FinTech App Development: 5 Ways in Which FinTech Startups Are Redefining Finance

Introduction

What is disruptive technology? It signifies a ground-breaking technology that either shakes up or eliminates the domination of the sustaining technology. Do you know which disruptive technology we are pointing to in the given blog? Yes, you have got the hint- Financial Technology!

Financial Technology (FinTech) is undergoing a revolution that has now rapidly engulfed the businesses across the globe, startups are no such exception. It has disrupted the working of various sectors albeit in a positive note which includes financial advice, insurance service, payment and transactions, customer service, and many more.

With an increased focus on FinTech app development, financial startups have represented themselves among their customers as the game-changing firms by providing all the financial-related services to them just at their fingertips.

Drivers of FinTech Revolution among Startups

The biggest role in making FinTech popular across a wide swathe of financial industries is played by mobility via smartphones. With their help, consumers get an easier way to interact with the financial enterprises a gain real-time view of their accounts. It is because of them that various FinTech startups have changed their services to meet their demand in a swift manner.

Today, an ongoing digital transformation in the banks which coupled with mobility has altered the very nature of working in any financial or banking sector. Instead of standing in a long queue, customers now conduct financial trade or transactions online only.

Besides, the boom in smartphones has given birth to another development- quick burst of online payment apps that have seamlessly integrated with financial accounts well and has eased shopping, investment, mobile-to-mobile payments, and many more. Here are 5 ways FinTech startups are redefining the functioning of the finance in a perfect way. Let’s proceed forward…

A. Automation for Financial Advice

The arrival of virtual assistants has taken the world of financial advisors by storm and has posed as a potential threat to the traditional operators. They will continue to emerge in the given industry and will offer competitive solutions that have been gleefully adopted by FinTech startups.

They are implemented using automated messaging via live chats and other communication channels. Besides, various workflows can also be built to meet the specific needs of the organization through the triggering of consumer behaviors to enhance customer engagement and power sales. Furthermore, delivery of financial advice can be automated through opting for a hybrid approach which includes machines as well as human power. What’s more, automation can also help the FinTech apps in giving effective tips on wealth and asset management which will help them to capture leads and foster cordial relationships with their clients. 

In this way, FinTech startups can offer advantages to their customers by offering them a quantitative-based approach as they can now invest freely by keeping their expenses at the bay. That’s it!

B. For Secure Log-In, Dial Biometric Authentication

The verification procedure of the traditional FinTech firms is multi-factor authentication which is although secure but takes more time to proceed. However, FinTech startups have taken a cue from it and have focused on biometric authentication technology.

Why this technology? Because, it focuses on physical metrics to verify and recognize an individual through their voice, gestures, and even their typing rhythms and makes sign-in features relatively secure for their customers. Besides, most of the startups are implementing the given technology as it comes with smarter identity verification and authentication so that only genuine customers can prove their identity.

Likewise, it ensures that the customer’s data is safe from online intruders with its unique sign-on facility so that password entry is relatively protected. What’s more, the arrival of the fingerprint sensor has created a comfort zone for financial transactions; all thanks to biometric authentication.Biometric technology such as voice verification and facial recognition is also being implemented by the FinTech startups because they not only streamline the authentication process, but they also boost-up the security features for customers so that they can log-in with ease.

C. Effective Customer Service is Possible Thanks to Chatbots

Chatbots is an advanced FinTech software solution that uses machine learning and natural language processing. They have become quite a popular tool for FinTech startups for streamlining customer-facing interactions. In Japan, various leading FinTech apps are rolling out chatbots so that their customers can find relevant financial information from their websites easily.

Furthermore, a leading US-based Bank of America utilizes the services of chatbots called Erica which provide perfect investment advice to their customers. Thus, one thing that can be said about the given system is that it has improved customer satisfaction, reduced costs, and also allowed the agents at call centers to focus more on value addition.

Moreover, chatbots are also effective and come in handy in offering reliable assistance so that the customers could perform a digital transaction without much difficulty. Likewise, smoother onboard experience is also provided to the customers who demonstrate the essential aspect of a FinTech app development company via their online platforms.

D. Online Payment System has Improved Financial Traceability

The sudden increase among business-people towards FinTech application development is due to the growing penetration of mobile telephony. Previously, the traditional banks charged fees for fund transfer which over time, became a loss-inducing option for the parties involved in it.

But no such issue now as mobile banking comes eWallet solutions which are not only easier to use, it also brings significant improvement in the financial structure of the FinTech apps. They are cheaper to utilize because they come with Money Transfer Operators which allows more and more people to come under the financial services umbrella.

From a customer point of view, online banking or financial solutions has made their life easy as they have 24/7 accessibility. What’s more, they have also cut the role of intervention from ‘middle man’ and thus have speed-up the transaction procedure.

From the service providers’ point of view, the online transaction has improved the customer retention as well as engagement which is a win-win situation for both sides. Besides, the startups have also benefited by FinTech as they effectively perform non-core tasks like Know Your Customer (KYC) and Anti-Money Laundering (AML) successfully. Therefore, the financial system of a startup becomes more transparent and also allows them to prevent tax evasion and open up in the shadow economy.

E. FinTech Startups have Successfully Created Tailor-made Financial Services

Most of the traditional insurance companies find it unable to monetize customer data, and here FinTech startups have taken a lead. With the effective utilization of sophisticated analytics and data models, they can identify and mitigate the risk so as to broaden their customer base which will then result in maximization in their profits.

In addition to it, the users are also in the front seat as they are getting insurance products that are tailor-made to their specific needs such as their age, lifestyle, location, uses, and many more. This will then make them to choose those financial products which will meet their requirements easily and efficiently.

Besides, enhanced consumer demand has pushed the startups to expand the scale and scope of their data collection activities. It is essential as it has enabled the startups to find newer ways to convert their collected data into tangible profits and thus offer tailored insurance products to their customers.

Fast Forward to the Future

The future of FinTech industries are in the hand of the digital revolution and why not? The given article clearly signifies that more and more FinTech startups will come up and carve out more innovative products and services to endow the customers with improved financial lives.

They encompass everything ranging from chatbots to AI and are also utilizing biometric authentication to make financial transactions more safe and sound. Thus with the availability of the given innovative technology delivering seamless customer services is not much far for them now.

Originally published at – FinTech App Development: 5 Ways in Which FinTech Startups Are Redefining Finance

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