FINTECH APP DEVELOPMENT: THE FUTURE OF FINTECH 2021 AND BEYOND

The COVID-19 pandemic has devastated the global business as not seen before. Nevertheless, a sheer amount of resilience and bouncing back from oblivion ‘attitude’ has been shown by the FinTech sector.

It has displayed a path towards the adoption of pioneering digital approaches to tackle any challenges in financial services (like banking, payments, and many others). Thanks to a pandemic, the whole financial sector has come alive digitally.

Numerous research works have revealed that about a quarter of people in the USA have opened a digital-only account in 2020 alone. Now comparing it in 2019, only 1% of the people have a digital-only account. So, the given fact shows that there has been a whopping growth in digital services to avail financial facilities in just one year.

The business is gradually moving towards a contactless world where winning the ‘trust of the customers’ is the key to achieving notable success. FinTech app development companies are making them available online all the time to offer the best financial services to meet their customer’s expectations positively.

As people have put their sights on prosperous 2021, FinTech app development services will see new predictions that can change the financial world and become a ‘new norm’.

I. Contactless Payment will Outperform Cash Payment Fully in 2021

Over the past few years, the way of doing payment is undergoing rapid change as cashless payment is surpassing cash payment to a great extent. Mostly, only a few have observed the smooth integration of high-tech payment systems in smartphones or shopping websites. One notable example is Uber, which permits the registration of payment card of the customers and offer them to avail car-booking services with instant online payment.

Another notable sight called self-checkout is gaining acceptance among the customers. Come 2021, and businesses will see the given technology will become part and parcel of the online payment system. This system is more flexible than traditional cash payments. How? It is so that it helps in reducing cart abandonment, much to the delight of the customers.

The second example is Amazon that comes with services such as ‘Go’ stores. In it, customers have to pay online to buy goods from the leading e-commerce organization. Though in the past, it seemed unrealistic. However, with the advent of COVID-19; it has become irreplaceable in the digital-based world.

Sooner or later, the given technology will arrive with a lot of new features to make sure that cash payment will become obsolete in the coming future.

II. FinTech World will See Mushrooming of Micro-Lenders

With the lifting of lockdown and decrease in cases of COVID-19, FinTech experts confirm on a positive note that there has been substantial swelling of lending activities. Moreover, the arrival of a vaccine to cure the given deadly disease has raised the hope of small business-person to pick-up from the beginning and start rebuilding their business.

Due to it, micro-lending through FinTech startups will increase manifold. It will, in turn, will put pressure on businesses to meet the expectations of their customers by offering them with the best online financial services.

In this manner, the loan processes will become easy for small and medium business enterprises. Besides, it will also help them to move on their success path in a quick manner. What’s more, FinTech companies will increase collaboration with banks to make the loan application and its disbursals for the common people appropriately.

III. Rewarding Comeback of Neobanks to Boost Prospects of FinTech Sectors

As it is evident that digital offering will here to stay for time immoral; FinTech companies are putting their applications to get banking licenses to expand their digital footprint. To make it happen, neobanks will assist them effectively.

The neobanks are showing their caliber after the pandemic, and it is expected that its business will increase to about $400 billion by 2026. How have they made a successful comeback? The answer is that they offer a low-cost model that allows customers to avail themselves of banking services with minimum monthly fees.

Furthermore, it comes with high adoption rates and uses new and innovative techs to make all the banking features like deposits, maintenance, and withdrawals of money easy. Besides, all the working of neobanks is automated which makes upkeeping of accounting and other financial features less complicated.

Likewise, it comes with easy-to-use APIs and shows a high transparency level to offer real-time notifications without further delay. Thus, a better prospect is waiting for the FinTech sector to invest more time in reviving neo banks for their profits.

IV. FinTech Industry have to give a Serious Thought to Concept of Financial Inclusion

The impact of the COVID-19 pandemic has felt high among vulnerable people, especially those who are facing a severe financial crisis. Besides, they are also yearning for an immediate and meaningful financial solution. No need to worry as FinTech website development providers have come up with few novel solutions that meet their requirements with ease.

First is a connection card that permits people to buy services on behalf of someone (especially people with physical or mental disabilities) else. Second is the collaboration of B4B Payments with Migrant Help that has proved to be beneficial for allowing individuals to access a bank account just with specially prepared prepaid cards.

So, the recession arising due to the current pandemic will not die anytime soon. Still, the onus is on the FinTech app development companies to think in a broader prospect to ensure insertion of financial inclusion to help those people badly affected by the current pandemic.

V. Embedded Finance will Become Hot Topic post-COVID World

Though financial services across banks and other institutions are changing rapidly, they have now taken one step further to achieve a perfect revolution to obtain an accurate FinTech app solution. How? The answer is ‘embedded finance’ that is seen by many experts as the future of financial functioning.

Although the traditional banking model has failed in accepting it, the new companies such as Uber and Amazon have successfully incorporated embedding financial payments in their services. Likewise, the latest research has also revealed that embedded financial has proved its worth by achieving business of more than $3.5 trillion by 2030.

Furthermore, the given system gets full support from BaaS (Banking-as-a-Service) system. It works by offering full banking support to businesses, irrespective of their industry. In this way, there is a significant improvement in financial customer services.

As the BaaS model is reaching maturity level, one must expect that numerous brands across the globe will exploit it to increase their business fortune in 2021. Furthermore, BaaS service providers will create new products for financial markets. It will help the new and existing brands to successfully fill the niche spaces and meet the precise banking requirements.

VI. Offering Secure Platform for FinTech Investment will be a Challenging Task

Though investors are pouring billions of dollars into the FinTech sector, they are still perplexed by the security aspects of the given industry? Why is it happening? One solid reason is the persistence of economic uncertainty due to the current pandemic. Therefore, investors are now betting for safer investment on a mature FinTech app Development Company.

Although the given sector will survive the pandemic, still FinTech startups have to face difficulties in arranging funds for their effective functioning. It is happening because COVID-19 has compelled the investors to become less risky and more conservative and focus more on a safe bet.

So, the coming year will be crucial for FinTech companies. Why? It is because they have not only to prepare a safe environment for the investors but also have to win their trust. Even the management of person-to-person online payment will also create a headache for them.

Therefore, FinTech companies (and startups) have to come up with some innovative ideas to establish a security protocol to ensure the safe usage of voice, video, and chatting tools in a better way. Then only the investors will invest wholeheartedly in FinTech without blinking twice!

Wrapping Up

The year 2020 has shown that high innovativeness and agility can help an organization to pass off a tough time efficiently. Now entering 2021 has come with new opportunities and challenges for FinTech industries.

The given blog also shows that although security is posing a challenge for FinTech investment, the digitalization of the banking sector is not going to stop. Moreover, FinTech companies and startups will take the help of neo-banking to ensure the expansion of their multiple products on a single digital platform successfully.

Originally published at - https://medium.com/emorphis-technologies/fintech-app-development-the-future-of-fintech-2021-and-beyond-190e3c8291e9