Fintech, a combination of finance and technology started to explode in the form of business between 2010 and 2017, generating immense investments of more than $22 billion. The rise of Fintech is driven by a lot of factors focused mainly on customer experience and convenience marking the rise of new financial sectors.
On a global scale, the value of investments in Fintech sectors more than doubled between 2017 and 2018 to a whopping 112 billion USD, which was a record high for the financial sector.
Fintech software development sectors that are worth your investment
Financial technology sectors are known to be one of the most rapidly emerging sectors of the economy. These particular sectors surface with the integration of innovative technology into traditional financial processes. The growing sectors of the finance industry benefitting from software development rely on the curation of ingenious and efficient software. Here are some of the rising Fintech development sectors.
Mobile payment
Mobile payments are payments made for services or products with the help of a portable device such as a mobile phone, smartphone, tablet, etc. Since the pandemic, mobile payments have grown faster than a card and cash payments as people prefer contactless payments.
Mobile payment solution is a sector worth investing in because consumers and businesses are adopting online mobile payments via mobile payment apps and software such as Apple pay, PayPal, Paytm, Amazon pay, and many more.
Blockchain-powered solution
The fintech sector is being revamped with the introduction of blockchain technology. It has enabled an enhanced identification process, eliminated third-party apps, and reduced time and operational cost to a great extent.
Blockchain allows people to make secure financial transactions without the need of going through a service provider or a bank. Blockchain technology is now even known as distributed ledger technology. It is becoming a more grounded database than other traditional databases.
Digital banking
Software development technologies have made the finance industry agile and smart by making the process of banking easier and faster. Traditional banking activities are slowly but steadily moving towards digital ones as more and more consumers are able to make transactions with a single click of a button.
In the digital banking sector, fintech app development plays a major role as it aids in creating analytical tools for gathering financial data and developing digital programs with a simple yet creative user interface. They are even able to check their account balances, get weekly statements, make transfers and much more through net banking services.
Regulation technology/ RegTech
Regulation technology or RegTech refers to the utilization of latest technologies in the financial market for the betterment of operational and customer engagement capabilities. These software development technologies include artificial intelligence, big data, blockchain, and machine learning to take the edge off financial risks and accelerate regulatory compliance. The demand for regulatory technology is increasing day by day to facilitate transparent financial deals and is expected to unlock various RegTech possibilities.
Peer-to-peer lending
Peer-to-peer lending (P2P) allows business owners as well as individuals to lend and borrow money from each other bypassing credit unions or banks. It is one of the fastest-growing fintech business models. This process helps borrowers and lenders receive money much more quickly than a traditional bank.
Especially for individuals who are not qualifying for a traditional loan can opt for peer-to-peer lending as an option. Moreover, compared to conventional financial institutions, P2P software development is a much quicker and streamlined method for financial transactions.
AI chatbots, BI, and automation
Whether it is health care or fraud detection, artificial intelligence and business intelligence incorporated in software development are revitalizing the fintech industry completely. With the automation of operational tasks, AI chatbots are cutting costs and freeing employees from handling complicated requests. It is also increasing customer engagement by offering personalized services and recommendations 24/7. Business intelligence is enabling smart interactions by gathering vital AI analysis of customer interactions.
Crowdfunding
Crowdfunding is the process of providing monetary contributions to a group of individuals for projects or businesses provisioned in the form of equity. Crowdfunding not only enables individuals to invest in an innovative startup but also allows entrepreneurs to collaborate with their investors.
Additionally, early-stage investments can be sourced and managed effectively with the help of crowdfunding. It even helps in raising awareness for a startup to raise money online, enlist and engage with incubators. Crowdfunding plays a huge role in increasing project momentum by validating your product and idea.
Financial management platforms
With the help of specialized software and curated algorithms, the main goal of FinTech is to help business owners and consumers facilitate their finance operations through financial management platforms. Development of the personal finance applications helps people to manage their finance in one place, pay bills, set budgets, and much more altogether without any hassle.
Moreover, it helps with keeping a record of in voices, tracking expenses, managing payroll, reporting, bank reconciliation, and much more. Whether it is a small business owner or an accountant, they are always looking for financial management platforms that make their finance handling process much easier and faster. Thus, financial management platform is worth investing in for long-term benefits.
Experienced software development services providers can help in developing unique finance management solutions incorporating innovative and engaging features that attract more customers.
Insuretech
Insurance technology or Insurtech appertains to the financial innovations that are developed and incorporated to improve the effectiveness of the insurance sector. It enables the distribution, creation and administration of various insurance processes. The advanced software development technology and innovations in Insuretech make it a viable sector for investment. This includes faster claims processing, on-the-spot purchases, quick activation, and risk-free underwriting.
Fintech Trends that Will Transform Banking and Financial Services
Closing word
Fintech is not only redefining customer experience but is making the entire process of finance-related activities a lot more comfortable and quicker than traditional financial practices. Although fintech in its initial stages referred to the use of software development technology limited to trading firms and banks, now delineates a vast variety of technological interventions in commercial as well as personal finance sectors. Conclusively, with software development in the aforementioned sectors, the rise of fintech is inevitable.
