21 Dec 2022
Updated on January 12th, 2023

Why should businesses invest in Fintech Apps?


Surbhi Bhatia

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FinTech is changing the way tech companies do business. You have reached the right place if you’re looking for an answer to that question.

It stands for Financial Technology. This acronym includes software and mobile applications designed to improve traditional forms of financing for clients and corporations. Flipkart and other eCommerce giants have taken this model to their advantage.

It’s a great tool for businesses involved in transaction delivery. They provide free products that allow customers to collect information. This data is then distributed among departments to determine whether a customer will pay premiums, invest in mutual funds, or purchase real estate.

Fintech allows businesses flexible access to the latest technologies, such as big data, AI, and business process automation. Fintech apps are needed by more than 196 million US digital banking users this year. This is 75.4% of the US population.

Millennials, Gen Z, and other users of the digital age are shifting to the digital future. To survive and grow businesses in this digital world, Fintech solutions must be adopted by the industry.

Additionally, fintech’s rapid growth has proven that the most lucrative segments of the financial sector will generate the majority of revenue.

This drives businesses to adopt Fintech solutions and invest in Fintech apps. We will be discussing the various aspects of Fintech apps, and why businesses should seriously consider having a complete control via Fintech app development.

Types FinTech Apps

1. Mobile Banking Apps

These apps offer digital banking services to users. Users can access their banking services directly from their mobile phones, instead of visiting a branch. They can access their balances, transfer money, make payments, and apply for loans.

2. Investment Applications

The apps offer great investment opportunities for almost anyone. Users can also remove intermediaries and trade online with ease. In addition, this advanced fintech app development allows you to implement AI and machine learning to act as an automated broker.

3. Payment Processing Applications

Businesses can use these apps to make payments on their behalf. They eliminate the need to connect credit card companies and customers. As a result, financial services are made easier by payment processing apps.

4. Tax Filing & Management Apps

These apps can be used to simplify the complex aspects of tax filing and management. Users can also simplify the filing, management, and preparation of taxes. These FinTech apps may even eliminate the need to hire an accountant.

5. Personal Finance Management Applications

These apps act as personal financial advisors for users. The FinTech app will manage all the details, allowing users to simply define their financial goals and needs. This app makes it much easier to keep track of all your finances and understand your spending habits. FinTech app developers are often hired by top businesses to create personal finance management apps.

6. Apps for Insurance

These apps are extremely useful in the insurance industry for accurately assessing risks. With insurance apps, policyholders can also receive faster claims processing and coverage. With the help of FinTech technology, it is much easier to manage claims and handle them.

7. Loan Applications

These apps can be used to connect borrowers with lenders online. FinTech apps make it much easier to process loan payments. FinTech apps can allow peer-to–peer lending (P2P), which allows individuals to lend money at their interest rates and policies
How about offering your customers with accurate fintech technology via Android app development services?

Fintech: The Future of Business

Fintech can help businesses in many different ways, regardless of their industry. It is clear that Fintech is going to make a huge impact on the lives of all investors. Here are some factors that will ensure Fintech apps’ success in the future.

1. Mobile Banking

Mobile apps are being used heavily by the new generation of millennials for their social media, banking apps, and other activities. According to an Ernst & Young 2019 study, 46% of Americans use Fintech apps for a variety of reasons. This could be a challenge for traditional financial institutions as it will make it difficult to arrange personalized services.

New generations of people are borrowing small amounts online or via mobile banking. This borrowing behavior will undoubtedly continue, which will increase the demand for Fintech technology in banks and other institutions.

2. Cryptocurrency and Blockchain Technology

Users have begun to become interested in cryptocurrency, and this is what will drive Fintech’s growth. Blockchain technology and Fintech both allow users to trade in Cryptocurrency. Therefore, Cryptocurrency will be a major financial service provider, and users are searching for digital payment options.

3. App for P2P Payments

The maximum number of people using the P2P payment app to make transactions is 62%, digital wallets and payment apps allow users to send/receive money quickly and securely, access their funds, pay their bills, and check their transaction history.

Because they find it easier, Fintech is growing in popularity. As a result, businesses are encouraged to invest in Fintech App Development for a successful market.

Here is a list of popular Fintech P2P payment apps that have been so popular since their introduction. These are the top four:

  • PayPal
  • 2. Venmo
  • Stripe
  • Visa and Mastercard

Also ReadFintech Special: How to Get Your Investor’s Attention?

The Benefits of Taking FinTech Application Development Services

FinTech app development can give your customer the most seamless and convenient payment experience. These are just a few of the many benefits of FinTech application development.

1. Greater Market Reach and Presence

FinTech app development is mainly mobile-friendly to tap into the large market of tablet and smartphone users. Mobile apps are preferred by users because they allow them to stay updated and have quick access to information.

FinTech apps have also grown in popularity due to the rise of smartphones. Consumers can now digitally perform financial transactions on the move without any difficulties. For businesses, fintech app development is a key goal to increase revenue and stay ahead of their competition. If you develop your FinTech app, you can increase your business’ market reach.

2. Superior Customer Experience

User experience is a key factor in a company’s success. Your business can offer new ways for customers to buy products and services by investing in FinTech app design services.

FinTech apps allow individuals to make payments, transfer funds, check account balances, and perform many other functions. This convenience creates a better customer experience for your company and builds loyalty.

3. Increase in Engagement and Sales Opportunities

The gap between businesses and users is reduced by mobile apps. Apps are more engaging than browsing websites. You can increase customer engagement and create new sales opportunities by investing in FinTech app design.

Companies want their own apps to reduce the distance between their users and their business. Collaboration with the best mobile app development company will help you beat your competition with a FinTech app of the highest quality.

4. Far better Security

Website payments are frequently subject to security risks. Fortunately, fintech mobile apps are protected by multiple layers of security protocols, so this is not the case. FinTech app development can offer a better security to customers and enterprises.

These apps are protected with the most recent encryption technology, making them safer, more secure, and offering a faster experience than traditional banking apps.

5. Data Management

FinTech application development will provide you with better data management solutions that will improve your business productivity and customer experience. Data is today’s most valuable asset. FinTech apps can play an important role in managing data efficiently and storing it on one platform. This will not only lower your operational costs, but also increase productivity.

Also Read – A Newbie’s Guide To Fintech App Development

6. Better Financial Inclusion

Many customers are not using mobile banking. However, the FinTech revolution is changing the game by promoting financial inclusion for almost anyone with a smart phone. Because it allows people to save money and connect with banking services, financial inclusion is vital.

FinTech apps can also be used as loan platforms and compete with bank loan services. Many FinTech startups are currently working on this model in order to offer easy credit to users and capitalize on the market.

7. Lightning Speed

FinTech apps’ digital technology allows for lightning-fast loan approval and transaction speeds. FinTech app development can make it much easier to transfer funds and review loans.

Traditional banks may not offer the same speed in loan approvals or fund transfers as traditional banks. It can take days to process simple transactions using traditional finance methods.

8. User-Friendly Applications

Many people find traditional banking apps too complicated and boring. While there have been many improvements in banking apps, they can still be confusing to use. FinTech apps, on the other hand, offer a user-friendly and intuitive experience.

The best FinTech app developers can help you create a user-friendly interface with simple menus, dashboards and color combinations. Building a FinTech app is all about understanding the needs of the user and simplifying the process.

An efficient team of mobile app developers with years of experience has built enterprise-grade applications that are beautiful and easy to use.

There are many sectors where Fintech is making significant changes

The impact of Fintech on business solutions cannot be overlooked after revolutionizing different banking processes. Let’s examine each vertical business separately, but first, let us see what percentage of respondents from different industries believe that Fintech will disrupt their industry. 

1. On-demand Economy

Fintech is changing the On-demand Economy in many ways, both for drivers and customers.

Allowing riders to connect their bank accounts with ride-sharing apps, it makes the payment process faster and more efficient. The insurance industry is also embracing mobile app development to expand and scale its business.

It provides drivers with small business banking tools such as expense management and automatic invoicing, which will simplify financial processes and increase their productivity.

Many insurance companies and Fintech startups have invested heavily in taxi-hailing technology to make Ride-Sharing more efficient. They offer all services on one platform, which is a huge advantage.

2. Healthcare

Fintech is creating new opportunities for the healthcare industry. It helps with the mitigation of current challenges and provides an exceptional experience to patients and providers.

Financial technology provides seamless payment solutions to the industry. On the other hand, it is poised for new opportunities in lending and insurance. Many medtech startups have included Fintech in their services as a way to offer all medical-related services under one roof. Practo is an example.

A significant increase in the adoption of blockchain technology will also be seen in the healthcare industry. This means that payment can be made using virtual currencies (Cryptocurrencies), and Smart Contracts will provide a better level of data security.

3. Retail

Fintech app development is revolutionizing the retail industry, particularly in the customer experience and payment areas. It provides customers with an omnichannel experience that allows them to interact with Retail stores on different platforms. In addition, it simplifies the checkout and payment process, allowing retailers to reach a wider audience. Perpule and FingoPay are two examples of how Fintech has an impact on the Retail business.

The technology can be used to boost marketing strategies by empowering retailers with information about customers’ orders, payments, and returns. This will allow them to plan loyalty programs accordingly.

Digital payment apps and social messaging applications will also be integrated, making it possible for retail-centered payments to be made from all social media platforms and messages via payment apps. Through the integration of payment gateways, the retail platform will create an omnichannel presence. Users can shop from any device, including the app, website, and social media.

4. Crowdfunding

It was difficult to get visibility on the market and raise funds effectively in the past due to a lack of resources, historical data, and platforms. This prevented established brands and startups from falling prey to fraudsters. However, the crowdfunding process has become much simpler with the advent of Fintech apps. This technology facilitates more efficient and profitable ways to raise capital by encouraging P2P payments, making it easier for investors to follow up and aiding in the fundraising process.

It is encouraging to see that financial institutions such as banks and NBFC are turning to online fundraising platforms in order to expand their reach and provide better services to the market. This is called “alternative investing”. Fintech technology contributes to bridging the gap between private and public investment. This will allow for new avenues for funding.

7 Reasons To Invest In Fintech App Development

The way companies do business has changed dramatically with Fintech app solutions. As a result, fintech companies are able to use traditional business models and provide benefits for businesses that invest in Fintech mobile application development in 2022 or beyond.

These are some of the reasons businesses should invest in Fintech App Development.

1. Automated and Accelerated Service

The automated transaction idea was made possible by Fintech apps. The financial sector has been made easier by Fintech apps. Fintech is a great option for small and large businesses. It offers flexibility and speed, which can save time and money.

2. Lower Cost of Service

Businesses are often prevented from entering the financial industry by the high cost of services. Fortunately, Fintech exists. Fintech makes financial services accessible on mobile devices that millions use today. The work is faster and more affordable for businesses using fintech technology.

3. Easier Payment Process

Businesses should invest in Fintech app design because it is a great way to save time and avoid waiting in long lines at branches for a small task. Fintech is the best way to solve this problem. With the help of a mobile application, the app connects both consumers and institutions to one platform so they can communicate and complete their work without interruptions or waiting. This app not only saves you time, but also saves you money and provides greater security.

4. Robust Security

Multiple security issues have plagued traditional banking and the financial industry. Fintech solutions provide advanced technology that gives businesses greater protection against cyberattacks and allows for the collection of personal data.

5. Quick Investment

What makes Fintech so great? This platform attracts investment all by itself, which is the best answer. Fintech also makes it easier to invest by offering 24×7 advice and consultation via mobile apps and other methods. In addition, this solution allows users to communicate directly with banks via the same platform.

Statistics show that fintech companies receive investments of around $50 billion each year. In 2020, there were 8,775 fintech startups in the US.

6. Risk Evaluation

Fintech not only provides security for transactions but also makes it possible to anticipate and overcome potential risks in the financial sector. Fintech technology employs the most up-to-date technology to improve security and scan the data to detect suspicious activity.

7. Data are important

Large data sets are collected by fintech companies about customer spending habits. They can use this data to predict the future purchases of consumers. For example, based on past experience and behavior, it helps them predict the future purchase of vehicles, mortgages, and business loans.

FinTech App Design Trends

Statista published a report stating that global Fintech revenues reached 92 billion euros in 2018. The report predicts that the sector’s revenues will grow at an average rate of around 12% each year and reach a total value in excess of 188 billion euros by 2020. The fintech industry is home to many technologies and trends that can be used to foster innovation across different business verticals. These include –

1. Blockchain Will Become an Important Part of Fintech Strategy

Blockchain technology, which is behind Bitcoin and Cryptocurrencies has been used to improve Fintech services in different industries.

Although blockchain has had a limited impact on fintech, it will open up new opportunities in other areas, such as banking, supply chain management, trading, and payments infrastructure. Most financial companies will consider it for creating an immutable record and using them securely and safely.

Also ReadBlockchain Has Revolutionized The Future Of Micropayments

2. AI will improve financial consumer strategy

Artificial intelligence is a disruptive technology that will impact every industry vertical. Nearly all business verticals are either adopting it or planning to do so in the next five years. Fintech app developers will be keen to learn more about this technology.

3. New Payment Solutions are being introduced

The advent of mobile payments has made physical bank visits significantly less valuable. It is also expected that it will drop by 36% in 2022. Instead, mobile payments are expected to grow by 121%, with more than 90% of users turning to digital wallets and contactless payment solutions.

A major disruption in this context will also be observed with the adoption of Bitcoin and other cryptocurrency due to their characteristics, such as faster transactions, cross-border payments, and infrastructure enhancement.

4. Cybersecurity will get more attention

They will adopt Fintech technologies, including Big Data and Biometric authentication. They will use Big Data to predict and address security problems and issues that may arise in the future. This will increase security and trust and decrease the effort and cost associated with traditional methods of protecting their data.

5. Digital-Only Banks Will Gain Momentum

The future will see a decrease in traditional banking due to mobile banking and other financial services. This will increase the number of digital-only banks. These banks are those that do not have a physical location but offer users access to all banking resources and services electronically.

To Sum Up!

We have covered important aspects of Fintech in this article. I hope you are now more aware of the possibilities and innovations that Fintech offers. Fintech provides businesses with innovative services and technologies that increase profits.

Do you want to make your Fintech app idea a reality? Techugo is the USA’s best app development company. To ensure your market success, we will offer end-to-end solutions and expert advice.

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