Fintech (short for Financial Technology) is used to describe new technology that helps improve and automate the delivery and use of financial services.
Fintech seems like the end of traditional banking, which just not only saturates the market but also makes the finance sector more profitable.
Financial disruptors are taking over the industry with the latest technology and fast-paced methods to make finance easier to understand and handle for both consumers and banks.
In 2018, nearly 70 percent of senior banking executives said collaborating with fintech and bigtech to build a new service was a significant opportunity for banks.
Today, many businesses, including those in the service or product industry, now rely heavily on Fintech solutions.
Since businesses started using Fintech, they are increasingly becoming aware of the advantages of hi-tech means in facilitating transactions. Businesses find fintech apps secure, time-saving, and profitable, and now fintech is gaining popularity all over the globe.
Businesses do various transactions in one day, and traditionally it was a really hectic problem, but now it has been made so much easier because of Fintech apps.
Fintech enables businesses to have flexible access to advanced technologies ranging from big data, AI, business process automation, blockchain, cryptocurrency, etc. More than 196 million digital banking users in the US this year, or 75.4% of the population, ensured the need for Fintech apps.
Millennials and Gen Z users are moving to the digital world now, and to survive and scale businesses in the digital world, the industry needs to adopt Fintech solutions.
In addition, the pace at which fintech is growing has confirmed that the popular segments will contribute most of the revenue generated by the financial sector.
All this drives the business to invest in Fintech apps and adopt Fintech solutions in the business. In this article, we will discuss the different aspects of Fintech apps and why businesses should consider investing in Fintech app development seriously.
According to a Statista report, in 2018, Fintech revenues all over the world amounted to 92 billion euros. According to the report, the sector’s revenue is expected to increase at an average rate of nearly 12% per year, reaching a total value of 188 billion euros by 2024.
According to the report published by Statista, in 2021, a total of 10,755 fintech startups will be launched in the US. As per the region, there are 9,323 in the EMEA region, (Europe, the Middle East, and Africa), and in the Asia-Pacific region, it is 6,268.
A report says that a 38% share of U.S. personal loans is granted by Fintech.
Fintech reached $55.3 billion in investments in 2019
Blockchain technology and regulatory technology are the fastest-growing segments of the fintech industry.
A study says in 2018, peer-to-peer or digital lending, a segment of fintech, is worth $43.16 billion, and it is forecasted to rise to $567.3 billion by 2026, along with a CAGR of 26.6%.
52% of U.S. consumers want their financial institutions to invest more in mobile banking.
Fintech helps businesses in many ways, irrespective of their type. There is no doubt that the future is definitely going to be great for all fintech investors as this platform is really going to touch the heights of success. Currently, you can have a look at factors that ensure the success of Fintech apps in the future.
Mobile Banking
The new millennial generation is heavily using mobile apps for all their activities, whether it is social media, banking apps, or other services. A study says, 46% of consumers (Ernst & Young, 2019) in the United States are using Fintech apps for a variety of reasons. This may pose a strong challenge for conventional financial institutions, as arranging personalized services will be difficult for them.
Today, new generations are starting to borrow small amounts with the help of mobile banking or loan apps available online. And this borrowing habit of a user will surely go ahead, which will directly increase the need for Fintech technology in banking and other institutions.
Cryptocurrency and Blockchain Technology
The users have started gaining interest in cryptocurrency, and this one is going to be the reason for Fintech’s growth. The reason is that Blockchain technology and Fintech allow users to deal in Cryptocurrency, and both are required for cryptocurrency. Users are looking for more digital payment methods and other financial services, and crypto will surely go ahead in digital payment.
P2P Payments App
A maximum number of users are using the P2P payments app for transactions. Payments apps and digital wallets enable users to quickly and securely send/receive any amount, access the money, pay their bills, check the transaction history, etc.
They find it more convenient, and therefore, Fintech is gaining more popularity in the market. This encourages businesses to invest in Fintech App development for fruitful success in the market.
We have a list of a few popular Fintech P2P payments apps that have gained so much popularity since they came onto the market. Here are the following:
From SMEs to big giants like Microsoft, everyone is using these payment apps.
These payment apps were developed with industry expert support to avoid the common mobile app development mistake. Hence, these apps are now leading in the market.
Fintech app solutions have changed the way companies have been doing business so far. Fintech companies have implemented the traditional business models and ensure benefits for businesses to invest in Fintech mobile app development in 2022 and ahead.
Here are the following reasons for businesses to invest in Fintech app development.
Fast, fast, and fast
Fintech apps brought the automated transaction idea into reality. Fintech apps have made the financial sector’s services quick. SME or large-scale businesses need solutions with flexibility and rapid speed that save them time and effort, and this is where Fintech helps.
Lower Cost of Service
The cost of service is the primary barrier that stops businesses from entering the financial sector. Fortunately, Fintech exists. Fintech is making financial services available on mobile devices that millions of people are using today. Fintech technology makes the work faster, and also more budget-friendly for businesses to enter.
Easier Payment Process
This is one of the important reasons for businesses to invest in Fintech app development because people really don’t want to waste their time waiting in a long queue at the branch for some small task. To overcome or cope with this problem, fintech is the best solution. The app brings both institutions and consumers onto the same platform with the help of a mobile app so that they can communicate with each other and get their work done without any waiting time or interruptions. It not only saves time but also helps you to save money and gives you better security.
Strong Security
Traditional banking and financial industries have faced multiple security challenges. This is where Fintech solutions come in with advanced technology and give businesses better protection against cyberattacks, along with the collection of consumer data.
Faster Investment
Why is Fintech better? The best answer is that this platform attracts investment by itself. In addition, Fintech makes the investment process easier by providing 24×7 consultation and advice through mobile apps and other means. With the help of this solution, users can directly communicate with banks as both are available on the same platform.
According to statistics, fintech companies attract investments worth around $50 billion every year. In the US, approximately 8,775 fintech startups were launched in 2020.
Risk Evaluation
Fintech provides you with the security of transactions, but it also makes it easier to predict and overcome risks that have appeared in the financial sector. Fintech technology uses the latest and most advanced technology to provide better security and scans the data to predict any suspicious activity.
Significance of Data
Fintech companies collect large data sets on customer spending behavior. With this data, they can forecast the purchases made by consumers in the future. It helps them predict mortgages, vehicles, or business loans based on prior experience and behavior.
Here are the following benefits of developing Fintech apps for businesses.
Related Topic – Web App vs Mobile App – Which One is Best
According to a Statista report, in 2018, Fintech revenues all over the world amounted to 92 billion euros. According to the report, the sector’s revenue is expected to increase at an average rate of nearly 12% per year, reaching a total value of 188 billion euros by 2024.
There are a variety of trends emerging in the world of fintech that will drive innovation in various business verticals. Here are the following:
The Fintech industry is very large, which means there are multiple opportunities to start your own business because of its immense growth. Here are the following Fintech app ideas to invest in.
We always said in each blog that the cost of developing a fintech app can vary depending upon the platform, app development process, technology, complexity, features, and number of teams included in the project.
But, before you select any financial app development company, one must fix the budget and cost for developing the app, as this will clarify the process and won’t create a problem for a long time.
Conclusion
As we have discussed important factors about Fintech in this article, I hope you’ve found the opportunities and innovations brought by Fintech. Fintech delivers businesses with more innovative services and technologies that make better profits, etc.
Want to convert your Fintech app idea into reality? Contact enAct eService, the best app development company in the USA. We will provide end-to-end solutions as well as expert advice on various things related to Fintech app development to ensure your market success.
