Fintech is an abbreviation of “Financial Technology”. This refers to the application of emerging technical innovations to financial products and services. Fintech actually is an industry that encompasses all types of transactional and financial technologies, catering to both businesses and customers. The term “financial technology” has well aware in the world since 1950. However, the growing technology has become a part of our everyday lives that has made the best fintech apps stand out in such a short period of time.
FinTech has defined new norms in the financial world, and it is transforming the face of modern banking. As a result, the convergence of emerging telecommunications, data processing, cryptography, blockchain, and other machine learning innovations has the ability to transform the banking industry in extraordinary ways.
Fintech in Business:
Fintech refers to any business that offers financial services through the usage of the software. This may range from mobile payment applications to cryptocurrency. Companies design fintech mobile apps to link consumers’ finances with technology for ease of use.
Fintech describes the advancement of software and algorithms used in computers and smartphones. This helps business owners, businesses, and eventually the customers. It results in better control of their financial activities, processes, and lives.
Everyone expects money transfers, lending, loan management, and investing to be easy, safe, seamless, and scalable. Ideally, the approach is to do this without the need for human intervention or a bank visit.
Technology and the financial world go hand in hand. Furthermore, fintech now means doing business using technology. This includes money transfers, cheque deposits, managing and raising money for your businesses without the involvement of any other person.
Technology in finances is extremely important in financial institutions like banks, transportation, and many others. It provides banks with innovative ways to transform their businesses without replacing the core banking structures. As a result, there is strong growth and an increase in bank investment. Core advantages of fintech include:
Fintech is accessible anywhere in the world. And, a good internet connection plays an important role in this regard. The location of the company doesn’t matter. The advancement in the field of technology such as wide usage of 4g, and quick adaptation of 5g makes it better and also easy to use fintech anywhere across the globe.
Traditional banking costs way too much of a time. Ultimately, this affects the overall banking experience of any customer. Fintech app providers make this easy by providing a hassle-free solution. These solution providers help to save customers’ time. As a result of this, a loyal customer is made. The services of FinTech providers constitute a fraction of charges including any fee for maintenance, cancellation of service, or other kinds of peculiar charges.
- Payment at one Spot:
Fintech has made it possible to combine physical and digital payment methods into a single interface. This previously incorporated several bank accounts or cards. As a result, businesses benefit from this capability by using more convenient transaction methods and lower overall costs.
- Fintech is Secure:
Fintech is much more secure than the traditional banking system. While traditional banks take a long time to implement modern security measures; as they often find themselves running on legacy software. Fintech works on technology, and conventional banks see it as a required add-on to their tried-and-true business models. As a result, this makes conventional banking easy to break in by cybercriminals. However, modern banking systems are relying heavily on FinTech technology for transactional data safety and user privacy.
- Beneficial for Businesses:
Fintech apps provide great benefits to all businesses. SMEs need more productivity expansion than larger corporations. And they often struggle to obtain the capital they need to thrive.
Innovative fintech services are fast and affordable, and they provide SMEs with a wide range of funding options. Moreover, FinTech enables already-established companies to extend their offerings. It enables them to function more efficiently and scale up by using electronic invoicing and transparent APIs.
- Conversion to Meaningful Data:
Businesses gather a lot of big data from their customers, revenue, internet traffic, and a variety of other sources. Companies and other businesses can utilize this data to their advantage. It provides the services of converting the raw data into a meaningful one. Fintech uses tools and processes to convert the data into meaningful and usable data. As a result, this helps businesses to track new insights and valuable data to develop successful industry strategies. Therefore, this helps businesses to keep up with the trends, and carefully analyzing the trends and patterns.
- Reachable to Anyone:
Fintech services are reachable to every person anywhere in the world. Almost every person is shifting to fintech apps. As a result, the competition in the digital world is increasing with each passing day. Meanwhile, this digitalization has resulted in a remarkable growth of new universal technological capabilities. As well as a remarkable transformation of the financial services industry.
- Relationship with Consumers:
Fintech companies are enhancing their direct relationships with consumers by launching Crowdfunding Platforms. As a result, small companies, entrepreneurs, charities, and artists will all benefit from it. This will happen without having to depend on traditional investors.
Microfinance and digital lending networks are now available to people in developing countries. Various Asian and African countries have access to fintech mobile apps and payment services.
- Easy Payments:
Payment processors have altered the way we do business as a whole. Sending money digitally anywhere in the world is now simpler than ever.
Fintech is also revolutionizing credit by streamlining risk evaluation, accelerating approval processes, and making credit more available. Thousands of people around the world can now apply for a loan using their mobile devices. Consumers can submit credit reports up to three times a year without affecting their credit score, making the lending world’s infrastructure open and accessible for everyone.
- Fintech in Insurance:
Since insurance is a late adopter of technology, many fintech startups are teaming up with conventional insurers. The aim of this collaboration is to simplify processes and extend coverages. As the industry is facing a lot of innovation, from mobile car insurance to wearables for health insurance. Oscar Health, Root Insurance, and PolicyGenius are three insurance firms to keep an eye on.
What Sort of Business Problems do Best Fintech Apps Solve?
- Security and Assurance Concerns
When it comes to mobile banking, payment applications, and FinTech in general, security is by far the most pressing concern. To keep their assets secure, traditional banks employ security guards, cameras, vaults, and heavy bulletproof doors.
When it comes to virtual security, things get more difficult. Vulnerabilities become more subtle. Furthermore, they have the ability to have a greater effect on users. Since not only the money but also the personal information of users is at risk.
Following is the proposed solution to the security problem. As companies can use the below-mentioned options:
- Two-factor authentication
- Biometric authentication
- Data encryption and obfuscation
- Real-time alerts
Modern Baking Requirements:
Any modern banking software needs big data and artificial intelligence as the go-to technologies. Businesses can gather and organize information about a user’s identity, family members, and social status, as well as their financial behavior, preferences, and in-app activity. All via using big data.
These innovations, however, are difficult to introduce because they necessitate outstanding technical skills and ongoing maintenance.
It will be difficult to combine your current system with modern high-end technology if you already have a banking company. This will make it necessary to implement technological changes. Furthermore, it will also demand to reshape your company and adaptation from you, your staff, and your customers.
- Current and reliable financial advice:
Digital platforms, such as Robo-advisors offer algorithm-driven financial services. These services gather information about customers, such as their financial position, and offer the best scientific investment data. Some examples of Fintech apps and services include but aren’t limited to Estate planning, taxation, retirement planning, balance programs, and wealth management.
- Accounts and budgets:
A solid budget allows companies to keep track of their budgets, plan for emergencies, and avoid overspending. Because of this gone are the days of handwritten receipts and monthly budget spreadsheets. FinTech enables you to verify, schedule, balance, and review your finances and budget in a simple and cost-effective manner. It also provides you with an accurate picture of your current financial condition. Meanwhile, You Need a Budget is one of the most common budgeting applications on the market right now. This service advises business owners on how to save more money for the future. Moreover, its scheme is based on four rules. Firstly, allocating each dollar. Secondly, knowing your TRUE expenditures, furthermore consistency and ultimately saving with purposeful spending.
- Customer Satisfaction:
Dealing with money and payments isn’t for everyone; many people find it tedious, overly complex, or boring. Customers would be happier, less disappointed, and more appreciative based on the quality of services that businesses vow to deliver. Fintech app solutions provide a roadmap to attain customer satisfaction. By offering intuitive UI, seamless transactions, and ease in the maneuverability of compute-intensive operations, it is indeed no surprise knowing fintech apps get some of the good seed investments down the road.
- Enhanced financial accessibility:
Fintech has leveled the playing field and made financial inclusion more available. Previously, greater access to trade and finance was only available to the rich or those with a stable economic history. Fintech is now allowing start-ups, entrepreneurs, freelancers, and small-to-medium-sized companies to access capital.
When to implement Fintech apps?
FinTech is one of the most rapidly growing segments of the financial industry. FinTech startups are getting both users’ and stakeholders’ attention in modern times, specifically in the current COVID-19 era. It targets both ordinary customers and enterprises, while conventional banks are often reluctant to embrace the change and technology.
- Simple to Use and Comprehend:
Fintech applications empower consumers by allowing them to access innovative financial management services. The simplicity of any Fintech app is one of the most important factors in its success.
FinTech software is a perfect investment if you work in the finance department and believe your company’s processes can be improved. Let’s look at the banking sector, where financial technology is critical but demand is still unmet.
Traditional banks have a hard time adopting technology, but they see it as an essential part of their development. Despite the fact that only 7% of all US banks have invested in their own FinTech branches and R&D divisions. FinTech products help banks to stay relevant.
Why are banks so keen to be a part of FinTech? The explanation is straightforward: competition in the market. Also, people demand more from banks than just reliability, and mobile apps help them to get it.
Following are the few aspects that has caused banks to choose fintech:
- Better customer support:
Customers can handle their finances online using mobile apps without going to the bank. This saves time and encourages banks to provide more opportunities to their customers.
Banks have showcased numerous key features using FinTech apps. This helped them in solving significant business problems, which has favored them a lot in showcasing themselves as pioneers within the banking sector. Hence, they have got more popularity and eventually more user-base.
Some of the key FinTech startups have also facilitated this sector as well. For example, Stripe. It has solved the most critical problem of capturing and processing online payments. Therefore, this not only results in solving a market gap but also makes bridges between online shoppers and banks.
- Price reductions:
A bank can save money by building a fintech app to cover the majority of their customers’ needs remotely. Nowadays, through a banking app, a customer can perform pretty much all of the business steps that once he had to perform while visiting the bank.
This has helped banks saving tons of money in terms of reducing the physical expansion of their branches. With the introduction of banking apps, now countless users can facilitate simultaneously and autonomously.
- Improve your financial literacy:
Another logic for developing a FinTech app is educational purposes. People are becoming more interested in investing, as financial professionals are no longer the only ones who can purchase stock in businesses.
- Innovative financial services:
FinTech software is already becoming a trend in the financial services industry.
FinTech startups appear to be similar, but they cater to different markets. OnDeck, for example, specializes in lending to small business owners. Customers in Mexico, the Philippines, Kenya, and Tanzania can get credit through Tala. Tala is a startup that helps people with wicked credit.
For financial startups, the use of emerging technology may also be a selling point. One just needs to closely inspect the target industry to figure out the need and practical implementation of a FinTech application. And, once you solve market friction, you’ll see people rushing in to use your software application.
- Authentication using biometrics:
Mobile technology provides various ways to secure financial goods. One of the most effective methods of identifying an individual and preventing identity theft is biometric authentication. While no single security method can guarantee 100% security, speech, face, and fingerprint recognition are trustworthy.
Biometrics and two-factor authentication are one of the most secure ways to log into an app and authorize transactions. Biometric authentication was one of the biggest USPs in FinTech a few years ago. But it’s now a common feature in banking apps.
These are used in a variety of sectors, and marketing/selling is one of the early adopters. They have also proven to be useful to FinTech firms. Chatbots are used by modern FinTech app solutions, for both new and conventional banks. The purpose is just to provide support and expedite transactions.
Fintech apps help a lot of businesses and banking systems. Many company and application developers see this as one of their best opportunities. And, in the next three to five years, it is expected that more than 80% of the conventional organizations are expected to get a partner with Fintech companies. The ability to create Mobile Payment Applications using react-native, which lowered development costs, drew financial institutions to Fintech Apps even more. Here we are discussing the most popular fintech apps.
The best fintech apps for the year 2020 are as follows:
Because of its groundbreaking features and user-friendly interface, this online banking app was created in Brazil. And since its inception, Nubank has gained immense popularity around the world. It functions well on both Android and iOS platforms. Some of the features of this app may include worldwide acceptable credit cards, knowledgeable articles, and bonus points.
Users have the option to further categorize their expenses. The total market value of Nubank is nearly more than $10 billion.
It is US-based mobile banking service. It fits well on both Android and iOS platforms. The app provides fee-free online banking services from over 55000 ATMs.
And this app operates on a subscription model, allows Plus Members to keep track of their savings. Furthermore, members can also get a loan with an APR of 5.99 percent. The estimated market capitalization of this fintech app is $1 billion.
Revoult provides services like prepaid debit cards, peer-to-peer transfers, etc. It also makes it easy for users to send and receive money using real-time exchange rates. Access to many cryptocurrencies such as Ethereum, Bitcoin, XRP, and others through exchanges, from or to 25 fiat currencies, is a unique feature of this app. It also supports ATM withdrawals in around 120 different currencies.
This Berlin-based software assists with personal finance management have a value of approximately $3 billion. Because of the integration of many impressive features such as facial and fingertips recognition, instant money transfer with the help of Money Beam, and automatic generation of spending statistics, this app has become popular.
Plato is a financial management software created in Hong Kong. Built for both Android and iOS platforms, users can set money-saving targets with the help of this app. And users can achieve them using the best money management techniques. Also, one can easily keep track of his expenditures and savings. Customers can also use the app to build a financial profile. This has greatly increased the app’s success among the youth.
Types of Fintech apps:
Many types of fintech apps exist today.
- Payment apps:
Paypal, skrill, circlepay, Stripe, venmo, square cash, etc. are a few famous fintech payment apps.
- Fintech savings apps:
We can see many fintech saving apps available in market. Digit is the best option for maximizing saving decisions. Dobot is the most cost-effective option. Those who are inspired by visuals will enjoy Qapital.
- Fintech investing apps:
Wealth front, Stash, and Public.com. These investing apps help people to invest and earn from public companies. These apps are also helpful in maintaining the payments and have a check on your investments.
There are many other fintech apps in the market. And these apps are very helpful in both day-to-day and business tasks. These apps include budgeting apps, insurance apps. Also wealth management apps and p2p applications are a few examples.
Building a fintech app
The following are the steps to creating a stable and the best fintech app.
After proper research, design the app on the basis of required features and functions.
- Step 2:
Create a team of reliable and professional software developers, who must be able to execute the idea of the app.
- Step 3:
A crucial step is to choose the coding language and process of the app. As there are 3 ways of developing the app. One is to choose separate coding languages for android and iOS. But this is expensive in development. The second is to build a native PWA. But this method does not provide much range of choices. The third and most recommended is to use cross-platform app development. Because this helps to write one codebase for both iOS and Android.
- Step 4:
Design the interfaces with simple colors. The app should be simple to comprehend. All the features must be neatly designed.
- Step 5:
After the initial design, the app must be tested. This can be done by choosing a few users and getting feedback from them.
- Step 6:
Launch the app to the general public and keep on updating it. Security updates and checks are the most important ones.
Fintech adoption is increasing in tandem with the need for simple online services. And what are the requirements for a good project? First, learn about rules, specifications, and consumer preferences. And then figure out how to turn your concept into a fintech product.
Can we Build a Fintech SaaS App?
The simple answer to this question is YES, we can!
The application programming interface (API) is the cornerstone of any online platform. Large applications can be built by the combination of several platforms without any need of rebuilding from the scratch.
Without the end-user knowing, a SaaS can be combined with hundreds of APIs from the same ecosystem. It’s the API that allows developers to add features such as geolocation to locate a nearby ATM. Fintech apps provide partly automated due diligence and KYC/AML processes by using APIs.
How to do that?
Clients typically access SaaS solutions through an internet browser or various APIs from connected devices, with the software provider handling all maintenance. A third-party cloud-computing company usually maintains the infrastructure.
SAAS solutions have all features that the best fintech app needs to have. SaaS provides a subscription-based model. FinTech fills up the business logic. Also, Fintech apps must have a login/logout portal, flexibility, security features like two-factor authentication, biometrics, a user-friendly interface, the ability of regular updates, and much more. All these cool features make the best fintech app. And SAAS provides all of these features.
Fintech is actually “financial technology” that refers to the application of emerging technical innovations to financial products and services. Many best fintech apps help maintain and manage payments, investments, and other tasks with great ease. Payments between countries have come a long way. And fintech has made it a lot simpler for creative entrepreneurs and traders who want to expand internationally. If you’d like to learn more about what fintech can do for your business, contact us, and one of our experts will respond promptly.
Without a doubt, this is a fantastic opportunity to create a practical Fintech app. Despite the fact that there are many obstacles in the sphere and throughout the creation process, yet they can be easily solved with the help of a solid idea and a competent team.
Connect to Status200:
Status200 is one of the most reputed software development company in the domain of FinTech app development. It bears all the ingredients that are dearly needed for the quality software development of your business needs. Here at Status200, we facilitate businesses with the best fintech app development and services as per one’s needs. We have a top-notch tech team to offer the same. Our team provides quality FintTech app services with dedication and professionalism. Contact us today to digitalize and fast-forward your business. We ensure the best services at a reasonable cost.