Consumer-oriented services have been the center of the world economy for a long time. Be it retail, e-commerce, social media, or telecommunication. Consumer-oriented services are driving and efficiently running the user's life. One such industry is FinTech Services, a blend of technology and finance. FinTech ensures efficient accessibility and usage of financial services. According to Mordor Intelligence, the FinTech industry has a valuation of $204 billion worldwide, handling transactions of over $14.27tn(Statista).
No wonder a report by McKinsey and Company suggests FinTech is well on the "New growth of Paradigm". Most of this growth is due to rapid digitalization (COVID-19 being a factor), easy consumer access, and faster adaptability of consumer preferences.
In this blog, we will talk about FinTech Applications in detail. Taking a comprehensive look at the FinTech industry, we will discuss how investing in the FinTech industry is a good idea. Furthermore, we will also discuss why you should invest in Fintech mobile applications.
Understanding benefits of the FinTech Industry
Mixing finance and Technology, FinTech Industry aims to find innovative solutions that enhance the customer access and help them efficiently manage security services. Holding efficiency and speed as its core values, some of the FinTech industries are Digital Payments, Wealth management applications, Robo Advisors, Blockchain, and RegTech.
Not only is it more efficient but also cost effective, saving a ton of money for institutions managing traditional services to be used elsewhere. Read through the below pointers and know the benefits of FinTech services:
- Global Access: Fintech companies have transformed the cross-border payments industry, providing efficient and cost-effective solutions. Traditional international money transfers can be slow and costly, but Fintech services, especially those based on blockchain and digital currencies, offer faster and more affordable alternatives. By streamlining trade finance processes, reducing paperwork, and providing quicker access to capital for businesses engaged in international trade, they make it easier for users to manage and access from wherever they are in the world.
- Convenience: Ever been to the bank and asked to bring document after document? FinTech mobile applications are revolutionizing how people make payments with innovations like mobile wallets, peer-to-peer (P2P) payment apps, and digital payment platforms. FinTech applications offer quick, secure, and convenient alternatives to traditional cash and card transactions. Moreover, you don't need to be concerned about investment platforms automating the investment process, making it easy for users to set up and manage diversified investment portfolios. Enhancing user conveniences with user-centric applications with efficient financial experience, aligns with the changing expectations of consumers in an increasingly digital and interconnected world.
- Fraud Prevention: With Fraud prevalent in both traditional and online banking. FinTech applications have been instrumental in technologies and strategies to strengthen fraud prevention measures, ensuring the security of financial transactions and safeguarding the sensitive information of users. These applications often make use of multi-factor authentication (MFA) methods that combine factors like passwords, biometrics (fingerprint, facial recognition), and device authentication to verify users' identities. Biometric authentication, such as fingerprint and facial recognition, adds an extra layer of security by ensuring that only authorized users can access and carry out transactions within the application.
- Easy Lending: Traditional lending institutions often have lengthy and bureaucratic application and approval processes. Many times this results in the delay for borrowers seeking urgent financial assistance. In contrast, FinTech-powered P2P lending platforms connect borrowers directly with individual lenders, bypassing traditional financial institutions. Borrowers create loan listings, and investors can choose to fund those loans based on risk profiles and interest rates. Contributing to a more inclusive and robust financial ecosystem.
Why focus specifically on FinTech Mobile Applications
- Widespread adoption of mobile: Mobile devices provide users with on-the-go access to FinTech applications, enabling them to perform financial transactions, check account balances, and receive real-time updates wherever they are. On the security front, mobile devices have biometric authentication methods like fingerprint recognition and facial identification that give users a sense of security. For businesses mobile applications allow FinTech companies to adopt an agile approach for development and updates. Ensuring quick rollout of new features, improvements, and security updates to keep up with evolving user needs and industry trends.
- Personalization: FinTech Mobile apps create user profiles that capture information about individual preferences, financial history, and behavior. This data forms the basis for delivering personalized recommendations and services. By understanding how users navigate the platform, the app can be tailored to meet their unique needs by looking into spending patterns, investment behaviors, and other financial habits. FinTech apps may aggregate data from various sources, including bank accounts, credit cards, and investment accounts. Moreover, FinTech apps can generate personalized insights and reports that improve their financial health and improve the experience.
- Saving Resources: With practices like paperless transactions, automated processing, electronic document storage, and cloud-based infrastructure, FinTech mobile applications have been helping users gain an advantage by saving their critical resources from time to money. FinTech mobile applications save users resources that can be invested elsewhere and maybe turned into profits. From Robinhood to Venmo, all have been working on this principle and ensuring better user engagement.
- Nurturing Customer: Mobile applications help users gain an advantage by sending targeted notifications, personalizing product recommendations, and giving feedback, product reviews and messages directly to user's devices. Your customers remember you better, trust in you, and you have direct access to them all the time. One of the most famous applications doing this is MoneyLion. They provide users with financial advice that helps them gain trust and manage users.
How iByte Infomatics can help you?
Holding extensive experience in the entire development lifecycle, from ideation to deployment, every FinTech application built meets the highest standards of functionality, security, and user experience. We have worked in multiple sectors like mobile banking, payment processing, robo-advisors, and peer-to-peer lending. Our team's extensive experience in the financial technology sector can bring unparalleled expertise to your project.
