FinTech App Development: How It Transform the Financial Industry

Introduction

With the continuous rise and growth of digital technologies such as AI, Blockchain, IoT; the global market is withstanding a great transformation. Even the FinTech sector is on the surge and successfully thriving with the escalation of digital investment.

Financial technology or FinTech is an innovative breakthrough in the world of the financial sector as it has given a new edge to offer perfect financial transaction services and online security. A broad concept, it basically works around the business transformation from the traditional financial services to more straightforward digital financial services.

Riding on the wave of the FinTech app development, the financial industry is on the way of positively transforming to meet the consumer experience successfully. Not only financial activities are performed with great convenience, but the whole financial process has also been streamlined which has resulted in a reduction of the operational cost manifold.

Emergence of FinTech Application Development

FinTech app development companies have come a long way in developing a secure FinTech app and have now positively disrupted the working of the financial industry to a great extent. There are some of the major financial services which are reshaping the working of the financial industry to a new height.

First of all, what is FinTech? They are advanced technologies that offer hassle-free financial services from the users to the businesses. They utilize digital technologies to get the work done for either new businesses or startups via providing innovative products and services.

Nowadays, customers seek for those services that can offer them quick response promptly without any further delay based on their query. So, the traditional financial services are going to oblivion and FinTech software solution is gaining significant momentum.

As per Statista, the FinTech-based market is expected to increase from US$ 151bn in 2017 to US$ 381bn in 2022. The given fact indicates that it is a multi-billion dollar industry and in no way it is going to fade so soon.

Still puzzled; then go through the facts identified by the PWC Global FinTech survey, which declares that:

75% of the people think that implementing FinTech will have to increase their focus on customers
83% believes that part of their business could be captured by FinTech companies
20% think that FinTech enterprises will occupy most of the financial services

The above-given facts indicate that the future belongs to FinTech companies and will play a significant role in shaping the way of conducting financial business all over the world. What’s more, many larger financial organizations have shown keen interest in the creation of the best FinTech apps and enhance their offering to their customers. Many big organizations such as American Bank, Citibank, UBS, and others invest heavily in FinTech app development companies to get access to the best FinTech application development and maintenance.

There are some of the best FinTech services which are transforming financial services to a greater extent. Let’s dive and find out more.

I.Robotic Process Automation (RPA) is the Current Identity of Online Financial Services

RPA is an automation process that uses software robotics to emulate the human interaction and integrate it with the digital systems to execute a perfect business process. In financial industries, various FinTech uses different kind of RPA such as:

Automated Processing, which includes various automated processes such as payable processing automatically extracts and helps in saving a great amount of time and resources for a financial organization. Besides, they also generate financial statements and account balances which help in optimizing credit card application processing
Chatbots help in streamlining the management of the customer queries for the bank and saves their resources. Furthermore, they can also integrate well with other technologies and make them more favorable for wider usability
Know your Customer (KYC) optimization is a procedure used by banking (other financial) institutes to get access to the information about the customers and ensure there is no misuse in offering them financial services. With the help of RPA, the process has become faster and the customer’s data is analyzed with little inaccuracies

II.AI Banking is the Future of the Financial Services

The functioning of many businesses has significantly changed with the continuous infiltration of artificial intelligence (AI) and financial institutes are no such exception. Financial industries are using AI for fraud detection and have invested heavily in the given technology. AI has gained high momentum because:

It helps in maximizing resources via the use of algorithms to generate insights which help the organization to make a correct prediction about their company’s sales and performance and thus bring significant improvement in the customer service
It is in the process of replacing human decision making with more sophisticated technologies like parameters and numbers, analyzing and interpreting text and images to improve the accuracy of the prediction from the customer’s data
It effectively filters and analyzes the human sentiments from text data as well as social media to create novel financial applications which fit the needs of the customers well
It can also be used for credit lending for helping the users to get faster and quick access to the accurate risk assessment and also collect outstanding debts from the creditors in the most appropriate manner

III.Omni-Channel Banking is Changing Consumer’s Perception of Finance

The way of conduction of banking and other financial business has undergone significant changes with the arrival of digital channels. Now, there is no need of entering any financial institutes as everything is done online.

One of the best benefits of Omni-channel is to allow the customers to perform seamless online transactions just by using their mobile device. Due to it, the financial services have become smarter and convenient to be utilized by the customers. It has collaborated with all the digital channels and offered the best financial practices albeit in an online mode.

IV.Biometrics is the Perfect Answer to Offering Cutting-Edge Financial Security

Biometrics has become a key and imminent part of our everyday technologies and is difficult to replace. The same is the case for financial industries that use biometric identifiers with a strong password and two-factor authentication and thus offers an incredibly secure system which is easy to operate for the customers. Some of its features which have become part of financial sectors include:

DAS Technology offers end-to-end security from infrastructure to architecture which enhances security with great efficacy
Effective protection against DDoS attacks by offering a robust DDoS defense system which detects suspicious activities and protect the precious and sensitive data of customers at any cost

V.Blockchain is the New Currency for Financial Sector

In the past decade, blockchain and cryptocurrencies have risen to great popularity among the financial sector and has offered the new possibility for FinTech. In exchange for currency, blockchain provides more security and transparency in carrying out online transactions and also minimizes the risk of human errors.

What’s more, many financial enterprises are investing in blockchain solutions which are expected to increase by 15.9 billion by 2023. But why FinTech has become so popular in the FinTech industry? The answer lies in the fact that it has been able to solve the following challenges faced by the given industry:

It reduces the dependency of the financial sector for 3rd parties to get access to the perfect FinTech solutions
It offers great immutability and transparency which increases the level of trust among the customers for the given financial firm tremendously
It enhances the conversion rate by putting the financial procedure in fast track and results in higher satisfaction rate and higher turbulency
It reduces the operational cost by 50% by making the whole financial procedure public to all

FinTech for the Future of Finance

The above mention sectors clearly signify the immense fame and popularity of FinTech in the financial industry across the globe. With the effective implementation of FinTech app development, there has been a significant improvement in the performance of financial companies in all the areas and has also resulted in its all-round transformation.

So if a FinTech App Development Company is thinking of investing in the FinTech sector, then they are going to reap good results in the future. Thus, it is well said by various financial experts that FinTech is going to increase by leaps and bounds and will become one of the most after-sought technology among financial service providers in the coming years.

Originally published at – http://arpita.pages10.com/FinTech-App-Development-How-It-Transform-the-Financial-Industry-33360578