Digital Transformation : Shaping the Future of Fintech Apps

Digital Transformation change appears to be unique in each industry.Check out the fintech strategy to be integrated in banking.

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What is Fintech App Development?

Well, you can read about why fintech app development like Mint and how it has shown an incentive. Since a number of companies in financial sectors are embracing software to stay ahead in the competitive market. There are a number of best fintech app ideas introduced by fintech app development companies, who are helping the existing financial structures and larger financial corporations that are less into technology.

However, larger financial organizations are showing massive interest in creating the best fintech app to enhance their offerings. For example, Citibank, UBS AG, American Bank, Banco Santander, etc. are some big players who have invested hugely with fintech app development companies in best fintech app development and maintenance.

If you look carefully at the report published by Capgemini in 2018 about the top Fintech companies clearly telling that 90% of the fintech companies are trying to improve their customer experience. And 76% cited that they must heavily invest in fintech mobile app development to scale-up and make financially-viable business models. The report showed that Fintechs have raised nearly US$110 billion since 2009.

However, the organizations may fail if they do not build an effective corporation between disruptive top fintech startups and financial institutions. fintech application development trends It is a multi-billion-dollar industry, still dominated by a number of fintech startups. But collaboration is necessary to improve customer experience.

Why Do You Think There is An Upsurge All Across The Globe?

Behind every upsurge, there is a prolonged stimulation that instigates an upsurge or an outbreak. For fintech domain, the rise of fintech startups, stress on building best fintech apps for any type of financial business also has some concrete reasons behind.

1). As a bank customer dealing with traditional systems or technology, the pain is much higher compared to those who have opted for mobile banking.

2). Too many paperwork while applying for loan, mortgages or credit cards. And the slower pace to process the paper is irritating to the customers.

3). The Internet has hugely influenced our relationship with money just as they improved the education, newspaper and music industries. Customers thus want the end of those old legacy systems over their finances.

4). Traditional institutions have monopolized the business, but fintech has made things transparent and offer services at cheaper rates. This is something on which fintech startups has put a bet and collecting brownies.

5). Payment options were so stringent as security was always a major concern. But peer to peer payment app or creating a wallet app has made things soluble and security is still in safe hands.

Advantages of the Building a Finance App?

Fintech mobile app development has leveled the financial market for people, offering them access to services previously occupied by people of economic stature. Say for investment, with technology and data it is inexpensive and simpler to bring the investment suggestions to the masses.

This shows that with fintech app/software development is a classic asset level which is open to everyone. Think of lending. In the earlier days, there were only a few data which the underwriters have while assessing the risk. This made a huge number of people to turn down or were charged with higher interest rates on their loans. But these fintechs are relying on different kind of data while underwriting.

They are offering people with more personal access and business capital. Thanks to the data scientist for making business lending this easier. When it comes to fintech app development, you will find that there are a number of fitech app development companies

Most are good, innovative and give you the right support. But what they lack is a collaborative environment for which they need to get into an effective partnership with the traditional institutions, as per the Capgemini Reports 2018.

Which Businesses Are Looking for Fintech Software/App Development?

Fintech app development has taken an entry into the traditional market, particularly bank and we have seen it acting as a disintermediation factor. A number of other financial sectors like equity or trading, lending is also ready to invest largely with fintech app development companies.

As more investors come into the world of fintech, they will turn more conventional with time. Their market share is soon to rise and many have soon become household names like Mint.com or NerdWallet. Few businesses are interested in creating the best fintech app for auxiliary financial services,which includes :

  1. Money Transfer : Fintech app development is collective in this domain. Companies such as TransferWise, Western Union, TransferGo have sprung up to offer peer-to-peer money transfers based on the mid-market value.
  2. EWallets and mobile payments : This fintech app development saw rapid growth and thanks to all online applications from Amazon to Uber.Offering people to conduct fund transfer over the mobile have stolen a march on banks. For examples PayPal, Apple Pay, etc.
  3. Equity : Fintech app development has started to become a common term.Equity crowd funding was the answer to many startups, especially during the global financial crisis. The leading crowd funding platforms include Kickstarter, Indiegogo, and Seedrs. They are really changing the world of equity through mobile app development.
  4. Personal Finance : Creating a finance app or apps like Mint is very popular these days. They are offering both web and mobile services to help users handle their financial activities. The software provides categorization, spending trends, data visualization, etc. A fintech startups are helping the micro saving organizations and earning loyal customers by rewarding the same.
  5. Online Banking : Banking is one of those sectors in the finance industry hugely affected by the rise of mobile apps. Catering to millennials to conduct daily banking tasks through mobile, collect rewards and acquire a low-cost alternative to a traditional bank.
  6. Insurance : This sector was reconnoitered by the fintech startups and they have started developing fintech apps for the same. As the process is too arduous in the insurance domain, so a handful of startups are aiming to change the approach.
  7. Trading Platform : Now people are able to trade through online platforms. Some fintech app development is currently concentrating on developing apps that do the research for funds and stocks. Such fintech platforms can provide much lower fees than typical banks and stock traders.

Some new fintech application development that is in the light these days are

Blockchain Technology : According to Global Blockchain Technology Market study, blockchain will indicate an extraordinary growth with CAGR 55.59 between 2017 to 2021. The blockchain is a decentralized ledger that provides immutability of data and enables fault tolerance system.

Regtech : Regulation Technology is one of the selected domains and a number of fintech app ideas revolved around this industry. With the use of Big data, computing and machine learning Regtech have seen for advancement in –

  • risk data collection
  • monitoring payment transactions
  • identification of clients
  • legal persons
  • trading in financial markets

Some names in this Fintech application development includes PassFort, Trunomi, etc.

When Fintech Application May Not be the Solution?

Fintech applications appeal to the millennials for a number of reasons. Since most of the services are easy to understand like borrowing money or making a purchase. But things which have a complex process of financial procedures must not have app-based solution may not be sufficient.

Say if you need a term life insurance, it requires a simple transaction. However, if you want a critical insurance product, apps are not able to help. Financial software development is not able to help to ease the life of customers in critical processes.

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Summary

The fintech industry has got a sudden upsurge due to the millennials. A large part of their lives demands better experience and technology in everything they do. This impact made the financial sector soar across the world. It resulted in big changes and benefited people of all ages and economic status.

Stay connected as we would be describing to you what features are making fintech apps more interesting to millennials. Even which finance domains are showing larger prospects. Tighten your seatbelt, as this is just the beginning.

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Published Date: June 20, 2019

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