FinTech, short for ‘financial technology,’ is a cutting-edge strategy for reforming financial institutions through the use of digital technology. Stock Exchanges, Banks, Hedge Funds, and all other financial organizations can gain a competitive edge with FinTech software solutions.
The financial industry is evolving, thanks to FinTech software development and financial innovation. Today’s customers want more from their banking services, and if they don’t get it from their traditional financial institutions, they will look elsewhere. Financial institutions are now looking for high-tech assistance as they begin to understand how the competitive landscape is changing. Also, how some of their key business operations are being undermined by new retail banking firms. The only solution to all these challenges is FinTech innovations.
At present moment, in the US, four out of ten financial decision makers have one or more accounts on FinTech platforms. According to a report by GlobeNewswire, the size of the worldwide FinTech market is expected to surpass the value of $699.50 billion by 2030.
Umm, but why do financial institutions should involve more in FinTech innovation?
In this article, you’ll get a clear-cut answer to this question. Because here we’ll discuss the benefits any financial institution can enjoy while deploying FinTech software solutions.
Come on! Let’s take the bull by its horns.
Table of Contents
FinTech Innovations: Its Impact on Financial Institutions
More Effectiveness
Any industry can improve operational efficiency by using technology as a de-facto catalyst agent. This is also true for FinTech. Through automation and the FinTech application tailored in accordance with demand and the nature of company operations, financial institutions improve the efficiency of their operational functionalities.
Quicker Acceptance and Zero Barrier Apps
Do you remember the days when opening a personal bank account took a week or longer? Well, it’s long gone by now, so you can bid them farewell. Bye, bye! Users who use FinTech software solutions can effortlessly submit their account opening applications. As a result, a growing number of users choose companies that go for FinTech software developments and integrate them into their financial processes.
Extremely Supervised and Risk-Averse
FinTech is still a fledgling industry, but it is highly regulated to provide strong governance and effective risk management. When selecting an ideal partner for your FinTech software development, make sure to choose a partner that has a good experience. Also, ensure the partner you select has the qualifications and certifications needed to provide a solid FinTech solution for your company.
Automated Customer Service
A wide range of automated customer service options is becoming available as a result of FinTech and AI convergence. There are thousands of ways to automate customer service, including smart chatbots, virtual assistants and advisors, and personalized user interfaces. Financial organizations can save money, thanks to this form of automation. Additionally, it provides users with a much better customer service experience, increasing user retention.
Better Accessibility
The immense popularity of FinTech software development is also bringing about the new potential to boost transparency, cut expenses, and improve information accessibility. This information is being made available to consumers, all thanks to FinTech innovations. Additionally, FinTech contributes to the accessibility of various financial goods for those who are categorized as unbanked, or, those without a basic or current bank account. Without utilizing FinTech, there are still a lot of people who might not be able to get the financial assistance they require.
No Jeopardizing Safety and Security
Unquestionably, security is the most crucial aspect of every financial organization. Security concerns are the most common justification for not implementing FinTech by financial institutions. However, there is no need to stress if you hire FinTech developers that implement the most recent security features for your FinTech software.
Moreover, in order to provide the greatest level of security for the clients, FinTech software development companies should utilize industry best practices. They should also consistently keep up with the most recent breakthroughs in technology for information security. This eliminates any potential security breaches or loopholes.
Speed and Agility in Financial Services
If an applicant is looking for a loan and gets accepted, many digital or online-based lenders can offer a same-day loan, and this is only possible because of innovations in FinTech technology. Consider a case where you were looking for a payday loan or short-term loan, you would find that many lenders provide quick services. So, by requesting less information from applicants, several lenders can give faster decision-making and approve or disapprove their loan requests.
Many consumers have benefitted from automation, with artificial intelligence predicted to power 95% of all customer interactions during the next ten years. This is also leading to many people preferring machine-to-human interaction, eventually letting to the growth of FinTech software solutions.
Do you now understand why financial institutions should deploy FinTech solutions for their daily operations?
If YES! Let’s now move to another section of our article and go through some famous examples of FinTech to help you get a clearer idea of this financial innovation.
Examples of FinTech
FinTech software solutions are created and used in numerous financial fields. All these solutions are developed by experts while keeping in mind all the significant FinTech trends. Let’s have a look over a few important examples of FinTech solutions.
- Roboadvisors – These are software or online platforms that are used by common people to automatically invest their money in the best possible ways and sometimes at lower costs.
- Payment Apps – Paying people or businesses online is easy and instant with the use of payment apps like Venmo, Zelle, PayPal, Block, and CashApp.
- Investment Apps – Robinhood and other investment applications make it simple to purchase and sell stocks, cryptocurrencies, and ETFs from your mobile device, usually with little to no commission.
- Personal Finance Apps – You can view all your accounts in one location, create budgets, pay bills, and do many more things using personal finance applications like YNAB, Mint, and Quicken SimpliFi.
- InsurTech – The use of technology specifically in the insurance industry is known as InsurTech. One such would be the utilization of tools that track your driving to modify auto insurance prices. This is really Wow!
- P2P Lending Platforms – Using P2P lending sites like Lending Club, Upstart, and Prosper, consumers and small business owners can borrow money from various people who are directly lending them microloans.
- Crypto Apps – You can store and conduct transitions in form of digital tokens and cryptocurrencies like NFTs and Bitcoins using crypto applications, such as wallets, payment processing software, and exchanges.
In a Nutshell!
It’s getting clear that financial companies now have a lot more services to offer than simply traditional banking services. All due to the advent of new and creative FinTech technology as well as the worldwide financial landscape that is experiencing significant transformation.
That’s good news!
Moreover, financial institutions benefit from faster and simpler operations and processes, all thanks to FinTech software solutions. Additionally, it offers users a very practical experience simultaneously. Therefore, opting for FinTech software development for your financial institution will benefit everyone and push you towards new heights of success.
That’s all for the article.
Thank you for your time and patient reading.