Have you ever wondered why everyone seems to be looking for fintech software development services or why a fintech software development company is everywhere? Well, before we go into that, let’s discuss what Fintech is all about. Financial technology, known as Fintech, integrates technology into the financial, banking, insurance, and investment sectors to substitute traditional banking and face-to-face communications.
Fintech has witnessed a prominent growth in the past few years, with its adoption increasing from 16% in 2015 to 64% in 2019. However, with the COVID-19 pandemic causing unprecedented changes to the finance industry, Fintech went to a whole new level in 2020. Due to the continuous lockdowns, mandatory social distancing, and locked workplaces, many people switched to doing their financial activities online, causing a significant surge in fintech mobile applications, self-service portals, and online banking platforms and increasing in the number of fintech software development agencies.
What Is So Hot About Fintech?
Analytics by Statista says that the market’s largest segment will be Digital Payments with a total transaction value of US$6,752,388m in 2021, with the number of users projected to amount to 4,929.55m users by 2025. Also, according to Cision PR Newswire, the fintech market is expected to reach $309.98 billion by 2022; this is a 24.8% growth compared to 2018. You can read this article for more mind-blowing statistics about Fintech.
With these stats, it is clear that the global digital market acknowledges the relevance of Fintech for the robust and highly efficient financial solutions it provides. This high level of demand also makes it difficult for business owners to get qualified talents for software development for fintech services
4 Top Trends of Fintech Software Development Services
1). Mobile Banking
Though mobile banking has increased exponentially over the last few years, the COVID-19 pandemic has caused it to rise aggressively, with many people getting more comfortable with doing financial transactions on mobile apps. Enhanced by biometrics, mobile apps make a lot of financial services available at the tip of one’s fingers. It is also a viable solution to cybercrimes as it helps in securing confidential information effectively. Are you in need of a fintech solutions software development company for mobile applications for your financial services? Check here.
2). Blockchain Technology
With the rise of Bitcoin, blockchain technology has gained tremendous attention in the financial industry. Blockchain is a highly secure decentralized ledger that is distributed among multiple users. It has no single authority, and each member can only add a new record but not alter older blocks. This provides fintech companies with the utmost security and data transparency. This technology is considered to be fraud-proof and can tackle money laundering issues. Many organizations are gradually understanding the potential of blockchain technology and are looking for ways to adapt it to their businesses. According to analytics by Business Insider Intelligence, 48% of banking representatives believe that new technologies like Blockchain will have the most significant effect on banking services through 2021 and beyond.
Here are some implementations of Blockchain:
- Rewards and Loyalty Programs
- P2P Services
- Insurance
- International Payments
3). Artificial Intelligence (AI) and Machine Learning (ML)
As one of the most critical fintech solutions software development services, AI plays a huge role in the finance industry, especially banks. It involves the use of robotic machines for more efficiency in various bank operations. Programmed chatbots help manage customers with innovative client service solutions, and AI is influential in tackling cyber crimes and financial fraud. Also, the algorithm of Artificial Intelligence and Machine Learning helps to record interactions and transactions with high accuracy, thus allowing for more customer-centeredness. According to Autonomous Research, AI is projected to reduce banks’ operating costs by 22% around 2030; this means that banks can save $1 trillion.
4). Voice Technology
AI-based voice technology has become a common trend used in the banking sector to improve customer service in more convenient ways. For instance, virtual voice assistants can serve as automated support by replying to customers’ questions, supplying basic information on the user’s credit balance, initiating recurring payments, analyzing market conditions for investment, and categorizing calls. Also, this technology has been optimized to enable customers to use their voice for making hands-free payments, balance checkups, and transfers while busy with other activities.
The adoption of voice technology in the finance sector also aids fraud prevention and cybersecurity through voice biometrics. Like fingerprints and facial recognition, voice biometrics records a customers’ distinct voice pattern as a more convenient and secure way of authenticating users, thus preventing fraudulent activities.
Fintech Software Development Services have taken the world of finance by storm, and it is no longer a choice for many modern businesses but a necessity. The future of the banking and financial sector will depend primarily on the digital revolution, and mobile applications and other trends mentioned above will play a crucial part in it.
The post Fintech Software Development Services: 4 Top Trends to Follow appeared first on Tweak Your Biz.
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