses.
Fintech SaaS companies Or financial technology is an up and running industry of SaaS. Therefore, all the financial services provided by the SaaS companies fall under the Fintech industry. The primary purpose of Fintech is to ease the delivery of financial services for its customers.
Fintech SaaS are looking for ways to improve the process further so that business owners and customers can properly handle operations related to finance. Finance is a very sensitive department for any business. So, if you have reliable SaaS Fintech, you can relax, knowing your financial data is being managed as effectively as possible.
The word Fintech is made of financial technology; it indicates that the industry is related to financial services. Hence, Fintech has evolved from being a backend system for financial institutions. Now, it has a more consumer-oriented service approach with many different sectors. Education, fundraising, retail banking, and investment management are few among many industries.
Fintech Startups are becoming more common these days with a shift towards SaaS businesses. Companies are investing more in providing financial services to customers. Through applications on smartphones, financial services are getting more and more accessible to people, which is why we have seen a sudden increase in Fintech startups. These SaaS companies are either competing for head to head with already established financial companies or providing better use of the financial services.
Why you need a financial model?
When we talk about startups, the first thing that comes to our minds is the investment. Not all of us have the money ready to invest in a company – which is why entrepreneurs rely on investments from interest parties. However, getting people to invest in your company might not be so easy.
The reality is, no one would even take you seriously if you don’t provide them with appropriate data to make an educated decision for investment. It is where financial models come in handy. You can convince interested investors by showing them a fully developed Financial model of your company and its projected profits. A business model provides an overall view of your SaaS startup.
Investors look for financial models to find answers for questions like “what are the assumptions? What are the growth trends? What is the expected CAV and LTV?” The more data you provide, the more authentic your model becomes.
What can you expect?
To make your lives easier, we have a solution for all your financial model needs. Here, we provide you with an easy to use Fintech model, which is easily customized based on your requirements. As there is no one size fits all policy when it comes to SaaS financial models, we have made a very flexible model which is guaranteed to provide you with live time changes in your Financial model. When you open the file, you will see different tabs on it. These tabs are based on various key drivers, which are crucial for a Fintech SaaS financial model.
Table of Contents
This tab provides you with a table of content of your financial model. When investors open up your Financial model, this is the first thing that they will notice. The table of contents is linked with original tabs, so when you click on the content, the tab containing that name will open up automatically.
Next, we provide you is an Input Sheet tab. This tab contains all the input data that you can change to customize your financial model. The input cells are marked with color so you can easily differentiate between the input and output cells. In the input sheet tab, you will find different sections for Inputs. First, you have investment input, which is made up of total investment from investors, total private funding, and loan investment. It will also show the desired rate of return for the investment. Second, you will find the user’s input section.
This section gives information about customers and their monthly churn rate. The accounts in this section consist of total customer signed up in a month, full customer active in a month, customer transaction in a month, monthly churn rate. Next, there is revenue input available in the financial model. Here you can see how much % of revenue is coming from different channels.
Finally, there are separate sections for costs, such as employee payroll, support staff, COGS, marketing, and others. There are several fixed costs (product development & salaries) and variable costs (working capital, marketing expenses, operating expenses & others).
In the dashboard tab, all key indicators are shown in the form of illustrations with the help of graphs, pie charts, and tables. These indicators include profitability analysis, CAC versus CLV, Revenue Channel, Profitability Analysis, Breakeven Revenue, Startup Cost Analysis, Utilisation of Funds, Profit & Loss Analysis, and Cash Flow.
Our financial model provides project evaluation, which is critical information for the company and investors. It shows return on investment (ROI), net present value (NPV), and internal rate of return (IRR). These are essential indicators for investors because they compare many different investment opportunities and only choose the one which promises the highest return on their investment. You can also have a hurdle rate, which is the rate of return which the investors expect to receive. The SaaS Fintech financial model is flexible, so you can change it to make it your own.
Since financial analysis is mostly based on calculated assumptions, you can expect either ideal result, moderate or low. The same is the scenario with sensitivity analysis; we provide you with three different scenario projections. You can make three different versions of your net income based on low revenue, average revenue, and optimistic revenue. Furthermore, the analysis also provides charts to illustrate the revenue, expenses, and net income of these projections. If you change the percentage from the input cells, the charts will also change along with the new projections.
You can make your profit & loss statement with the help of our model. Here, the Churn rate is the customers who leave your subscription. If the churn rate is higher, the company will lose more money. To calculate churn, divide the number of customers who left your service by the total number of customers at the start of this period. The formula for customer churn is,
Customer Churn = ∆C / ∆T x C
Furthermore, here you can see other SaaS related vital indicators such as MMR or monthly recurring revenue. It indicates the amount of income coming from subscriptions.
Yearly profit and loss statement tab show the income every year. In addition to the income statement, break-even analysis is also provided with graphic illustrations of charts. A SaaS business must know its break-even point, where the revenue is the same as expenses.
The cash flow statement shows the inflow and outflow of cash. All the cash activities (operations, investing, and financing) are present in the cash flow statement, where you can track the flow of money for your SaaS business.
The balance sheet tab contains a yearly and monthly balance sheet. If you want to look into more in-depth details of your financial health, the balance sheet statement can help you by providing month by month data.
Here, you can see the revenue coming from customers (net MMR) and also the MMR per user. Furthermore, you can see the user CLV, which is customer lifetime value. This indicator is useful in knowing the total revenue one user provides, ideally your CLV should be high. Finally, a calculation for customer acquisition cost is in the expense section.
CAC is the customer acquisition cost, which is the total cost (sales & marketing expenses) incurred in acquiring one user. Lastly, there is a ratio of CLV/CAC, which indicates the amount of lifetime value a customer provides as opposed to the acquisition cost incurred. The rate of CLV/CAC should be higher, which shows a positive result.
The depreciation tab shows the devaluation of assets. It can show you how much depreciation has occurred and the remaining value of your assets. You can calculate depreciation for the next five years, ten years, or 20 years depending on your requirement.
Amortization is the depreciation of intangible assets. Here, you can find out the amortization expense every year. You can use it to an amortization schedule for the next five years, ten years or 20 years, depending on your requirement.
Oak Financial Model is a combination of financial and data analytics. Since, we have strong skills in math, financial analysis, accountancy, management performance indicators, and organize this data into the dashboard for clients.
Our mission is to be the industry leader in our business domain, which comes after an in-depth analysis of the market situation and ever-changing business trends. Hence, we believe that financial and business consultancy requires a complete understanding of the continuous changes in the market and economy and its effects on business.
Our Vision: is to be reputed as the best Financial & Management Services Consultants by providing top-notch services and to create goodwill based on an excellent performance.
Our Core Values
High Quality surpasses Quantitative work is a built in fact in a Business’ motto. Therefore, we strive for a disciplined approach to analyze business situations and identify the best solutions to achieve financial plans. In the same time, we help in opening new doors by providing our state of the art financial services, and management tools.
Importance of SaaS
SaaS is becoming more powerful than ever with different industries opting for SaaS instead of traditional methods. Its market share is evolving every year as companies start to realize the potential that SaaS has and how it can benefit the companies. SaaS or software as a service provides application-based services for consumers. The applications are usable on multiple devices, and they exist to make our lives easier. Moreover, SaaS offers cloud-based software, which means that your data is stored digitally, online.
Since SaaS doesn’t exist physically, it carries a lot of advantages that are not available with the traditional business. You can pay on the go and also cancel your subscription if you feel unsatisfied with the service you are receiving. However, traditionally, if you take on premise software, you are stuck with it after payment.
In terms of the benefits, SaaS is not only about flexibility. Among the many benefits it has to offer, SaaS makes the user experience better through,
• Low cost of entry – you don’t need any servers or hardware to enter the industry as everything is online and cloud supported.
• Easy on-boarding – once you subscribe to the services of a SaaS company, it is easy to do the on-boarding because cloud-based software has everything updated online. With a simple registration, the user will be able to use the software.
• Automatic updates – traditionally, you had to change the software by buying it physically and installing it on your device. However, with SaaS, you get the updated software because the cloud allows the software to be updated online without the need for any extra effort on the user’s end.
• Multiple devices – traditionally, if you buy software for a PC, it would only run on one device. However, SaaS allows multiple devices (depending on the SaaS provider). Now you can run the software on your PC and mobile through an application simultaneously.
SaaS successfully captured many industries, and it is still growing further due to its many benefits.