With the booming nature of Fintech Application Development, the finance sector is undergoing a phase of evolution and innovation. It has transformed the entire consumer experience into new ones. It ranges from mobile banking, online banking, swipe machines, and ATMs (Automated Teller Machines) to automated bill payment apps and mobile wallets.
Fintech contributes a lot to the payment experience of the banking sectors for the sake of the consumers. Apart from making the financial activities comfort and convenience, this solution has also streamlined the entire procedure for potential reduction of the expense.
Companies of Fintech application development in Nevada have made a long journey for developing and securing the Fintech app. Even much effort is required for enhancing its security to acquire interest from the finance sector. Now, Fintech disrupts the financial industry. This blog entails the major and finest financial services which get reshaped by the Fintech applications. So, read on to know them.
Payments and billing software/applications
In the early years, there were massive financial giants, major banks, and credit card enterprises for dominating and controlling the entire finance sector especially transactions and payments. However, with the launch of billing applications/digital payments, the entire scenario of payment and transaction have been shifted or shaken with the latest innovations.
With the help of digital payment, the conventional cash-based functions have transformed into cashless whilst maintaining accessibility and convenience as well. According to Statista, the value of the digital payment transaction has reached a sky-far limit in 2019.
The companies have started offering new technological solutions like retina scans, fingerprint, Blockchain, webcam, and so on. All these will endow with the customers by streamlining of POS processing for improving consumer engagement and mobile interface.
Billing/Digital Payment solutions possess 2 prime sectors mentioned below:
- Mobile payments
With the introduction of mobile wallets like Google Wallet, Samsung Pay, and Apple Pay, more people get adapted to it. That’s why they start preferring mobile wallets for initiating any payment rather than the credit cards. Although certain concerns about the security are there to use mobile payment app yet NFC and biometric technology have assisted to eradicate such concerns.
- B2B and cross border payments
According to the report of the Bloomberg in 2016, both cross border and B2B payments garnered a huge amount which has been multiplied till date. When both of these payment options have faced the huge challenge of flexibility, accuracy, and security technology solutions have helped the business to achieve secured payment and transaction options. Some such technological platforms are;
- Mobile B2B app to make fast payment with improvised data management
- E-invoice platform for rapid payment processing and approval
- Private and customized blockchain platform for making transactions in real-time with utmost transparency and enhanced security
- Platform of payment management from where consumers are allowed to choose a set of wallets or payment methods as per their convenience
The finest instances of successful cross border and B2B payment options are WePay, PayFirma, PayPal, and much more.
Digital banks
Nowadays, banking sectors have started offering a unique application “Banking as a Service” to their respective as well as potential customers. This application helps them to perform any sort of banking activities hassle-freely via online. It is done so by leveraging certain technological innovations like improved customer engagement, online banking, face and voice recognition, biometrics, and Artificial Intelligence (AI).
Online banking is cost-efficient based on the acknowledgment of the digital medium. It is so; because it possesses no physical campus for delivering the convenience to its consumers. As it differs from any other scenario of banking, it prominently lowers down its excessive cost.
Mobile banking applications
Whilst most industries have ventured into digital platforms or modes for enjoying the hassle-free and seamless services, the finance sector isn’t exceptional to that! People are keen to adopt the advanced technologies that help them in finishing the services in no time.
That’s why banking sectors and other financial institutions are also willing to adopt the new technology for the sake of the customers. By adopting mobile banking applications every banking service is available at your fingertips 24/7 with improved security and login features as well.
Money transfer/money remittance
Names like WorldRemit, TransferGo, and Transferwise are the terms that come to your mind at first whenever you heard of the money remittance. It helps the users for sending the money to anyone in about 100 countries. Even amount can be received by the users at the same time via delivery, mobile money and cash pick up counters, and bank deposit.
Transfer solution/money remittance is reliable for finishing the entire procedure within a short time and that too at an affordable rate. Even it never asks for sending the funds abroad as well. This is so; because every step involved with it is taken care of by P2P (peer-to-peer) money transferring platform.
It is the best booming Fintech trend for investing. It develops linking between 2 digital wallets of two persons for ensuring the exchange of funds and money. This type of application or platform is available in 2 varied types namely:
- Standalone platform (that never relies on any financial organization for conducting a transaction. For instance PayPal
- Bank-oriented P2P app (linked to the financial organization as the intermediary for successful transaction.
Rather than these P2P money transferring platforms, there is another direction of the Fintech application development known as P2P lending. It comes with the automation and accelerating feature of the loan request and procedure at a reasonable cost. The time of loan approval gets fast-tracked by the lending platforms thereby receiving the money directly from the borrower after streamlining of the entire procedure.
Interestingly, the P2P lending application is featured with machine learning to better understand the borrowers with a lack of eligibility to get a loan based on their credit score. The customer’s creditworthiness is determined by the system’s backend intelligent algorithms. This app also takes proper care of the recovery and collection, disbursement, credit monitoring and underwriting, borrower application and prospect sourcing.
Personal finance management application
With the help of the availed money management or personal finance management application, the management of respective finance has become easier and more accessible than it was before. PFM apps are always there at the fingertips to serve you with seamless services including debt payoffs, management of subscription amount, shared expenses, and bill payment.
Any other finance management functions can be performed via it as well. It enables the user for accumulating every personal finance account together for listing the personal expenses in the form of spending habits, categorization, and data visualization.
In the market of advisory service, Robo-Advisor is the latest one used for personal finance management. This automated app is run on the algorithms recommended by the asset management. There are many such Robo-advisory companies for asset management and personal finance management.
Insurtech
As per the report of the CB Insights, a huge amount of funding is done in the Insurance Technology Sector. As the utilization of the data is possible for determining dynamic prices and personalized offers by the technology and analytics, Fintech is a bonus to this sector.
But it is useful for specific consumers at the same time. The creation of the custom insurance packages is done based on the analyzed customer patterns for which the Insurtech app is designed. Even this app allows people to select the best insurance policy from several availed options as per their necessity and convenience.
The above-discussed sectors are amongst the best functioning areas of the financial services which have undergone a lot of change due to the adaptation of the Fintech application development. Most of the services have been improved excellently whereas some are there still in the growing stage.
By investing in Fintech you can rest assure to be highly benefitted from it in the future. As in technology security is the key to its popularity, Fintech developers of Induji Tech are always looking for the best ways for enhancing it.
But after observing this immense expansion, it can be easily concluded that Fintech is not limited to these only. Instead, it will make major leaps in the upcoming years for the complete transformation of the finance sector.