Top Reasons of Fintech Application for Being the Role Model for Any Industries

Top Reasons of Fintech Application for Being the Role Model for Any Industries Intro to Fintech The Fintech term is stands for Financial Technology. When the financial system collaborates with the technology and produces an effective outcome, the term Fintech is used in the broad sense.

It is being applied as a term to address start-up affiliated with Fintech and as a verb.

There is no conventional meaning of Fintech since the word is developing within its reach and has reached itself from banking to other exercises like personal finance, mutual funds, and insurance.

You may consider this Fintech is something like logging into your associated bank account to your monthly statement using third-party application line PhonePe, YNAB, or Google Pay. Beyond this, these financial apps can help you to mage your monthly bills, credit card balance, transitions, paychecks, and all your bank accounts in one place.

But if we look deeper, there are more financial technologies providing alternatives to traditional financial methods and financial services, further democratizing and segmenting the financial sector.

But in reality, financial technology provides more alternatives to the traditional financial methods and financial services as well. It makes the financial system accessible to everyone segmenting the business sector.

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Types of Fintech Application: Different types of financial technology offerings endless solutions, from personal to business-scale finance management.

By honing in on different parts of the financial sector, private businesses can compete with traditional financial services – like those offered by major U.S. banks – through FinTech software solutions and focused, quality tools.

By pointing/targeting multiple parts of the financial sector, some businesses can take part with conventional financial services. Matter to consider, the major banking system (of different countries) should allow the collaboration with Fintech tool.

Some of the main services of Fintech solution includes: ● ● ● ● ● ●

Fund transfer and payments (Paypal, Zelle) Investment & Savings (Qapital, Marcus) Financial Planning (Mint, YNAB) Insurance (Lemonade) Borrowing (Lending Tree, Lending Club) Business Accounting and Financial (QuickBooks, NetSuite, SAP)

Note: All the above Fintech tool belongs to US market only.

When we come to the US market, lets see what the statistics are saying regarding Fintech in USA:

Fintech App Statistics For 2020/2021

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The Top Reasons So, the question is why many industries are investing in Fintech? And why it is more enterprises are more keen to adopt the Fintech solution rather than the conventional financial solution?

Let’s dig into the reasons; It Focuses On User-Friendliness Finances. Certainly, this not a soccer score-checking thing. For some people, it is overly confusing or maybe boring and complex.

So it is a majestic task for a fintech app designer to convince users with a smoother interface, menus, dashboard, and color combination at where the banking does not have their expertise.

To make any fintech app successful, simplicity and understanding the customer’s requirements play the core role.

Altogether, the fintech app serves the UX principle befittingly.

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I think Steve Jobs rightly described the “Design” word - “Design is not just what it looks like and feels like. Design is how it works”.

Literally, the financial mobile applications are invented for to solve the puzzles that we faced during conventional practices with a minimal effort given by the user.

So you can imagine, how much leveraged analysis and effort have been given to make a Fintech Application successful.

And judging by the outcomes, numbers of business personalities are willing to join this niche.

High-Driven Security According to the 2019 Global Fintech Report by PwC, “40% of financial institutions believe blockchain will be driving change in the industry in the next two years”.

Security is a major pain point of financial technologies, and blockchain may be the long-awaited solution that will render fintech apps unbreachable.

Due to its distributed architecture and transparency, the blockchain-based systems can deter targeted attacks or mitigate the effects of a breach.

With that in mind, the most credible fields of blockchain application in fintech is customer identity validation and payment processing security.

Fintech apps tend to become targets of financial fraud, but blockchain can put an end to it. Blockchain, with its shared transactional records, can be fully antifraud and tamper-proof.

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When a financial record is created, any action performed on it—editing, copying, deleting, etc.—will be automatically put on the blockchain, making it impossible to conceal a fraudulent operation.

This makes blockchain especially effective for curbing fraud schemes that involve altering financial statements, for example, overstating losses and understating assets.

Strong Features Fintech apps users appreciate the convenience of having a gateway to any financial operation on their smartphones, but what they also undeniably relish is that tracking their personal finances has become easy.

Now, all fintech apps allow customers to view their financial activities and spending history.

A customer usually has an option to visualize this information as graphs and charts to get a better understanding of their spending habits and patterns.

As a result, 62% of the US customers name a greater awareness of their financial situation as a mobile banking benefit.

Fintech applications also assist in improving spending habits and making good financial choices.

Some of the more innovative apps went beyond that and implemented AI for evaluating users’ financial health, advising on how to improve it or warning against reckless actions.

For instance, Status Money gives users spending recommendations and rewards for following them, while another fintech app, Emma, advises an optimal sum of money one can put aside at the end of each month.

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Chatbots and Voice Assistants Recent advances in machine learning and natural language processing laid the groundwork for the mainstream adoption of chatbots.

However, while in most industries customer support remains their only function, a fintech conversational bot serves diverse purposes and is steadily gaining traits of a full-on virtual assistant.

A fintech app user can turn to the conversational interface for different reasons: to check the account balance, to pay bills, to review the transaction history, to solve an issue, and so on.

A 24/7 chatbot swiftly comes up with the answer or performs the needed action; saving customers’ time and energy and the banks’ money spent on traditional support channels.

More sophisticated fintech bots, like Erica by the Bank of America, send reminders about bill payments, warn about a low remaining balance, and offer proactive financial guidance.

Also, a fair share of fintech bots is now voice-enabled, in line with the popularity of Siri and Alexa and the emerging voice payments.

This payment technology is gaining momentum due to its simplicity, and by 2022 up to 31% of US adults will be paying with their voice. The voice technology also makes a big difference to visually impaired clients, allowing them to use digital banking unhindered.

Fintech Is One Big Case Study Fintech is ramping up, and its impressive growth is partially driven by mobile apps.

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Playing catch-up with traditional banking, fintech has made a bold move and adopted the latest innovations to drive personalization, user engagement, and security.

Conclusion Yes, developing a fintech application from scratch is nothing short of a Herculean feat.

That being said, a proper mindset, dedication, and a certain level of pessimism (you’ll need it to always prepare for worst-case scenarios), paired with a will get you through.

Don’t forget the core principles of successful fintech application development while you are at it.

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