FinTech App Development: How the Rise of Fintech Mobile Apps is Transforming the Finance Industry?
The present world is a huge marketplace with the continuous evolvement of new technologies and growing expectations from customers.
What’s more, the highly regulated financial sector is also witnessing alteration in its core businesses to stay relevant in such turbulent times (COVID-19 pandemic).
When taking into account the ecosystem of the financial services, the FinTech sector is the frontrunner in transforming the lives of people digitally.
The arrival of FinTech disrupters is at the forefront in changing the working of the finance industry through lending, payment methods, insurance, credit settlement, and so on.
To remain at par with them; banking institutions are taking the services of FinTech companies to develop robust FinTech app development solutions for their customers.
PricewaterhouseCoopers (PWC), a multinational professional firm, states that there have been triple investments in FinTech since 2014. It has now crossed more than $12 billion that signifies that FinTech mobile app solutions have now become an indispensable part of the financial market.
In the given post, the main focus will be on some of the exclusive features that will demonstrate the rise of FinTech mobile apps and how it will bring a revolution in the Finance industry.
1.Creation of Super Apps with Power derived from Payment Services Directives (PSD2)
The future of banking and other financial services depends on its ability to tactfully leverage the power of AI, ML, and new digital technologies in offering the best services to tech-savvy consumers.
With new banking rules worldwide, financial institutions are obliged to offer their APIs to third-party payment service providers.
Thus, the infrastructure of the banking institutions is turning into endless opportunities for those offering PSD2 compliance services.
How can PSD2 offer great prospects for FinTech companies (and even their customers)? Yes, there are some benefits to FinTech companies.
First is an improvement in the credit scoring as PSD2 comes with high accuracy and will save the time of the customers manifold.
The second is a budget tool that will help the people to plan their monthly budget precisely. Besides, customers can also use an automation tool to prevent them from manually entering data for each transaction.
The third is the automation of regular payments as with the help of PSD2; one can conduct online payment from their bank account automatically via their mobile apps without continuous login into their account.
Therefore, PSD2 is a technology that will help in the integration of various platforms with FinTech mobile apps and will allow the customers to set each thing at a single place accurately.
2.AI Banking: Secure Future of Financial Banking
Every industry across the globe has got the taste of Artificial Intelligence or AI. Even banking and other financial institutes are also not immune to it.
Why so? The answer is that AI technology helps in enhancing fraud detection that the financial industry badly needs in a time of increased usage of the online transaction.
In previous times, financial institutes used a combination of software and people to detect any kind of malicious activity; then it will be transferred to humans to determine its fraudulency.
The given procedure was time-consuming and error-prone that caused tarnishing of the image of the FinTech institutes.
But now, FinTech mobile apps are run automatically from AI-based technologies that nullify the ill-effect of the above-given issues.
Furthermore, they also help in bringing significant improvement in the fraud detection efforts and predict the future possibility of attack and automatically block it to keep mobile apps relatively safe from it.
3.Successful Online Lending & Approving Student Loans through FinTech Mobile Apps
In earlier times, the only option for borrowers was banks. But now, FinTech offers another option to people with streamlining financial procedures.
After havoc caused by the financial crisis, banks took their step back from the lending market, and FinTech stepped in to meet the demand.
One area that is exploding in recent times in online lending is student loan refinancing. It was impossible due to a lack of lenders.
There are now lots of FinTechs that offer great lending facilities through their mobile apps. Here the rate of fees and interest is lower and makes the people less dependent on the banking institutions.
Meanwhile, FinTechs are also assisting the students in loan repayment. Through their mobile apps, they help in offering the best payment features to repay the loan easily and effectively.
Thus, students now need not go to the banks to avail of their loan facilities.
Instead, they can get access to FinTech mobile apps and use its features to pay their loans in the best possible manner.
4.Future of Digital Payment beyond the Prospect of Cryptocurrency
Since the last decade, the digital economy and mobile devices are going hand-in-hand. It has enabled the explosion of non-traditional financial services and created a roadmap for FinTechs to dominate the financial market.
Due to it, the procedure of using physical money is becoming obsolete. Moreover, most of the financial transactions are conducted online that makes the functioning of mobile apps more profitable for enterprises as well as customers.
In comes cryptocurrency, which is a new digitized form of currency. It has been one of the trends in the FinTech world that have brought a massive change in the working of the financial industry.
A part of Blockchain technology has created vast prospects to improve the ecosystem of financial enterprises by a reduction in costs and enhancing the efficiency of the financial services.
Besides, another payment system is knocking on the door of financial services in the form of Quantum Computing. It is such a powerful system that has the capacity to offer high-tech security that even encryption algorithms (from Cryptocurrency) can’t provide.
In addition, it comes with a qubit setup that helps in the proper handling of billions of online transactions with high efficacy, and also with no data loss or server crashes.
What’s more, it also makes operations such as loans to work swiftly in automation mode without delays and to get seamless approvals.
Surely, quantum computing can become a ‘game-changer’ in the FinTech sector. Though still at an early stage, the upcoming future will see its widespread usage to analyze data and remove any malicious content will surely come as a winning habit for FinTechs.
Now, one must be alert about some of the FinTech trends that have the caliber to change and transform how the FinTech industry works and functions.
So, FinTech app Development Company, who wants to enhance their business, can take the cue from such trends and build a perfect strategy to create unique financial services for their customers via their mobile apps.
Therefore, one thing is sure that the future belongs to FinTech, and hardly anyone can ignore it!
Abhinav Shrivastava “I am a Marketer who is in love with Technology”.
Over the years, I have been part of many Technology products/projects and I am excited to see the human impact of technology in our day to day life.
I have deep knowledge & understanding of the mobility domain and I am happy to see the way smartphones and apps are being used for the betterment of our health, lifestyle, and knowledge.
I am a believer; I believe in God, I believe in myself, I believe in people and I believe in prosperity.