Fintech or Financial Technology is a term for denoting start-up affiliated by means of Fintech. It is already available in the banking sector and other areas like insurance, mutual funds and personal finance. You might consider Fintech is logging into your bank account to monthly statement with third-party application line such as Google Pay, PhonePe or YNAB. All these financial applications will manage credit card balance, monthly bills, transactions, paychecks and bank accounts in one place.
But there are other financial technologies which offer suitable alternatives to the traditional financial services and methods for segmenting and democratizing the financial industry. It makes financial system easily accessible to everyone segmenting the business industry.
Different kinds of Fintech Application
There are different kinds of financial technology offerings that render innumerable solutions, from personal to business-scale finance management. The private businesses may compete with the traditional financial services by means of quality tools and Fintech software solutions.
Some major services of Fintech solution are the following:
- Financial Planning
- Fund transfer and payments
- Investment & Savings
- Business Accounting and Financial
Top reasons of choosing Fintech application for the industries
- Focus mainly on user-friendliness – Some people might find it boring or confusing when choosing Fintech application. It is a major task for the Fintech application designer to make users understand about menus, color combination, smooth interface and dashboard. This is where banking does not have their own expertise. In order to make the Fintech application successful, it is necessary to know the requirements of customers. These financial mobile apps had been invented to solve puzzles during conventional practices by giving minimal effort of the user.
- High-driven security – As per the reports, nearly 40 percent of the financial institutions understand blockchain is going to bring change in the industry within the coming two years. Security is a vital point of the financial technologies and blockchain might be the best possible option that can make Fintech applications unbreachable. The blockchain-based system may mitigate its effects of breach or postpone targeted attacks through distributed architecture and transparency. By keeping these in mind, the most important fields of blockchain application in the Fintech are payment processing security and customer identity validation.
Fintech applications are now becoming the targets of financial fraud though blockchain can bring an end to it. Blockchain, along with its shared transactional records, might be completely tamper-proof and anti-fraud. When any financial record is made, any kind of action done on it such as copying, editing and deleting will be put on the blockchain automatically. This makes it quite impossible to stop fraudulent operation and makes blockchain effective for fraud schemes that involve changing financial statements, understating valuable assets and overstating the losses.
- Strong features – The users of Fintech applications really appreciate the convenience of maintaining a gateway for any financial operation on smartphones. So, it has really become easy to keep a track of their personal finances. All Fintech applications enable customers to go through the financial activities and customers have the option to visualize information through charts and graphs This will give better understanding of spending habits and patterns. Due to this reason, almost 62% customers have greater awareness of financial situation in the form of mobile banking application benefit. The Fintech apps may help to improve spending habits and take the right financial decisions.
Some innovative applications had gone beyond that and executed AI for accessing financial health condition of users. It gives advice on how to improve it or warn against taking reckless actions.
- Voice Assistants and Chatbots – The latest advancements in natural language processing and machine learning had been the foundation for mainstream adoption of chatbots. Though for most sectors the support of customers seems to be the only function, a Fintech conversational bot acts for different purposes and is steadily gaining the traits of virtual assistant. A Fintech application user may turn to the conversational interface for different reasons. This includes checking account balance, evaluating transaction history, paying the bills, resolving any problem and much more.
Having 24/7 chatbot comes up with all the actions or performs necessary action for saving energy and time of customers as well as banks’ money spent on the traditional support channels. Other Fintech bots send reminders about bill payments by providing proactive financial support and warning about low leftover balance. A part of Fintech bots is voice-enabled together with the popularity of Alexa and Siri and emerging voice payments. The payment technology is gaining the momentum for its simplicity and the adults will have to pay with their voice in 2022. This voice technology has led to big difference for visually impaired customers by enabling them to use digital banking in an unhindered way.
- Fintech is a big case study – Fintech is now ramping up and the growth has somewhat been driven through mobile applications. By combing with the traditional banking, Fintech has now taken a smart move and adopted with the recent innovations for driving personalization, better security and more engagement of users. Due to this, the miche is trying to win back bank customers by becoming the centre of transformative solutions.
So, if the future product has nothing to do with the finances, then it is worth taking a close look at the Fintech mobile applications and discovering the features that can drive their success.
Thus, developing a Fintech application from the scratch requires firm dedication, good mindset and some level of pessimism with the determination that you will get through it.