Feb 15, 2022
How Fintech app development is transforming the Finance sector
Development in Fintech brings along huge risks of disruption in the financial sector. Technology is disrupting the Financial sector.
Up to 28% of banking and payment services companies will witness this risk of going obsolete. However, this is not the time to panic about such an issue.
Instead, it is time to catch up with the change and understand fintech app development. COVID-19 has encouraged people to shift to adopt fintech. Today, almost 73% of Americans view Fintech as the new normal.
What is Fintech?
In simple words, Fintech is a blend of Finance and Technology. When a business provides financial services by the means of technology, processes become easier. The Integration between technology and banks has developed a smarter financial service sector.
Fintech software development focuses on enhancing customer experience. It aims to meet customers' needs with convenience at the least cost. Fintech is an opportunity to make use of technology to simplify finance for a better consumer experience.
Impact of Fintech on the Finance Industry
Let’s have a look at some aspects and their growth with Fintech App Development.
Consumers can get the privilege of applying for loans using their phones. Banks traditionally relied on humans for the underwriting process & risk assessment. Fintech companies have automated these processes. This helps speed up the loan application process.
Fintech applications make better data utilisation while assessing credibility. Along with credit history, it also analyses clients’ regular financial transactions. This helps in ensuring the client's financial capacity to repay the loan.
Investing is as easy as creating an account on Facebook. With fintech app development, any individual with an internet connection can invest. The easy logging in & KYC procedure allows them to invest from the comfort of their homes.
In earlier times, the activity of trading was only restricted to experts. The knowledge and platforms were only accessible to limited people. With Fintech, anyone can learn about trading through demo accounts.
3. PERSONAL BANKING
The traditional banking method Required an individual to visit a bank every now and then. However, with fintech, your customers can execute many processes online. A mobile app allows the customer to have real-time updates of their bank accounts.
Functionalities of digital wallets will enable your customers to swiftly process the payments. Also, Bank chatbots help in resolving customer grievances. The quick and improved user experience will attract more customers to your platform.
4. DATA SECURITY
Data security becomes important with increasing rate of cybercrime. Fintech has brought an efficient way to protect data through blockchain technology. Various fintech app developers, assist financial institutions in protecting their data.
Fintech app development is an ongoing process. It allows an institution to make necessary changes based on customers' requirements. This, in turn, improves the overall user experience.
The fintech revolution is transforming the financial sector. Manually implemented processes can now be executed through mobile devices. This saves a lot of time and resources for financial institutions and customers.