Fintech companies today are moving at a very faster pace. The reason behind this is the market of today that has forced businesses for moving online. With an exception to the banking & financial sector. All these services, would not just bring the cutting-edge trend but. That will also change the way in which one should do business. Well, this is what brings up a huge necessity for a business to hire the fintech software development company so as to assure the right help is received on time.
The chatbots are becoming mainstream, and the digital-only banks, are making waves. There has been a lot of changes within the regulatory requirements. The customer expectations too are fuelling up the innovation. All of this has caused a requirement of speed, convenience, and security. But the same is becoming difficult to be implement within the financial sector. But guess, this too is changing with organizations investing in technologies and gaining an edge in the market. Even venture capital has been increase within the fintech startups, which has spurred within the services a completely new wave.
As per PwC, within fintech, global investments have got triple, and the signs do not slow it slowing down. This is what is expecte to bring in a lot of advancements within the tech adoption at a fast pace. Then it was in the previous years. So, considering it all, this article has been prepare to provide complete information about the trends in fintech. Which have been on the top in the current year.
Customer flow was decreasing within the establishment of brick-and-motor due to restrictions of the pandemic. This is what encouraged the banks for referring the finance & banking software development company for their services. Building applications, which would help in keeping up with the customer rates.
A change in the decision and the services started to rise before the pandemic. It allowed banks to make the services quite accessible. Which in turn provided bank customers to have real-time banking services using online channels.
Apart from this, the other new trend seen was paperless banking with online agreements, notifications, and messaging. This was one of the convenient means for communication that made the customers choose the banking services again. So, any bank that is overlooking the development of its own application will face many challenges in the future. Which are directly trying to attract customers.
Regulation and Security
With the open banking, changes in PSD2 regulations, and data security increased concerns; one leading trend will be the regulation and security within the fintech industry. For the customers, security is a high priority, and none would bank with the banks who do not appropriately communicate about their commitment towards the protection of the financial data.
Risk management, verification tools identification, fraud mitigation, etc; considering it all, there are a lot of services and products which the financial institutions can offer to the customers. For offering the secured digital banking platform.
There are many software development company India that handles the data quite responsible for protecting the customers from fraud and misuse because of mishandling of the data.
Cryptocurrency & Blockchain
Cryptocurrency has been active moderately for around 2 years, but it was in 2020 when it gained popularity. The users of it found that with the adaptation of this tech, it has become easier for sending and also receiving digital payments globally, at almost no cost with the least of the banking regulations.
One another reason for choosing blockchain technology is that it offers resistance for modifications and also for securing money transactions. There are many businesses that are experimenting now with the development of blockchain and the incorporation of cryptocurrencies in digital apps. Just, for example, Facebook announced the Libra project launch, which is the Facebook digital money. It will be allowing users for the safe exchange of digital coins with no necessity of having a bank account or a credit card.
API Adoption Is Getting Wider
APIs are known for serving shortcuts for the building of the new apps or for the implementation of the new features and providing services through existing ones. As per the study by McKinsey, 91% of the APIs developed by banks got held back privately in 2018. It was further seen that there was a continuous rise within the partners and also open APIs in the market in the coming years. This can get partially attributed to PSD2 compliances towards open-sourced APIs. It has been creating a world full of opportunities, and in order to handle it all, Hire FullStack Developers will be a great help to use and share tech, expand networks, and much more.
Robotic Process Automation
It is the technology that allows for cutting down operational costs and lowering the rate of human error. With its adaptation, the results are faster operations with enhanced experiences for the customer.
The banks and the financial institutions, they can implement the technology of Robotic Process Automation in rule-based form with structured actions. To say, it will help in automation of the account information processing, viewing the application status updates, and also check the balance information easily. With automation, the banking process gets faster, and this allows the banks for responding the customer requests in real-time, serving more of the users and offering services 24/7.
Options for Mobile Payment getting Mainstream
As per the G2 crowd, the mobile payments volume was expecte to grow more than 50% in the upcoming years. The customers get complete control with mobile banking. It is a huge barrier breaker. When it comes to the payment options range, the trend of fintech includes blockchain and virtual currency. It has been call the Internet of Payments by the Fintech Times, and all of such choices it is expecte to change the way consumers view fund transfers and mobile banking.
- In the United States, the consumers they are becoming less comfortable with the choice of being wallet-less, and they are rallying behind some big players like Apple and Google.
- Globally, payment options access is allowing people to a great extent for interacting with the companies, and it is also helping to complete the transactions every day without the presence of any traditional bank account.
- Fintech software development is allowing the payment options to have a hand over the blockchain technologies for verification of identity for more financial inclusion.
Well, of course, the consumers are embracing the payment through smartphones, but in the financial service industry, it is worry that the tech stack would be handling increased transactions. But the best is that the 5G tech will help ensure that the networks are able to handle transactions at large, providing reliable experiences.
Machine Learning & Artificial Intelligence
These are both serving the varied purpose as the solutions offered by the fintech software development companies. It is helping the financial institutions and banks for providing automated services of high quality with quick data processing and enhanced security (service enhancements like customer support and PDA; and biometric access).
With the availability of voice assistants, finance & banking software development companies will be helping the banks to engage through the conversational service with the customers more in regards to the product instead of focusing on the lengthy messages. It would further help in the improvement of the financial literacy of the customers by offering them personal advice in regards to how to save/invest the fundings they own.
All the banks, big and large, have been dealing with the consequences of the pandemic. So, for maintaining the stable customers level and also for meeting successfully the demands that are rising within the banking service. All the financial institutions and the banks will be required for rearranging policies relate to customer serving. All this would be possible only when the digital solutions develop while having a customer-centric approach incorporating the trends of fintech in an effective manner for attracting users and providing them digital banking services which are top-notch. So, having to keep in mind the trends as discussed above will be really important, and hiring the fintech software development company will be a big help to understand and to implement it all.